The "going concern" stuff as well as much of the other language detailing worst case scenarios is standard legalese to protect the company, basically so no matter what happens they can say you were warned.

A few quick observations based on skimming the document:

1. Looks like there is little cash on hand.

2. They have paid for a number of things w/ stock.

3. There are now ~ 100m shares out. Some dilution compared to previous numbers, but still not bad if we can get to the revenue producing stage fairly soon. It will be interesting to see if the share buy-back program is still in the plans.

4. As I've mentioned before, the overriding need is to get the mill running and producing revenue. Costs that can be put off until later are not as much of a concern, since projected revenue should be more than adequate to cover any forseeable costs. The mill costs are projected as follows:

·

The purchase and the preparation of property for mill use will cost us about $300,000;

·

The mill itself with installation and certification $260,000;

·

Completing the purchase of small tooling and powering the mill $150,000;

·

Moving ore to stockpile at the mill $230,000; and

·

Start up mill salaries until revenue flows in $430,000.

The purchase of the property is spread out, so most of the price will be paid out of revenue. I'm not sure how much of the "mill itself" has already been paid for. I think they are probably refering to the building rather than the milling equipment. Moving ore need only be done to the extent that the mill has an adequate supply, so some of that price may also be delayed until the mill is operational and producing revenue. So it looks like they will have to come up with a little over $1m to get the mill running.