According to the PDAC presentation there seems to have been a significant decline in cash to $2.7 million from over $5 million in November 2008. Any explanation available for this? Thanks.

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You'll have to be a bit more specific and point me in the direction of this presentation, otherwise it's a red herring. The company officially has $2.67 million in cash and cash equivalents as of the end of the year. I do know that the company experienced a net loss of $2,487 876.00 total for the entire year in 2008. This equates to a burn rate of $207000.00 a month. But it does not take into account the fact that the company has gone into wealth preservation mode. In the Q3 2008 report, it lists expenses as 608,837. This equates to a burn rate of $202,000.00 a month. Their cash position was not 5 million in November. It was $4,633,871.00 as of the end of August 2008. No doubt they still had a lot of drilling bills and wages to settle.

All of this information is quite clearly laid out in their required financial statements for 2008 (annual) and Q3 2008 at sedar.com.

Assuming that with no drills turning, they can substantially reduce costs (and isn't this a reasonable assumption?) They could reduce their burn rate to at least $100,000.00 and easily survive for another two years on the cash they have on hand.

In summary, I see nothing wrong with the numbers.