CHAIRMAN'S OUTLOOK
(15 May 2009)
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In this Outlook, we note having arrived at quite a new stage.
This is a time when we begin to measure, in various ways, the steady progress at Glenfine. Permits still have to be gained; however, we are approaching that milestone when project funds need to become firmer.
Yesterday, 14 May, 2009,the Company lodged an Offer Information Statement ( OIS ) with ASIC. This document sets down a plan to fund operations at Glenfine, given the financial circumstances unfolding everywhere. As a plan, it would be impossible without good assay results for gold in the tailings, and the Agreement of the landowner for access. As a plan, it is adventurous!! And again, Directors seek the good-will of Members.
Both NSX and this web-site publish the OIS. --- go to "Investor Information" to download the document.
The proposal contained in the OIS only proceeds after all Members have been given the opportunity to vote on it. Proxy forms for voting by mail will be forwarded to Members shortly. The date for voting is 20 June next -- but -- Members are encouraged to see what the OIS is about.
At Glenfine, the Company holds gold rights by way of a granted mining licence, MIN5492. By prior Agreement, after the deduction of costs, the gold won belongs 80% to Mount Rommel and 20% to a private party. Both parties have valuable practical skills and experience to contribute for gold recovery.
The basis for the OIS is an assessment that 40,000 tonnes of tailings do exist on this site, and that they will be amenable to retreatment, to recover an "average" of 2.5 grams gold per tonne treated.
The public releases of the Company have shown how this "40,000" figure is the sum total, were old tailings to be extracted from two adjacent areas, termed "Panel 1" and "Panel 2", -- areas which contain at near surface tailings undisturbed since year 1908.
So, just how large is 40,000 tonnes in relation to this site? The text and plan below explain.
Cyanidation, probably in the early 1940s, has already taken place at Glenfine. The workers of that time left behind just one dump of treated sands.
This dump or heap of waste retreated material is the area outlined in red on the plan below. Most of this area is outside the boundary of MIN5492.
Our associate party knew it carried little gold, so it was excluded from the area pegged to define MIN5492.
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We can reasonably assume that 1 tonne of tailings occupies a space of 0.63 cubic metres. On that basis, this heap outlined in red contains about 24,000 tonnes. Using this heap for "scale", it becomes much easier to appreciate what space will be needed for the activities proposed in handling all 40,000 tonnes, as intended.
On the available historical information, an aggregate of about 67,000 tonnes passed through mine battery no. 1 and 2,, prior to year 1904.
The information in the above paragraph, together with site observations, indicate that as an assessment, a residual of 40,000 tonnes is sensible.
The mass of tailings surrounding and beyond Panels 1 and 2 are from the washing of deep lead gravels, and hold insufficient gold to warrant retreatment. A diagram of Panels 1 and 2 is to be found in the NSX release dated 3 April, 2009.
Fred Hunt
Chairman
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