The Company finds itself preparing documents to enable a planning permit for gold production from Glenfine.

These preparatory activities are going on while around us we can all see and hear commentary  -

• gold (20 November) is described as a "tacit" currency,

• a much weaker US dollar is being forecast by many observers,

• when gold becomes " the money" the finders become increasingly important, and those who produce gold more-so.

The law says looking for gold at Company scale requires that before- hand you select your ground and obtain the rights.

In Victoria, that takes some time - this Company has at Allendale an established position for exploration right in the centre of one of the significant Victorian goldfields, hidden by lava cover, together with an advanced program about production of gold from Glenfine.

This Company has listed on NSX Cumulative Preference Shares, redeemable 31 December 2010 by delivery of 2 oz physical gold. The development activity related to those shares is described below the graphs.

The first graph below shows gold prices in US dollars when we prepared to issue the preference shares last May.

The second graph shows similar data for 22 November 2009.

Differences between prices for gold indicatesthe extent of changing perceptions about the value of US dollars in the future, in my opinion.

 

 

 

 

 

 

 

We should not be surprised the holders of these Preference shares show no desire to sell.

At the General Meeting 20 June 2009, Members and proxy voters very strongly responded to the proposal enabling them to personally acquire rights to physical gold from the intended Glenfine Project. These new rights for Members came with the purchase of Cumulative Redeemable Preference shares.

As part of this voting, Members authorised an entitlement for those who acquired Preference shares at that initial time to subsequently apply for additional Preference shares.

Directors on 2 November 2009 invited holders to apply for those additional shares on or before 18 November 2009, total payable being the same $1000 per Preference share as before (but in two payments). The response has exceeded 135 applications.

Application to NSX to list the new Preference shares will not occur until all are fully paid (anticipated date 31 January 2010).

These subscription monies from the Preference shares are held in a nominated Mount Rommel bank account, and expended for the purpose of implementing the Glenfine Project (as it is defined).

The Explanatory Memorandum states that the Company lodged its OIS to raise funds, to finance

• the finalisation of the proposed work program for Glenfine (Done )
• the obtaining of all necessary permits and approvals to enable Mount Rommel to commence mining operations at Glenfine (In progress)
• the construction of a treatment plant (as per the definition of "plant" in the MR(SD)Act, Victoria) (Now part built, on hold until permit completion

The expenditures to date have been strictly in accord with the above stated purposes, which are also stated in the OIS.

The Directors understand that the build and construction period of the key waste disposal facility (the principal item being permitted under several regulatory authorities) will take several weeks post-permit. The treatment plant construct has been sufficiently advanced so that its completion could now be achieved in the time needed to construct the waste disposal facility, known as a "TSF". Treatment plant completion is now on hold.

Members who attended the AGM were appraised of progress, and of the continued development of prospects. The mood of the day was definitely 'up-beat'.

Fred Hunt
Chairman
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Previous Chairman's Outlooks
14 November 2009
6 November 2009
5 October 2009
25 September 2009