The year 2009 has been quite remarkable.  Here are some personal opinions.

The most evident measure of support for the Company and its activities is seen in the continued requests from members for preference shares.  Shareholders are still writing in, usually asking for “an extra one or two” – these are letters addressed to directors c/- the Company Secretary and enclosing full payment per preference share.  At last count, there were still 9 available, from a total of 500.

The purchasers of these prefs know that gold is also cash, highly liquid in its own right and with a terrific upside (my opinion).  I am not the only person with this opinion – taking good note that although 334 prefs are open to trade on NSX, not one seller!  On or about 31 January 2010 NSX will be requested to list those prefs allocated (sold) but not yet formally registered with Link Market Services.

The price of gold in US dollars is up almost 40% in the year just gone.

The rising price of gold is of little use to the members of this Company until we turn in the yellow metal.  In all the to and fro with Government, and the ins and outs of discussions chaired by the State Mining Warden, we have learnt that important lesson – perhaps the “blockages” which generate impatience are partly because all are pressed by “new rules” – all including those employees of government, so constrained by policy.

If we as a Company are to have great discovery or development stories which can become exciting “news” regardless of market conditions, then we need the regulator to understand our business.  Here are two instances to explain why “knowing” is not enough these days –

1. GLENFINE

I believe the essence of success related to the works proposed for Glenfine is tied up in actually demonstrating to the regulator(s) the we can reduce those piles of sands to three (3) items –

• The gold
• The clean waste (about 95% of the total), and
• The stuff to be put in the permanent holding facility (the TSF).

We are this far along the approval procedure path because people like those at Heritage Victoria believed we should be supported, so as to demonstrate what could be done.  Going into January 2010, a tonne of this Glenfine material we have in Melbourne will be used to produce “the proof”, and thus provide the regulator with an ability to sign-off in support.

For the regulator, we are yet to demonstrate that we know the really valuable technique – how to make provision for an extension to the life of a TSF, without any change to its size.

When permits issue, we pass from the reviewers list of “who is in exploration?” to the one under the declining risk category – “who is into construction?”

2. CLUNES

If the NSX statistics are examined, the present market capitalisation of this Company is given as $1.91 million.  No figure is added for the value of the prefs, because the statistics cannot function without sellers – there are no sellers.

The NSX statistics reflect present opinion.  Those sellers of Ordinary shares have no way of assessing the present value at Clunes.  The Directors can only say –

• After one full year of discussion with the regulators about “reasons” and the renewal process, government have accepted a document as sufficient for their procedures (this following the close of hearings before the Warden 18 December 2009).
  
• When MIN 5391 has been renewed (we expect advice late in January 2010) the Directors will release to the market a “forward-looking statement” – the interpretation on which that renewal will have been based.
  

The two pictures which follow show the nature of surface conditions at the south end of MIN 5391.  The Company is asking government to authorise sites for drilling, one of which is where indicated on the first photo.

In closing, my thanks to everyone who has in some way or other encouraged and supported the activities through a rather demanding year.  Year 2010 is full of promise.  Patience, patience, patience!!!  Those who search the markets for new opportunities have to discover there is value in those listed on NSX, before attention turns to us.

Good Festive Season to all on behalf of your Directors.

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