Investorpaul's Investment & Analysis Blog

Four Weeks Of Annual Leave

2012-03-14T11:04:00.001+11:00

Hi Guys,

Fortunately for me (unfortunately for the blog) I will be on annual leave for approximately four weeks. I am going on my first overseas trip in a long time and will not be back until the 18th of April 2012.

Obviously, I will have access to the internet while travelling to ensure that I can keep an eye on my investments. It will however be too hard/time consuming to post in-depth articles or analysis during this period.

I may get one or two posts out while waiting at airports, etc and will be back into the full swing of things as soon as I return.

There have also been two announcements by Kentor Gold out this week which I would like to write about. I am not sure I will get a chance before I leave so check out the announcements below and feel free to let me know your thoughts.

http://www.asx.com.au/asxpdf/20120312/pdf/424yn629d6jz8q.pdf

http://www.asx.com.au/asxpdf/20120314/pdf/425084jqdk3qcf.pdf

Weekly Update: Week Ending 9 March 2012

2012-03-14T10:59:00.001+11:00

To calculate the weekly performance on my portfolio I take the close from last Friday to work out the percentage increase/decrease in each stock. This is compared to the ASX 200 (Code: XJO) and the Small Ords (XSO). The Small Ords is comprised of companies included in the ASX 300 index, but not in the ASX 100 index. I include the Small Ords in my comparison as it helps highlight the markets appetite for risk.

Market:	Close (Friday 02/03/12):	Close (Friday 09/03/12):	Percentage Change:
XJO	4273	4211	-1.45%
XSO	2504	2458	-1.84%

Sorry for the late report. Flat out preparing for my overseas trip (see next post).

Last week the market was down with the ASX 200 down 1.45% and the Small Ords following suit by dropping 1.84%. At the time the market appeared to be in “no man’s land”. Neither the bulls or bears were really winning and we were waiting for a big move one way or another.

Code:	Weighting:	Share Price Friday (02/03/2012)	Share Price Friday (09/03/2012)	Percentage Change:	Weighted Change:
OBJ	18.61%	0.020	0.023	15.00%	2.79%
MHM	16.26%	0.860	0.830	-3.49%	-0.57%
KGL	30.30%	1.420	1.460	2.82%	0.85%
Trading	14.68%	1.420	1.460	2.82%	0.41%
Cash	20.16%			0%	0.00%
TOTAL	100.00%			5.715%	3.49%

The portfolio continues to perform okay, with the standout performer being OBJ. The price increased by 0.003 cents or 15%.

Kentor Gold also managed to put on another 2.82%. MHM continues to fall which always seems to be the case when news dries up and closed the week down 3.49%.

Overall the portfolio managed a weighted gain of 3.49%, outpacing the broader market by over 5%.

Code:	Weighting:	Share Price Friday (02/03/2012)	Share Price Friday (09/03/2012)	Percentage Change:	Weighted Change:
OBJ	23.31%	0.020	0.023	15.00%	3.50%
MHM	20.36%	0.860	0.830	-3.49%	-0.71%
KGL	37.95%	1.420	1.460	2.82%	1.07%
Trading	18.39%	1.420	1.460	2.82%	0.52%
TOTAL	100.00%				4.37%

Without cash being considered the gain as 4.37%.

Code:	Weighting:	Purchase Price	Current Price:	Percentage Change:	Weighted Change:
OBJ	22.61%	0.023	0.023	0.00%	0.00%
MHM	21.97%	1.100	0.830	-24.55%	-5.39%
KGL	22.10%	0.980	1.460	48.98%	10.82%
TOTAL	66.68%				5.43%

The portfolio also continued to move further into profit (even when excluding cash) and is now up 5.43%.

February 2012 Monthly Report

2012-03-04T14:55:00.000+11:00

February was a very odd month on the market. The ASX 200 only managed to put on 0.84% whereas the Small Ords increased by 6.18%. Such a strong difference suggests to me that investors were selling out of blue chip stocks and investing in the more speculative end of the market.

Market:	January Close	February Close	Percentage Change:
XJO	4262	4298	0.84%
XSO	2379	2526	6.18%

The strength was also reflected in my portfolio. As the numbers below show, both KGL and MHM managed to put on gains. Kentor managed to increase by over 20% with MHM putting on a respectable 5.26%

Code:	Weighting:	Share Price End of January	Share Price End of February	Percentage Change:	Weighted Change:
OBJ	19.21%	0.019	0.019	0.00%	0.00%
MHM	17.57%	0.855	0.900	5.26%	0.92%
KGL	27.83%	1.200	1.460	21.67%	6.03%
Trading	13.48%	1.200	1.460	21.67%	2.92%
Cash	21.91%			0%	0.00%
TOTAL	100.00%			16.199%	9.88%

I continue to hold the trading parcel of Kentor Gold shares as well and remain highly leveraged to any move it its share price.

Out of the total monthly portfolio gain of 9.88%, almost 9% of that (on a weighted basis) was attributed to Kentor Gold.

Code:	Weighting:	Share Price End of January	Share Price End of February	Percentage Change:	Weighted Change:
OBJ	24.60%	0.019	0.019	0.00%	0.00%
MHM	22.49%	0.855	0.900	5.26%	1.18%
KGL	35.64%	1.200	1.460	21.67%	7.72%
TOTAL					8.91%

Removing cash and the trading parcel of Kentor gold shows an increase of 8.91%.

Code:	Weighting:	Purchase Price	Current Price:	Percentage Change:	Weighted Change:
OBJ	22.61%	0.023	0.019	-17.39%	-3.93%
MHM	21.97%	1.100	0.900	-18.18%	-3.99%
KGL	22.10%	0.980	1.460	48.98%	10.82%
Cash	21.30%			0.00%	0.00%
TOTAL	87.98%				2.90%

Finally, the portfolio as a whole (excluding the trading parcel) remains in profit and up 2.90%

Weekly Update: Week Ending 3 March 2012

2012-03-04T14:53:00.000+11:00

Market:	Close (Friday 17/02/12):	Close (Friday 17/02/12):	Percentage Change:
XJO	4283	4273	-0.23%
XSO	2503	2504	0.04%

It was a relatively quiet week on the ASX with the XJO closing down 0.23% and the XSO adding a very minor 0.04%.

Code:	Weighting:	Share Price Friday (24/02/2012)	Share Price Friday (02/03/2012)	Percentage Change:	Weighted Change:
OBJ	18.91%	0.019	0.020	5.26%	1.00%
MHM	18.20%	0.900	0.860	-4.44%	-0.81%
KGL	27.84%	1.220	1.420	16.39%	4.56%
Trading	13.49%	1.220	1.420	16.39%	2.21%
Cash	21.56%			0%	0.00%
TOTAL	100.00%			11.202%	6.96%

On a portfolio basis however it was another very strong week with Kentor Gold increasing by a further 16.39%. I believe a lot of this strength is due to market becoming more bullish on Andash as Simon Milroy was apparently in the Kyrgyz Republic during the week meeting with the Government/Parliament. I also think our move towards producer status with Burnakura is beginning to be recognised by the market.

OBJ also managed to put on another 5.26%. It did trade higher, hitting an intra-day high of 2.2 cents during the week. Without news however I think it could go back down to 0.019 cents where it seems to stay on a regular basis.

MHM was the poor performer and closed down 4.44%.

Overall the portfolio increased by 6.96% on a weighted basis.

Code:	Weighting:	Share Price Friday (24/02/2012)	Share Price Friday (02/03/2012)	Percentage Change:	Weighted Change:
OBJ	24.11%	0.019	0.020	5.26%	1.27%
MHM	23.20%	0.900	0.860	-4.44%	-1.03%
KGL	35.50%	1.220	1.420	16.39%	5.82%
Trading	17.20%	1.220	1.420	16.39%	2.82%
TOTAL	100.00%				8.88%

Removing cash from the portfolio and the return increased by 8.88%, which is a very strong result.

Code:	Weighting:	Purchase Price	Current Price:	Percentage Change:	Weighted Change:
OBJ	22.61%	0.023	0.020	-13.04%	-2.95%
MHM	21.97%	1.100	0.860	-21.82%	-4.79%
KGL	22.10%	0.980	1.420	44.90%	9.92%
TOTAL	66.68%				2.18%

Finally the portfolio (shares only) finally hit profit. The portfolio is now up 2.18% which is something I have been waiting to see over the last couple of months. If I had included cash in this equation I would have been in profit a while back, however, I wanted to take a more conservative approach with my calculations.

Everything You Need to Know About MHM Metals

2012-03-04T14:51:00.000+11:00

The other week MHM metals released a company presentation that in my opinion is outstanding.
I know I am biased, but if you ever wanted a single document to tell you where MHM came from, where they are now and where they intend on going in the future then this is it.

I recommend you all give it a read as it is highly detailed and very informative.

I also sent managment an email to let them know that the presentation was perhaps the best I have ever seen.

Link to the presentation.

MHM Announcement: February Monthly Report

2012-03-04T14:47:00.000+11:00

MHM recently released a month update on their operations. As I have done in the past I will provide my comments under the headings used in the report.

Australian Aluminium Operations

The report provided confirmation that 24 hour processing is currently taking place at the Geelong Facility. This is important because once we have processed the part-processed stockpiled salt cake we can begin work on the 160,000 of landfill. The stockpiled salt cake is expected to take three months to clear.

The other important point that I am glad MHM mentioned was that the potential shut down of Alcoa’s Point Henry Smelter will have no impact on MHM. Point Henry is a PRIMARY smelter, whereas MHM processes salt cake from SECONDARY (or recycled) aluminium industry/plant. This will hopefully clear up any confusion in the market place surrounding this.

Thirdly, the export of the AL80 is scheduled to commence on the 5^th of March 2012 with customs finally approving the paperwork. Impex has exclusivity for all AL80 produced in Australia, however MHM has received expressions of interest from other countries interested in the AL80 produced from our US plant.

US Operations

The preliminary budget estimate is US$25 million for the construction of a 250,000 tonne per annum plant. However, given the property has existing buildings/infrastructure in site there is a strong chance this figure could be reduced to below US$20 million. Targeted earnings at $25 million per annum with the full capacity reached within 12 months of commissioning.

Silica Division

No new information was provided other than to say that MHM continue to engage with their corporate advisors and that a potential spin—off will take place.

Link to announcement

So What About Cortona Resources?

2012-03-02T16:28:00.001+11:00

Hopefully you guys saw my post a week or so back where I shared the summary of past Cortona announcements. Analysing this information forms a large part of my background research into a stock before making an investment decision.

If you did read that you may be wondering what happened and if I bought stock. Well, the answer is no. I do believe the share price has the potential to increase, maybe even by 100%, but as you know this portfolio is about uncovering 10 baggers. The potential of CRC to increase by substantially more than that you then come down to future drill results, increase in production (unplanned at this stage) or an increase in the price of gold (IN MY OPINION ONLY – DO YOUR OWN RESEARCH). And although I think all those things can happen, we don’t know if they will and therefore cannot build them into our valuation model.

This contrasts to a company like Kentor Gold where we have a stated policy of developing 3 mines in 3 years and roughly know what level of production we are aiming for. The other thing that put me off CRC is that its NPV (as quoted by management presentations) is $82m at 8%. Firstly, I prefer using a higher discount rate (I use 12% at Andash and 10% for Kentors Aussie Assets) and secondly CRC’s market cap is already $32m odd million and they still need to raise funds.

This is what I posted on Hotcopper:

“Even in the company presentation released today management is quoting a NPV of $82m. (I.e that should be the theoretical value of the company on the basis of their one and only project)

The company currently has 221m shares on issue and as per my post above will prob look to raise approximately $15m ($5 for cap-ex shortfall, $10 for op-ex and exploration).

So say they issue 1 new share for every 3 existing (largely to institutions with a small retail component). This would equate to an extra 73.6m shares. I will be generous and say that they raise at 15cents (i.e. approx current SP).

This would bring in $11,050,000 so a little less than what I think they need (but I'll be generous again).

They also need to give Molly Mines $4m shares at the time of development funding. So i.e. on the same terms above. This equates to another 26.6m shares.

So after all this CRC will have:

221m from existing shares

73.6m shares from the CR

26.6m shares for Molly

TOTAL: 321.2 million shares.

So even if I am generous and use a MC of $100m then that would equate to a share price of 0.311c

At NPV ($82m) only 0.25c

So yes the SP can and probably will go up and I am not trying to say it is a bad project or company, but to generate really strong gains (multiples of hundred, ALA NST) you need to be convinced that A. mine life will be extended and B. production will be expanded.”

Clearly showing that are additional shares have been issued that a target price of 25 – 31 cents is appropriate.

There was also a concern with posters saying that the company would average 50,000 ounces per year when the LOM production is only 248,900 over 6 years. I posted this on Share Scene which accurately summarises my thoughts:

“Hi Guys,

Yesterday I posted a series of questions that required further investigation. As a result I have decided to start a new thread where I can share my answers.

Problem One:

Total production over LOM was stated as 248,900 oz.

Average production p.a. was stated as 50,000 oz. 50,000 oz x 6 (LOM) = 300,000 which is greater than the total amount of production/known reserves.

Furthermore, using the production figures also equated to:

I have Year 1 as 270,000 tpa @ 5.1 g/t Avg / 31.1034768 (troy ounce) = 44,271 oz x
recovery rate of 95.7% = 42,367oz

Years 2,3,4,5,6 = 333,000 tpa @ 5.1 g/t Avg / 31.1034768 (troy ounce) = 54,109 oz x recovery rate of 95.7% = 51,782

Total Year 1 = 42,367
Total (Yr 2-6) = 258,910
TOTAL = 301,277

Obviously there is a discrepancy somewhere.

The Answer:

I believe the average of 50k oz has been taken from the figures on page 2 of the feasibility that says the annual range will be between 36,000 oz and 65,000 oz.

36 + 65 = 101/ 2 = 50.5 avg

However, to stay within the total production (LOM) of 248,900. I have plugged in the following figures:

Year 1 = 35k oz
Year 2-6 = 42,780 oz
TOTAL = 248,900

This also allows my own DFC to match CRC's figures for NPV, Net margin, etc. As a result I know the figures stated above must be what CRC is using in their feaso (give or take a few oz).

Obviously this means that the average production rate will not be 50k BASED ON THE FEASO only.

It is however important to note that the processing capacity of 330,000 tpa, grade of 5.12 and recovery of 95.70% would allow for 51,986 oz to be mined each year.

Therefore the plant has the capacity to achieve 50k oz if additional resources are identified.”

In summary:

I believe it was incorrect to say avg production will be 50k oz, when in fact it will 41,483 (248,900/6). You must remember than the DFS is based on the known resources/reserves at the time, not what could be found in the future.

However has luck would have it 50k is actually achievable given the plant’s capacity and if additional reserves can be identified.”

Finally, if CRC come out and say they have plans to lift production to 75k oz in one year or two then it would be a whole different ball game. But at the moment there is not enough potential upside relative to the risk taken to include it in the portfolio.

As always please do your own research and do not take anything I say as financial advice. Please also note that I am not saying management or the Company are bad. CRC could be a very good investment for some. It does just not fit the criteria I set for my portfolio.

Kentor Gold Trading Update

2012-03-02T16:22:00.003+11:00

I am still holding my Kentor Gold trading parcel, which is now entering its third month within the portfolio. However you cannot mock the share price performance since last Monday which has rallied more than 40% from the intraday low of $1.005 in just two weeks.

The rally kicked off with the Market Insight Report (last Monday), was given a further boost with the Burnakura Drill Results (this Monday) and has remained fairly strong ever since. I believe this is due to the progress that appears to be being made at Andash.

Now, obviously some of you would be thinking it’s time to cash in the trading parcel and try and pick it up again in the low $1.30’s. I agree that it is very tempting and normally I would have taken this chance (after learning what happens when I hold too long). However the speculation surrounding Andash is just too high at the moment. We have Simon Milroy in the Kyrgyz Republic and news articles floating around about him meeting the Parliament and Government Ministers. To sell now would risk missing out on the move I have been waiting so long for (Andash approval).

The other thing to consider is that my trading parcel is not large so although the percentage gains look pretty good at the moment or a dollar level it is not all that significant (relative to the rest of my holdings). I am therefore willing to take the risk of seeing the share price drop back in the short term and hold for the time being. I remain confident that a price in excess of $1.50 will be achievable on the back of Andash approval, if not higher.

Kentor Gold – Andash Project

2012-03-01T16:19:00.001+11:00

The other day I was informed on Hot Copper and Share Scene that Simon Milroy, the Managing Director of Kentor Gold, would be in the Kyrgyz Republic to meet the Prime Minister. Obviously you can never take anything you hear on a forum as gospel, but it was interesting to hear non-the-less.

A day or so later this article was posted (please excuse the poor English as it was translated using Google):

http://news.namba.kg/read.php?id=208851

*Translated to English*

The Australian owner of the field "Andash" discuss with the authorities of Kyrgyzstan future mine
February 28, 14:03 Source: K-News

Simon Milroy - the head of the Board of Directors "Kentor Gold", which owns the mine, "Andash", arrived in Kyrgyzstan to find the position of leadership on the development of the mine. This was announced today, February 28, the press service of OJSC "Kentor Gold."

According to her, Simon Milroy arrived in Kyrgyzstan today, and in early March, plans to meet with government and parliament, which banned the development of the field "Andash" in June 2011 due to the potential environmental threat.

The Government of Kyrgyzstan to the current date is not officially reacted to this decision, although in November 2011 the company "Kentor Gold" suggested the government to deduct 20% of revenues from the development of the field.

In this regard, Simon Milroy going to find out the position of the country's authorities with respect to the mine "Andash" and prospects for further work in the country of "Kentor Gold." It is planned that following the visit of the company's management decides to increase or decrease the amounts of investment in Kyrgyzstan.

"For the development of the field" Andash "has already received approvals, acquired by road and construction machinery, mining equipment ordered, social package is designed for the local population. Over the next 1.5 years, the company is ready to invest in the project is 106 million dollars, and payments to the budget since the start of production will amount to 1.5 billion soms per year, including dividends to the state ", - noted in a statement.

For the record : Simon Milroy - Managing director of JSC "Kentor Gold." Specialty - a mining engineer, has 20 years experience in metal extraction. Member of the Australian Institute of Mining and Metallurgy.

JSC "Kentor Gold" owns mines in Australia and Kyrgyzstan - mine "Andash." In Kyrgyzstan, the company has been operating since 1997 and has invested in exploration in the country of 10.8 million dollars.

This confirms that Simon Milroy has/had arrived in Kyrgyzstan and would be meeting the government and parliament. The “ban” which the article refers to was a decision that was forced through the parliament in the middle of last year and led to the delays we currently face. This was also at the time when the village was against the project, which now appears to have changed.

I remain confident that there will be a positive outcome for Andash and believe that this article is further evidence of that.

Kentor Gold Strikes High Grade Gold at The Murchison Gold Project

2012-02-28T16:18:00.000+11:00

Kentor have released an announcement on some really strong drill intercepts which form part of the Burnakura Gold Project. The highlights of the announcement include:

· 5m @ 102.2 g/t gold from 43m (incl. 1m @ 474.5 g/t gold)

· 17m @ 9.6 g/t gold from 43m (incl. 1m @ 103 g/t gold)

· Potential to increase production and lower costs for the initial 2012 operation.

Those results on their own are strong for any mine in Australia, but are even more significant when you on consider than the estimated mine ore grade is currently 1.65 g/t. (i.e. significantly lower than these hits).

Also given the Burnakura is a high cost project anything that lowers costs or increases ounces mined is very important.

I posted this on Hot Copper which accurately describes to potential of increasing the average grade per tonne mined. The 3 g/t Au grade mentioned below is the average grade for Stage 1 which will source ore from four open pits including Lewis.

“the 24,000 oz (stage 1) is based on an average grade of 3 g/t Au. Now I am not sure how much we may be able to increase the average grade (if yesterday’s results continue) But some rough maths shows that if the grade increases to 4 g/t Au (even if it was just for year 1 or 2) that would equate to production of approx 32k oz in those years.

This is an extra 8,000 oz which at $1,600 AUD POG generates an additional $12,800,000 for essentially the same processing costs.”

As it is the grade that it is increasing, not the amount of material we process, any extra gold recovered is essentially bonus money that was not initially calculated as part of the stage one feasibility.

The announcement also says that the top 30 meters of the two drill holes have not been assayed so it will be interesting to see how they turn out.

Weekly Update: Week Ending 24 February 2012

2012-02-26T11:21:00.000+11:00

Market:	Close (Friday 17/02/12):	Close (Friday 17/02/12):	Percentage Change:
XJO	4195	4283	2.10%
XSO	2412	2503	3.77%

It was a good strong week on the markets with the ASX 200 gaining 2.10% and the Small Ords powering ahead by 3.77%. Over the last couple of weeks I have been paying less attention to the general market as all of my stocks seem to be increasing/decreasing in value based on company specific events. That won’t necessarily be the case each week but it is just something I have noticed recently.

Code:	Weighting:	Share Price Friday (17/02/2012)	Share Price Friday (24/02/2012)	Percentage Change:	Weighted Change:
OBJ	21.64%	0.020	0.019	-5.00%	-1.08%
MHM	17.04%	0.775	0.900	16.13%	2.75%
KGL	26.55%	1.070	1.220	14.02%	3.72%
Trading	12.86%	1.070	1.220	14.02%	1.80%
Cash	21.90%			0%	0.00%
TOTAL	100.00%			13.055%	7.19%

In regard to my portfolio what can I say other than they say a week is a long time in politics but the same also holds true for the stock market. Last week I was getting more and more disillusioned at the performance of MHM and KGL in particular. The value was always there but they both just lacked a catalyst to reverse their recent sell off.

Kentor Gold got the boost it needed with a Company Insight Report on Monday. It had hit an intra-day low of $1.01 before rallying 20% over the Monday and Tuesday. It then took break during the middle of the week before a strong finish on Friday where it closed at $1.22. This equates to a gain of 14.02% compared to the close last week of $1.07.

My trading parcel of Kentor Gold is also back in profit which is pleasing to see.

Kentors performance in itself would have made my week but on Thursday we received a company update from MHM metals that saw the share price reverse strongly from its lows in the mid-high 70 cent region. The buying continued on Friday with a company presentation that was not market sensitive, but clearly laid out where the company has come from, where it is now and the potential it has to offer in the future. As a result of these two announcements MHM closed the week 16.13% higher at 90 cents.

OBJ was the poor performer dropping 5% to 0.019 cents. It appears we are in a period of no news and as a result the stock has been dropped by traders and short term investors for the time being.

Overall the portfolio gained 7.19%, significantly outperforming both the ASX200 and the Small Ords.

Code:	Weighting:	Share Price Friday (17/02/2012)	Share Price Friday (24/02/2012)	Percentage Change:	Weighted Change:
OBJ	27.71%	0.020	0.019	-5.00%	-1.39%
MHM	21.82%	0.775	0.900	16.13%	3.52%
KGL	34.00%	1.070	1.220	14.02%	4.77%
Trading	16.47%	1.070	1.220	14.02%	2.31%
TOTAL	100.00%				9.21%

Without cash the portfolio managed a gain of 9.21%

Code:	Weighting:	Purchase Price	Current Price:	Percentage Change:	Weighted Change:
OBJ	22.93%	0.023	0.019	-17.39%	-3.99%
MHM	22.28%	1.100	0.900	-18.18%	-4.05%
KGL	22.41%	0.980	1.220	24.49%	5.49%
TOTAL	67.63%				-2.55%

The long term holdings of the portfolio (excluding KGL trading stock) remain 2.55% under water. I hate to speculate on future price performance, but if we get another strong week or two I am confident of closing the gap to break even shortly.

Kentor Gold - Updates 3 Emerging Near Term Projects

2012-02-24T16:23:00.000+11:00

For those of you who keep a close eye on my blog and in particular the weekly reports you would know that since consolidation Kentor Gold has been a poor performer. It has come down off its highs of approximately $1.30 and on Monday almost hit $1.

Then came a Company Insight Announcement. I have mentioned in the past that these are a great communication tool that provides little snippets of information that we would otherwise miss out on. Anyway the market responded and the share price climbed 20% over the next two days. It settled down during the middle of the week and is now back up to around $1.20 where it will hopefully close for the week.

The report talks about each of our projects and really emphasises the fact that Burnakura is a multi-stage project and that we should not just focus on stage one. In Simon Milroy’s words “the second phase, heap leaching, oxide ore is what really makes the project perform as this will increase the gold output and reduce the operating costs”. It is also important that this second phase does not need a huge additional amount of capital expenditure as we will already have most of the equipment required.

The phase one will also only included mining from four of the twenty open pits at the project so there is plenty of upside in future mine life. To help assist with this goal Kentor is currently undertaking a 20,000m exploration program at the Murchison project. The program is designed to infill drilling around the initial mining areas to increase confidence and extend the resource. It will then move to Gabanintha.

There wasn’t a whole heap of information provided on Andash, but if one thing stood out it was “If we meet those target numbers we will produce free cash flow each year that is equal to our current market capitalisation”. If that doesn’t highlight the potential of this project and the rewards on offer for Kentor Gold shareholders then I don’t know what would.

On to Jervois and it is pretty clear by now that management are extremely positive on the potential of the project. In the announcement Simon Milroy stated “Jervois is shaping up as a pretty major multi-metal mine, and it could well emerge as the largest of the three current projects”. Kentor plans to complete a scoping study next month and then proceed straight into a full feasibility study. The scoping study is currently examining the economics of a 1.5 mtpa floatation concentrator producing a copper concrete with significant precious metal credits. Kentor is also investigating the production of a magnetite concentrate from the floatation tailings, which is pretty significant in my opinion.

Overall it was a well written and fairly well detailed report. The market obviously approved as we saw the share price respond strongly.

Linkto announcement.

Cortona Resources: Research & Notes on Past Announcements

2012-02-19T11:56:00.000+11:00

For those of you who follow my blog closely you may have noticed that I have been researching a company called Cortona Resources. As part of my research I review all the company's past announcements before looking at the financial aspects of the project. In the past I have not shared this with my blog followers, however, today I have decided to ut a copy of my 75 pages on notes up on my blog.

Please be aware that I have not re-read these notes for spelling, nor double checked that I wrote each number down correctly. As a result please do not rely on my notes. Instead read the announcement itself to double check everything for yourself.

I have not decided whether to invest in Cortona yet as I have some questions concerning the feasibility study that I continue to work through. I will certainly let you know if I do decide to buy.

9 February 2007

Cortona Enters Into Agreement to Purchase Moly Mines’ Gold Assets

http://www.asx.com.au/asxpdf/20070209/pdf/310wd0pnghwzb0.pdf

General Information:

· Cortona has entered into an agreement to purchase 100% of Moly Mines Ltd’s NSW Gold Assets.

· The Assets incorporate six gold projects covering a total area of ~1,500km² and include the flagship Majors Creek Project which encompasses recently delineated primary gold resources within NSW’s largest area of historic alluvial gold workings.

Highlights:

· A recently defined 310,000 oz inferred resource at Dargues Reef (Majors Creek Project), which remains open at depth and along strike.

· Recorded historic production of ~1.1 Mozs from “alluvial” workings. (Recent work indicates that much of this “alluvial” gold was in fact won from highly weathered primary stockworks).

· Very limited modern exploration

· Numerous untested targets at drill-ready stage

· Widespread high-grade rock chips and anomalous soils highlighting significant regional exploration upside.

· Considerable scope for additional resources at the Christmas Gift and Booths Reward Projects.

· Experienced and competent exploration team, based locally with infrastructure in place.

Terms of the Agreement:

· Stage 1 – Payment upon settlement:

o $5M cash

o 12M CRC Shares issued at a deemed price of $0.20 each (escrowed for 12 months)

o 8M $0.35c Options issued for nil value (2 year term).

· Stage 2 – Royalty payment upon the delineation of 1M ozs indicated / measured gold resources, or a decision to mine (whichever is achieved first):

o $4M cash

o 8M $0.50 Options (5 year term). These options will be issued up front but will only vest and become exercisable if one of the conditions referred to above is satisfied.

Employees/Management:

· Cortona will be utilising the existing NSW exploration team, led by Darren Glover, and the infrastructure around them, including offices, vehicles and logistics.

· Derek Fisher, Managing Director of Moly Mines, will be offered a non-executive position on the Cortona Board following consummation of the deal. Derek will bring a range of relevant skills and experience, and his involvement is viewed as another very positive aspect.

The Assets:

· 12 tenements at 5 Project areas in NSW, namely Majors Creek, Christmas Gift, Booths Reward, Nundle and Eugowra. A sixth Project, Windera, is 51% owned.

· Moly Mines has established a regional presence via its exploration office in the States mining centre of Orange that has managed over $2 million of exploration expenditure on the Gold Assets since listing in March 2004.

· Majors Creek

o The Majors Creek Project, which contains the Dargues Reef Prospect, is located approximately 60 kms east of Canberra and 12 kms south of Braidwood in the southern tableland region of NSW.

o The Majors Creek project consists of the adjoining exploration licences and one mining lease (Dargues Reef).

o The combined tenements comprise 700km² of contigious area over the largest historical alluvial gold field in NSW.

o Numerous primary gold anomalies have recently been identified by regional soil sampling, mapping and rock chip assays.

o Dargues Reef (ML103) – 100% Owned

§ In the past three years Moly Mines completed 15 Diamond Drill holes and 19 Reverse Circulation holes adding to the 30 holes drilled by previous explorers at Dargues Reef.

§ The results include intersections of 24m @ 7.9 g/t Au, 31m @ 4.5 g/t, 77m @ 3.6 g/t Au, with contained section grades up to 25 g/t Au over 3m.

§ Moly Mines interprets the data to represent a lode system ranging from 20 to 55 metres true thickness, comprising multiple high-grade gold bearing lodes that remain open at depth and along strike. The recent work has culminated in an initial JORC compliant Interred resource at Dargues Reef of:

Cut-off	Interred Tonnes	Avg Grade	Ounces
>0.0 g/t Au	3,720,000	3.0 g/t Au	360,000
>2.0 g/t Au	2,380,000	4.1 g/t Au	310,000

§ Recent soil sampling results surrounding Dargues Reef have also revealed highly anomalous zones (up to 20 g/t Au) that may represent the surface expression of the new high—grade lodes intersected by drilling hundreds of metres below. This implies the tantalising prospect that these lodes may also extend upwards towards the surface where they remain untested by drilling.

o Majors Creek Region (EL6003, EL6138, E: 6462, EL6351) – 100% Owned

§ The discovery of significant high-grade primary gold mineralisation extending to hundreds of metres depth in the “roof zone” of the Briadwood granodiorite suggest Moly Mines has uncovered one possible course of the widespread alluvial gold in the region.

§ Discovering similar sources will be a principal focus of Cortona’s regional exploration program.

o Christmas Gift (EL6010) – 100% Owned.

§ Christmas Gift is located 180kms northwest of Canberra and 15kms east of Cootamundra, 420km south of Sydney in the Cullinga Gold Field.

§ The mineralisation appears to be structurally controlled within a 200m wide, NNE striking package of tuffaceous sedimentary rocks. The primary target within the project is the main lode at Christmas Gift, which produced approximately 37,000 oz Au at 23.5g/t.

§ Prvious drilling has interspected economic grades in and around wold workings.

§ Other target areas within the project include Venables Mine and Western Zone.

o Booths Reward (EL6012, EL6445) – 100% Owned.

§ Booths Reward is located 170 kms north-west of Canberra and 25kms south-east of Cootamundra in central NSW.

§ The prospect covers a portion of the Muttama Gold Field which contains at least 13 historical gold workings.

§ Mineralisation at Booths Reward is associated with a narrow zone of sheared serpentinite, and hosted by conjugate set of quartz reefs striking parallel and oblique to this structure.

§ Recent drilling at Booths Reward has returned economic results including 6m @ 7.0 g/t Au from 169m.

§ The project hosts rock chip and soils anomalies that warrant follow-up work.

o Nundle (EL6004, EL6118) – 100% Owned

§ Located approximately 400km north of Sydney and 50km southeast of Tamworth, the area covers historic bedrock and alluvial workings on a major structure that has previously yielded some 300,000 oz Au.

§ Only one reef system has been explored using modern methods, with a peak intersection of 5m @ 5.9 g/t Au.

§ The leases cover a 15 km strike length of Tamworth Group rocks, containing at least three major structural zones associated with vein gold mineralisation, but only two 2km sections of which have been drill tested.

o Windera (EL6161) – 51% Owned, Exco Resources NL 49%

§ The Windera project is located approximately 50 km north-east of Cobar in the Cobar Goldfield

§ Moly Mines completed a 7 hole RC drilling program in 2004 following up gold anomalies indentified by previous shallow RAB drilling traverses, which tested a large coherent gold and arsenic soil anomaly, located close to the Gilmore suture which is associated with a number of sustaintial gold deposits either adjacent to it or in close proximity.

§ No significant follow-up work has been performed at Windera.

o Eugowra (ELA 2955) – Application, 100%

§ The Eugorwa Project is situated ~40km Southeast of Forbes, within the Mt Foster – Tumut Structural Zone of the Lachlan Fold Belt.

§ The tenement is currently under application.

§ Following the discovery of Intrusion Related Gold (IRG) mineralisation at Dargues Reef, Moly Mines sought to apply the geological model to other Devonian Granite intrusions in NSW.

§ The Eugowra Granites are considered prospective on account of a similar ageed intrusive suite with similar granite chemistry, and historic granite-hosted gold mineralisation.

10 July 2007

Cortona Completes A$10.85m Capital Raising: Net Proceeds to Progress Exploration at WA and NSW Gold Projects

http://www.asx.com.au/asxpdf/20070710/pdf/313cmt46q1152z.pdf

Highlights:

· Cortona has raised A$10.85m via an SPP and placement to sophisticated investors.

· Cash at bank of ~$6.5m after deducting NSW projects acquisition and cost of fund raising.

· Funds will be applied to intensive exploration campaigns at Cortona’s exciting projects in NSW and WA.

· The Company is targeting an upgrade to the 310,000 ounce Dargues Reef Resources at its recently acquired Major Creek project.

General Notes:

· Perth-based investment advisory firm Argonaut Capital acted as Co-Manager to the fund raising, which saw Cortona issue 33,906,250 shares at $0.32c each. The fund raising was oversubscribed.

· Five million dollars have been used to satisfy the recent 100% acquisition of the NSW gold assets of Moly Mines ltd.

· The remaining funds will be used to exploration campaigns both at the recently acquired NSW gold assets and those already owned by the company in WA.

4 September 2007

Rock Chip Results and Drill Rig Update

http://asx.com.au/asxpdf/20070904/pdf/314cj2ffrfrtf3.pdf

Summary:

· Rock chips from the Copper Ridge prospect at Majors Creek, NSW, have returned significant gold, silver and antimony results including:

o 5.7g/t gold with 185g/t silver and 0.4% antimony

o 5.4g/t gold with 16.4g/t silver

· Copper Ridge is situated 1km from Dargues Reef, and has never been tested by drilling.

· RC/Diamond drilling rig due to arrive at Majors Creek mid-September.

Majors Creek Drilling Program:

· A dual-purpose (RC and diamond) drilling rig is booked to arrive at Majors Creek in the second week of September.

· The program will initially test the upper 150m of the Main and Big Blow lodes at Dargues Reef with a view to upgrading this portion of the resource to indicated/measured status.

· Upon completion, the rig will move to the Exeter Farm prospect to test the coincident geochemical, IP and magnetic anomalies with a program of RC holes.

· Additional holes have also been planned to test the Copper Ridge line, and the Snobs line southwest of Dargues Reef.

27 September 2007

Drilling Commences at Majors Creek

http://asx.com.au/asxpdf/20070927/pdf/314s4yd5mhl44f.pdf

· A dual purpose RC and Diamond drill rig has commenced drilling at Majors Creek in NSW.

· The six month, $1.5m program marks the first drilling within the project area for along two years.

· The program has been designed to test a range of targets, commencing at Dargues reef where it is anticipated that elements of the 310,000 resource can be upgraded to indicated/measured status and lead into a scoping study.

· The infill resource drilling is also designed to explore the upward continuation of the “new” lode that was discovered in the final stages of the 2005 drilling program.

· RC drilling will then test a range of new regional targets

o Exeter Farm

o Copper Ridge

30 October 2007

Quarterly Activities and Cashflow Report

http://asx.com.au/asxpdf/20071030/pdf/315h278fx2z5lz.pdf

· The DPI notified Cortona that the Eugowra application in NSW has been granted. EL6880 covers an area of 500km² and encompasses the Euowra granodiorite, which was targeted because of its similar age, geochemistry and structure to the Braidwood granodiorite that hosts the Majors Creek project.

· The company is particularly encouraged by the presence of historic alluvial gold workings over the granodiorite.

· The Nundle project was relinquished after field assessments highlighted significant challenges associated with the project’s location within State Forest, and the extreme topography. In addition, historic mining targeted restricted, narrow quartz veins which were interpreted not to have significant upside potential for the company.

8 November 2007

Significant Drilling Results from Dargues Reef

http://asx.com.au/asxpdf/20071108/pdf/315ptnrst992wm.pdf

Highlights:

· Confirms continuity of near surface gold lodes (<150m)

· Opens up further strike potential at these levels

· DREX040:

o 13m @ 5.53 g/t Au

o 12m @ 6.27 g/t Au

· DREX039

o 9m @ 6.63 g/t Au

o 4m @ 7.01 g/t Au

· DREX038

o 16m @ 3.38 g/t Au

o 4m @ 7.04 g/t Au

· The Bulk of the resource lies below these levels and remains open.

· The successful drilling increases the Company’s confidence that both the size and category of the resource can be upgraded.

· Detailed environmental studies are currently underway, and a scoping study is anticipated to commence soon thereafter.

· A further three holes are to be drilled at Dargues Reef before the rig moves to the nearby Exeter Farm prospect to test the outcropping mineralised gossans.

29 January 2008

December Quarter Activities and Appendix 5B

http://asx.com.au/asxpdf/20080129/pdf/3174c5kt0c6rr5.pdf

Looking Ahead:

· Following heavy un-seasonal December rains in parts of NSW, RC drilling has finally commenced at Exeter Farm.

· Drill Targets

o Archer – Coincident Au, Ag, Au, Bi soil geochem > 3.5 g/t rock chips, mineralised outcrop

o Flatcatcher – IP chargeability target A at 575 RL coincident Au, Ag, Cu, Bi soil geochem, mineralised outcrop, mag low adjacent.

o Prince – Coincident Au, Ag, Cu, Bi soil geochem, low Au rock chip (0.2-0.4 g/t), 2 zones of mineralised outcrop, diorite dyke.

o Twighlight – Mineralised outcrop, > 2g/t rock chip

o Exeter – Follow up intercepts in hole EX01, 2 @ 4.2 g/t

o Toryboy – Coincident Au, Ag, Cu, Bi soil geochem >1.3 g/t rock chip, mineralised outcrop

o Antonelli – Shallow IP chargeability-high, resistivity low

o Medora – IP chargeability-high, mineralised outcrop.

30 January 2008

Discovery of Gold Mineralisation at Exeter Farm

http://asx.com.au/asxpdf/20080130/pdf/3174zb9gwm22nm.pdf

Highlights:

· Discovery of near surface high-grade gold mineralisation in the first drill hoe at Exeter Farm prospect, including 19m @ 5.6 g/t gold

· Style of mineralisation similar to Dargues Ref which hosts a 310,000 oz gold resource

· Ongoing diamond and RC drilling program to test 8 targets at Exeter Farm and additional targets at Copper Ridge. Further drilling at Dargues Reef to increase existing gold resource.

Notes:

· EXEX007 – 19, @ 5.6 g/t gold from 47m, also containing 2m @1.3% Cu from 55 m.

· The hole was drilled at the Tory Boy target, which lies within a 370m x 150m goild-in-soil anomaly (+100ppb Au).

· The soil anomaly has never been previously dril tested.

· Troy boy previously produced 1.9 g/t gold in a rock chip sample.

· A second “lode” measuring 2m @ 5.0 g/t gold was intercepted from 71m. The hole terminated at 126m.

· Hole EXEX008 failed in unconsolidated material at 18m and will be re-drilled.

· Hoe EXEX009 was located ~50m west of the Prince Gossan, and intersected considerable alternation but no significant mineralisation. Two further holes have since been completed at Prince for which results are pending.

13 February 2008

Further Positive Drill Results From Dargues Reef

http://asx.com.au/asxpdf/20080213/pdf/317f4vmr7kl7r6.pdf

· Cortona Resources announced further positive results from three diamond holes drilled at the Dargues Reef prospect at Majors Creek, NSW.

· Significant intercepts include:

o DREX043 – 13m @ 8.33 g/t gold

o DREX042 – 3.2m @ 15.4 g/t gold

o And 3.0m @ 8.87 g/t gold

o And 3.5 m @18.17 g/t gold

· These holes targeted the eastern end of the lode system at deeper levels and confirm continuity of mineralisation, on the Main/Big Blow Lodes and HB Lodes.

· “Our immediate challenge is to have a drilling rig operating full time at Dargues, and we are pulling out all the stops in order to achieve this.”

· All three holes intersected the Dargues Diorite, alternation and lodes in their predicted positions. DREX41 intersected severely fault disrupted lode reporting 2m @7.4 g/t Au and 5m @ 3.75 g/t Au.

· Holes DREX042 intersected two high-grade lodes of Main/Big Blow style measuring 3.2m @ 15.4 g/t Au and 3m @ 8.87 g/t Au from 272.5 and 298.5 m respectively.

· These intercepts correlate well with the intercepts in DREX032 below and DREX037 above.

· Higher grade intercepts were reported in the HB lodes from 380m (3.5m @ 18.7 g/t Au) and 388m (1.5 @ 15.8 g/t Au).

· DREX043 intersected a lode approximately 25m east and slightly down dip of DREX027 and contained 2.8m down hole @ 1.6 g/t from 223m and 13m down hole @8.33 g/t Au from 232m.

· In order to upgrade the Dargues Reef resource estimate, the two principal challenges facing Cortona are firstly, to improve the ounces per verticle metre, and secondly to reduce the current level of dilution by correlating individual lodes within the “lode system”

27 March 2008

Scoping Study and Exploration Update

http://www.asx.com.au/asxpdf/20080327/pdf/3187vv4nhqwyz0.pdf

· Australian gold exploration company Cortona Resources has commenced a scoping study into the potential mining of the Dargues Reef gold deposit at its 100% owned Majors Creek project in NSW.

· The company has engaged Independent Metallurgical Operations Pty Ltd of West Perth to manage the metallurgical aspects of the study, whilst mining consultants are being sought to manage the scoping of the mine plan.

· The study will investigate a range of aspects required to be addressed prior to any development. These include:

o Metallurgical studies

o Anticipated process flow sheets and design criteria

o Major equipment selection

o Mining methodology and planning

o Ore mining rate

o Annual production

o Capital cost

o Operating cost

o Environmental management

· The immediate aim is to expand and establish the current 310,000 oz gold resource. We are presently drilling the potential extensions of the resource within ~100m of surface.

· With the imminent arrival of a second drill rig a resource upgrade is planned during the third quarter of this year.

· Exeter Farm:

o Numerous long, low grad gold intercepts were encountered including; 31m @ 0.46 g/t (EXE021), 12m @ 0.26 g/t (EXEX016), and 12m @ 0.24 g/t gold (EXEX012).

o The company is currently collating all data to plan the next phase of work at Exeter Farm.

o There is undoubtedly a large gold mineralising system existing at Exeter Farm showing similar alteration characteristics and mineralised widths to Dargues Reef. The challenge is to identify what controls the higher grades.

· Dargues Reef

o Drilling is continuing at Dargues Reef with a second drill rig due to commence in early April.

o The Company’s initial drilling at Dargues proved the presence of substantial mineralisation near surface.

o The current drilling is aimed at targeting the immediate extensions of the known resource and is focused on these shallower levels in the “Upper Level” and “Western” target areas.

7 April 2008

Acquisition of Freehold Farmland at Dargues Reef

http://asx.com.au/asxpdf/20080407/pdf/318frs93syvbdj.pdf

· Freehold farmland that incorporates the Dargues Reef Mining Lease has been acquired.

· The acquisition will allow the Company to accelerate the potential development of the Dargues Reef Gold deposit.

· Cortona will now have unfretted access to drill sites at Dargues and its environs, importantly in areas that have previously been restricted.

· This is the first time that this land has been offered for sale since the mid-1800’s. Given that the Company has recently commenced scoping studies into the potential development of Dargues the opportunity to gain title to the land was opportune.

· Cortona paid $1.7m cash for the freehold, which comprises 2 contiguous blocks of land covering a total area of 319 ha.

· The price is in line with the current agricultural land price in the area.

· Furthermore, the land comes with entitlements that could enable the future recovery of some of the costs incurred.

11 April 2008

Drilling Extends Dargues Reef Main Lode

http://asx.com.au/asxpdf/20080411/pdf/318jj9thr4xqf0.pdf

Highlights:

· 16 m @ 11.0 g/t gold from 48m

· 5 m @ 16.2 g/t gold from 49 m

· Defines near surface continuity of lodes

· Confirms potential for resource upgrade.

Notes:

· Received assay results for ten RC drill holes at the Dargues Reef Gold Deposit.

· The area being targeted is within 100m of the surface, and along strike from the current 310,000 ounce resource.

· “The upper level of the deposit has returned robust widths and grades of mineralisation confirming the potential to increase both the resource and the ounces per vertical metre.

· Drilling has define continuity of previously untested, near-surface extensions to the Dargues Main Lode system up to 80m east of Cortona’s three diamond holes drilled on section 748900mE.

· Drilling is currently testing strike extensions to the mineralised system to the east and west, initially along the “upper level target”. A second drill rig has arrived on site for immediate commencement.

29 April 2008

Quarterly Activities and Cashflow Report

http://asx.com.au/asxpdf/20080429/pdf/318t7pxlpfzcrx.pdf

Scoping studies:

· Scoping will commence with metallurgical test work on a typical mineralised section of the Main Lode. Samples have arrived at the analytical laboratory in Perth where test work is taking place under the management of Independent Metallurgical Operations. Initial results are anticipated in May.

16 May 2008

Drilling Update, Dargues Reef Gold Deposit

http://asx.com.au/asxpdf/20080516/pdf/31951jw93px285.pdf

Highlights:

· Extends eastern mineralisation at shallow depths

· Western extensions currently being tested

· Deeper drilling ongoing to expand resource

· Better results include:

o 10m @ 7.64 g/t gold from 36 m

o 7m @ 7.25 g/t gold from 53m

o 3 m @ 18.6 g/t gold from 35m

o 9m @ 4.30 g/r gold from 95m

Notes:

· Cortona Resources has received assay result from a further eight RC holes drilled into the upper levels of the Dargues Reef gold deposit.

· Significant widths and grades continue to be returned up to 150m east of the Main shaft. At this easting the mineralised lode is developed along the hanging wall of the Dargues Diorite.

· “To the east of this well developed hanging wall lode mineralisation becomes weaker. However, visual mineralisation in drill chips from our two most eastern holes to date indicates we have relocated good widths of lode in the Main Lode (footwall) position.”

· The RC Drilling rig is now testing extensions and continuity of mineralisation at shllow levels to the west of Main shaft, while preparations are made to follow up better results from the first pass drilling to the east.

10 June 2008

Excellent Metallurgical Results from Dargues Reef

http://asx.com.au/asxpdf/20080610/pdf/319k39hxdvhz8q.pdf

Highlights:

· 99% gold concentrated from combined gravity and flotation

· Up to 53% gold recovered by gravity alone

· Up to 98% gold recovered by gravity and leach

· Highly marketable final product

· Scoping underway to address potential processing routes

Notes:

· “we can now address a range of processing scenarios, including recovering approximately half of the gold on site via a gravity circuit such as a Knelson Concentrator, then floating a concentrate, either for processing on site or elsewhere, or for sale to a third party.

· Cortona will now assess a range of suitable process routes in conjunction with further test work to address comminution performance of core samples, optimum grind size and repeatability across the ore body.

Metallurgical Test Work:

· A representative sample was compiled from RC drill samples (reported as 17m @ 8.01 g/t Au) and the resultant composite sample check assayed reporting back to 8.30 g/t Au.

· Initial metallurgical test work on an interval of Dargues Reef mineralised material has achieve exceptional results on all fronts. Over 99% of the gold was concentrated by a combination of gravity and flotation at a moderate grind size.

· Similar gold concentrations were achieved for flotation only, and up to 98% of gold was recovered by gravity and cyanidation. Both cyanide and lime consumptions in the leach test work were low to moderate whilst very low arsenic and antimony levels were reported in the concentrate being well below any potential penalty limits.

· The company will now expand the test work to other portions of the ore body, and commence scoping a range of processing routes based on the results thus far.

· Cortona will continue drilling at Dargues Reef and remains on track to revise the current resource estimate of 310,000 oz during 3^rd quarter of the calendar year.

2 July 2008

Drilling Update, Dargues Reef Gold Deposit

http://asx.com.au/asxpdf/20080702/pdf/319yntg5vy529g.pdf

Highlights:

· Further mineralisation discovered 250m east of the Dargues main shaft.

· Mineralisation remains open along strike and at depth

· Resource drilling ongoing

· Better “down hole” intercepts include:

o 14 m @ 6.95 g/t gold from 46m

o 11m @ 6.85 g/t gold from 69m

o 12 m @ 6.80 g/t gold from 78m

o 9m @ 6.50 g/t gold from 66m

o 8m @ 6.48 g/t gold from 112m

Notes:

· Cortona has received more highly significant gold assays from nine RC holes drilled into the upper levels of the Dargues Reef gold deposit. Robust widths and grades continue to be returned, including two intercepts ~250m east of the Main shaft in the vicinity of the historic Plum’s lode working (14m @ 6.95 g/t, and 11m @ 6.85 g/t). Mineralisation here occurs in the footwall of the diorite, equivalent to the Dargues Main Lode position, giving much scope for further mineralisation to be defined.

· “We also had good results from two holes drilled to follow up a previously defined high grade intercept (16m @ 11.0 g/t) in the main lode. Two intercepts at the western end of the system (e.g. 9m @ 6.50 g/t) highlight further potential to expand the resource in this area as well.

31 July 2008

Quarterly Activities and Cashflow report

http://asx.com.au/asxpdf/20080731/pdf/31bft05qybdvw6.pdf

Regional exploration:

· Geochemical soil sampling continued until the weather closed in. A total of 236 samples were collected and analysed during the period. Results are pending

· Regional rock chop and mapping programs were initiated on the northern Majors Creek project area (EL6462 & EL6548); The preferred exploration target in the area is duplication of the geology, structural trends and similar magnetic imagery to that delineated at Dargues Reef.

· Of particular importance is an ENE low-magnetic lineament ~15km north of Majors Creek, in an area with no previous history of gold mineralisation. This is a conceptual test of the Company’s developing exploration model, and has the potential to open up the prospectively of the entire project area.

· A visually encouraging zone has been mapped along this lineament, and rock chip results are eagerly awaited. A plethora of structural targets of a similar nature have yet to be visited.

12 September 2008

Further High-Grade Gold Intercepts From Dargues Reef, NSW

http://asx.com.au/asxpdf/20080912/pdf/31c8g2577b9r9s.pdf

· Further significant intercepts at Plums Lode

· Better “down hole” intercepts include:

o 14 m @ 8.11 g/t gold from 24m (RC, Plums Lode)

o 7 m @ 6.44 g/t gold from 37m (RC, Plums Lode)

o 5 m @ 9.94 g/t gold from 48m (RC, Plums Lode)

o 6 m @ 9.92 g/t gold from 111m (RC, Plums Lode)

o 11 m @ 7.22 g/t gold from 407 m (DD, Main Lode Deeps)

o 8.2 m @ 5.20 g/t gold from 557m (DD, HB Deeps)

· Deep diamond holes extends strike and depth of lode

· Detailed Aeromagnetic survey completed at Eugowra

· Updated JORC Resource on schedule for late September.

Notes:

· Fourteen RC and three diamond drill holes.

· Drilling continues to return robust widths and grades, highlighting the potential for extensions to the existing resource base.

· Encouraging results have also been received from two deep diamond holes, including 11, @7.22 g/t in DREX085 and 8m @ 5.20 g/t in DREX083 which is the deepest intercept to date at Dargues Reef – demonstrating the down-dip potential and open nature of the resource at depth.

· The Company remains on track to deliver a revised resource estimate by the end of September 2008. Recent drilling has focused on upgrading the JORC category, the overall gold grade, and the ounces per vertical metre – each of which represents an essential economic parameter to take Dargues Reef forward to pre-feasibility.

Eugowra:

· Cortona has also received preliminary images from the detailed aeromagnetic and radiometric survey flown over the Eugowra granite complex (EL6880). A total of 9,812 line kilometres of data were recorded at 50m line spacings and 40m flight height.

· The data appears to be of the highest quality, and initial inspection highlights considerable new structural and lithological information that will be valuable inputs for future targeting of Dargues Reef “look-alike” features.

22 October 2008

Resource Grade Doubles at Dargues Reef

http://asx.com.au/asxpdf/20081022/pdf/31d15r1nn9rvxn.pdf

Highlights:

· Update Indicated and Inferred resource estimate:

o 1.44 Mt @ 6.2 g/t gold for 286,000 contained oz

· Resource grade almost doubled from 3.4 g/t Au to 6.2 g/t Au

· Excellent potential to further increase the resource, which remains open in several areas.

· Diamond drilling at depth below “Plum’s Lode” intersects 30m zone of mineralisation – assays pending

· Preliminary economic assessment underway as the basis for a full Feasibility Study.

Notes:

· The interim resource update has resulted in a significant increase in the average grade of the resource from 2.4 g/t to 6.2 g/t with a significant component upgraded to the Indicated category and available for conversion to Ore Reserves. The previously announced resource was in the Inferred category only.

Category	Tonnage	Au Grade (g/t)	Contained Gold (ozs)
Indicated	586,000	5.9	110,800
Inferred	858,000	6.4	175,200
TOTAL	1,444,000	6.2	286,000

· The updated resource has been estimated using a 2g/t cut-off, compared with a 1g/t cut-off previously. This reflects the increased geological understanding of the deposit following drilling programs conducted over the past year, which has resulted in a significant upgrade in the resource category and a substantial uplift in grade from 2.4 g/t to 6.2 g/t Au.

· “We have already commenced a preliminary economic assessment of the Dargues Reef Projet”. If this assessment is positive, we will move immediately to a full feasibility study.

24 October 2008

Significant Gold Intercept confirms Dargues Reef Potential

http://asx.com.au/asxpdf/20081024/pdf/31d37k3qmvc1s0.pdf

Highlights:

· Diamond hole intersects broad zone of mineralisation 100m beneath Plums Lode, returning the following significant intersection:

o 28.7m @ 5.88 g/t from 195.5m including

§ 10.5m @ 8.17 g/t gold

§ 11.2m @ 6.98 g.t gold

· Potential to significantly increase the recently announced resource estimate: 1.44 Mt @ 6.2 g/t for 286,000 ounces of gold

· Widths, grade and style of mineralisation bear all the hallmarks of the Main Lode

· Further Drilling in progress

Notes:

· Hole DREX119 was designed to test the depth potential of the newly discovered Plums Lode, where recent frilling returns down-hole intercepts of 7m @6.44 g/t from 37 and 5m@ 9.94 g/t from 48m in hole DREX094, and 14m @8.11 g/t from 24m in hole DREX095.

· The hole intersected the lode at 195.5m depth, approximately 100 metres beneath the current resource boundary. The lode extended for a down-hole width of 28.7m. Given the orientation of the hole (-70^O) the Company believes the true width of this intersection is in the order of 10-12m.

· The style of mineralisation intersected, the considerable widths and consistent grade, bear all the hallmarks of the Main Lode 250m to the west.

· This latest drilling, combined with information from the recently completed resource update and ongoing geological modelling, supports an Exploration Target in the region of half a million ounces at Dargues”.

29 October 2008

Quarterly Activities and Cashflow Report

http://asx.com.au/asxpdf/20081029/pdf/31d6yxxv00l6ls.pdf

· The conceptual financial modelling of Dargues is expected to be completed in the December quarter, and will form the basis of a decision whether to move forward to full feasibility.

17 December 2008

Further High-Grade Gold Results Enhance Dargues Reef

http://asx.com.au/asxpdf/20081217/pdf/31f76kwwx4pqwx.pdf

Highlights:

· Diamond hole into Plums Lode intersects 6.3m @ 7.3 g/t gold 50m beneath previous drilling.

· Mineralisation now demonstrated to extend from near surface to ~250m vertical depth.

· Potential to significantly increase the recently announced resource estimate: 1.44Mt @ 6.2 g/t for 286,000 ounces of gold.

· Widths, grade and style of mineralisation bear all the hallmarks of the Main Lode.

· Further drilling at Plums currently being planned.

Notes:

· The latest results, from diamond hole DREX122, returned a significant high-grad intercept of 6.3m @ 7.3 g/t gold from 292m, approximately 200 metres beneath the current resource boundary.

· A second hole, DREX120, intersected the Plums Lode position ~ 50m east of DREX119. Wide zones of pyrite mineralisation were encountered, where anomalous but weak gold mineralisation was returned in the assay results. However, DREX120 did return an intercept of 4m @4.4 g/t gold in the hanging wall position, which correlates well with the hanging wall intercept of 6m @6.84 g/t in DREX119.

· “This latest drilling, combine with information from the recent resource upgrade and ongoing geological modelling, supports an Exploration Target in the region of half a million ounces at Dargues.

27 January 2009

Quarterly Activities and Cashflow Report

http://asx.com.au/asxpdf/20090127/pdf/31fq8c5xd7y8w5.pdf

· Cortona re-evaluated the IP gradient array data in conjunction with last year’s drilling information. This has resulted in the delineation of a new target (“Chianti”), which is located along structure ~150m east of Plums lode. Mineralised outcrop in the vicinity of this anomaly has returned rock chip values up to 6.9 g/t gold. Chianti represents a high priority exploration target with the potential to further add to the Dargues Reef resource.

Major Creek Regional Exploration:

· Copper Ridge RC Drilling – Cortona concluded its 2008 drilling program with a wide spacd, set depth (60m) exploration program along the Copper Ridge anomaly. Twelve holes were completed. Broad zones of low level gold, silver and base metal mineralisation were encountered in most holes, with peak values up to 1m @ 2.95 g/t gold, 24.2 g/t silver and 1,040 ppm copper. Mineralisation is associated with quartz carbonate veining and moderate to strong phyllic alternation. The program is interpreted to be a successful test for the presence of primary mineralisation at Copper Ridge, and provides significant encouragement for follow up test work.

· Regional Soils Program – Cortona has completed the first phase of a regional soil sampling program. Several anomalies have been identified and are currently being assessed. Results are expected to be announced shortly.

· Eugowra (EL6880) The technical team has been reviewing the new aeromagnetic data, and is preparing a reconnaissance field trip in the first quarter of the calendar year.

3 February 2009

Significant Gold Target Discovered Near Dargues Reef

http://asx.com.au/asxpdf/20090203/pdf/31fw4ypw3m716j.pdf

Highlights:

· New high grade gold-in-soil anomaly discovered 1.3 km SE of Dargues Reef

· Measures ~500m x 150m, open along strike

· No historic workings – “blind” discovery

· Plums Lode drilling (Dargues Reef) to recommence late February

Notes:

· The discovery of the new “Dreadnought” gold exploration target is the result of an ongoing regional soil sampling program at the Majors Creek Project. Samples were collected on a 50m by 50m grid. The anomaly is outlined by a +100ppb gold contour measuring approximately 500m by 150m containing thirty data points.

· Eight samples returned values greater than 500 ppb (0.5 g/t Au). Low level silver enrichment is associated with the gold anomalism. Significantly, there are no historic workings nor has there been any previous exploration in the area.

· Detailed geological mapping indicates that outcrop in the area is sparse and covered by a thin veneer of soil. A range of rock types have been identified in the vicinity, including porphyry dykes, granodiorite and granite occurring in an area of interpreted intersecting structures akin to those at Dargues Reef. The prospect is interpreted to be within the roof zone of the Braidwood Granite Complex, a highly favourable geological position for further intrusion related gold mineralisation.

· Furthermore, a drilling program is currently being planned to follow up last year’s deep drilling at Plus Lode on the Dargues structure, where hole number DREX119 intercepted 10.5m @ 8.17 g/t gold and 11m @ 6.98 g/t gold approximately 100m below the resource envelope.

23 February 2009

Investor Series Gold Day Presentation

http://asx.com.au/asxpdf/20090223/pdf/31g6htd7sj0clt.pdf

Corporate Overview:

· $2 m cash at bank

· Market cap = $12m

Majors Creek Project:

· Granite Related Gold model

o Kidston (4.2M ounces)

o Pogo (4.8M ounces)

o Fort Knox (4.0M ounces)

· 700 km² tenement holding

15 April 2009

Further Positive Drilling Results from Dargues Reef

http://asx.com.au/asxpdf/20090415/pdf/31h24qycmhgg6w.pdf

Highlights:

· Latest drilling at Plumes Lode intersects 16m @ 4.66 g/t gold

· Bridges the upper and lower mineralise zones and confirms mineralisation model

· Significant potential to expand the existing resource estimate

· Further drilling at Plums currently underway.

Notes:

· Cortona has receive further significant assays from the first phase of the current 3,500m RC drilling program at its 100% owned Dargues Reef Gold Project.

· The latest result from the newly discovered Plums Lode returned a significant intercept of 16m @ 4.66 g/t gold from 124m, which is 60m beneath the current resource boundary.

· Drill hole DREX128 was designed to test the area between the upper and lower zones of mineralisation at Plums Lode, where Cortona’s Interpretation of earlier results suggested that previous drilling (DREX001) may not have rearche the mineralised lode structure. DREX128 successfully intersected the lode where predicted, supporting the notion that the lode position was not adequately tested by DREX001.

· The style of mineralisation at Plums bears all the hallmarks of the Main Lode 250m to the west and confirms the potential for significant additions to the current Dargues Reef resource inventory.

· At the nearby Chianti prospect four shallow holes have also been completed. Chianti hosts geochemical and geophysical anomalies akin to those at Dargues and Plums and occurs eastwards along strike from Plums Lode. One pair of holes targeted beneath anomalous rock chips, whilst the second pair of holes targeted the IP chargeable anomaly ~ 100m further east. This area never previously been drilled.

· The results received to date are highly encouraging with a best intercept of 4m @.25 g/t gold from 37m down hole. Lode structure was observed in three of the four holes, and the Dargues diorite is present in all of the holes. Further drilling is being planned to expand the exploration at Chianti.

· A larger rig capable of drilling to greater depths has now been deployed in the area and is currently drilling a number of deeper holes at Plums lode.

20 April 2009

Trading Halt

http://asx.com.au/asxpdf/20090420/pdf/31h4kp122kh8jk.pdf

· Pending an announcement regarding capita l raising.

23 April 2009

Proposed Placement

http://asx.com.au/asxpdf/20090423/pdf/31h630h7fj8dd3.pdf

· Cortona announced that it has reached an agreement to raise up to $1.8 million via the placement of up to 10.6 million shares at $0.17 per share to clients of Taylor Collision and to other sophisticated investors.

· As a result of the capital raising, Cortona will have over $3.0 million cash at bank.

· The funds will be used to expedite aggressive exploration being undertaken at the Company’s Majors Creek project, which hosts a high grade gold resource at Dargues Reef.

· Cortona also intends to continue scoping a mining development at Dargues.

30 April 2009

Quarterly Activities and Cashflow Report

http://asx.com.au/asxpdf/20090430/pdf/31hcgbk4l6vp94.pdf

· Since commencing work at Majors Creek eighteen months ago, Cortona has made significant advances in understanding the controls on gold mineralisation at Majors Creek. These advances have contributed to the delineation of the high grade resource at Dargues Reef, and the discoveries at Exeter Farm, Copper Ridge and Dreadnought.

· These models have application for the project as a whole, and have led the Company to develop a three phase strategy for the growth of a long term gold mining business at Majors Creek.

o Phase 1: The Dargues Reef Mine Area: Initial underground mine development on multiple headings via a centralised decline; establishment of a centralised processing plant.

o Phase 2: Within the shadow of the Headframe (up to 3km from Dargues Reef): Definition of additional resources for medium term mill feed and increased gold production from prospects such as Exeter Farm, Copper Ridge and Dreadnought.

o Phase 3: The Wider Region (700km²): Discovery and expansion of resource base for the continued growth of a successful long term gold mining business.

26 May 2009

Dargues Reef High-Grade Gold Hits and New Reef Zone

http://asx.com.au/asxpdf/20090526/pdf/31hrtvb0r4z37p.pdf

Highlights:

· Further high grade drilling intercepts including:

o 20m @6.0 g/t gold – Plums Lode

o 6m @ 4.8 g/t gold – Hangingwall Lode

· Discovery of new mineralisation ~100m SW of Main Lode:

o 4m @ 28 g/t gold

· Continuous high grade gold mineralisation confirmed at Plus Lode extending from within 25m of surface to +200m depth

· Significant potential to expand the existing resource estimate (1.44Mt @ 6.2 g/t gold)

· Second Rig to be added to drilling campaign

Plums Lode:

· The latest results include a broad, high grade intercept of 20m @ 6.0 g/t gold from 158m in DREX135, which extends the strike of Plums lode mineralisation by approximately 25m to the west at RL-125m.

· The intercept also in-fills between DREX119 (10.5m @ 8.19 g/t and 11m @ 6.98 g/t Au) and DREX 128 (16m @ 4.66 g/t Au) and significantly increases the gold endowment and continuity of the Plums Lode.

Hangingwall Lode:

· As part of the Plums drilling program, two holes were targeted to test the Hangingwall Lode west of Plums at RL – 70m. Both holes intersected Hangingwall lode with DREX136 returning 6m @ 4.8 g/t from 92m downhole and DREX 137 1m @ 9.47 g/t Au from 85m downhole. These results extend the Hangingwall Lode previously intersected at Plums. The Hangingwall lode represents a parallel lode to the Main lode and has the potential to further expand accessible resources at the project.

· This hangingwall lode will be targeted as part of the upcoming drilling at Plums, with the aim to include it in the next resource estimate. To date the hangingwall Lode position has not been tested at depth.

New Discovery:

· The last hole of the recent drill program (DREX140, targeting the HB lodes at RL -220m) swung appreciably at depth and failed to reach target. The hole did however intersect high grade gold mineralisation (4m @ 28.0 g/t gold) from 78m downhole. This new mineralisation is located just 130m SSW of Dargues main shaft.

· The high grade intercept is associated with a narrow E-W trending andesitic dyke and forms part of an ENE trending zone of mineralisation identified by several holes to the east and represents a new orientation of mineralisation that needs to be explored in the area.

· The intercept supports the company’s belief that there are zones of high grade mineralisation yet to be discovered in close proximity to Dargues Reef.

9 July 2009

Company Update Majors Creek Drilling Program

http://asx.com.au/asxpdf/20090709/pdf/31jh8vfm3dbrg8.pdf

Highlights:

· 10,000 m+ RC and diamond core drilling program ongoing

· Includes ~ 6,000m of regional exploration drilling

· Large new target identified at Tulloch

· Several new targets to be drill tested

Notes:

· This fully funded and approved 10,000m+ drilling program represents the first ever regional exploration campaign of this nature to be conducted at Majors Creek, the richest historic fold field in NSW.

Tulloch:

· The Tulloch fault is located ~800m north of Dargues Reef and strikes sub parallel to the Dargues structure.

· Significantly the structure is coincident with a large IP dipole-dipole chargeability anomaly.

· There has been no prior drilling at the prospect, where Cortona has planned a series of 100m to 150m deep holes.

· This newly identified prospect presents an opportunity for Cortona to asses an isolated IP target away from known mineralisation. Any success would have significant implications for future regional exploration programs.

Dreadnought:

· A first pass program comprising 1,500m of drilling has been designed with access clearances now in place.

Snobs Line:

· Three historic underground gold mines, located ~1.5km southwest of Dargues Reef, are known as the Snob’s line. Historical records document over 10,000 oz of gold being recovered at grades ranging from 7.0 g/t to 120 g/t between 1870 and 1910.

· Historic reports indicate that all the mines were in Dargues style mineralisation when mining ended.

· This line of workings has never been previously drill tested and represents a very exciting opportunity for Cortona to ad resource ounces to the Majors Creek gold inventory.

Exeter Farm:

· Exeter Farm is a geochemical and geophysical prospect ~2km north of Dargues Reef. Cortona’s first round of drilling intersected 19m @ 5.6 g/t gold from 47m down hole at the Tory Boy prospect. Broad zones of lower level gold were also encountered at Archer.

· The nature of mineralisation is very similar to that observe at Dargues Reef. Cortona plans to drill along strike and beneath these earlier successes.

Copper Ridge:

· Wide-spaced drilling at Copper Ridge last year intersected broad zones of pyrite mineralisation with anomalous gold values that did not explain the high gold values in rock chips and a number of high soils values.

· Further advances in understanding the controls on mineralisation at Dargues have enabled Cortona to focus the drilling on structural intersections at the northern end of the prospect.

30 July 2009

Quarterly Activities and Cashflow Report

http://asx.com.au/asxpdf/20090730/pdf/31jt9254bbbt5f.pdf

Dargues Reef Mine Area:

· Twenty Five RC holes were drilled for an advance of 3,982m both along the Dargues Reef line of lode, and on adjacent targets considered to be within reach of a future mining development at Dargues.

· Much of the current drilling at Dargues is designed to complete evaluation of the resource in preparation for a feasibility study on a mining operation.

· Reverse circulation drill holes were drilled into the upper portion of Main lode, in and around the old workings, much of which falls outside of the current resource. Achieving precise drill position in this area is challenging on account of historical ground disturbance.

· Hole DREX153 intercepted several mineralised lodes, including 6m @ 4.0 g/t gold from 60m, 4 @ 9.4 g/t gold from 103m and 1m @ 13.5 g/t gold from 110m.

· Results received at Plums Lode include a highly significant intercept of 20m @ 6.0 g/t gold from 158m (DREX 135), which has extended the strike length of the lode.

· Drilling now appears to have closed off Plums lode both east and west in the upper 200m.

· The current interpretation for Plums Lode is that it is a sub vertical, pipe-like ore shoot, 40m to 50m in length and ~7m wide, extending from ~20m below surface to ~250m where it remains open at depth.

· Intercepts have returned average gold grades in the range of 4.7 g/t to 8.1 g/t and it is anticipated that the overall grade at Plums will be similar to that at Main Lode (6.25 g/t).

· Cortona has also reported two significant intercepts in the hangingwall at Plums (6m @ 4.9 g/t from 92m in DREX136 and 1 m @ 9.47 g/t from 85m in DREX137). These results correlate well with adjacent hangingwall intercepts, and indicate greater continuity of the hangingwall Lode at Plums than is seen in Main Lode.

· Several holes have been drilled to test geophysical and conceptual targets considered to be within reach of a future mine development at Dargues. Targets include Thompsons and Thompsons South (Glencoe) to the south of Dargues, and the structural targets west of Dargues.

· The best result to date was from hole DREX140, which intercepted a new mineralised structure that returned assays averaging 4m @ 28 g/t from 78m down hole. A follow up hole above this intercept, and another to the west did not intercept mineralisation. This prospect remains at an early stage of exploration.

· Drilling into the Thompsons IP anomalies intercepted several zones of pyrite mineralisation, but gold grades have thus far been of a low tenure. These prospects require further drill evaluation.

Regional Exploration

Tulloch and Hughen Prospects:

· The Tulloch Fault is located ~800m north of Dargues Reef and strikes sub parallel to the Dargues structure. The fault is coincident with a large IP dipole-dipole chargeability anomaly.

· The Hughen structure is ~450m north of Dargues, and represents a structural position associated with anomalous soils and rock chip geochemistry.

· Eight holes for an advance of 985m have been drilled at Tulloch testing a strike length of ~800m. Seven holes intercepted broad zones of alteration and pyrite mineralisation with anomalous gold values (e.g. 2m @ 0.8g/t, 3m @ 0.4g/t, 8m @0.13g/t).

· The results provide a clear indication that the fault zone was a structural pathway for gold bearing fluids, and appear to explain the IP response.

· The challenge remains to identify favourable structural sites along the anomaly where increased levels of gold deposition may have occurred.

· Cortona has drilled three holes along the Hughen Fault, where anomalous soils and rock chips were previously discovered. Hughen is coincident with a subtle IP anomaly.

· As at Tulloch, broad zones of alternation and pyrite mineralisation were observed, with assays returning anomalous gold values (eg 1m @1.25 g/t, 6m @ .4 g/t and 5m @ 0.4 g/t). Once hole at Hughen intercepted 3m @ 0.3 g/t gold, 32.8 g/t silver, 0.6% lead and 0.7% zinc. High levels of these elements are not typical along Dargues Reef, confirming the complexity of the mineralised system, which is a common feature amongst many World Class gold provinces.

· The drilling at Tulloch and Hughen are very encouraging, confirming the exploration model, the geophysical technique, and the presence of gold mineralisation along previously unrecognised structures.

Regional Soils and Rock Chip Programs:

· Soil sampling surveys were completed 2km east of Dargues, between Sapling Hill and Savage Trig (199 samples) and south of Sapling Hill (120 samples), to complete coverage between Sapling Hill and Elrington Mine.

· The results from the initial Elrington and Sapling Hill soil sampling program were received, with several samples reporting > 100 ppb Au.

· Following the results of the Sapling Hill and Elrington soil surveys, a sampling program was designed and completed to cover the area between the two previous surveys. The Sapling Hill South survey is due east of the Dreadnought gold-in-soil anomaly. Results show an extension of the Dreadnought soil anomaly further eastwards, with numerous samples returning >100ppb Au.

· Nine rock samples collected during the Sapling Hill and Savage Trig soil programs were also submitted for Assay. Two samples from the Sapling Hill shaft mullock returned 0.42 g/t and 0.23 g/t Au. Other samples returned elevated As, Co, Mo and Pb.

Looking Ahead:

· The resource drilling and scoping studies at Dargues Reef indicate that a feasibility study is just around the corner.

21 August 2009

New Drilling Success At Majors Creek

http://asx.com.au/asxpdf/20090821/pdf/31k6x36dcnrrs0.pdf

Highlights:

· Discovery of gold mineralisation at Dreadnought, including:

o 16m @ 1/12 g/t fold (incl. 1m@ 4.4 g/t and 4m @ 2.19 g/t)

o 1m @ 8.75 g/t gold

o 2m @ 4.30 g/t gold

· Drilling confirms gold mineralisation at Snobs Line, including

o 1m @ 8.13 g/t gold (with 9.0 g/t silver and 0.2% copper)

o 1m @ 7.70 g/t gold (with 15.4 g/t silver and 0.14% copper)

Dreadnought:

· Seven angled Reverse Circulation drill holes for an advance of 841m have been completed at Dreadnought. Three holes intersected significant gold mineralisation (including 1m @ 8.75 g/t and 2m @ 4.3 g/t) within weakly to moderately altered granodiorite over a range of depths.

· Mineralisation appears to occur as multiple lodes along an east-west corridor which is coincident with the soil anomaly. Cortona is very encouraged by these results from first holes to be drilled at this prospect.

Snobs Line:

· The other style of mineralisation in the area was typically narrow (0.5m), very high grade gold bearing quartz veins (Majors Creek Style). Three examples of theis are Snobs, Stuart & Metons and United Miners (The Snobs Line), which were worked from the 1870’s to the early 1900’s over a strike length of ~500m, and to depths of approximately 160m.

· Historical reports indicate that at these depths, the style of mineralisation changed from quartz vein to sulphide rich lode, which is equivalent to Dargues Ore.

· Many of the quartz vein mines are located adjacent to some of the richest alluvial workings in the district and have never been drill tested.

· Seven angled RC holes were completed for an advance of 1,079m, testing beneath and between the old workings.

· A further five holes did not reach their intended targets after encountering broken ground or excessive water.

· Signficant results were returned from beneath Unite Miners Workings (1m @ 7.70 g/t gold), where polymetallic (Au, Ag, Cu) mineralisation was contained within a broad (11m) phyllic lode with strong Dargues Style alternation surrounding the lode.

· A similar zone was intercepted beneath the Stuart and Merton’s workings, although this carried only trace gold mineralisation.

· The width of the Phyllic lode confirms that the style of mineralisation is indeed changing from a narrow quartz vein to a broad disseminated sulphide lode (Dargues style), and highlights the potential for a large mineralised system to continue at depth. This concept will be further investigated.

3 September 2009

Drilling Supports Significant New Discovery At Exeter Farm

http://asx.com.au/asxpdf/20090903/pdf/31kj7jtphxlm9h.pdf

Dargues Reef:

· Cortona has recently drilled a range of holes at Dargues Reef in order to progress the resource towards feasibility. Hole DREX166 was designed to test an inconsistency in the resource resulting from an historical hole (DREX010), which ended in a broad zone of diorite without recording lode. The Company’s geologists reinterpreted the historic results and concluded that DREX010 had deviated of course and had not tested the target.

· Hole DREX166 intersected a broad zone of mineralisation (17m @ 7.44 g/t gold) precisely where the lode was projected to be. This is an excellent outcome, and further enhances Cortona’s confidence in the continuity of mineralisation and grade, as well as in the resource model.

Exeter Farm:

· Cortona has received results for the first three holes drilled at the Tory Boy target at Exeter Farm. Two of the three holes have intersected significant shallow mineralisation (7m @ 4.1 g/t and 5m @4.1 g/t) in the interpreted lode position.

· The results indicate that the Tory Boy Lode is starting to take shape and support the Company’s belief that the Exeter Farm prospect has the potential to deliver a significant resource extending from surface.

16 September 2009

New Gold Discovery Confirmed at Exeter Farm

http://asx.com.au/asxpdf/20090916/pdf/31kr9qbnjzv1lc.pdf

Highlights:

· High Grade intercept from new hole at Tory Boy (Exeter Farm)

o 9m @ 5.2 g/t from 51m (EXEX028)

· Diamond rig to continue drilling at Tory Boy

· Further wide, high grade drill intercept at Dargues Reef

o 19m @ 6.62 g/t gold, 7.0 g/t silver and 0.13% copper from 114m, and 3m @ 7.3 g/t gold from 179m (DREX167)

Notes:

· “We have an exploration target at Dargues of plus half a million ounces. The results from Exeter Farm, together with the recent discovery at Dreadnought and the encouraging results at Snobs, suggest a similar sized exploration target within the “shadow of the Headframe”.

Dargues:

· The results (above) confirm the continuity and grade of the Big Blow and Main Lodes ain that part of the resource, and should enable the relevant resource blocks to be upgraded to the measured category.

Exeter Farm:

· Hole EXE028 intersected significant shallow gold mineralisation (9m @ 5.2 g/t from 55m). This and previous holes from the recent drilling program confirm significant widths and grades from surface to at least 70m depth, and over a strike length of at least 40m. The lodes remain open along strike and at depth.

· Mineralisation comprises multiple strongly developed felsic lodes akin to that observed at Dargues Reef.

24 September 2009

Dargues Reef Gold Project: Robust and Viable

http://asx.com.au/asxpdf/20090924/pdf/31kwzh8kwfkfv2.pdf

Highlights:

· Positive Independent Scoping Study completed on potential development of Dargues Reef, NSW:

o Initial 188,000 oz of gold production over 4.5 years

o Average start-up production of around 40-50,000 oz per year

o Scoping level cash operating costs of approximately $470/oz

o Estimated A$68.4m pre-tax profit, 68% IRR (at $1,150/oz gold price)

o Estimated pre-production capital cost of approximately A$30m.

· Early cash flow with potential to achieve first gold production within three months of commencing development.

· Considerable “mine life” and production upside within emerging gold province at Majors Creek.

· Feasibility studies being planned. Approvals process to commence.

· Exploration drilling ongoing at new Tory Boy (Exeter Farm) discovery

Notes:

· Scoping study estimate cash operating costs in the order of A$470/ounce for production of 188,000 ounces over an initial mine life of 4.5 years, down to a depth of 450 metres within the Dargues Reef Main Lode.

· The study concludes that the proposed development is technically and economically viable, using a cut-off grade of 3.5 g/t and assuming 10% mining dilution and an average 9%% gold recovery.

· Annualised production would be in the order of 40-50,000 ounces with an estimated pre-production capital cost of approximately A$30 million.

Dargues Reef Scoping Study:

· Ore processing including milling, recovery of gold and silver by gravity, and flotation of a sulphide-gold-silver-copper concentrate. In summary, the studying utilised an estimated gold price of A$1,150 /oz resulting in the following key parameters:

· Production

o Gold production of 188,000 ounces over an initial mine life of 4.5 years, for annualised production of 40-50,000 oz

o Cut-off grade 3.5 g/t, 10% mining dilution, 95% gold recovery

o The proposed mining method is sub level open stoping accessed via a decline

o Development waste scheduled to be used to fill the stopes over the course of the mine.

· Capital costs:

o Estimated pre production capital cost of A$30 million included:

§ Minesite infrastructure including: Mining office, boxcut, Portal steel setup, Maintenance Facility with Fuel Bay, Compressors with concrete Pads, Milling facility for Gold concentrate, Site works as roads, lay down yards, dams, refuge chambers, substations, etc

§ Capital development including: cable bolts, materials handling, decline, stockpile, return air access with raise, sump with sump stripping, substation and half of the access development, loading and haulage.

· Operating Costs:

o The estimated Operating costs of $470/oz included:

§ Production drill and charge up, backfill of stopes, ore drives and half of access drives per level, cable bolts in operating development, materials handling including manual and tele-remote loading of production ore, milling of total ore for concentrate, electrical usage, principal management, engineering, and site support.

§ General operating costs account for safety items (mines rescue equipment), maintenance facility with fuel bay, compressors, mining offices and milling facility, fans, pumps and electrical distribution equipment.

18 November 2009

$10.3M Capital Raising and Start of Definitive Feasibility

http://asx.com.au/asxpdf/20091118/pdf/31m439b0fxstgs.pdf

Highlights:

· $2.5m institution placement

· Fully underwritten 1 for 2 rights issue to raise additional $7.8m

· Definitive feasibility study to commence immediately on Dargues Reef

o Operations Manager and several key teams already in place

o Tenders being sought for mining and infrastructure studies

· DFS targeted for completion by end of 2010 with first production scheduled for mid-2011.

· Near-mine and regional exploration to be ramped up.

Notes:

· Cortona will raise $10.3 million before costs through the issue of 68,845,194 shares at $0.15 with a one for two attaching $0.20 option for a total of 34,422,597 Options expiring 31 January 2012.

Timetable:

· Cortona expects the Definitive Feasibility to take approximately 10 months to complete.

· The key critical path item is the environmental approvals process. Cortona was cognisant of this early in its exploration program and has already established many of the baseline studies that will be required for environmental approvals.

· Based on the above timetable for the DFS and an estimate of the time required for construction, the Company is aiming to be in a position to commence gold production by the middle of 2011.

Resource Drilling and Exploration to Ramp Up:

· The Company intends to use a portion of the funds from the capital raising to significantly increase its exploration program at Majors Creek, where the company is targeting an initial resource base of 1Moz. There will be three key aspects to this work:

o The Scoping study for Dargues Reef was based only on an assessment of the Main Lode. Drilling results at Dargues Reef indicate that there is significant potential to increase the gold inventory through deep drilling beneath and along strike from the Main Lode, including further exploration of the Plums Lode and the Hangingwall Lode. Based upon the continuity of mineralisation to over 450 m depth where it remains open, the Company will be targeting additional ounces at Dargues Reef over the next six to twelve months.

o Recent exploration success at Dreadnought and Tory Boy, both located within 2km of Dargues Reef, has highlighted the excellent regional exploration potential within the immediate Dargues Reef area. Drill intercepts such as 19m at 5.6g/t Au at Tory Boy will be a high priority for follow up over the coming months.

o Outside of the immediate Dargues Reef area, the Company controls over 700km² of tenements that contain the same rock units as Dargues Reef. Preliminary mapping and geophysics has indicated that a number of structures with strong geological similarities to Dargues Reef that will require follow up.

16 February 2010

Dargues Reef Drilling Strengthens Early Production Potential

http://asx.com.au/asxpdf/20100216/pdf/31nqbwg2696rn8.pdf

Highlights:

· Significant drilling intersections from the first two holes at Dargues Reef in 2010 including:

o 12m @ 6.3 g/t gold from 73m with 8m @0.43% Cu

o 13m @ 4.8 g/t gold from 75m with 7m @ 0.15% Cu

· Four drilling rigs now operating in NSW

· Assay results pending for a further seven RC and several diamond holes.

Notes:

· DREX170 tested an area ~20m to the west of the current Main Lode stope design. The hole intersected 12m @ 6.3 g/t gold in the Main Lode position and ~55m below surface, and has the potential to increase the mineable resource and improve the early production scenario.

· DREX176 which tested the Main Lode towards the west of the resource, intersected 13m @ 4.8 g/t gold. This result significantly exceeds that predicted by the resource model.

· Cortona is also pleased to report that it has been advised that the NSW Director General’s Office has confirmed that the Dargues Reef development has qualified as a Major Project for State Planning Approvals under Section 3A of the Environmental Planning and Assessment Act, 1979.

26 February 2010

Further High Grade Hits at Dargues Reef

http://asx.com.au/asxpdf/20100226/pdf/31nym331h6lczn.pdf

Highlights:

· Further significant drilling intersections from Dargues Reef including:

o 11m @ 6.5 g/t gold from 108m

o 9m @ 5.7 g/t gold from 48m

· Drilling and feasibility in full swing.

Notes:

· DREX177 tested ~15m beneath the current upper level Main Lode stope design. The hole intersected 5m @ 4.9 g/t gold in the Main Lode position, and has the potential to increase the resource and improve the early production scenario.

· In-fill holes DREX178 and 179 tested the upper parts of the Main Lode towards the west of the resource, and intersected 9m @5.7 g/t and 11m @6.5 g/t gold respectively. Both intercepts are at least in line with those predicated by the resource model.

15 March 2010

Dargues Drilling Highlights Potential Bonanza Zone

http://asx.com.au/asxpdf/20100315/pdf/31p7zc27d8md3y.pdf

Highlights:

· Further significant drilling intersections from Dargues Reef Project, NSW including:

o 12m @ 16.4 g/t gold (incl. 3.5m @ 44.0 g/t)

o 5m @ 15.6 g/t gold (with 3m @ 0.27% cu)

o 3.5m @ 12.7 g/t gold (with 0.3% Cu)

o 11m @4.3 g/t gold

· Coarse visible gold highlights potential bonanza zone: assay results pending

24 March 2010

Deep Exploration Hole Commences and High Grade Results

http://asx.com.au/asxpdf/20100324/pdf/31pffgzydnyrj6.pdf

Highlights:

· Phase 2 drilling campaign commences at Dargues Reef Gold Project in NSW, focusing on Dargues Deeps zone.

· Further significant intersections returned from Phase 1 drilling include:

o 22m @ 5.74 g/t gold and 0.27% copper from 158m (including 10m @ 8.70 g/t gold and 4m @ 0.9% copper.

o 17m @ 6.26 g/t gold from 47m (incl. 4, @ 15.1 g/t gold)

· 30m of visual mineralisation observed in latest hole at ~500m depth, with assay results pending.

· Significant resource upgrade expected mid-year

Notes:

· Phase 2 will focus on the “Dargues Deeps” zone, aiming to extend the existing resource at Dargues Reef by up to 250m down plunge with the potential to significantly add to the existing resource estimate of 286,000 oz @ 6.2 g/t Au.

· The phase 2 drilling will comprise a parent hole with five of six “daughters” wedged from it, and is expected to be completed by mid-June.

12 April 2010

Bonanza Gold Hits at Dargues Reef

http://asx.com.au/asxpdf/20100412/pdf/31pqj7ng0j3569.pdf

· Results include 5.7m @ 97.1 g/t Au, 2.8m @ 39.1 g/t Au, 5.5m @ 14.4 g/t Au, 13.2 @ 10.9 g/t Au and 13m @ 8.6 g/t Au.

· The intersections in DREX226 include 5.7m @ 97.1 g/t Au (including 3.8m @ 143.6 g/t), 2.8m @ 39.1 g/t Au and 5.5m @ 14.4 g/t Au).

· The latest RC and diamond drilling results also include hole 225W1, which intersected 13.2m @ 10.9 g/t gold, 18.5m @4.9 g/t gold and 8.4m @ 4.5 g/t gold and hole 223, which intersected 13m @ 8.6 g/t gold.

· Holes 223 and 226 are on the western end of the resource, and 225W1 is towards the middle and deeper. All three holes have intercepted the Main lode, while the two deeper holes (223 and 225W1) have also intercepted the multiple lode system which is developing at depth and includes the bonanza zone.

· Cortona currently has five drill rigs on site.

· Cortona has completed the acquisition of a further 120 hectares of freehold farmland as outlines in the company’s 2009 Rights Issue Prospectus. The farmland adjoins Cortona’s existing freehold property, and provides the Company with a range of significant strategic benefits relating to water, mine infrastructure, accss and exploration.

· Metallurgical test work is nearing completion, and Cortona is finalising a process design flow sheet that is estimated to deliver ~50% of the gold to a gravity circuit and ~48% to a sulphide concentrate grading ~30.0 g/t gold with silver and copper credits.

10 May 2010

Dargues Reef Continues to Deliver

http://asx.com.au/asxpdf/20100510/pdf/31q7xqd8z3rfr6.pdf

Highlights:

· High grade results from shallow RC drilling and deep diamond drilling, including:

o 19m @ 9.13 g/t gold and 8.34 g/t silver

· Deepest intercept to date shows substantial thickening of mineralised lode

· Further visible gold observed, results pending

· Exploration drilling continues.

Notes:

· A broad high grade intercept (19m @ 9.13 g/t gold) from a shallow part of the Main Lode should add to the current resource of 1.44Mt @ 6.20 g/t gold.

· In addition, the deep diamond drilling has intersected a 30m wide zone of lode which has returned virtually continuous mineralisation. This includes results of 10m @ 3.3 g/t and 19m @ 2.03 g/t Au, including several higher grade zones. The entire zone is above the resource cut-off grade (2.0 g/t) and should add to the overall resource.

· The intercept is at the base of the current resource outline, and indicates a thickening of the Main Lode at depth. This is particularly significant in light of the deep exploration hole that is currently being drilled to intercept the lode approximately 125m below.

18 May 2010

High Grade Drilling Results and Dargues Deep Intercept

http://asx.com.au/asxpdf/20100518/pdf/31qd38c7r35qxr.pdf

Highlights:

· Multiple high grade lodes in latest drill hole, including:

o 8.9m @ 15.2 g/t

o 11.3m @ 12.4 g/t gold

o 5.3m @ 6.78 g/t gold

o 8, @ 7.70 g/t gold

· Continuity of high grade structures confirmed

· First hole into Dargues Deep Intersects Lode

Notes:

· The diamond hole (DREX225) intersected multiple high grade gold lodes between 300m and 400m vertical depth, including 8.9m @ 15.2 g/t, 11.3m @ 12.4 g/t, 5.3m @6.8 g/t and 8m @ 7.7g/t. The results confirm the continuity of high grade structures parallel to the Main Lode and are expected to increase the current JORC resource of 1.44Mt @ 6.2 g/t gold.

· In addition, the Phase two “step out” drilling targeting beneath the existing resource has intersected 2 lodes approximately 200m below the previous deepest holes. One of these intercepts measures 6.5m and confirms mineralisation at Dargues Reef extends to significantly greater depths than previously identified. The plan is to wedge four or five daughter holes off this first hole.

16 June 2010

Drilling Extends and Strengthens Northern Lode at Dargues

http://asx.com.au/asxpdf/20100616/pdf/31qvpkpyflmk0j.pdf

Highlights:

· Intercepts extend high grade lode parallel to Main Lode:

o 9.9m @ 32.2 g/t (including 3m @ 101.3 g/t)

o 1m @ 21.5 g/t

o 1.5m @ 18.2 g/t

o 9.8m @ 8.42 g/t (Main Lode)

· Parallel lode currently measures ~145m x 170m

· Open at depth and along strike.

Notes:

· The latest diamond drill holes returned high grade gold assays including 9.9m @ 32.2 g/t (including 3m @ 101.3 g/t) in DREX225W2, and 9.8m @ 8.42 g/t in DREX229W3.

· The results are further confirmation of the continuity of the high grad lode to the north of, and parallel to the Main Lode, and are expected to increase the current indicated and inferred resource.

· Drilling has now extended the northern lode for 150m along strike and for a vertical distance of 175m. Estimated true widths are up to 5.8m and the lode remains open along strike and at depth. Drilling will test the continuity of this new lode.

30 July 2010

Quarterly Activities and Cashflow Report

http://asx.com.au/asxpdf/20100730/pdf/31rly93dvllmbs.pdf

Highlights:

· Deep drill intercepts from Dargues Deeps including:

o 5.7m @ 97.1 g/t gold (3.1 oz/t) from 454m

o 9.9m @ 32.16 g/t Au

o 12.4m @ 16.35 g/t Au

· Two rigs on site targeting extensions to Main Lode and Bonanza Lode

· JORC resource upgrade expected by Q3 2010

· Application submitted to significantly expand Dargues Mining Lease

· Environmental permitting underway

· Dargues Reef feasibility study to be completed December 2010

· North Monger Project in WA sold for $2.7m cash

5 October 2010

New Gold Mineralised Structures Discovered at Dargues Reef

http://asx.com.au/asxpdf/20101005/pdf/31sxxtm8w7ccbr.pdf

Highlights:

· At least five gold mineralised structures discovered close to surface in recent step-out drilling at Dargues.

· Best result to date of 0.5m @ 77.0 g/t gold which appears to correlate with earlier high grade hits.

· Broad, mineralised gold lode intercepted ~100m beneath current gold resource.

· Drilling at Dargues Reef now to focus on defining gold resources at the new shallow discoveries, targeting an increase in annual gold production early in the project’s life.

· Current hole discovers new zone of strong alternation and associated mineralisation ~ 150m north of Plums Lode target, results pending.

· Dargues Reef Environmental Assessment passes through “Adequacy Review” by NSW Government.

· Dargues Reef DFS on track for November 2010.

Notes:

· Recent drilling by Cortona has discovered additional gold mineralised structures close to surface and within several hundred metres north and south of Main Lode. At least five additional structures have been discovered, with intercepts including 0.5m @ 77.0 g/t, which appears to correlate with an earlier result of 1m @ 103.0 g/t . Other structures returned highly encouraging grades including 4m @ 3.2 g/t, 3.4m @ 4.2 g/t and 3.8m @ 2.5 g/t. The intercepts are mostly within 200m of the surface and present excellent targets with the potential to increase the current estimated gold production rate of 50,000 ounces per annum in the projects early years.

· The hole currently being drilled is targeting ~100m beneath the resource envelope at Plums Lode. This hole has intersected a broad zone of strong alteration with lode development approximately 150m north of Plums Lode, and may represent yet another discovery.

· In addition to the discovery of new gold mineralised structures close to surface at Dargues Reef, broad mineralisation (11.5m @ 1.6 g/t) has been intercepted ~ 100m below the current resource, indicating that the lode continues to greater depths than previously defined. However, technical issues while drilling these deep holes have hampered progress and drilling accuracy, resulting in several holes deviating from their targets.

· In light of the excellent near-surface discoveries from recent drilling, and their potential to provide an early increase in annual production, Cortona will now shift the current drilling focus to the shallow targets in the mine area and to follow-up recent near mine exploration results as a priority.

· Drilling depth extensions at Dargues Reef will be undertaken from underground once the decline has been sunk and mining is underway.

7 October 2010

Cortona Raises $4.3M to Accelerate Follow up Drilling

http://asx.com.au/asxpdf/20101007/pdf/31szrzyw77r0yf.pdf

· Cortona has resolved to raise up to $4,335,000 through the placement of up to 25.5 million ordinary shares at an issue price of $0.17 per new share, to institutional and sophisticated investor clients of Hartley’s Limited.

25 October 2010

New Shallow High Grade Gold Discovery at Dargues Reef

http://asx.com.au/asxpdf/20101025/pdf/31tbzn9jb6bgp2.pdf

Highlights:

· New shallow zone of high grade gold mineralisation discovered in drilling ~ 150m north of Dargues Reef:

o 12.6m @ 9.9 g/t ~80m below surface

· Further mineralisation observed in five follow-up holes along ~90m of strike length, results pending.

· Potential to add ounces per vertical metre, near term production and mine life at Dargues Reef.

· Drilling is ongoing to explore the extent of this new gold zone and a range of other shallow targets.

Notes:

· The new zone is associated with a subtle soil anomaly, which bodes well for similar targets that will be drill tested in the near future as part of the shallow drilling program around Dargues Reef.

· The mineralisation appears to be striking ~ENE, which is in a different orientation to Main and Plum lodes. The zone remains open in all directions. The true width remains unknown at this stage.

· Portions of the mineralisation are fracture controlled which is different in style from Main Lode and Plums Lode. The fractures contain chlorite-epidote-calcite-pyrite fill (matrix), with moderate busmuthinite and fine, disseminated visible gold.

24 November 2010

Drilling Confirms New Shallow Gold Discovery at Dargues Reef

http://asx.com.au/asxpdf/20101124/pdf/31v3bsq1nnbp5h.pdf

Highlights:

· Further shallow gold mineralisation intersected 150m north of Dargues Reef, confirming the discovery of a new gold lode, the “Ruby Lode”. Best results include:

o 3m @ 4.30 g/t Au from 18m

o 9m @ 3.96 g/t Au from 95m (incl. 6m @ 4.98g/t)

o 6m @ 3.5 g/t Au from 117m

o 12.6m @ 9.90 g/t (previously reported)

· Gold mineralisation open along strike and at deoth

· Within development range of underground mine being planned, potential to add ounces per vertical metre, near-term production and mine life at Dargues Reef.

· Drilling continuing with two RC rigs to explore the extent of this new gold zone and a range of other shallow targets.

· Dargues Reef Feasibility Study nearing completion and due for release in late November.

Notes:

· Three new RC drill holes have returned significant widths and grades (including 9m @ 3.96 g/t and 3m @ 5.80 g/t) confirming the presence of a significant gold zone, referred to as the Ruby Lode.

· The new holes, which were targeted up-dip of the discovery drill hole, DREC216 (12.6m @ 9.90 g/t gold), intersected broad zones of mineralisation in strongly to partially weathered rock where gold values are typically weaker than in the underlying fresh rock.

· The gold mineralisation in the Ruby Lode appears to be associated with Hematite alternation in addition to the more usual pyrite. Another unusual feature is the presence of a gently dipping diorite dyke which is at a very different orientation to elsewhere at Dargues.

· Given the advanced stage of the Dargues Reef Feasibility Study, it will not be possible to include the newly discovered Ruby Lode into the reserve and resource estimates being calculated as part of the Feasibility Study, to be delivered this month, however drilling will continue with the view to including the Ruby Lode in an upgraded resource estimate in 2011.

30 November 2010

Dargues Reef Feasibility – Robust Gold Mine Confirmed

http://asx.com.au/asxpdf/20101130/pdf/31v89rc6qn4tx7.pdf

Key Feasibility Outcomes:

· The feasibility study has confirmed the economic and technical viability of a proposed compact and efficient underground mining operation at Dargues Reef, with ore to be partially processed in a state-of-the-art 330,000 tpa treatment facility located on site.

· Production will commence at 270,000 tpa in 2012 and ramp up to 330,000 tpa in 2013, resulting in total production of 248,9000 oz of gold and 73,144 oz of silver over a 6 year period.

· This mining inventory does not include the recently discovered Ruby Lode, potential depth and strike extensions at Dargues Reef, or other near mine opportunities that will offer potential to extend the Phase 1 mine life and potentially increase annual production rates.

· The Dargues Reef operation will produce a combination of gravity gold and a gold concentrate which will be transported off site. No cyanide will be used on site.

· Over the coming few months, Cortona will continue to progress mine permitting approvals and concentrate off-take discussions with a view to finalising each of these key outstanding matters in Q1 of calendar 211.This will allow for project financing, in respect of which Cortona is in discussions with a number of potential parties. Concurrently, Cortona will continue to aggressively progress its near-mine and regional exploration programs with a view to adding additional gold resources for phase 2 expansion opportunities.

· The company’s current development timetable is to commence mining of the box-cut in Q2 of calendar 2011, subject to environmental approvals and completion of an appropriate financing package. Underground development is targeted to commence in Q3 of calendar 2011 with first ore production planned for Q1 of calendar 2012, with full ore production scheduled for Q2 of calendar 2012.

Geology and Resources:

· The majority of ore identified in the Dargues Reef ore body is located in Main Lode and Plums Lode. The current interpretation of in-situ resources, as provided by Runge Limited (June 2010) is show in the table below.

· The Main Lode ranges from 150-200 metres along strike and extends to at least 580 metres below the surface. The Main Lode is steeply dipping, generally between 80-90^o. Typical mineable resource widths range from 3m to 5m. In the central area there are closely space stacked lodes which allow a mineable resource width of up to 20m.

· The Plums Lode is ~150m to the east, approximately 40 metres in strike length, and has been drill tested to approximately 30m. The lode is vertical and averages 5m in thickness.

· The deposit was estimated by Runge Limited using Ordinay Kriging (OK) grade interpolation, constrained by resource outlines based on mineralisation envelopes prepared using a nominal 1g/t Au cut-off grade and a minimum downhole length of 1m.

Mining Method and Ore Reserves:

· The mining method selected for the Dargues Reef ore body is Sub-Level Open Stoping (SLOS). SLOS is a high production, bulk mining method most applicable to large steeply dipping and regular ore bodies. The application for Dargues Reef is planned to be top-down, continuous retreat stoping with pastefill. This methodology reduces development metres and provides quick access to ore, requiring minimal capital to be spent upfront whilst maximising recovery of the ore body.

· A conservative dilution factor of 30% accommodates both planned and unplanned dilution, and has the potential to be lowered during mine production as the ore body becomes better understood.

Mineral Processing

· Construction of the 330,000 tonnes per annum processing plant and underground development are scheduled to commence in Q2 2011. The plant comprises conventional jaw and cone crushers, primary and regrind ball mill, gravity recovery and floatation circuits, concentrate thickening and filtering, and paste plant:

o Crushing and Ore Storage: Ore extracted from the mine will be trucked to the surface and delivered to the ROM pad where it will be stockpiled and blended. It will then be fed through a two stage crushing process. The primary crusher will be a single toggle jaw crusher with the secondary crusher being a cone crusher.

o Grinding: Crushed ore will be ground using a 3.7 metre diameter primary ball mill, with a regrind ahead of a cleaner flotation.

o Gravity Recovery: Primary and regrind gravity will be used to recover the gravity gold via a centrifugal concentrator.

o Rougher floatation comprises a bank of 5, 16m³ forced air mechanically agitated cells.

o Concentrate Dewatering: Concentrate from the cleaner circuit is pumped to the 3.5m diameter high rate concentrate thickener followed by concentrate filtration to produce a damp cake for transport.

o Tailing Disposal: A valley filled tailing storage facility has been designed for the project, with a capacity to hold ~65% of the tailings, with 35% being returned underground as paste fill.

o Total Recovery: Approximately 48% of gold will be recovered from gravity and 47.7% will be recovered from concentrate, giving an overall recovery of 95.7%.

Infrastructure:

· Site Infrastructure for Dargues Reef is required to be established during the construction phase. Major elements of infrastructure including internal roads, office buildings, site earth works and boxcut have been quoted for by appropriate suppliers and contractors.

· Power for the mine will be sourced from the existing 22kV Braidwood Feeder that connects to the Captains Flt 66/22KV Zone Substation. The mine supply will be reticulated across Cortona owned land to the processing plant and underground mine.

Permitting:

· Modification to the current Mining Lease (ML103) has been submitted to the Department of Planning and Infrastructure. The mining lease is expected to be approved in line with the approval of the Environmental Assessment.

Capital Costs:

· The capital cost incurred in the first year of the project is approximately $42m, with capital expenditure declining steadily over years 2-4 of the project: this is largely driven by underground development. Total capital cost for the project, including contingency is $75million over the LOM.

· No capital expenditure occurs after year 4 following the completion of the decline. All other major capital items have largely been expensed during the first year of the project.

Operating Costs:

· Operating costs for the Dargues Reef Gold Project have been estimated using indicative pricing receive from several prospective mining contractors undertaking the underground mining operation, 330,000 tpa processing plant feed rate operated by Cortona, and includes indicative transport and off-site treatment costs for the gold concentrate.

Financial Analysis:

· The Feasibility Study used a long term Australian Dollar gold price of $1,250 an ounce. Given the current strong outlook for gold the Company considers the Dargues Reef Gold Project to be financially attractive, with a NPV of $47m and an internal rate of return of 30%.

Development Timing:

· Mining of the boxcut is scheduled to commence in Q2 of calendar 2011, with underground development commencing in Q3 of the same year. First ore is expected in Q1 of Calendar 2012 with full ore production being reached in Q2 calendar 2012.

1 December 2010

Cortona Completes Sale of North Monger

Other key near-mine targets at Dargues include:

· Chinamans prospect: where previous drilling returned 4m @ 28.0 g/t ~70m below the surface. Three follow up holes have returned results which include .7m @77.0 g/t. Chinamans is located 100m south west of Dargues Reef

· Scarlet Prospect: located ~200m west of Dargues Reef, where a soil anomaly is coincident with historic prospecting pits

· Carmine Prospect: located 350m north of Dargues Reef which was discovered with an intercept of 3.4m @ 3.2 g/t high up in one of the deep step out holes at Dargues Reef.

· Thompsons and Thompsons South Prospects: Sites of historic mining where previous drill holes have intercepted anomalous gold mineralisation, and

· Additional shallow near-mine targets including historic prospecting pits, soil anomalies and Dargues “look-alike” structures.

· Targets further afield that have returned promising results from initial drill holes include Copper Ridge (1km), Hughen (600m), Tullock (800m), Snobs (1km) and Dreadnough (1km).

21 December 2010

Significant Silver Discovery Near Dargues Reef

http://asx.com.au/asxpdf/20101221/pdf/31vr98z3cmh2mq.pdf

Highlights:

· Shallow RC drilling discovers high grade silver mineralisation ~500m northeast of Dargues Reef

o 1m @ 687 g/t Ag (22 ounces), 0.22% Cu, 1.8% Pb from 49m

· Shallow RC drilling also extends Chinaman’s gold prospect located ~100m southwest of Dargues Reef

· 2 rigs to resume drilling in early January.

Notes:

· Several significant results have been received, highlighting further growth potential in close proximity to Dargues Reef. At the Hughen prospect ~ 500m north of Dargues Reef, shallow drilling (MCRC051) has intercepted very high grade silver (1m @687g/t of 22oz Ag, from 49m), with anomalous copper (0.22%) and lead (1.81%). This intercept correlates well with a previous silver intercept (MCRC010) that contained similar physical and chemical attributes (i.e; 57.6 g/t and 1.04% Pb) 50m to the northwest.

· Chinaman’s prospect, situated ~100m southwest of Dargues Reef, has returned shallow gold intercepts that extend the trace of the lode a further 40m along strike. The proposed access for the Dargues Reef mine will pass close to this lode and will enable the establishment of underground drill sites to further explore its potential to add further ounces to the mining inventory.

12 January 2011

Plums Lode Extended and Drilling Recommences at Majors Creek

http://asx.com.au/asxpdf/20110112/pdf/41w4m4b65t4q36.pdf

· Latest results extend Plums Lode a further 150m down plunge of current resource envelope.

o 6m @ 5.63g/t gold from 478m (within a zone of 10m @ 4.07 g/t from 474m).

· Two RC rigs have recommenced shallow drilling at Majors Creek targeting near mine prospects:

o Extensions to Ruby Lode and Chinaman’s

o Other recent discoveries at Hughen and Carmine

o New areas of interest

Notes:

· Results from a deep hole at Plus Lode have confirmed broad mineralisation grading 6m @ 5.63 g/t gold (within a broader zone of 10m @ 4.07 g/t gold). The intercept is ~80m below the deepest previous hole, and 150m deeper than the previous resource envelope, and demonstrates the potential to add significant ounces to the current resource.

22 February 2011

Ruby Lode Taking Shape Following Further Promising Results

http://asx.com.au/asxpdf/20110222/pdf/41wy0x6lc8978f.pdf

· Drilling results further extend Ruby Lode, including:

o 5m @ 10.61 g/t gold

o 4m @ 4.96 g/t gold

o 4m @ 4.78 g/t gold

· 2 rigs continue drilling at the new Hughen and Weather Station Prospects

Notes:

· The drilling rigs are currently testing the Hughen prospect, where outcropping mineralisation up to 7.0 g/t Au has been found, and the Weather Station prospect, where further outcropping mineralisation has been observed.

· Encouraging visual mineralisation has been observed in the drill chips from this drilling at both prospects. Samples have been submitted for assay with results due in approximately 2 to 3 weeks.

6 April 2011

Drilling Success at Near-Mine Prospects – Dargues Reef NSW

http://asx.com.au/asxpdf/20110406/pdf/41xwn70jg27hfp.pdf

Highlights:

· Geological Interpretation of new drill results near Dargues Reef Identifies new zones and strengthens existing prospects. Results include:

o Ruby Lode

§ 2m @ 8.28 g/t from 132m and 2m @ 3.74 g/t from 34m, 100m west of previous drilling

§ Carmine Prospect:

· 4m @ 3.36 g/t from 20m and 8m @ 2.55 g/t from 32m, 10 west of previous drilling

· Hughen

o 2m @ 2.65 g/t from 49m, within an anomalous gold zone measuring 400m x 50m.

Notes:

· The results at Ruby Lode extend the mineralise structure by another 100m (using 3.0 g/t cut-off) taking the strike length of known mineralisation to over 250m. This is a significant outcome given that Ruby Lode is only 150m north of the Main Lode and well within reach of the planned mine development.

· The Ruby Lode remains open along strike and at depth.

12 April 2011

MOU with Leading Mining Group to Mine Dargues Reef

http://asx.com.au/asxpdf/20110412/pdf/41xzz7wlqjhq0n.pdf

· Cortona has entered into a Memorandum of Understanding (MOU) with Perth-based specialised underground mining services group, GBF Mining and Industrial Services Pty Ltd.

· The arrangement will see both parties contribute expertise to mine planning and mine management, driven by an incentive scheme that will reward the contractor according to Key Performance Indicators based on safety, production and costs.

· The arrangement delivers a range of benefits to Cortona, including:

o Access to experienced “top quality” personnel

o Maximised performance

o Reduced operating costs

o Availability of tried and tested systems available from start-up

· As part of the incentive arrangements, GBF will subscribe for between one million and two million dollars of shares in Cortona at a price to be agreed at the date of execution of the binding agreement.

· The MOU is subject to Cortona securing the necessary environmental and planning approvals of the NSW and Federal Governments. The NSW Government approval has been delayed because of the recent State election but is expected within the next few weeks.

8 August 2011

Mandate for Banking Financing of Dargues Reef Development

http://asx.com.au/asxpdf/20110808/pdf/42084ymfkkgnv5.pdf

· Cortona Resources is pleased to announce that it has mandated Deutsche Bank AD to provide a financing package of up to A$37 Million for the development of the Dargues Reef Gold Project at Majors Creek in NSW.

· The Financing Package includes a prepaid gold forward and requires Cortona to commit to a gold hedging program. The total quantum of gold ounces committed under the Financing Package will be dependent upon the prevailing spot price at financial close but is expected to represent less than 30% of the existing proven and probable reserves at Dargues Reef.

· The Hedging Program will secure the Company’s repayment obligations whilst providing Cortona with significant exposure to the spot price in this very strong gold market.

31 August 2011

$3.5M Capital Raising

http://asx.com.au/asxpdf/20110831/pdf/420rv7636rq1b0.pdf

Highlights:

· Placement to raise #3.5 million

· Cortona’s mining contractor GBF Mining and Industrial Services to subscribe for $1 million.

· Funds will be used to progress long lead time items, commence site works, and recommence near-mine exploration drilling.

Notes:

· Cortona has resolved to raise up to $3.5 million pursuant to the issue of up to 25 million ordinary shares at an issue price of $0.14 per share. The issue was oversubscribed.

2 September 2011

MOU for Dargues Reef Processing Plant Construction

http://asx.com.au/asxpdf/20110902/pdf/420v95th38px3f.pdf

Highlights:

· Lump sum contract, throughput guaranteed

· Work on long-lead items and design to commence immediately

· Final agreement to be entered into once development is fully funded.

Notes:

· The lump sum contract will cap the cost of the works, with a bonus scheme attaching to early delivery. The agreement includes a throughput guarantee for the 330,000 tpa plant.

· The Dargues Reef processing facility comprises a crusher, ball mills, gravity circuits, and floatation cells for the production of a high-grade gold concentrate and a gravity product. The plant is designed for a +95% recovery with about 50% of the gold reporting to the gravity circuit.

· The concentrate will be trucked to the London Victoria Gold Mine near Parkes (~400km away), where Cortona will further treat the concentrate to produce Gold Dore.

· First production is targeted for 2012.

8 September 2011

Dargues Reef Gold Mine Approved

http://asx.com.au/asxpdf/20110908/pdf/420ytv25sfrlp2.pdf

Highlights:

· Development approval received from NSW Planning Assessment Commission.

· Construction set to commence in Q1 of 2012 with first production targeted by year-end 2012.

· Initial average 50,000 oz pa gold production forecast to generate free cash flow of A$160m at A$1,700/oz gold price

· Significant upside from near-mine exploration potential

· Financing package well advanced and on track to be completed within two months

· Exploration drilling set to resume within two weeks.

28 September 2011

Federal Approval for Dargues Reef, Operations Update

http://asx.com.au/asxpdf/20110928/pdf/421chg7mh08py8.pdf

· Cortona has received Federal Government approval for Dargues Reef gold mine under the Environmental Protection and Biodiversity Conservation ACT, subject to conditions which have been agreed to by the Company.

· RC drilling has recommenced at Majors Creek. The program will test exciting new targets along Copper Ridge near Dargues Reef, where Cortona has identified gold and silver anomalism along approximately 1km of strike. The program is also planned to test depth and strike extensions at Ruby Lode and Chinamans.

10 October 2011

Dargues Reef Approvals

http://asx.com.au/asxpdf/20111010/pdf/421my8cc96nd4t.pdf

· Objectors have commenced merits appeal challenges in the NSW Land and Environment Court against the NSW Planning Minister’s grant of the environmental approvals for Dargues Reef.

· The Company believes that the measures it has committed to and implemented as part of its environmental obligations should position it well to successfully defend the challenge.

· During the currency of the merit appeal challenge, the Company is entitled to continue to rely on the environmental approval to carry out its operations at Dargues Reef.

24 October 2010

Planning Approval Update

http://asx.com.au/asxpdf/20111024/pdf/421zccd900vqdp.pdf

· On 21 October 2011, at a NSW Land and Environment Court Motion Hearing for Expedition bought by Cortona, the Judge ruled in favour of Cortona’s Motion and ordered that the Appeal by heard expeditiously. The commencement date for the hearing was set for 1 February 2012, which is the first week the Court resumes after the Christmas break.

21 December 2011

Council Withdraws Appeal

http://asx.com.au/asxpdf/20111221/pdf/423f3gz8spd9v5.pdf

· Eurobodalla Shire Council has withdrawn its appeal in the Land and Environment Court against the NSW Government’s approval of the Dargues Reef Gold Mine.

· The decision to withdraw the appeal means that there is now just one appeal pending. That appeal is due to be heard on 1 February 2012.

31 January 2012

Agreement Reached with Objectors to Dargues Development

http://asx.com.au/asxpdf/20120131/pdf/4241x5kljh9sny.pdf

Kentor Gold Trading Update

2012-02-18T11:44:00.000+11:00

This was my first trade and I certainly stuffed it up. In my mind I thought that the consolidation would be bad for the share price in the short term but failed to sell when I was up 15-20% on my trading parcel of Kentor Gold.

Instead I felt that news from Andash must certainly be coming and that the reward for holding would far outweigh the risk. Unfortunately this proved incorrect and instead of selling at 12.5 or 13 cents (original purchase price of 11 cents) I continued to hold.

The stock closed at $1.07 (consolidated 1 for 10) on Friday so I am now down approx. 3% on my trading parcel. Obviously I could have sold and bought more now.

I’ll strike this one down as a learning experience and will remind myself in the future that when I am trading the idea is to take advantage of the SHORT TERM moves, not necessarily wait for news that could be weeks or months away.

I continue to hold the trading parcel as I believe in the fundamentals of the company and as I stated when I started my trading experiment I only trade in stocks that I am happy to hold long term any way.

The only other thing I am concerned about is the fact that I am going away to Europe for four weeks in March and won’t be able to monitor my stocks as much while I am over there.

Weekly Update: Week Ending 17 February 2012

2012-02-17T23:43:00.000+11:00

Market:	Close (Friday 10/02/12):	Close (Friday 17/02/12):	Percentage Change:
XJO	4245	4195	-1.18%
XSO	2447	2412	-1.43%

This week the ASX 200 fell 1.18% with the Small Ords faring slightly worse to close down 1.43%. If you pull up a weekly chart you can see that we were due for a pause eventually so I guess one or two down weeks is not to be entirely unexpected.

Code:	Weighting:	Share Price Friday (10/02/2012)	Share Price Friday (17/02/2012)	Percentage Change:	Weighted Change:
OBJ	21.59%	0.021	0.020	-4.76%	-1.03%
MHM	16.82%	0.805	0.775	-3.73%	-0.63%
KGL	27.47%	1.165	1.070	-8.15%	-2.24%
Trading	13.31%	1.165	1.070	-8.15%	-1.09%
Cash	20.81%			0%	0.00%
TOTAL	100.00%			-8.266%	-4.98%

Unfortunately my portfolio continues to drop. After putting in a solid week last week, OBJ pulled back to 0.02 cents for a fall of 4.76%.

MHM continues to drop and closed the week at 0.775 cents. My timing with this stock (on both occasions that I bought) has been absolutely horrendous. The fundamentals do however back a higher share price. First we need to see more details on the US operations and a quarter or two of stronger results from our Aussie Plant which is not too far away now that they have sorted out the AL80 issues and are running at full capacity. It is certainly a stock that tests your patients.

Kentor Gold (and the trading parcel) continued to fall and closed the week at 1.07. I think this is in part due to the consolidation that has reduced volumes and distorted the buy depth, as well as the ongoing delays at Andash.

The portfolio retains 20% which may be deployed in the near future. When I started this portfolio I stated that 4-6 positions was the ideal target and I think that week’s like this really underscore why. Investing in this end of the market is always going to create the potential for delays so buy having an extra 1-3 companies in the mix, hopefully when one is delayed the other isn’t. The problem of course is finding companies that meet my criteria.

Code:	Weighting:	Share Price Friday (10/02/2012)	Share Price Friday (17/02/2012)	Percentage Change:	Weighted Change:
OBJ	27.27%	0.021	0.020	-4.76%	-1.30%
MHM	21.24%	0.805	0.775	-3.73%	-0.79%
KGL	34.69%	1.165	1.070	-8.15%	-2.83%
Trading	16.81%	1.165	1.070	-8.15%	-1.37%
TOTAL	100.00%				-6.29%

Removing cash from the portfolio shows a drop of 6.29%, which is largely due to the overweight holding in Kentor Gold/trading parcel.

Code:	Weighting:	Purchase Price	Current Price:	Percentage Change:	Weighted Change:
OBJ	22.93%	0.023	0.020	-13.04%	-2.99%
MHM	22.28%	1.100	0.775	-29.55%	-6.58%
KGL	22.41%	0.980	1.070	9.18%	2.06%
TOTAL	67.63%				-7.52%

The portfolio is now down 7.52%.

Kentor Gold Approves Murchison Gold Project

2012-02-12T10:59:00.000+11:00

On 7 February 2012 Kentor Gold released an announcement on the Murchison Gold Project in WA. This is the new working title for both the Burnakura and Gabanintha mines.

The project will commence production in June 2012 and will eventually involve a four stage expansion program.

Stage one will produce 24,000 ounces of gold from a combination of open pit and underground mining at Burnakura over an initial three and a half years. Further drilling is expected to increase production and extend mine life.

The capital costs of this first phase is $14.8 million, with $2 million already spent. I believe this came in substantially higher than where the market expected and is most likely due to the underground mining component that was a recent addition to the study.

The second phase is targeted to commence production during 2013. This will involve the additional of a parallel heap leach operation which will allow for an expansion in production and the ability to process the lower grade ore.

The third phase will be an expansion of the CIP plant from 260,000 to 500,000 tonnes per year. As yet there is no date mentioned for this. I would assume that this could also happen in 2013, depending on the amount of capital available for KGL’s disposal at the time. (keeping in mind that Andash will hopefully be being constructed at this time as well).

The fourth phase will be the floatation of copper-gold ore to produce a copper concentrate. This is where the Gabanintha project comes in.

The major negative of the announcement was the high cash operating costs for $1,223 per ounce. If you take an average AUD gold price of $1,550 this only leaves a margin of $327. At 24,000 ounces this only equates to $7,848,000. Although not a huge sum of money it should go some way in covering administration costs and part of our exploration program.

The next feasibility on stage two is due in April. It is expected that this will reduce operating costs.

Link to Announcement.

Weekly Update: Week Ending 10 February 2012

2012-02-11T10:57:00.001+11:00

Market:	Close (Friday 03/02/12):	Close (Friday 10/02/12):	Percentage Change:
XJO	4251	4245	-0.14%
XSO	2412	2447	1.45%

It was a strange week on the market with the ASX 200 closing down 0.14% but the Small Ords putting in a solid gain of 1.45%. This seems to indicate that there is underlying strength in the recent rally.

However, the drop in Blue Chips may work its way into the small cap sector next week so we will have to wait and see what transpires.

Code:	Weighting:	Share Price Friday (03/02/2012)	Share Price Friday (10/02/2012)	Percentage Change:	Weighted Change:
OBJ	19.18%	0.019	0.021	10.53%	2.02%
MHM	17.43%	0.850	0.805	-5.29%	-0.92%
KGL	28.94%	1.250	1.165	-6.80%	-1.97%
Trading	14.02%	1.250	1.165	-6.80%	-0.95%
Cash	20.43%			0%	0.00%
TOTAL	100.00%			-2.789%	-1.83%

On an individual portfolio level it was a fairly poor week with KGL’s consolidation and further delays at our Andash project dragging the share price 6.80% lower. Anyone who has been keeping an eye on the market depth will have noticed that volumes are rubbish and the gaps between the bid and ask ridiculously large at some times.

MHM continues to fall given the lack of news on their American expansion. The potential is there, but the market does not appear to be interested at this point in time.

The stand out performer was OBJ who put in a strong week to close at 0.021. This was also met with some fairly good volume and a consistent increase in the buy side of the Market Depth.

Overall the portfolio decreased by 1.83% on a weighted basis.

Code:	Weighting:	Share Price Friday (03/02/2012)	Share Price Friday (10/02/2012)	Percentage Change:	Weighted Change:
OBJ	24.10%	0.019	0.021	10.53%	2.54%
MHM	21.91%	0.850	0.805	-5.29%	-1.16%
KGL	36.37%	1.250	1.165	-6.80%	-2.47%
Trading	17.62%	1.250	1.165	-6.80%	-1.20%
TOTAL	100.00%				-2.29%

Without cash the fall came in at 2.29%.

Code:	Weighting:	Purchase Price	Current Price:	Percentage Change:	Weighted Change:
OBJ	22.93%	0.023	0.021	-8.70%	-1.99%
MHM	22.28%	1.100	0.805	-26.82%	-5.98%
KGL	22.41%	0.980	1.165	18.88%	4.23%
TOTAL	67.63%				-3.74%

The overall portfolio now remains 3.74% down.

January 2012 Monthly Report

2012-02-09T13:04:00.002+11:00

January was a rubbish month for my portfolio. As the numbers below show the overall market performed very strongly and got off to a stellar star for 2012. Unfortunately my stock failed to follow suit.

Market:	Close December	January Close	Percentage Change:
XJO	4056	4262	5.08%
XSO	2209	2379	7.70%

The ASX 200 managed a very impressive gain of 5.08% with the Small Ords performing even stronger to close the month up 7.70%. No matter how you look at those figures they are bloody good, especially seeing as most of 2011 was filled with negative headlines about the US, Euro and the end of the world as we know it. (Just goes to show how pointless mainstream media is).

Code:	Weighting:	Share Price End of December	Share Price End of January	Percentage Change:	Weighted Change:
OBJ	17.32%	0.018	0.019	5.56%	0.96%
MHM	15.84%	0.900	0.850	-5.56%	-0.88%
KGL	25.09%	1.200	1.240	3.33%	0.84%
Trading*	12.16%	1.100	1.240	12.73%	1.55%
Cash	29.60%			0%	0.00%
TOTAL	100.00%			5.354%	2.47%

At an individual stock level OBJ managed a gain of 0.001 cent to increase to 0.019. MHM had a shocking month to close down 5.56% and KGL put some minor runs on the board.

The only saving grade was my trading parcel in KGL which I managed to pick up at $1.10 for a weighted gain of 1.55%. (I can’t recall the exact date I purchased these and it may have been in the last days of December so I may need to revise this section of the report at a later date.)

Code:	Weighting:	Share Price End of December	Share Price End of January	Percentage Change:	Weighted Change:
OBJ	24.61%	0.018	0.019	5.56%	1.37%
MHM	22.50%	0.900	0.850	-5.56%	-1.25%
KGL	35.63%	1.200	1.240	3.33%	1.19%
TOTAL					1.30%

Without cash or trading parcel the portfolio only increased by 1.30%, which really underlines how poorly my stocks performed during the month.

Code:	Weighting:	Purchase Price	Current Price:	Percentage Change:	Weighted Change:
OBJ	20.44%	0.023	0.019	-17.39%	-3.56%
MHM	19.86%	1.100	0.850	-22.73%	-4.51%
KGL	19.97%	0.980	1.240	26.53%	5.30%
Cash	28.86%			0.00%	0.00%
TOTAL	89.14%				-2.77%

At the end of the month the portfolio remained 2.77% underwater.

Weekly Update: Week Ending 3 February 2012

2012-02-09T12:48:00.003+11:00

Market:	Close (Friday 27/01/12):	Close (Friday 03/02/12):	Percentage Change:
XJO	4288	4251	-0.86%
XSO	2390	2412	0.92%

First of all guys sorry the reports are late again. I have spent about 30 hours this week research a stock, Cortona Resources. I still have not made a decision on whether to add it to the portfolio or not but will certainly keep you informed if I do.

Anyway on to the markets, last week was quite unusual as we had the XJO down 0.86%, but the XSO up 0.92%. This would seem to suggest that some investors/traders are switching out of blue caps and into the more speculative small cap sector.

Code:	Weighting:	Share Price Friday (27/01/2012)	Share Price Friday (03/02/2012)	Percentage Change:	Weighted Change:
OBJ	19.26%	0.019	0.019	0.00%	0.00%
MHM	17.09%	0.830	0.850	2.41%	0.41%
KGL	29.06%	1.250	1.290	3.20%	0.93%
Trading	14.08%	1.250	1.290	3.20%	0.45%
Cash	20.52%			0%	0.00%
TOTAL	100.00%			2.937%	1.79%

While monitoring my portfolio last week I thought I was doing pretty bad. It just seems like MHM, OBJ and KGL have been stuck at the same price point for a while. However when you plug the numbers in they actually did okay this week (even if they didn’t last week or the one before).

Overall the portfolio was up 1.79% with both MHM and KGL leading the charge.

Code:	Weighting:	Share Price Friday (27/01/2012)	Share Price Friday (03/02/2012)	Percentage Change:	Weighted Change:
OBJ	24.23%	0.019	0.019	0.00%	0.00%
MHM	21.50%	0.830	0.850	2.41%	0.52%
KGL	36.56%	1.250	1.290	3.20%	1.17%
Trading	17.71%	1.250	1.290	3.20%	0.57%
TOTAL	100.00%				2.25%

Without cash in the portfolio the return would have been 2.25%. I continue to hold my trading parcel of Kentor Gold in anticipation of an announcement on Andash. This is obviously dragging on longer than expected and to a certain degree I do feel over exposed to this stock for the time being. I am monitoring the situation carefully and may decide to exit the trade if it doesn’t show some signs of improvement once it starts trading as KGL again. (It is currently trading on the code KGLDA as it has undergone a 1 for 10 consolidation).

Code:	Weighting:	Purchase Price	Current Price:	Percentage Change:	Weighted Change:
OBJ	22.93%	0.023	0.019	-17.39%	-3.99%
MHM	22.28%	1.100	0.850	-22.73%	-5.06%
KGL	22.41%	0.980	1.290	31.63%	7.09%
TOTAL	67.63%				-1.96%

The portfolio remains slightly underwater and down 1.96%. It seems that none of my stocks can go up at the same time. MHM had a gone run a month or two back, Kentor has had a few good days and OBJ came off its lows fairly well. But they all happened at different times which is a little frustrating. I look forward to the day where the portfolio is finally in the

MHM Metals US Property Settlement

2012-02-03T13:38:00.000+11:00

Yesterday MHM announced that they had settled on the purchase of their 115 acre industrial site in Russellville, Kentucky.

The final figure was $838,761 (which is probably an odd figure due to currency conversion). The announcement then does on to state that “The Company is in the process of finalising process plant design and costing, with a number of existing buildings on site expect to decrease both time and expense of plant construction.”

Furthermore, “The large land-holding provides ample opportunity for MHM to grow, and to accommodate additional associated technologies under development.”

Now it’s just a matter of getting the design completed, financing in place and building the thing.

Link to announcement.

MHM: Another Way the Silica Spin-Off Could Work

2012-02-03T13:31:00.003+11:00

Following my recent post on how the Silica project could be spun off there was some discussion on Hotcopper with another suggestion put forward. I believe this idea has merit, but would be worth less and more risky for any shareholders in the new silica company in my opinion. In summary it involves the following steps:

Step One:

MHM spins-off the Silica division into a new company. This company holds all our silica assets and signs an off-take agreement with a company that is to develop the smelter.

Step Two:

The external party, let’s just use Wacker Chemie AG as an example, would then develop the Smelter by themselves. The new MHM Silica Company would also receive a free carried stake (say 5% in the smelter). This is akin to receiving a 5% share of projects.

Step Three:

The Silica company then begins mining and obviously has a guaranteed customer with the off take agreement signed with the smelter own.

In this scenario the spun-off silica company is more involved in the mining side of the operations, rather than the smelter operations. It is also a little harder to run the figures see as we don’t yet know the scale of mining operations required to support the smelter.

If this indeed turns out to be the strategy of management then I would expect a return less than that outlined in the previous post. I do however believe it could still be worth around 10-20 cents per share just using some back of the envelope figures.

How Much is the First MHM Plant Going to be Worth?

2012-02-03T12:44:00.000+11:00

The other day MHM released their quarterly report which provided some figures on how much the US plant is going to cost and what the targeted earnings are. Both of these figures came in at US$25 million. As a result we can now do some rough calculations as to what the US plant is likely to be worth.

Targeted Earning = $25,000,000

Less Tax @ 30% = ($7,500,000)

Add back Depreciation* = $625,000

Net Profit = $18,500,000

* Please note with Depreciation I have just used 2.5% of the projected development costs of the plant (US$25m). This is an Australian based figure so it may differ slightly, however for the time being it will be sufficient.

For those of you who have reviewed my earlier research on MHM I was a lot more conservative on these figures originally. At the time I was working with an EBIT of $16 - $20 million and always used the lower estimates to arrive at a value.

Now that the company has provided a little bit of guidance I think we can be a little more bullish. Using a PE of 10 the US plant would be worth $185,000,000. A significant increase on my original estimate of $112,000,000 (using the more conservative figures).

However, what I think the last few months has taught me about MHM is that the business is all about scaleability and expansion. Once this first plant is up and running I think we will move forward at a lot faster rate. As a result a higher PE of up to 16 would be justified in the short term and a medium term PE of 12 (once Plant 2 and 3 are in construction/running) is ideal in my opinion.

As a result this would value Plant 1 at $296,000,000 in the short term as a lot of “blue sky potential” would be built into its price. Over time as the blue sky potential was realised the justifiable PE would decrease, but the slack in the company’s value would be picked up by plant 2 and 3 commencing operations. Following this period of high grad a medium term PE of 12 would equate to a value of $222,000,000.

Now multiple that across as many plants as you want and that is the potential value of the business. And that’s before we add in the potential of the additional technologies MHM has first right or refusal over or the Silica project.

OBJ Quarterly Report Email

2012-02-02T14:05:00.000+11:00

As I mentioned in my post on the OBJ Quarterly Report I planned on contacting management about the lack of commentary associated with the figures.

I am pleased to report that I received a detailed/well thought out reply. In general, the email said that management considers each report on a case by case basis and are not against providing commentary as such. They just prefer to make announcements when a material event has occurred, rather than talk about one that might occur.

In my email I raised the fact that this was an important PR/marketing tool to keep new, old and potential investors in OBJ informed on a regular basis. Glyn said my suggestion will be taken on board so we will just have to keep an eye out for the next quarterly to see if we do get any additional commentary.

Overall, I think this highlights the importance of speaking with management. It is only something I have got used to recently, but it certainly helps clarify what the company is doing and the thought process of management.

Weekly Update: Week Ending 27 January 2011

2012-02-01T11:06:00.003+11:00

Market:	Close (Friday 20/01/12):	Close (Friday 27/01/12):	Percentage Change:
XJO	4239	4288	1.16%
XSO	2374	2390	0.67%

The broader market continued to move forward last week with the XJO increasing by 1.16%. There does however appear to be some caution moving into the market with the Small Ords (XSO) only managing a gain of 0.67%.

Code:	Weighting:	Share Price Friday (20/01/2012)	Share Price Friday (27/01/2012)	Percentage Change:	Weighted Change:
OBJ	19.12%	0.019	0.019	0.00%	0.00%
MHM	17.69%	0.865	0.830	-4.05%	-0.72%
KGL	28.85%	1.250	1.250	0.00%	0.00%
Trading	13.98%	1.250	1.250	0.00%	0.00%
Cash	20.37%			0%	0.00%
TOTAL	100.00%			-1.349%	-0.72%

On the portfolio front it was another disappointing week with OBJ and KGL staying flat and MHM dropping another 4.05%.

Kentors lack of movement can be explained by the share consolidation which has seen volume drop off by a significant amount as it trades on a deferred settlement basis (current code is KGLDA).

Overall the portfolio was down 0.72%

Code:	Weighting:	Share Price Friday (20/01/2012)	Share Price Friday (27/01/2012)	Percentage Change:	Weighted Change:
OBJ	24.01%	0.019	0.019	0.00%	0.00%
MHM	22.21%	0.865	0.830	-4.05%	-0.90%
KGL	36.23%	1.250	1.250	0.00%	0.00%
Trading	17.55%	1.250	1.250	0.00%	0.00%
TOTAL	100.00%				-0.90%

Removing cash does not show too much different give the lack of movement in both OBJ and KGL. Without cash the portfolio decreased in value by 0.90%.

Code:	Weighting:	Purchase Price	Current Price:	Percentage Change:	Weighted Change:
OBJ	22.93%	0.023	0.019	-17.39%	-3.99%
MHM	22.28%	1.100	0.830	-24.55%	-5.47%
KGL	22.41%	0.980	1.250	27.55%	6.17%
TOTAL	67.63%				-3.28%

And finally, the overall portfolio remains 3.28% under water (excluding the gains from my trading stock). Hopefully this figure starts to turn around soon as we have a lot of news coming up with Kentor Gold and MHM progressing with their US expansion.

Kentor Gold Clarification to Quarterly Report

2012-02-01T10:55:00.000+11:00

As I just mentioned in my post on the Kentor Gold Quarterly Report there had been some discussion about the timeframes for the Burnakura feasibility studies. As chance would have it Kentor have just released a clarification.

The project is planned over two stages. Stage 1 is the expansion and restart of the CIL plant. Stage 2 is the addition of a heap leach operation to treat the low grade ore.

The feasibility study for stage 1 will be completed and released to the market in the next two weeks. Stage 2 of the project will be completed in April 2012.

So there we have it, we can expect another announcement on the Burnakura project very shortly.

Link to announcement.