What happened to all the resources? From the previous operators (SAS) estimate, the numbers are substantially lower. For example, these figures are pulled from SAS on Nov 2006:

Reserve/Resource Estimate from former operator: St. Andrews Goldfields-SAS (Nov10/06):

Proven: 51,500 ( 47k tonnes @ 34.05 g/t)

Probable: 82,230 (137k tonnes @ 18.6)

Total P & P: 133,730

Measured: 27,700 ( 23k t @ 36.8)

Indicated: 87,700 (126k t @ 21.6)

Inferred: 46,300 ( 93k t @ 15.5)

Total MII: 161,700

Total P&P+MII= 295,430

Tailings: 30,000 (160k t @ 7.6 g/t, 83% recovery)

Note that these estimates are before the 2007 and 2008 drilling which looked so impressive. In fact, even with gold prices up substantially, they seem to have lowered the estimate.

In addition, FAU had a previous estimate in an older presentation that was similar (sorry, don't have the date). Here are the estimates from that presentation:

Resource Potential from FAU presentation:

Potential above:113,000 ( 84k t @ 43 g/t)

In the Mine: 188,000 (233k t @ 25 g/t)

Tailings: 30,000 (160k t @ 7.6 g/t, 83% recovery)

You are correct. The April 6/10 news release said they analysis/decision should be complete by the end of May. If the decision is positive, construction in spring/summer 2010. If they are on schedule, we should hear news soon.

Given that the private placement is oversubscribed (they have money), and gold is now $1200/oz, I would hope the economics are clearly positive. At 250 tpd, that would equate to approximately $1.5 million in revenue per month. I would assume costs would be low, since it is a pile of ore sitting on the surface. Just speculating, but maybe $1 million net free cash flow?

I guess the question is how much will it cost to finish the CIL circuit. Probably not too much, since they have stated all the equipment is purchased and on site.

Spencer

IMO, one of the main factors why FAU is still at such low levels is selling by PFN (Pacific North West Capital). They do a lot of selling whenever the volumes are high, which is usually after a press release. This keeps the share price down, despite the good results.

Consider this:

On March 31/10 they held 6,365,000 shares.

On May 11/10 they participate in the placement for an additional 1,825,000 shares (plus 912,500 warrants).

On May 13/10 they hold 6,492,500 shares.

This indicates they sold almost 1.7 million shares in the six weeks! It's not rocket science to figure out where the selling pressure is coming from. This would be fine, except for the fact that PFN has the same management as FAU, including FAU President Harry Barr!

I think FAU/PFN management should explain why the keep dumping into the market. I can understand that PFN wants to maintain a level of ownership by selling shares and participating in placements that also give them warrants. However, if they are going to sell they should arrange a side deal and NOT keep dumping into the market.

They owe the shareholders better and an explanation.