Petaquilla Minerals Ltd PTQMF

Detective Vic Mckay on IHUB 3-8-2011

[wwadehammer]

DetVicMackey		Share	Sunday, April 17, 2011 3:54:17 PM
Re: None			Post # of 15101

Just came back from a 3 week vacation and have been busy rebalancing my portfolio and planning another trip. With all the recent developments, I cannot say that I am impressed. My stake in PTQ is rather negligible at this point so it does not make sense for me to participate here on a daily basis anymore.

Gold operations last quarter saw little bottom line improvement with only 13,880oz poured. The other 13,564oz mined mostly consists of stockpiled ore to be used for heap leaching. To me, it is just fluff from management to show that they are producing more gold on paper which is a sign of desperation. The quarterly gain is mostly due to improvements in other income accounts. Heap leach production has been delayed from the summer to the fall. Iberian would provide its investors a quick flip on their investment since they would get about 40M shares despite seed investments that are likely worth much less. Capital cost is estimated to be $250-300M for a 2.1Moz project which is relatively expensive and greenlighting it would mean more dilution and/or debt. Still awaiting more OdN results and proof that the heap leach project is economically viable in a non-simulated environment. Starting it up in the rainy season is a great time to do it since they will have an excuse when the project will undoubtedly experience setbacks.