High River Gold Mines Ltd HRIVF

RE: RE: Q2 will be very interesting

[Honkeybill]

    Hey Proud.........I'm not well versed in this but my understanding is we had to pledge the DGC shares because we couldn't fulfill our royalty obligation to Royal due to produciton problems.

    Now production is on track and if we go 90 days wihtout a hitch, Royal will release the DGC shares. That's my understanding but I could be wrong..........they had a news release abou the completion test some time in Jan-Feb but I haven't really seen any folowup. Either way........the big part of the royalty agreement is the payment of 35 million to Royal (or production of 800,000 oz......but at current prices we'll hit the 35 mill before the 800,000oz) and last quarter we paid about 8 mill........so this quarter add another 8 or so mill and we're done that part.

    If gold stays anywhere near 1200 an oz (or goes higher) for the balance of 2010........HRG should go through the roof. If DGC shares end the year at just over 35 bucks (which they will of gold stays at 1200) that will mean a 50 million dollar increase for this investment over 12 months. 

    Cash flow wins.........we have it.........and the debt issues have been pretty much solved.