PC Gold Inc Ord PCGLF

RE: re- New to

[Gaberlunzie]

PKL's property is one of the best undeveloped gold prospects in eastern Canada but has been badly managed. The directors dont seem to have paid much attention to what was going on but finally smartened up and fired the ceo. You can read details of the buyout in the notes to the accounts. As I read the 43-101 report they used to raise the initial money, the recommendation was to get underground and mine some material exposed at shallow levels by a previous operator. The existing, almost unused mill was to be used to treat the ore.From there, the company should have been able to bootsgtrap itself to full scale rehab with little extra funding. The ceo, who had little background in mining, sat in Ottawa and changed the programme to one of drilling. When the money was gone, he raised more, and more. Work was in charge of a vp of exploration who also owned a contracting company which seems to have done most of the work on site, except drilling. To outside appearances, this vp seems to have had free hand on what was done.  It may well have been a perfect arm's length arrangement but to the outsider it does not look good. Now the company has no money but seems to be well managed. I would support the idea of a sale. Get a group in that is funded and knows what to do. As things stand, I would say well-over half the $50 odd million spent has been wasted - but that is only an opinion based on an interpretation of what has been reported. Whethe they sell or not, Ifeel sure the stock will have to be re-organised with a reverse split.