Voltalia Ord Shs VLTAF

RE: RE: RE: RE: VTR and POG trading inversely

[ALLEN4]

I have never been of the view that we need $1500.00 to make Kiaka work.  I began buying Volta aggressively when we acquired Kiaka from Randgold and that was coincident with a passage through $1,000.00 gold.  Everyone in the gold mining community was thrilled to be over $1,000.00 and we could not believe our good fortune.  Certainly, Kiaka was acquired on the basis of it being an economical project at $1,000 gold, and the economics of the deposit have only improved since then.  The study referenced a few days ago indicated $1700 an ounce gold generates a $200.00 acceptable profit and is required to make gold mining economical, I simply do not buy for a number of reasons.  I would like to write an essay developing that theme and win a pulitzer price, but that's for another day.  One of the reasons that model does not apply is that the asset we have at Kiaka should be considered an asset even if it remains in the ground.  There was an article today about a substantial gold deposit in Russia and the Russians are saying why should we remove the gold from the ground and turn it into dollars that are subject to erosion in value; they are happy to just keep the deposit in the ground. 

The other point I would make is that we have a supporter in Van Eck.  One of his funds owns Volta.  Van Eck is unusual in that his expertise is in junior golds yet he is bearish on the POG.  He estimates that the true value of gold - not to be confused with his prediction as to where it is going - is in fact $800.00 per ounce.  So it is comforting to be that he holds VTR in his funds even though he believes the true value of gold is $800.00 per ounce.