This is decent news and explains why the wait. Obviously the problems were much more serious to now have to build a new tailings pond. I will add that this new management team seems much more serious than the past group who were much more interested in world domination.

By dipping further into more debt it would be nice to have announced how much the new tailings pond capital cost would be. Sounds like it is much larger. And we can assume that the $20M credit facility has been dipped into just to keep the lights on through out 2011.

By starting production sometime in Q1 of next year means that there is less than one year to go before the first tranche of debt will be owed. How that will be paid is still up in the air and a long way of knowing.

So while this is good news the debt bomb continues to tick. I expect JJ will have to extend credit even further (a thitd time?) before next Dec 31st. We still don't know what Hart will cost to develop. I don't think whats left of the $20M credit facility will be enough to cover everything.

Third quarter results in November will give a clue. Watch for them and what is left of the $20M. The company still owes millions upon millions and that is only increasing.

Best