Wednesday, April 28, 2010

From the NR, we are averaging 1000 tons per day. Assuming grade is steady at 4.6 g/t and recovery comes in at 96% and gold at $1165, we should generate 139 ounces per day or 4170 ounces per month. At a cash cost of $480 per ounce, we should be getting 4.9M in revenue at a cost of 2M for cashflow of 2.9M per month. We should only increase this number as our through put increases, up to 2000 t/d by the end of the year. Barring a colapse in the price of gold (I expect gold to continue it's uptrend) this will become a very nice long term hold.

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