announcement ...comments befor opening, page-30

2012 Q4 production costs per tonne processed were:
$4,815,000/107,783T = 44.67 ($/Tonne)
Which produced 4719 Oz Au

which is $4,815,000/4719 Oz = 1020 $/Oz BEFORE silver credits..

Silver Credits:
52267*28 = $1.46M

If you include silver credits you get costs of
(4,815,000-1,460,000)/4719 = $710 per Oz

And this is including ore stockpiling costs!

2013 Q1 production costs are being projected at $7,000,000 which is up 45% on 2012 Q4 production costs.. While the actual rate of production is to "ramp up to 70,000tpm" ...

The rate of production for 2012 Q4 was 107783/3 = 36,000tpm.. if you increase that by 45% like the cost projections have gone up you get 52,200 tpm... which is close to what you would average if you ramped up linearly from 36,000 to 70,000 tpm over the next quarter.. so in fact operating costs per tonne processed are projected to remain the same.. and as recovery rates improve the costs / Oz of gold to be produced will fall.

The $1M in development costs included in the cost estimate for next quarter is probable the "minor improvements" that will take place in this biannual shutdown. And payment for this third dredge currently being made in California.

if they produce at an average of 53,000 tpm over the next quarter with a production cost of 710/oz Ag with current recovery rates they will have a positive operating cash flow of

(53000/36000) * 4719 * (1320-710) = $4.2M

Then subtract 1.1M in Admin costs and $1M in development costs.. leaves 4.2 - 1.1 - 1 = $2.1M for loan repayments and exploration

Looks pretty good to me considering the hysteria of last week!