Ann: Company Insight - New MD Norregaard on Compa, page-10

re: Ann: Company Insight - New MD Norregaard ... loki, you might be right with the estimate of 6500-8000 ounces this quarter, but my guess is closer to 11,000 oz.

Steve Norregaard said RED was mining during first half Feb at 60-75% of the consultant's steady state levels. Processing shouldn't be much of an issue because the Chair stated in December that the plant was operating at a high rate. Ore grade is the only other productivity limiter, but this might be better than last quarter as ore is extracted from the main pit. Norregaard says mining productivity will be increasing "pretty quickly from March", which might balance out lower mining in January.

So, if ore mining averages 65% productivity this quarter and the process plant is operating above that rate (which apparently it has), then we might expect 10k-11k oz gold output.

And a real random guess is that next quarter will show output in the 15k-18k range (yes, possibly close to production standard at the high end of the estimate).

Also, some folks here argued that RED's costs will blow out due to the additional expenses. No doubt costs will be higher. But Norregaard cited the below $400/oz cash cost figure, which I think he would hesitate to mention if costs over the next year would be much above that level.