why abu, page-3

Optimus;
Old Pirate has 723,000oz at 11.96g/t from surface with extensive outcrop. That includes Golden Hind with 59,100oz (indicated) at 16.45g/t which itself includes a high grade core with 49,000oz at 45g/t from surface to around 60ms deep. These are excellent grades for u/g mining but we have open pit.
We have just started trial mining with first gold expected this month. Very low capex due to better than 90% recoveries from simple gravity recovery. Very low opex thanks to very high grades and open pit mining. Only need around $2mill-$3mill to upgrade the plant to 150ktpa for 50koz/year. More than enough cash in bank for that upgrade and no debt. Only another $2-4mill to expand to up to 300ktpa for 100koz/year (still a small amount and to be paid from cash flow).
Resource is open along strike and depth and no doubt exploration will pick up with expected strong cash flows.
Scoping study estimated around $380/oz cash costs or $510 inc royalties. With very low total capex, all in costs will not be much higher.
Longer term, 3km from Old Pirate, Buccaneer has a high grade component of 1.2milloz at 2.54g/t or 826koz at 4.41g/t, and we have multiple other promising deposits and targets.
No debt and enough cash to get to 100,000oz/year with 50,000oz/year to begin with (post trial mine).
The mine is in Australia so will have a buffer with lower AUD boosting the AUD gold price if world economy slows again and low political risk.
What more could you ask for?

As Cableguy said, check out the latest presentation and do some research.