Ann: Little Eva Definitive Feasibility Study Cost, page-7

re: Ann: Little Eva Definitive Feasibility St... The main problem with Roseby isn't size so much as grade. The C1 is always going to be high when your grade is only 0.6% and only 0.1g/t of gold credits.

50ktpa puts it easily in the ballpark of some of those other greenfields projects.

However, the size becomes a problem because of the large capex associated with it and the need to pay it off over a short mine life. So you have high C1 cost AND high capex intensity which is going to lead to low margins.

Given that the Finland operation has run either to spec or above spec, and yet they still can't come anywhere close to meeting their DFS C1 estimates, it doesn't bode well for Roseby which has a forecast C1 cost of basically what Finland is operating at now.

Assuming the C1 at Roseby blows out by an equal amount (and I think it highly likely that it will do so by at LEAST that much) we'd be looking at an actual C1 of around $2. Add in the capex intensity and you can see why the project sensitivity to Cu price is so massive.

There's nothing they can do about the grade - it is what it is. The copper is in the ground and Roseby is just a midding grade deposit. The only thing they can do is try to find more copper, which we know is there. That is the only thing that will push Roseby down the cost curve. Start with Turkey Creek.

Interestingly I found this from the ann of initial results for Turkey Creek in September 2012:

"The drilling provides sufficient data for an initial inferred resource estimate to be completed later this year."

Now, 18 months later, they tell us "This deposit is only partly drilled and an initial resource estimate will require further drilling."

They also haven't included the results of the Ivy Ann and other satellite drilling, and they haven't even shifted the location of the dam to account to Turkey Creek. All they have done is taken the 2012 DFS and updated the costs despite all the extra work done since then.

So why did it take so long? It's curious. I was expecting a fully updated DFS after all this wait, but no.