nearly there?, page-20

re:no problems golden bug! The main reserve base appears to be on a granted mining lease M28/43. Approvals should be straight forward for roads etc.

The plant, New Cel, is a hardy old beast built by Minproc around 20 years ago. It may be rated at 1.2mtpa but this would fall somewhat for the tough dirt IGR would process.

Financing/rapid production argument? Truck the dirt from the tenements for six or nine months before shifting? Lease the plant (save on capex/hedging), use the current cash position to commence pit lay backs, roads, on site buildings etc (bit of debt rather than gold loans?).

Take six months production (500,000) tonnes at 2.6gt and a 85% recovery is 36,000 ounces. Indicative cash cost of poducton is A$539 per ounce. Allow for trucking/rehandling etc call it A$600 an ounce. Current margin over A$250 which equates to A$9m plus in free cashflow .

Those funds can then be used to transport/reconstruct the plant on site ( guess-$1.5m to decommission and transport, $4.5m for footings, replacements etc, ie A$6m all up) , repay debt.

Then merrily restart production ........

Other potential plusses-higher recoveries, grade reconciliation, fresh discoveries, toll treating other product along the way. Minuses-hardness of ore, gold price volatility???

Alternate-move the plant day one. Slower initial cash flow, more money upfront. Still a satisfactory result.

I am now clearing funds to buy.

Cheers,TAS