Ann: Key Management and Board Changes, page-45

Hi Mark, Just to clarify-compare gold production & in circuit lock up

ASX ANNOUNCEMENT / MEDIA RELEASE ASX: ABU
21st September 2015

28,400 tonnes processed including the low-grade commissioning
material and 6,749 ounces recovered (poured and in carbon circuit
pending stripping & pour).
Including low-grade commissioning material refer announcement
16/7/2015.
A total of 28,400 tonnes of Old Pirate material had been processed
through the Coyote Processing Plant as at the end of August 2015.

From this material 6,749 ounces of gold had been recovered with
5,234 ounces poured and 1,525 ounces in the CIP circuit pending
stripping.

About 1,700 ounces more gold has been poured so far in September, with processing on-going and further gold pours scheduled this month.


28,400 tonnes ore processed inc low grade commissioning material as
of end august.
Breakdown being; 5,234oz poured & 1,525oz in CIP circuit pending
stripping total recovered from this material 6,759oz.

Technically not recovered until all poured from CIP & adding wrong as written
as 6,749 oz.
Equates to 6,759oz x 31.1grams=210,205 grams from 28,400t=
7.4 g pt recovered grade p/t, with dilution from low grade
commissioning material @ end august
(no allocation for gold in circuit yet made in these calculations)

39,000t mined @ a mine call grade of 10.9gp/t-21st September

Then about 1,700 oz poured thus far in September with processing ongoing &
further gold pours scheduled this month-( until end September-end of quarter )
@ 650 t p/day and presume gold lock up reducing in last 10 day's of month say
approx.,10 grams per tonne recovery=650t x 10gr x 10day's=65,000gr divided by 31.1gr=2,0090z

totals being 5,234oz poured.-up until end august.
1,525oz in CIP-pending stripping up until end august.
1,7oo 0z poured thus far in September -from extra 10,600t mined Sept.
2,0090z last 10 day's September.
Total of 10,468 oz actual & theoretical last 10 days
recovered until 31 September
(10,468oz x 31.1grams per oz =325,555grams).

September being 31day's=21 full day's production @ 650t per day=13,650t
September(2wks on & 1 wk off basis).
Tonnage 28,600t end August plus -13,650t theoretical until end
September =42,250t processed up to end of quarter -31 September.

Therefore 10,468oz -325,555grams gold recovered from 42,250 tonnes
ore recovery of 7.7g p/t- (no allowance made as yet for gold lock up)

Gold lock up 4,000 oz x 31.1gr=124,400 grams added to recovered gold to ascertain likely actual gold gram per tonne as follows.

Therefore 10,468oz - 325,555grams plus 124,000 grams gold in circuit =
449,955 grams recovered & locked in circuit from 42,250 tonnes ore
equates to 10.64 grams per tonne gold .

Mine call grade 10.9gr (less 0.04gram tailings-actual lost gold )
=10.86 grams would leave a discrepancy of 0.22 grams of gold.

Mine call grade 10.9g p/t.
Excellent tails grades <0.05g/t gold
Excellent overall in-plant metallurgical recovery of ~99%.
Independent metallurgical consultant has confirmed the excellent
metallurgical recoveries and the ability of the plant to perform as
required.


Then as per above IMO
it will take 4,000oz of gold to saturate entire plant not just mill liners,
sumps & pumps that are normally accessible for plant clean out & gold recovery.

The coyote gold process plant would have been left totally / completely void of
gold when commissioning commenced as gold gravity trap area's never normally
accessible were totally accessed during the plants total refurbishment by
Como engineering & contractors.

In addition as coyote is being fed with low volume high grade ore,
that has a high statistical nugget effect the very high proportion of coarse
gravity gold particles, including flattened gold flakes, contained in the
deposits at Old Pirate will exacerbate this lock-up situation.

Therefore in the initial commissioning & early production period,
ABU's coyote old process plant has to endure reasonably substantial gold
lock up whilst saturating the processing plants internal gold traps.

This should have been be expected-until the plant completes its initial
saturation cycle's, its then that mill crushed material ore slurry will flow
through the plant circuit naturally reverting to
normal operation & gold recovery .
Above is as I see it IMO
salt