Great presentation and more to come, page-9

Lobon

I suppose the lap dancing facilities could be an add on but I was not expecting GCY to build it.

What I have written is pretty clear - I just do not believe GCY will achieve an AISC of around AUD $1000/ounce for the first 3 years (especially year 1), because of the high strip ratio relative to the ore grade.

In respect of what constitutes other costs, these are usually all admin costs (which are often not fully or at all included in AISC), exploration costs, unplanned capex, and interest payments. I have not found a press release from GCY indicating what the interest rate is on the loan and the repayment schedule - maybe I have not looked hard enough. If the interest rate is 12% then this bill would amount to $7.2m pa. The information should be contained in the half year report due at the end of the month, I think.

You have a point that there could be some significant saving if the pits they mine in the first year are very close to the mill, but that saving is only for 1/17th of the dirt that they will have to mine that year, the other 16/17th portion of the earth will still have to be mined and relocated near the pit as would be the case for any other mining operation.

If they find a high grade deposit near to the mill which can be readily mined in the first year then the economics will improve substantially and probably make my comments redundant.

As a another poster has indicated above, GCY is a very interesting spec exploration play. The hope is that they can generate enough free cashflow to meet their debt repayments etc so that they can fund a successful exploration program over several years in relatively under-explored areas.

I am not the first to comment about the high strip ratio - see past comments by Eshmun who does have a mining background.

GL.

loki (must not frighten the lil children)