is this a quality small cap, page-21

thaks once again for your enlightening wisdom hummms, please pat yourself on the back.

contrary to what you may believe though, I do not calculate gold production costs according to your standard, the main reason being that i am not privy to all that information.. i know i know, if i had shares in CTO and more than likely DOM the great people over there would send me all this in their reports along with some pretty pictures to ensure even the less learned could understand.

if i may suggest that perhaps you may see fit to direct your communications to Denis Wadell or Frank Sibbel c/o Tanami Gold, then again seeing as you don't hold a single share perhaps that would be better suited to the CTO thread itself.

perhaps i could also highlight some information directly pertaining to the company at the centre of this thread.

this is from one of those sub standard reports that we are used to from this sub standard company i guess, in fact its the very same report you refered to when quoting your recent costs.. by the way did you check those costs with the Gold institute formulae before posting on this thread? i presume you would have save the risk of posting errant and misguiding information.


"Costs
Although the operation is still in the development stage with full production of the high grade underground ore not scheduled until late June 2008, the Coyote mining and treatment operations further consolidated during the Quarter with above budget gold production being achieved and operating costs for the Quarter continuing to improve.
As the production profile increases with the mining and treatment of the high grade underground ore, the distribution of fixed site costs across the higher production levels is expected to result in a significant reduction in cash costs per ounce during 2008. As budgeted, significant costs were incurred during the Quarter in development of the underground, development of the Bald Hill pits, installation of the new leach tanks and the new accommodation village.
Cash operating costs for the Quarter averaged A$709 per ounce and the average sale price achieved in the Quarter was A$917 per ounce. Gold on metal account as at 31 December 2007 was 3,873 ounces."



now if you read that very carefully, word by word, line by line, (oops sorry no pictures on this one, ok just try really hard t read those words again) you will note that the higher production costs for that previous quarter were due to early underground mine development and plant and site improvements. those costs however have now been accounted for and as production ramps up and mining continues on (i know i know, heres hoping, cross your fingers with me here) the relative fixed cost nature of this project will see the cash operating costs decrease to a level somewhere around $550 oz.

again crossing the fingers and toe's this time we hope that the POG continues to hold and better still increases above $1000oz and if we are really really lucky up to 1500, perhaps even 2000oz, then we will have a profitable company... oh hold on i forgot those resource reserves, yeh by then we will probably have run out right? oh well atleast we can always banter on the DOM thread ;)