Ann: Trading Halt, page-29

Hi Wack, I don't think De Grey shareholders have caught on to the wonderful news out of Novo that directly effects De Grey.  What Novo did was take 20 tons of gold bearing conglomerate (four 5 ton bulk samples) and run it through a sorting machine to get all the nuggets in a basket that weighs 120 lbs (55 Kilos).  Posters on CEO.ca/Novo say the cost to run the conglomerates thru the sorter will be between 50 cents and $1 a ton.  The sorter used on the first Purdy's bulk sample got 82% of the total gold in the entire sample.  The implications are stunning.  The Tomra machine used to do the sorting can process 1,000 tons an hour.  You don't need any water.  In the field, you can crush the conglomerates  to between 10mm and 63mm and recover 80% of the gold - IN THE FIELD.  Another benefit is when digging up the conglomerates, you don't have to be exact.  Who cares if you take an extra 30 centimeters on each side of the gold bearing layer as it's $1 a ton to process through the Tomra sorting machine.  The more nuggety the conglomerates are, the higher percentage  of gold you recover.

You can run 24,000 tons of conglomerates a day through the Tomra and send 72 tons of concentrate containing 80% of the gold to a processing plant.  If De Grey comes up with a plant that can process 1500 tons per day then using the Tomra sorter you can dig up 500,000 tons of conglomerate a day, run it through Tomra Sorters (21 needed for 500,000 tons per day) and get 1,500 tons of concentrate (the head grade of that concentrate would be over 1000 gpt).  The Louden's Conglomerates look to average 4 gpt.  80% of that is 3.2 gpt.  At 500,000 tons per day that's over 51,000 ounces a day at a cost of less than $100 AISC an ounce.   Do the math - after tax profit of $1000 an ounce -($51 million profit a day as long as the tonnage is available).   Of course 500,000 tons a day dug up is probably unreasonable for a company like De Grey, but even at 24,000 tons per day (1 Tomra sorting machine) you'd get 2,500 ounces a day with a profit of $2.5 million a day.  If the conglomerate tonnage is available at Louden's, Steele and Jarret Wells,  De Grey could  easily generate $1 billion profit per year for many years.  For those of you that don't have the money to exercise your warrants, beg your rich aunt or you brother-in-law for the money.  You won't regret buying these warrants.