give me confidence, page-25

not pretty at the moment is it. It will be interesting to see where the 3c options come on price wise - I agree that fair pricing is likely the 6c+ mark.

In relation to Sonu69's post - regardless of per oz production costs I think its reasonalbe to consider the current HEG market cap vs the known JORC and the expected production rates.

The thing we don't know and will find out fairly soon now is what those production rates are going to be like. We're already getting a good indication from the M2 mining and processing that there is exceptional grade gold there and plenty of new ore to be discovered. Paxtons has the potential to bring on even greater surprises. We know the history of the hill end gold field and if they can demonstrate that the historical grades still exist, and in good quantities, then the market will slowly take notice. *If* they really are sitting on a system that has extensive high grade vein sets, repeating along strike and at depth, of the same ilk as M2 and whatever we see at paxtons then the currrent market cap is *dirt cheap*, but it might take a while for the market to realise it and believe it. It is also of course possible that it is not the case and that the historical stuff mined was a fluke.

Back to the per ounce mining costs. If they are getting ore out that is grading 1 to 2 oz's per tonne then the mining costs should be able to be very low - possibly $100 per ounce or less. Underground ore can be mined and processed for $200 per tonne or less - if there are 2 ounces in a tonne then thats only $100 per ounce. If there is one ounce per tonne its still only $200 per ounce. BDG is much deeper and their mining costs were only about $160 per tonne of ore from memory.

So I think the $600/oz cost prediction is way too high. It might be true while they are doing sporadic trial mining/processing but once they get to a consistent operating level, even with the trial plant I would expect it to be much lower.