another good ann., page-2

My initial reading indicates that the company is moving quickly towards full production of the Paxton's veinsets. They are already accessing the orebody from the bottom three levels and they are installing ore passes. Just the ore from the passes alone has produced over $A50k of gold.

Once full production from Paxtons starts, we can reasonably expect a recovered grade in this orebody of 23g/t, the average of the grades in these ore passes. This grade is likely to be conservative because the upgraded plant should bring improved recovery rates.

I have previously estimated a treatment rate of 100 tpd. If this rate of production can be sustained, the operation will produce some 74 oz per day which equates to an annualised 27080 oz. At $A1,100 per oz, this gives a production value of almost $A30M pa, of which some $A20M would be profit. This is more than enough to sustain the growth of the company.