red poised to fire with gold rampart, page-24

Hi Tokyo, the original base case for the BFS was done at US$650/oz, thus at anything in the region of current levels around US$950 would provide substantially better economics.

It will be interesting to see how things pan out with the underground resource, as this was not part of the original base case study, it was considered only as an enhanced case. No doubt the outcome of that resource is then needed to incorporate a new BFS that includes the entirety of all proved/probable reserves - clearly with the project based on these higher gold prices would favour a lower cut off grade, but i doubt that would be done prior to the company seeking to start development once the final outstanding issues remain. (It would immediately require a re-consideration of project size i would imagine).

Of course the trick will be for RED5 to be able to get finance in todays tight credit market to take advantage of the gold price.

Whatever, it must be seen as very positive that the gold price is at these levels. If you valued Siana on the current gold price and enhanced BFS case I am sure you would be looking considerably more than the indicated $100 mil NPV. This suggests a valuation of maybe > 30 cents per share!!!