Ann: Robust Base Case Production Plan of 302koz for Kal East, page-61

Reserves don’t matter here. I’ve always said they won’t be big to start with over a year ago. 5.5 years is a fraction of the resource. Silverlake had the same model. It would have been a lot more but covid did effect every body in the industry. It’s only 301k ounces of 1.2m ounces around that area. You can generally easily convert 60% of these resources across to reserves, so I can see a Minimum of 10 years on the one area as of today. They just convert as they go. You will probably find that they will always have 5-6 years reserves for years to come. This is just a starter resource to get the party started.
The mills are ideal for the resource or they wouldn’t use have bought them. The underground ore is even higher grade and these mills will enjoy that grade as well. It’s a standard CIP plant with over 90% recovery.The guy who runs the mining side is one of the best and knows exactly what will work with the ore. I’ve meet him some time ago and he build several solid working mills around the world. I’ve been to one of those mine sites.
The ASIC are not high for a starter project in this environment. It’s a standard industry price and it’s actually lower than what I expected in this environment. We need to be sure about our facts here. Bc8 can’t build a 2m tpa plant and doesn’t need to. They have 1.5m tpa capacity if and when they want it for this area. Good luck ordering, building and 2mtpa plant in this environment. Bc8 has 4 mills with 2 already onsite on C&M. I don’t see any issue with what is going on here and the recent preso outlines the plan very clearly. Good luck.