champagne anyone....., page-37

Thorburn,

Exciting times, but please don't multiply out cash cost margins. In small operations like this, the capital cost can be almost as much per ounce as cash cost (although no mill being built here I admit). These costs do get spread out over more ounces if reserve increases, but if they mine for a NCE (notional cash expenditure) of less than $1000/oz I will be surprised.

People will read a statement like yours and say they will generate so many $M - it just isn't true.