champagne anyone....., page-39

the capital cost of the mine is supposed to be ~40M ( and recoverable reserves are only 250,000oz so far , so that's and additional cost of ~$160/oz, so a more realistic estimate of cost per ounce is ~$800...Call it $900/oz because there are surely things I haven't included, not least of which would be budget overruns and interest.

Assume gold declines ~20% from it's current admittedly high level, so $1300/oz (unlikely given the current global economy, but let's be very conservative)

That leaves $400/oz on 50,000/year, so ~$20M/year 'gross profit' from the mine alone.

Deduct Admin and further exploration (not counts per ounce) of ~4M/year ( more than current ), and that leaves $16M, or a ~50% return, per year for 5 years on the current value of the company.

So, even on those conservative estimates, you're talking a nice earner.

Of course, any further increase to recoverable reserves, would be much more profitable as the capital costs would have been fully covered by then.