a question regarding fy11 expenses, page-3

tailspin

from June Activities Report:

delivered cash cost 981/oz -higher than the previous 2 Q of 870 due to development cost and re-line


what do you mean : what's the "output" of the 40 mill exploration program ?

You don't usually aquire tenements with a detailed map showing you the exact location and grade of the gold

You have to find it - delineate and estimate - refine and map and come up with a detailed plan of
- is it feasible?
-when is it feasible ?
- what's the best way of doing it

and then prioritising all the developments at hand

so if you spend 40 mil to increase (find and delineate) a resource of 250k oz
you stand to make 200 mill out of digging it up (at current POG)
you also increased the "life of mine" by 2 years (looking at the 130k oz target per annum)

You have increased your assets and the life-span of your enterprise , that's all.

And if you don't spend the money you never find the "elephant's tail" and the "mother-load"

Or did I misunderstand your question?