quarterly report, page-20

I think the confusion occurred in the quarterly re Burn FS because the FS is being released in 2 parts.
The 1st expected shortly on the CIL operation and the second is on the heap leach (April).
I would prefer to have seen both released together because on my numbers, as I have mentioned before, the CIL at the start up rate probably won't look impressive as costs will likely be fairly high on such a small operation thanks to a lack of any economies of scale.

For those of you that may be interested, I am changing my cash cost assumptions to $1,100 for now dropping to $950 if the CIL capacity is doubled (although this increase is partly offset because I now include royalties in the cash cost number where before I had it as a separate additional cost). This increase is partly to allow for the fact that the FS is looking at blending u/g ore. My original assumption was based on all open pit material.
The positive with u/g ore is higher grade so more ounces for the same throughput rate and higher revenues.
I am leaving my heap leach cash cost at $800/oz and still think that may be too high.

I expect the numbers to look much better after the heap leach is added thanks partly to heap leach operations being generally lower cost and also because the CIL is already covering the fixed costs and the cost of mining for the heap leach (heap leach ore is pre-strip for the CIL operation).
I doubt the FS will be a share price driver until the heap leach numbers are released.
The numbers should look better if they discuss the doubling of capacity, but I don't know if that is part of this initial study.
I believe the initial operation will still cover all company costs including $5 for admin (was $3mill for last 12 months) and $6 mill exploration across all projects and still leave a surplus of around $5mill.
This may only be for around 6 months after which the heap leach should be ready to be added and the cash surplus should jump from $5 mill to $18mill/yr on my assumptions.
Doubling the CIL throughput should push cash surplus up strongly again-I believe to around $29mill but by this stage tax may be kicking in bringing it back down to $21mill/yr after tax when all forward losses are used up.
I still expect the current share price to be justified by the CIL/heap leach combined operations with upside from a potential doubling of CIL throughput and very likely upside from open pitable higher grade copper gold ore feed from Gab bringing cash costs down.
If I am right, that still leaves no room in the current share price for cash worth 30c/share, paid for mining fleet and Andash ball mill worth another 25-30c/share, Gabanintha exploration upside, Jervois or Andash. Andash of course has a FS showing a value of around $4/share with strong upside to that valuation on addition of ore as previously posted (zones 2 and 3 for starters).

The quarterly reminded me of the excellent exploration upside potential that we have in Kyrgyzstan.
“The 2011 program of bedrock channel sampling, geophysics and soil sampling established an extensive 2km by 1 km area of gold and copper mineralisation which is open in three directions.
Channel sampling returned high grade gold and copper results, the best result being 12m @ 14.07 g/t gold and 1.83% copper.”
That’s around 17g/t equivalent occurring at surface over a 12m length (not just a rock chip).
Another channel on a different prospect returned 14m @ 5.74 g/t gold, 1.03% copper and 97 g/t silver in the valley of the Molo Stream (9g/t gold equiv).

“A drilling program is being planned for Bekbulaktor in 2012, together with a geological and geophysical program between Bekbulaktor and Sharkmatma.”