why abu, page-19

"It's make or break time. If the gold is not there, then it's down the gurgler. The market reaction will be brutal!

On the flip side, should the gold be recovered, and hopefully exceed expectations, then the price will be re-rated upwards.

Which will it be?"

That's a bit extreme RediMoney.
It's obvious there is plenty of gold there and there is no doubt it will be very high grade for an open pit operation. It's more a case of is it more or less than around 9-11g/t head grades. The more it varies from that number the greater the likely reaction. The recoveries and cost estimates will also play a part though. Head grades of 9g/t due to more than expected dilution may be offset if cash costs come in well below expectations or if recoveries are on the high end. If it all comes in as expected we may get a very decent re-rate on reduced risk- more certainty this will make the projected profits.