my calculations 1.67 per lb at avg grades, page-7

Proofreeder,

This is in response to points 4 and 7 you made:

Open pit mining will occur from several sources (Cinabrio, Dalmacia, and possibly Arco Iris). This will reduce costs.

Hugh mentioned on BRR that ore from Cinabrio is currently transported over 20 km, whereas ore from Dalmacia is approximately 6 km from the Punitaqui mill. This will reduce costs.

Furthermore, Dalmacia has favourable metallurgy relative to Cinabrio - this will provide recoveries 10-15% higher than Cinabrio (a further cost reduction).

Refer to Boardroom radio interview on February 26th for more details.

Having said all of this, significant cost reductions must be evident in the next quarterly.