Ann: Quarterly Activities and Cashflow Report, page-3

You’ve got a valid point around the capacity of the plant. Ican’t see it operating north of 3mtpa, but perhaps that 3mpta level could be achieved(even though it’s above scope).

 

But if you take out the lower end of the reserve - below (asmining that would be very marginal).

 

Jupiter Low Grade (3,494kt @ .5g/t)

Low Grade Stockpiles (1,276kt @ .7g/t)

Mine Stockpiles (151kt @ .9g/t)

 

Then you are left with 21,816kt for 1,296Oz (divide by 31.1to convert to troy ounce = 41,672g) = a grade of 1.91g/t

 

1.91g/t @ 94% (recovery) = 1.79g/t

 

So if they ‘did’ manage to operate at 3mtpa then based offthe above they could recover 172,668ounces per year for a little over 7 years (if94% recovery is achieved).

 

As you point out the plant isn’t designed to operate at3mpta (nor has it gone close to that yet) so that is a bit of a stretch.

 

I think the key to achieving the 200k ounces for 7 years +is all about the ‘grade’…… as they have heaps of underground gold (Beresford& Allanson) at very decent grades (3.7g/t to 5g/t), so they just need a little bit more of that good stuff.

 

At present I think the mine production rate of 200k pa doestail off in about 18-24 months or so (someone can correct me here)…. so I see thatfigure of 200k for 7years more as aspirational…. but as you pointed out all they need is for theirdrilling campaigns (in the next 12months) to discover some slightly highergrade ore (even by just a gram) from one of their current reserve sites andthat could easily improve their reserve to a point where a 200k pa longer term rateis definitely in play.

My glass is 3qtrs full...... DYOR