Ann: Precious Metals Summit - Beaver Creek Presentation, page-9

I am interested to know how does the analyst comes up with the figure of $250-$300/oz. Here is my simplistic calculation based on the published rate below:



And using HUB as an example, the ore grade ranges 3.2 - 4.7g/t. Assuming 3g/t, the use of the above 122t truck will carry 366g of gold i.e. 11.7oz of gold. Distance between HUB and the processing plant is ~100km and therefore the cost of 1 trip between HUB and the plant is A$217 i.e. on average the haulage cost is ~ $20/oz. We can be generous and charge 5x (such as using lower grade ore i.e. 1.5g/t, recovery rate of 92%, recent inflation, etc...) of the above figure and we ends up with $100/oz. This is well below the $250-$300/oz quoted by the analyst.



Cheers.