Ann: Blue Bar Development Approved, page-22

mate, your calculations are way off.

Think of it this way:

They say 140,000 tonnes at 1.9

Given the inherent risk of going gold mining on the back of an inferred and indicated Resource (note, no Measured), I’m ascribing a grade of 1.5g/t.

With costs at 0.9g/t, that leaves 0.6 as the margin.

140,000t x 0.6g/t = Margin of 2700 ounces produced.

60% of that is CAI and hitch equates to 1620 ounces.

Now assume that Haoma get their share at spot and perhaps Calidus doesn’t?

Either way, it’s $4.8m at $3000 and $3.8m at Hedge.

That’s a hell of a lot of risk and a lot of assumptions leading to that number. It won’t take much in cost blowouts, recovery issues or grade discrepancy to reduce that to nil.

As always, food for thought.