agm - any questions??, page-16

woltage

In my uninformed opinion Mako is likely to deliver maybe 2 years of profitable operaton at Ballarat. Total cost of production should be somewhere around $1000 due to significant ongoing exploration requirements and the time and effort that will be required to dig from Mako to the other targets at some point. It's important not to view Mako just from the point of its marginal costs and likely returns, but rather as a component of a broader play.

$1000 is a nice round conservative number . It could be lower but if indications are correct, costs of production shouldn't go much North of this mark because LGL's sunk cost don't need to be amortised. This latter point differentiates Ballarat from other plays.

LionGold will have its own agenda and plan for the future of the plays when the deal is finalised so I won't read too much into the Quarterly.

Cheers