andash , page-36

Re-read the interview by Company Insight with MD Simon and he tells us why Andash will generate lotsa moolah here.

http://www.kentorgold.com.au/admin/upload/2011%2004%2006%20MD%20Milroy%20Explains%20Jinka%20Minerals%20Takeover%20Final.pdf

Andash is being set up for an initial annual production of 70k oz of gold and 7.4k tonnes of copper with a gold cash cost of US$29/oz after copper credits and royalty. The calculation assumes a copper price of $2.75/lb of copper. With current copper prices forecast to hover > $4/lb in 2012, Andash will have a negative cash cost for gold production.

Intersuisse in their Jan 2011 report has projected Andash to produce 30.8k oz of gold and 3360t of copper for 2012. Gold prices at US$1175/oz and copper at $9000/ton bringing the cash cost per oz of gold is -$158.

Now with copper prices hovering at the $9.8k/ton level, this blows the gold/oz cash cost to -$245/oz.