WMC wiluna mining corporation limited.

Ann: AGM Presentation 2017, page-3

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    I was not at the AGM since I do not live in Perth, but from what a source at BLK said to me about 10 days ago, I think it was, on the basis of their plant capacity, ore grade, and gold recovery rate (all detailed in the last quarterly report) they are likely to produce around 20k ounces of gold this quarter (could be a little bit higher). Since the striping ratio is much lower and production much higher than last quarter and exploration activities have been reduced they will cover their outlays (other than repayment of debt) from their receipts.

    I have not yet had a good look at the proposed funding arrangement - I do not recall the terms of repayment or the interest to be paid, so I will not comment on it, except to note that it still has not been singed off. But I suppose it must now be "in the bag" so to speak or they would not have ended the trading suspension.

    A key issue to think about is what are the striping costs to access more ore for processing post June 2018 because they will run out of accessible ore from the existing pits/underground mine by then. The striping for the additional pit/s will have to start well before 30 June 2018, which is why they need more money then just the amount to repay the existing loan. While the ore grade of those pits may be higher than what is currently being mined the stripping ratio is likely to be very high.

    BLK lives a bit longer, it seems.

    loki
 
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