re: Ann: First Gold Ore Delivery for Bullant ... From the link...

re: Ann: First Gold Ore Delivery for Bullant ... From the link above....

"Kalgoorlie Mining Company (ASX: KMC) has unlocked the potential of the Bullant Gold Mine by establishing a gold ore agreement with the Australian subsidiary of Barrick Gold Corporation (NYSE: ABX).

Kalgoorlie Mining will receive around A$2 million in less than ten days, with the company being paid by Barrick when 18,000 tonnes of ore (175 truck movements) is trucked the 80 kilometres from Bullant to the Kanowna Belle gold processing facility.

The break down of the cash generation is Kalgoorlie Mining receives 70% of the estimated A$3 million to A$3.5 million value of the gold within the ore, with the final 30% determined on recovery rates and costs of the processing.

Chris Daws, managing director of Kalgoorlie Mining, told Proactive Investors today that the company expects to receive upwards of a third of the final 30%.

This calculates out to around 80% of the A$3 million to A$3.5 million value.

Now for the best bit, Daws said Kalgoorlie Mining will look to truck 20,000 tonnes or ore each month to Kanowna Belle for the next twelve months, providing the potential of over A$2 million a month - equating to A$24 million in cash.

This cash generation is actually more than the current A$23 million market capitalisation of Kalgoorlie Mining, indicating the enhanced revenue parameters are not (yet) factored into current valuation - a situation likely to change and presenting opportunities for investors.

After the twelve month period, Kalgoorlie Mining should be in the position to process the ore on-site, which will provide a boost in margins.

Potential upside to ore grades

Daws added that he expects the gold ore grades to increase above 5 grams per tonne (g/t) in coming weeks, from around 3.5g/t - adding some spice to the actual amount of gold produced."

GS