Ann: First Ore To Be Processed - Boorara Gold Project, page-51

And while on the subject of mills,the sooner we're in the position of KAU the better.

1		Discovered in 1861, the A1 gold mine in Victoria has produced over 600,000 ounces of gold. That's ~.6 Billion worth of gold at today's gold price… (which was up again overnight - marching back towards new all time highs) The average historical grade out of the A1 mine was 25g/t gold. This is extremely high grade. But the old time miners couldn't reach the deepest levels with the technology of the time… Our Investment Kaiser Reef (ASX: KAU) now owns the A1 mine. KAU has put in years of work to reach the deepest and never before mined levels of the A1 mine…. And get an exploration drill rig down there… Today KAU announced drilling has commenced to test if the high grade gold continues deeper than the old time miners were able to reach… And IF KAU finds more high grade gold, they can quickly mine, process and sell this gold using their operating gold processing plant. Which has processing capacity of ~250,000 tonnes of ore per annum. All while the gold price is the near highest it has ever been. (this is basically the thesis for our Investment in KAU) For the last 30 years, mining at this project was "remnant mining" from areas that had already been mined out by the old time miners, who had extracted the "easiest to get to" high grade ore. (but left behind the lower grade ore) KAU has also been remnant mining the project for the past few years. (and still managing to generate 's of millions in revenues from it). Now for the first time in decades KAU is about to go mining in virgin parts of the A1 mine.

High grades and a record gold price could mean revenues for KAU going forward are a stepchange higher from what we have been seeing over the past few years. (high grades means more grams of gold per tonne - so you get more gold for the same cost to process the one tonne of ore) KAU owns 100% of a processing plant that is able to process ore mined out of the A1 mine. So KAU can monetise its projects quickly. While the gold price is near all time highs:

We need to get cracking before the market gets swamped with gold.

db