Ann: Fremantle Conference Presentation, page-26

At a cu price of au $12,500 it seems even if costs are 5% up on the economic study numbers its possible to make a profit out of grades as low as 0.4%.

The study has been cut off at 0.6% in the lodes under the giant pit and 0.8 % in the Lodes under the Nugent pit.

Those halo ores have a mining cost of $25 to $30 a tonne compared to the study average of $47 which includes the mine development cost. Targeting them also means all the higher grades will be captured.

Because the plant is under utilised they also only have an incremental processing cost of $8 per tonne. The high grades pay the $7m a year it costs to have the plant ready to process what ever is delivered.

Lachlan has left a lot of opportunity in hollow logs to do a lot better than the forecast.

We have Buckleys chance of getting to full production in the next 11months IMO but could do much better than the Economic study forecast. There has been a lot of drilling and fine tuning happening in the last 12 months to improve the forecast outcomes.