Ann: Letter to Shareholders, page-68

not that it is relevant now.. the debentures: there is a fair chance hedging would have been a requirement for the "morgtage"

having another look at the resources
yes, there is a lot up in the air re the contained ounces... which will be revised downwards when assayed as dry tonnes (see quote at bottom), I dont have any idea what that variable might be.
furthermore the majority fo the ounces (Iguana open pit, indicated) is only 1.7 ... to be revised downawards in both grade and tonnage
Total resouce 5k tonnes at 2.0g/t is made to look a bit rosier by the inclusion of the underground resouce which would obviously be more expensive to mine and at 2.7g/t for that bit.. well its not as attractive a grade as it would be if it were open pit.

the reserves... are they worthless altogether? why have 1.9k tonnes at 1.7g/t been excluded from resource estimate, is it because they are underground or isolated pockets not suiting a pit model & not really worth going after?

the most important factor here is understanding the difference between wet and dry tonnage estimate.. its could vary greatly depending on rock type.. and other factors. if the resource were to drop by say 20% in tonnage and ounces.. factoring in cost of transport.. how profitable is the resource then? would the underground even be still worth pursuing.. the whole thing might be no more profitable than 1 to 1.25g/t from jaurdi, I didnt notice that the first time i looked at this, it makes it an awful lot less attractive because it means we will most certainly not be able to maintain our annual production (of our own ounces) as i had previously been thinking. but bear in mind i have absolutely no idea how damaging it will be to convert the results from wet to dry tonnage..and i am going to assume that fresh drilling will be required to do this assay work... how much would have to be redrilled, or how much could be correlated across the resource from a few new drills?

It does raise the question of whether this project is really that crash hot... how many ounces will we get and at what AISC? on top of foregoing our mill producing for us alone for a period of how long?.. 2 years?
furthermore, will the best grade of Lizzard be mined first to give GL better AISC on their ounces before the earn in is complete.






"In addition, the Mineral Resource has been estimated using a wet‐in‐situ density which is unusual for
thistype of deposit. Density is derived from down hole gamma readings which measures total density
inclusive of moisture. It is reported that no moisture adjustments have been made in the model,
leading to a likely over‐estimation of contained tonnes and ounces by the percentage of contained
natural moisture in the rock. Any future resource estimation completed by Beacon would be using
dry tonnes."