Ann: Maiden Reserve at Bulletin to drive step-change, page-32

Hi winternight

CAI tweeted on Feb 16 that the main ore body of Blue Bar is scheduled to be intersected in March
https://twitter.com/CalidusLtd

That means the majority of this quarter will be ore mined from Klondyke. That is useful because it will give us a more reliable indication of how the pit is performing. Production numbers might still show a low head grade if the cut back has hampered access to the pit floor. If they can get .9g/t then the probability they meet the full 6 months guidance is high and we should see an end of the downward pressure on the SP. I would like to see a minimum of 16k ozs produced this 1/4 (that would take a lot of worry out of things) but it might come in lighter than that..

I am not one for distrusting management. If they say they can deliver 32k to 37k ozs in the 2nd half then that is what I am expecting. If they do not roll forward any more of the hedge then 21k ozs must be delivered at $2367 and between 11k to 16k ozs will be sold at spot. Blue Bar will not be a big contributor this 1/4 so the cash position might still be a bit weak. The projection from management was Blue Bar would contribute ~7k to ~8k ozs so that means the next 1/4 will show the improvements. I would like to see 20k ozs for the final 1/4. The pit floor of Klondyke should be fully accessible (with improved strip ratio) and Blue bar will be in full production.