Ann: Positive Gold Processing Scoping Study Outco, page-17

re: Ann: Positive Gold Processing Scoping Stu... Back on the 27/11/09, when the Albion process was initially discussed, I posted details from a Research Report on the"Intec process" by its former owner Intec. I am not suggesting Base look at that process again. However, the annual production figures for Zinc, Lead and Copper on that proposed process indicate to me that the choice of gold processing method may also need to consider the level of recoveries of these metals subsequent to the gold recovery circuit.

A copy of that post is located at

http://www.hotcopper.com.au/post_single.asp?fid=1&tid=1015543&msgid=5860076

I reproduce it here:

"I believe a lot of work has also been done on processing the tailings using the "Intec process" by its former owner Intec.

Do not know what the final figures would have look like before they were forced to sell Hellyer. However, I have a copy of an October 2004 Research Report (Grange Research Report) that using the following metal prices:

Metal Price Assumptions - Zinc US$0.45/lb or US$992/t
Metal Price Assumptions - Lead US$0.28/lb or US$661/t
Metal Price Assumptions - Copper US$0.95/lb or US$2094/t
Metal Price Assumptions - Gold US$380/oz
Metal Price Assumptions - Silver US$6.50/oz
Exchange Rate (15yr average) 1AUD:0.6964USD

Capital Cost A$153.4m

Hellyer tailings stockpile tonnes and grade:
10.9Mt at 2.8%Zn, 3.0%Pb, 0.2%Cu, 2.6g/tAu & 88g/tAg
Treatment plant rate 1Mtpa
Project Life 11 years

Production:

Annual Production - Zinc 27,440t
Annual Production - Lead 29,400t
Annual Production - Copper 1,440t
Annual Production - Gold 29,257oz
Annual Production - Silver 2.5Moz

Operating costs A$36/t"