re: Ann: Quarterly Activities Report - 31 Mar... A lot of the...

re: Ann: Quarterly Activities Report - 31 Mar... A lot of the work which has been done over the last year or so has been costly, but the benefits will now start to accrue. Janet Ivy has not helped, but that deposit can now be left in the ground until a higher gold price warrants mining it.

The switch to higher grade ore at Navajo Chief, combined with the fact that the pre-strip has now been completed, plus unrestricted access to the high grade Homestead ore, will substantially reduce production costs, and the new railway underpass at Navajo Chief will substantially reduce haulage costs and increase efficiency.

I'm expecting to see production costs below $800 in the next two quarters, and down to around $730 - $750 in the 4th quarter.