Ann: Saracen Acquires Kailis and King of the Hills Gold Projects, page-2

Now we know why the previously proposed mining of Kallis was not mentioned in the last quarterly report where they forecast 2015-16 gold production.

It looks as if the mill in WA will be under-utilised going forward as Gwalia will not be supplying enough ore for its capacity of around 1.2mtpa - the only way to compensate for that is to more rapidly deplete to ore deposit at Gwalia. Milling costs at the WA plant will increase because the expense of running the mill will be covered from the production of fewer ounces then what could have been achieved.

Selling 400k high grade ounces for $3m looks dumb. Congratulations to SAR - I hope they find a lot more high grade ounces there and show SBM how stupid it is to buy gold properties at the peak of a cycle and sell others at the bottom.

Well at least the gold price is up so we should get a bounce in the shares. I have no idea how long this bounce will last before we head to USD1000 (or if it indeed happens).

loki (not happy)