Anyway working off $48 a tonne operating costs should see...

Anyway working off $48 a tonne operating costs should see Minyari makinga tidy profit per oz – which I reckon at about $567 per oz – assuming that wecan send ore of 2 g/t or better to Telfer.

This works out as follows, start off with 2 g/t of ore in the ground, allow10% for wastage brings us down to 1.8 g/t, another 10% lost in the recoveryprocess brings us down to 1.62 grams of gold produced for every tonne of ore wetake out of the ground. So we need to mine 19.44 tonnes to get one oz of gold(31.1 / 1.62)

Now one oz will cost ($48 X 19.44) in opex or US $933 per oz,leaving us with $567 in cash profit.per oz. That is not counting any byproduct credits which seems a more complex matter.

Our current MRE says we have 11 mtonnes at Minyari-WACA at a grade of Ibelieve 2.4g/t AuEq so we should be well able to manage 3mtonnes per annum from open pit mining tosend to Telfer, especially as the MRE is due to be updated soon.

Working off 3mtonnes per annum containing at least an average of 2 g/t,gives us 6m grammes of gold, or 192,926 ozs. A cash profit of 567 per oz worksout at US$ 109.4m per annum, before any tax considerations.

We are talking about real money here, that is not much more than our current market capand is only 2 years away. In fact it seems a good bet that we will be supplyingTelfer before Havieron starts up in 2024?

Even if we are left with a lot of lower grade ore containing 1 g/t we can build a small mill in time and save on processing and transport costs

We should also have Rio bringing Calibre – Citadel onstream as well? Don’t thinkthat the market cap reflects any of this yet

Happy to be corrected and of course this is for discussion only,