Ann: Thailand Update, page-41

Genuine question, if the capacity is 200koz why has the plant only ever produce around 200koz or less.
Also, output of the backend is actually a function of the front end design capacity of the plant.

That is to say a 2mtpa plant is designed to take 2mT of dirt in the front end.

If you're feeding material say 3g/t = 6,000,000gm of gold = 211koz of gold. Factor in recoveries and maybe you land around the 200koz mark.

If you're feeding material say 2g/t = 4,000,000gm of gold = 140koz of gold. Factor in recoveries and maybe you land around the 125koz mark.

Bringing it back closer to KCN.
Chatree Mineral Resources are estimated at 3.4 million ounces of gold (164Mt at 0.65g/t Au and 5.59g/t Ag.

I recall seeing that the plant was around 5mtpa post expansion (is that correct? Genuine question)
5mtpa x .65g/t = 3,250,000g oz = 115koZ. Or if you wanted to do AuAg equiv it was .69g/t. Factor recoveries etc around 100koz

Chatree Reserves previously were around 1.1g/t or just under double the Resources (not reserves are deemed the economical viable component which back in those days that gold price 1g/t probably about right) which explains where the 200koz production came from.

So to actually achieve 300Koz production you either need to have a plant large than 5mtpa and/or you need to feed it with 1.4g/t Au/Ag equivalent.

This is why I have used 150koz to underpin the economics which assumed a 0.85g/t AUAG feedstock. Essentially I expected them to lower the cut-off and delineate new reserves around 1g/t. I went lower to factor some risk so as to ensure a longer LoM was viable under a lower throughput.

If i've missed anything it's that the plant is larger than 5mtpa, and if it is yes I missed that.
If not, then i stand by the economics.

SF2TH