re: Ann: Update Las Lagunas Gold and Silver P... Using the...

re: Ann: Update Las Lagunas Gold and Silver P... Using the following previous statement from ASX 23/4/13 :

Design capacity is expected to be reached within four to six months after which monthly production of approximately 5,800 oz Au and 52,500 oz Ag should be achieved, at currently budgeted operating costs of around US$337 per oz Au equivalent (Gold Equivalent)

Current 50% Calculations (Please check the maths) would appear to be :

Design Capacity 5,800 oz Au / 50% = 2,900 oz / Month Gold

50% Capacity Quarterly = Multiply by 3 = 8,700 oz Gold

Design Capacity 52,500 oz Ag / 50% = 26,250 oz /Month Silver

50% Capacity Quarterly = Multiply by 3 = 78,750 oz Silver

Current Gold Price : $1,606.00 oz

Current Silver Price $ 28.76 oz

Gold Equivalent Price For Silver ($1,606.00 divided by $28.76 = 55.84)

Hence Divided Number Silver Ounces By 55.84 : The result then = Oz of Gold Equivalent :

Ounces of Silver Per Quarter 78,750 Divide By 55.84 = 1,410.27 oz Gold Equivalent

Therefore Ounces of Gold Per Quarter 8,700
Add Oz Of Gold Equivalent Per Quarter 1,410
Total Of Gold/Gold Equivalent/Quarter 10,110 oz

Currently At $ 1,320 (Only that sold in hedging)

Total Value Per Quarter $ 13,345,520 (Over 13 mil / quarter)

Less Costs $11 mil per quarter, leaves around $2 mil.

IF : it then goes up to name plate it becomes :

CALCULATIONS (Please check the maths)

Design Capacity 5,800 oz Au 52,500 oz Ag Per Month
X 3 (3 Months) 17,400 oz Au 157,500 oz Ag Per Quarter

Current Gold Price : $1,606.00 oz
Current Silver Price $ 28.76 oz
Gold Equivalent Price For Silver ($1,606.00 divided by $28.76 = 55.84)

Hence Divided Number Silver Ounces By 55.84 : The result then = Oz of Gold Equivalent
Ounces of Silver Per Quarter 157,500 Divide By 55.84 = 2,820.55 oz Gold Equivalent

Therefore Ounces of Gold Per Quarter 17,400
Add Oz Of Gold Equivalent Per Quarter 2,820
Total Of Gold/Gold Equivalent/Quarter 20,220 oz

Currently At $1,320 (Only that sold in hedging)
Total Value Per Quarter $26,690,400 (Over 26 mil / quarter)

Less Costs $11 mil cost per quarter, leaves around $14 mil.

BUT : even if it only gets to 75% of nameplate once Cil tweaked, it’s still $ 20,017.800 (About $20 mil less $11 mil costs still leaves $9 mil/quarter)