Ann: Van Uden Gold Project MRE Conversion (Amended), page-46

The calculation for the potential revenue from the laterite at today's gold price is very easy: $5,295 * 18,740 * 92% recovery rates (per the JORC. It might be higher, but shouldn't be much lower. Testwork has so far exceed 100% recovery rates) * 80% ownership of the tenement = $73m (assuming 92% recovery rates).



The difficult bit is the expenses in recovering the material and getting it into trucks, the cost of transporting it and the cost of having it toll treated however supplier quotes for the activities would add massive precision to estimates. Given there's almost no overburden, almost all this cost is in transportation, toll milling and royalty payments.

I haven't used a mining recovery adjustment because for the laterite I think its fair to say there's effectively a 100% recovery of modelled ore. There are no pit constraint wall issues to address. Resurvey work after mining will tell you whether there are any areas that were not mined to the expected depth. Mining them back to that expected depth is simply a case of sending a digger to that location with instructions of how many centimetres or metres deeper to go. Additionally, if areas are missed, a geologist can easily walk over the new surface level and say "lets redrill this area and see if anything is left. When they get the assay's back, if they support removing more laterite, they do another scrape to the bottom of the new estimated mineralisation depth. Dilution is the bigger issue - sending material to the mill that doesn't contain the gold expected, for instance from digging too deep but that impacts the cost side and is where grade control work becomes important.

Almost all this mining is going to be in the top 10m. The exception if deep patches of laterite are found meaning the digging goes deeper than 10m.