Ann: Wide, High Grade Intersection at BP33 ahead of DFS, page-38

have requested this be removed...i did the calc on dms feed tonne's, not dms output tonnes....

changed below



Hi medicated,

it may well be in the minds of many people.... but, i think it is easy to overlook the real cost advantage that CXO will have on a hell of a lot of other aussie hard rock miners, being it's location... being so close to darwin think about the cost savings on things like:
- labour; likely no FIFO needed, or minimal
- accommodation; likely none needed, or minimal
- transport costs, shorter travl to port
- power costs; no generators burning fuels

sure, there is a big strip ratio and it appears like there will continue be in the many resource pockets (or cookie jars).... but, when you just look at the PFS alone they allowed AUD$25m for the pre strip....

just using incredibly rough comparative figures based on that.... that's approx another AUD$111/t for every pocket/site that needs a pit dug for say 1mt in resource size... this is based on the PFS DMS output of 400kt from 1777m feed.... those costs will be heavily front ended getting rid over the over burden.... but, that's all when making profits from already from the initial pit etc...$111/t on an already low operating cost/t is very workable...obviously very rough calcs... some pits might not need as much overburden dug, and some more...

the PFS cap exp of $53m included the above $25m pre strip...

3 pits definitely costs more, i agree, but, the first pit has been included in cap exp, and we only need to fund the subsequent pits when making significant profits already.