approve the placement i say, page-12

morning all, hi recyug,

I think we can get to 500 oz with this amount of cash -

Barrick will want out next year - there will be only one logical buyer - us.

From what I hear Granny will be cheap.

The mill apparently is 4m tons not 3m tons (from fitnfam) -

So if we do Barnicoat for 2 m tons and Granny for 4 - that is 6m tons - say at 2 grams

that gives us over 387,000 ounces from Laverton.

3 mile will get to 2 million tons at a guess stand alone
that's another 129,000

So we are up to - 516,000 ounces

Add in a bit more by buying greenfields and even just using it for crushing and we are way over 500k oz.

Take a bit off for stuffups and unforeseen shutdowns and we are probably reasonably comfortable at 500k.

Budget

Baricoat - $65m
3 Mile - $45 m

Granny ? maybe $20 or $30 (every time I say $50, I get howled down - people tell me it will be cheap).
Greenfields - bugger all.

So far - say $130 million.

Dean - $50 million

that's $180 million with $47.5 million in cash

a couple of small asset purchases - my guess is less than $10m and bob's the uncle.

And for pantry

the figures I have heard indicate that when we can get 3 mile etc. to run on 2 million tons at 2 grams (or better) - yes our costs will drop to somewhere between $800 and $900.

So - the maths actually work quite well.

This deal comes down to philosophy -- that dreadful thing that no bugger wanted to discuss in the past - and now everyone wants to talk about it ::)

I think it is hilarious.

have a great day all

Pinto