Brian Rodan Now Owns 138Million IDC Shares, page-20

Hi Yurt head, I suspect Nectar is taking IDC's spiel about "cash costs to be among the lowest in the industry" as gospel. He shows a chart of cash costs for the various companies in the gold sector and then proceeds to position IDC in the category of a "low cost producer" which puts IDC in the range of US$310-350/ozALSC. Bingo! IMO Nectar is up the creek as usual! IDC are TARGETING 1million ozs at 10g/ton of gold ,not that they've proved it to date but that's not important to the true believers apparently! IMO that isn't exceptionally high grade ore for an underground mine that has metallurgical problems. ABU's ALSC cost, for comparison, is estimated at A$730-A$870 for a simple low cost open cut, virtually on surface ,with very low capital expenditure {they are leasing the plant which is located 77km. in flat terrain from the deposit] .ABU's estimated metallurgical recovery is estimated to be 97%. How can IDC's ALSC be lower than ABU's? IDC have an inferior metallurgical recovery of about 85% coupled with a much higher capital cost. Mt. Kare is definitely not a low cost environment [check the original feasibility data]. Mt. Kare is in a mountainous area of high rainfall, roads and waste containment systems would be more expensive to maintain. Based on current drill data IDC also has an inferior head grade to ABU. [10g/ton vs. 11-15g/ton gold.] Moreover a shallow open cut is cheaper to mine than an equivalent underground deposit. Based on these figures I expect IDC's ALSC to exceed A$1100. There's no guarantee ABU will prove viable so God help IDC! BOLTA!