chart

Time for (another) quiet roughy.

161.5M shares and just A$0.2M cash, but at 4c and possible 50kpa heap leach operation looking more interesting at +US$1000/oz, could see a sustained trend change (see chart) as investors and hopefully financiers warm up to some of the lessor known projects.

Heavy discount for inactivity/waiting for approvals and higher prices, and also the Peru factor, maybe starting to change here.

Cut from last qtr report;

The financial modeling has been based on the following parameters:

• Heap leach operation
• Treatment rate of 3,000 tonnes per day (1.06 million tones per annum)
• Mine Life of 6 years
• Diluted head grade of 1.6 g/t gold and 7g/t silver
• Gold recoveries of 80%, silver recoveries of 40%
• Annual Production rate of 43,000 ozs gold and 92,000 ozs silver
• Waste to Ore ratio of 1:1
• Capex of $US30 million (includes a 25% contingency) and a company owned plant and mining fleet
• Based on this modeling and a gold price of $US625/oz the Paron project has
an IRR of 35% and will return an estimated EBITDA of around $US13.2
million ($A20 Million) on an annual basis for 6 years.
• Attached is a table showing the IRR and NPV of the project at various gold prices