comparision with porgera, page-5

IDC's PFS stated that based on the Madison Drilling, the Mt Kare cash costs sit at a conservatively high $650/Oz with the 2.1Million JORC.

Madison and Buffalo ignored a lot of the silver in the mountain, when they drilled Mt Kare between 1998 and 2006, because the price of silver at the time was $4-5/Oz.

Today the price of silver is 600-700% higher at $30-34/Oz and why the drilling program completed in 2012, is 1. Validating the precious drilling AND 2. Finding extensions, which they did with these Bonanza Zones that Dr Burgess is now drilling.

The 2012 drilling program which included a lot more silver and a lot higher grade silver will be very exciting.....between now and mid February, the grades of silver released will give us a strong guide as to how low the Cash Cost will be.

We need to remember that when Porgera started, since the gold was shallow, their cash cost was $197/Oz for the first 3-4 years. Only now, after 22 years of mining, it has risen to $950-1000/oz, since they need to drill, dig, mine and extract from 1000metres from the surface.

The 2.1Million OUnce JORC Resource is made up of 1.8Million Ounces of Gold and a Whopping 20Million Ounces of Silver...and we have only touched the surface.

Have a look at the sheer size of Mt Kare. It is amazing, these are photos taken by Madison and Buffalo on the net.

You can see how big it is when you compare it to the camp in the yellow circle.