Jumpstart, Great post to start the week off and interesting to...

Jumpstart,

Great post to start the week off and interesting to see the negatories up early as my TU was offset by a downer.

The only alteration I would suggest to your model is a re-look at the mining costs :-

Strip ratios - On day one if the ore extends to surface the strip ratio is 0:1 ie no overburden to waste.To weight the cashflow appropriately I suggest using a 1:1 strip ratio Year 1 to a 5:1 strip ratio Year 10.

Mining costs - The $3.40/tonne is an average over 10 years. Again on day one, the cycle times will mean a cost of under $1/tonne is likely whereas at year 10, at full pit depth, the cost could be $5/tonne.

Returns in early years are therefore likely to be significantly better than suggested although the distribution of grade over depth will ultimately govern the outcome.

Bring on the BFS !

Cheers - Surfydad