Dream or Reality The next few months will give a good...

Dream or Reality
The next few months will give a good indication.

Couldn’t resist running the numbers .
Gold @ USD $ 1,623 ( 29/07/12 )
Silver @ USD $ 27.72
Gold @ 93% recoverable
Silver @ 90% recoverable

72,000 Tonnes pa @ 10.2 g/t Au for 21,961 ounces gold
72,000 Tonnes pa @ 37.1 g/t Ag for 1,320 ounces gold Eq( 58.55 = 1 )

Total Gold Eq 23,281 ounces pa

Costs @ $ 575 per ounce ( Includes 16% Contingency Allowance )

Total costs = $ 13,386,575

Total sales = $ 37,785,063

Gross profit = $ 24,398,488 or £ 15,464,109

No allowance for any premium on Scottish Gold ( 25% of production)

These figures show how cash generative Cononish will be and that’s if there is no upgrade in the resource.
The recent drill results from our Inferred Resource have given an average grade of 19.74g/t Au & 42.63 Ag , is this just luck ! Scotgold have continually used the figures ( 10-16 ) within the Scoping Study's & the Minesite Presentation & our Annual Reports for the Inferred resource . The next 5 drill results are awaited, 5 are currently being drilled and should be complete late Aug / early Sept , a further 5 are planned after that.

If the grade we put through the mill is greater than the 10.2g/t of the Scoping Study, then each additional 1g/t Au will be worth an additional £ 2,218,952 based on the same 72,000 TPA.
An average grade of 13g/t Au would give a Gross Profit of £ 21,677,174
You don’t have to be a rocket scientist to see why RMB have options of shares @ 4.5p.
Even if you double the shares in issue to 400 million it’s still 5.42pps

Add £ 1.5 million for additional costs
Add £ 3.0 million for exploration costs
Add £ 1.0 million for the NP, they will think of something else for sure.
Your still on 4p or 6c per share before tax .