General Discussion Topics, page-17192

Ya .....the DFS Mach Trois .......is a no brainer and something which has been much talked about and much anticipated . Especially with the anticipated Capex savings .....and perhaps the more ' modulated ' upgrades in NAL capacity . The mining fleet allocation and choices will also be interesting The structure of the operation now that they have brought up that ole chestnut of the ' Quarry ' operation will also be interesting given the tax structures choices and options surrounding ' Mine-mouth Output Values ' and their respective tax rates.

I guess it should be no surprise that they have chosen to extend the LOM and reduce the ' Mine-mouth ' output because just in round numbers it would suggest that they only need around 50% Authier output to ' Blend ' into a higher quality NAL output. So that's the quality side of it , but at the same time they extend the NAL LOM as well. So the 2,000 tonnes per day estimates ( assuming it is around 50 / 50 blend ) , is thereabouts and still leaves room to increase the daily tonnages process .......perhaps from ' Other ' ore reserves from elsewhere. So even if it's something like 60 40 Authier Ore to NAL Ore , there would still be room to process more. I doubt the percentage split of Ores would be greater than 50 / 50 as at the end of the day , I don't reckon the NAL Ore is of that poor a Quality.

It will be interesting to see though as it will give us a better idea of how much more Ore can be processed if necessary from elsewhere before ' Modular ' expansion and / or increased Crushing capacity would have to be introduced. And the beauty at the moment is that we just don't know what the overall NET Capex savings is going to be. I had a figure of between $60 and $100 million up front capital ......however that might even prove to be conservative.

And you only have to look at the DFS Mach Deux ' Economic Sensitivities to see just how much it could end up being.