gold mining starts in 19 months

LAT have announced that mining will commence in January 2010. Between now and then the stock will be progressively re-rated as milestones are achieved. Those re-ratings will have the SP eventually reflect the net present value of the project which currently stands at $50 million. Thats suggests a SP of 30 cents. Compare that with 4.2 cents today!

A major milestone will be the Bankable Feasibility Study due in June 2009. The BFS will confirm the conclusion of the Preliminary Feasibility Study dated June 2007. The PFS suggested robust economics when the gold price was $US670. The resource is outcropping so mining costs are very low at $US324/oz.

Before the BFS is due a drilling campaign is also planned that should at least double the resource size. That additional resource, notwithstanding being at depth involving higher mining costs, will add further value to the project and upside potential to the SP beyond that 30 cent target.