Thanks nk,Don't know where they get the $70m development cost...

Thanks nk,

Don't know where they get the $70m development cost from, though. The initial capital cost for TRY's last two mines in South America have been $US8m and $US16m.

I think the development might have been based on the IAU feasibility study, which calls for a mine producing in the order of 68Koz p.a., however in early 2007, development costs (including a contingency) was $US46m.

I can see TRY management saying, "Well, if we reduce production down to, say, 30Koz p.a., what does that do to the capital costs vs. time to first production?" These guys are extremely practical, whereas many others think they either build a big, expensive signature project, or nothing at all.