gold production at $90 an ounce!!, page-20

You were very conservative Pomhat and yet you have still come up with a very compelling valuation.

For example, is Sandstone just going to be the 20,000 ounces a year you suggested?

From a 31st. July ASX release:

Highlights
An Inferred Mineral Resource of 10,541,000t grading 1.3g/t (grams per tonne) gold for 452,000oz contained gold has been estimated for the Two Mile Hill tonalite gold mineralisation

COMMENTARY

Commenting on the results Troy's CEO, Paul Benson, said: "At over 450,000 oz this is a significant resource and although low-grade, the geometry of the intrusive is such that it could be amenable to low-cost high-tonnage mining methods. However, it¡¦s the recent discovery of high-grade gold mineralisation in the adjacent Banded Iron Formation (BIF), announced on July 16th, but not included in this resource number, that makes this really interesting.

We are currently planning a Phase 3 exploration program to test the extent of the high-grade BIF mineralisation. If we can prove up sufficient high-grade it's easy to see a concept where a decline is mined through the tonalite to access the BIF horizon. With an existing operation and workforce, a permitted site and development in mineralised tonalite, the tonnage required to make a viable operation is significantly less than for a standalone greenfields operation.

Sandstone has never had much more than 3 years forecast mine life ahead of it, yet it is about to mark its 10th anniversary as a Troy operation. It's been an outstanding performer for the company and obviously we're hoping that Two Mile Hill can play a part in extending production well into the next decade. All going well we should be in a position to evaluate the Phase 3 results early in the December quarter."