Hey DoogsMate that is the Million Dollar question! What will...

Hey Doogs

Mate that is the Million Dollar question! What will their cash cost be with all the silver credits???

If you watch the presentation Mr Promnitz gave to the institutional investors in Geneva Switzerland back in April he mentions that the "silver grades are so high that the gold may go for a free ride"....meaning zero cash cost. URL if the Precious Metals Presentation is below...

If we do have a zero cash cost and produce 125,000 ounces of gold + SILVER with the current 1.8million ounces of gold and 20 million ounces of silver JORC then we can use the following calculations for annual profit depending on the gold price:

Annual Profit At Various Gold Prices (Assuming we dont find any more gold or silver) Zero Cash Cost!

1. 125,000 ounces / yr x $1000/oz = $125 Million
2. 125,000 ounces / yr x $1250/oz = $156 Million
3. 125,000 ounces / yr x $1500/oz = $187 Million
4. 125,000 ounces / yr x $1750/oz = $218 Million

etc.

In his interview in The Australian he states a capex of between $120-150million to bring the Mt Kare mine to life.

With the scenarios above the payback for the initial capex would occur in less than 12 months!

But we will only know once the PFS is finished next week then presented to the PNG Govt next month before it is released to the market.

http://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2012/04/13/indochine-mining-limited/play/stream/4519