imperial shoot, page-2

gmcg
you have not taken into account

1.The initial capex for portal, decline, mine camp, ventilation, drilling, power and water. The cost of power and fresh water alone would very expensive.

2.It would appear they haven’t including sustaining capital. E.g. Development drives cost > $2000/m ( 4 x 4 ) would also need at least 3 vent rises at $2500/ vertical metre to install (more for the secondary egress).

3.If this was to be stoped by air leg then op costs will be higher than what they are calculating (of course the advantage is minimizing dilution and the amount of rock they have to haul/process).

4.This is not diluted and is not a reserve.

5.One intercept at 1000g/t (and at depth > 300m vertical) is very common through out the goldfields and does not constitute a mine. Quick frankly stating this is just a con for brokers/investors who have no idea about geology.

6.A shoot like this can only be mined at a certain rate (dependent on how much capex you spend a year opening up the ore body). So you will not mine down to 500m in a single year. At 5/gt lower cut the RESOURCE on the shoot is 156,708t @ 19.4g/t for 97,700oz or <200 oz/vm. I am sure you can work out how deep they need to go each year to produce x amount of gold. Most mines on this style of ore go down 40-100m per year. They would be lucky to get 20,000oz pa out of this!

7.They will need to put in miscellaneous Licences for haul road (and power?) over 3rd party tenements which will take at least a year to get approval (ask Anglo how long it took).

8.Trucking costs are now in the region of 25c per t per km. They would also have to maintain the haul road.

9.Toll milling costs around Kalgoorlie for a small parcel like this start at 45/t without grade determination.

My opinion is they are blowing bubbles and the investor community has swallowed the whole story. I am very surprised that they have not been pulled up for the scoping study announcement as in my opinion it breaches all sorts of professional guidelines.

Now for the usual responses of why comment when you do not hold stock and all you have to say is negative.