Anticipated Wiluna cash cost of $A 500 per oz (Mark Ashley open...

Anticipated Wiluna cash cost of $A 500 per oz (Mark Ashley open brief interview, October 16 2008). Wiluna UG reserve grade is 6.3 g/t, plant capacity is 1 Mt pa and 90% gold recovery is anticipated.

From today's announcement:

For the June quarter we will see 500,000/850,000kT annual throughout rate at 6.0 g/t. The remainder 350,000/850,000kT throughput is open pit stockpiles at 3.3 g/t.

Thus expected head grade for June quarter is 4.9 g/t. In April, throughput rate was 0.85Mt pa and gold recovery 84%, so lets assume these numbers.

Therefore:
Throughput rate of 0.85Mt pa is 15% less than optimal.
Grade of 4.9 g/t is 22% less than optimal.
Recovery of 84% is 7% less than optimal.

So cash cost will be 44% more than $500, or AUD 720 per oz. That's my expectation from the info provided.

Not too shabby until more high-grade ore is accessed in several months time. So please explain why the share price keeps diving??????

Rowingboat