kcn no base in place, page-11

To me, it looks like Nueva Esperanza will be a good development while Bowdens will be put on hold. NE seems to compare well with Chatree. Projected cash costs 25% below current silver/gold prices (excluding new drill results) compared to Chatree's cash costs 34% below the current gold price. Oz volume reasonably similar too.

The new drill results are 170m @ 4.16g/t AuEq60 from 58m (highest grade half of the gold intersected from 168m), open at depth, about 250m from the Western edge of the existing Chimberos pit while the pit is about 800m long (unsure of current depth, anybody know?). This is compared to the NE average of 1.89g/t AuEq.

67% of the 170m intersect's grade is from gold and 33% from silver. A lot of Chimberos hasn't been assayed for gold, only silver, so I guess the 1.89g/t AuEq will rise. The projected cash cost must have only included known assays, so I guess costs will fall too. So NE is almost certain to have positive upside versus projections?

Overall: a failure from Challenger (losses and writedown), a partial failure from Bowdens (writedown) and let's assume NE comes good. That's a 33% success rate post-Chatree or 50% including Chatree... Though you could partially blame the gold price for that.