let the good times roll, page-8

MM - the average ASX listed cash costs for a gold producer are US$666. BDR's cash cost without any iron ore credits is US$581 so this is a worst case scenario. Best case scenario will save us up to US$200 /oz so if you take a consertative view and say it saves us just half of this we still sit under US$500/oz in terms of costs.....therefore only Medusa are in a better position costs wise.

There is a seperate agreement for Duckhead and then another as an exploration agreement. Ampa cant renig on Duckhead. Your question of what if AMPA decides to stop mining......well they are not mining on our concession...we are mining and they are simply collecting our rubbish so its pretty low cost for them.

If the agreement was somehow cancelled I imagine there would be penalty costs for AMAPA to compensate BDR. Ultimately there would be a slight impact to reserves given the cost increase in that situation. However, all BDR would do is what they have to date with their mining......stockpile the ore until prices improved and then sell it all again - its a no brainer!

I quite like the exploration agreement. Essentially AMPA will request a transfer an exploration tenement in BDRs holdings.......how will they decide what land they would like transferred???? By drilling - and by doing this they will be doing some of the hard yards for us ie. Duckhead is a classic example. Then a further deal will need to be cut which = more dollars for BDR on sale of land, all the narrowing our need to drill out specific locations.

For newbies, BDRs DFS was done based on a gold price of US$1400 so with gold remaining in the high 1600's there is plenty of coverage. The DFS didnt include any iron ore credits and the pay back was only 11 months - hence this baby will be hugely cash flow positive regardless of what happens to the iron ore credits.

Get on board the gravy, I mean Gold Train!

SLE