Livengood Gold PFS, page-12

"My question to HC is, what differences do you see between the proposed low grade milling operation at Korbel and Livengood?"

All very good discussion,

The biggest thing I see is what is currently a 50% difference in grade:
- Livengood has 0.6g/t
- Korbel currently has 0.3g/t

As Wombat pointed out we have 2 years stripping VS gold from surface in our favour, and whilst this will significantly offset the lower grade, at some stage, the higher grade at Livengood will prove more profitable despite the high strip costs.

The Scoping Study was delayed as the geos said there are higher grades being found which will produce a more compelling study. I did some research in another thread where I compared the grades from the new holes to the existing holes, and I think the overall grade will come back at at least 0.4g/t, but maybe even 0.45g/t.

I agree the Capex is probably way too low. There are many operations in Australia that have had significant blow outs of build estimate costs. Admittedly much of this can be attributed to Covid, but I think it would be remiss to assume prices will come back down.

I estimate the build costs to be at least $500m. Inflation is on a tear, it is remote, Chris has said they will need to fly a lot of stuff in during the summer months, and estimates are likely to be optimistic.

Based on high level estimates of $250m, you will need to have at least 30% contingency, that brings it to $325m, and then when build starts in 2 - 3 years time, who knows what cost of things and people will be.