This is only my hypotheses looking forward. Good to see analysis...

This is only my hypotheses looking forward.

Good to see analysis of Khrysos by others

The State of PNG is also apparently pretty impressed with the progress to date, so it is reported.
National Planning Committee is talking about supporting the project by putting a connector road from Porgera through Kare to Tari, (probably running SW-NE from the Highlands Highway to the west of Tari, plus power from Tari.

This is a huge step forward given the history of the project.
It’s going to bring a gain to the economics of gold costs at Mt Kare too.
I am pretty sure that first stage drilling WILL be completed by the end of April, metallurgy no later than the end of July, pre-fease end of August 2012.

There is a suggestion, supported by past geological work at Kare, (it’s not due as an announcement made by the company) that there may be anything up to another million oz of crystalline gold in the eluvia immediately adjacent to the hard rock resources in the Roscolite zone.

It’s going to be interesting to see where the resources numbers get to but suspect that the drill out will get some-where in the order of about 2.3 million (not including the potential further 1,000,000 in elluvial gold).
This is a robust project with good grades (6.5 grams equiv per cubic meter).
Estimate production to be about 140,000 oz pa.

Cash costs (I predict, based on Tari/Hides gas fields/fuel/power) at about $670-700 giving a pre-tax profit of about A$125,000,000 BUT with a potential upside in the order of about A$155,000,000 pre-tax (or more) depending on what gold does in the years to come.
Then, there are there are the other (blue sky) gold anomalies identified within EL1093.

PS Now open for to be bagged by the one minute wonders LOL

DO NOT ASK ME
DYOR BECAUSE I KNOW NOTHING

Janus