low volume daze...., page-8

Gooch

"JWA, Loki or Gunga - any thoughts on GRYs BFS vs expectations for AMX? or are the deposits too different to draw a decent comparison ? "

I would expect cost of production for AMX will be lower than for GRY. EVR's direct cash costs are expected to only be $USD563 (excluding royalties) over the life of the mine. GRY's costs are much higher at $USD744/ounce, mostly I suspect due to higher transportation cost of the ore.

However, AMX are thinking about a 3 million tpa milling operation, which is 1 million tpa higher than GRY's initial plant (S208m, no contingency included in costing), and around what EVR is planning for Hounde. Hounde's all up cost for the plant etc is $345m (which includes 15-40% contingency factors in the costings, and covers cost of mining fleet).

http://www.asx.com.au/asxpdf/20130123/pdf/42ckh6bvz41210.pdf

The BFS outcome will be sensitive to the LOM.

So far no obvious pick up in our west African goldies from the Indaba conference - has the magic worn off?

loki