my responce from cc part 2

I again forwarded Blythefans latest post to CC for comment

http://www.hotcopper.com.au/post_single.asp?fid=1&tid=1452201&msgid=8272512

and this is his reply.

"Stillthefoxhat

Again, Blythefan uses selective misinformation to make his / her case.

As I had perviously stated, the intention is to use the stockpile to blend with higher-grade open pit production from Maxwells (at 4g/t) and subsequently underground production at a higher grade to maintain a circa 3 g/t grade through the mill.

So, the maths are simple - Salt Creek produces high-grade for another 1 year, then Maxwells (blended with stockpile another 2-3 years) then Majestic blended with underground (this to be demonstrated as viable by trial mining commencing later this year) for another 3-4 years. All maintaining a 3-4g/t head grade over that time. That adds up to a 6-8 year plan with what we have on our books right now ? with a track record of 2 grass-roots discoveries over 3 years and a substantial exploration effort to continue, I like our chances of adding more to the inventory in that time.

Catalpa and Norton do not have 10 million tonne per year mills, I believe Catalpa is 2.8 million tonnes and Norton's is 3.1 million tonnes ? another keen exaggeration and if my head is in the sand, where is yours? The saying in the industry is "grade is king" not " the mill size matters" in terms of profitability.

So, to suggest that all we have in front of us is 2-3 years of processing 1.5g/t material is as blatant a mis-representaion as claiming that Norton and Catalpa have mills 3-4 times larger than they actually are ? at least you are consistent in the magnitude of how wrong you are.

Another is the claim that we would generate a $45 million profit from processing our stockpile at the superpit ? clearly, KCGM are lovely people but not to the extent that they would treat our material for free. So another exercise in simple maths - $15 per tonne trucking plus a toll treatment rate of $50 per tonne for a million tonnes is $65 million of costs. Clearly non-sensical commercially and such a naive suggestion indicates a fundamental lack of understanding of the economics of mining generally.

All of the above facts are readily available in the public domain and I strongly recommend some time researching the facts before making wildly incorrect claims.

Excuse me, I have a mining company to run.

Regards,


Chris"

My comment..

Bly you seem to be intentionally painting the wrong picture!