new investors perspective, page-5

Chuk, A pretty detailed analysis. At a >$1600 gold price you dont need too many ounces to make good cash. However, in your calculations I would base it on the top cut resource at OP (not the uncut) with mining recovery/dilution factors applied as this impacts costs - so say 400koz total, not 600koz. Still enough oz to make good coin. Two things did concern me with the announcement though. 1) OP inferred to indicated grade approximately halved. This could suggest that as confidence increases, grade drops/ounces drop. This is a risk, particularly given the high nugget. 2) OP inferred estimation method 'mean of sample grades contained therein' sounds like a polygonal estimate which is a estimation method prone to estimation problems. This may explain point 1. I agree with Petey that the sector is dead and this is the main reason for the lack of activity. The market would also be aware that after a big resource announcement normally a big CR follows. I think ABU should aim to self fund a mill by toll treating for an extended period of time, rather than CR for a mill. Also they cannot mine without environmental approvals, so some mention of these would be good. Various environmental studies can sometimes take a year or more to get. Just my thoughts. DYOR. I did expect a bit higher run though...