I decided to look at Pearse North and try to figure out what the...

I decided to look at Pearse North and try to figure out what the cost per ounce is likely to be by using the C1 costs as published by KBL for the Pearse High grade open Pit. I used the May numbers which had bothe the lowest grade (5.5g/t) and the lowest c1 cost per ounce of USD520 which translates into $92 per tonne of dirt.

I used the Pearse North head grade of 2.5g/t and didn't adjust for recovery levels nor did I add the Silver by product but I did add approx 500 ounces of gold to the published reserve as released by the company. I then calculated the current cost of the streaming deal and applied the loss per ounce delivered to Quintana to the balance of the production that would come from Pearse North. No head office, exploration, development or interest expenses were added.

The calculation was done in USD and is displayed below. I could be out by 10-15% either way but I don't think it makes a significantly material difference.

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7
0	Pearse North estimated costs in USD
1	Description	Grade	C1 Cost per tonne	Cost Per Gram	Cost per ounce pre streaming	Steaming Costs per ounce	Total cost per ounce
2	Pearse	5.50	$92.05	$16.74	$520.48	260.89	$781.37
3	Pearse North	2.50	$92.05	$36.82	$1,456.00	$281.01	$1,737.01