JohnnoThe break out to producer is a critical point but equally...

Johnno
The break out to producer is a critical point but equally important is actually the announcement of a reserve.
The PFS has not done this but I think they said a new resource statement is due in about Jan 2013.
Assume Met testing will also be announced around that time.
New resource statement should give a more accurate picture moving on from PFS.
Question that has dogged me is that past resources numbers are based on a gold price at about $500.
At a price estimate of $1650 and the further drilling this year I would expect a significant upward movement on the resource statement.
It will be interesting to see the outcome given that work on pit shell optimization is now on the table onward from the PFS stage.
Real question from that is will we see an attendant increase in production volumes in the first 8 years and an optimization of grade control and ore scheduling to bring down production costs and improve the IRR and if so, how significantly more efficient will operations become.
I only say this because it is now reasonable clear that the company completed the PFS on data from 2008 (i.e. Madison and Buffalo’s work (based on the original $550 per oz model ???).
Thinking the PFS has been understated as a consequence of TOG obligations imposed by the regulator