quarterlies, page-15

re: this years production...billy All sorts of figures being thrown about here...

Cash operating costs are AUD$449 per ounce.

The $602 total figure includes amortisation and depreciation charges, which are paper-only, non-cash transactions and can be expected to reduce quarter on quarter...in effect, these extra costs reduce LEG's taxable income, but do not effect actual cashflows.

The important thing is the $449 operating costs per ounce for this quarter...which resulted from lower ore grades and the lower than expected gold production for the quarter of only 12K+ ounces.

If, as they say, they produce 23K ounces next quarter, production costs will reduce substantially...and LEG should experience a much improved cash position.

The most important thing for LEG's growth however...and by extension, there shareprice...is to shore up additional reserves.

Therefore, exploration drilling is extremely important right now...and not just development drilling!

Unless they find a new lode, or deposit near the current mine, the 307K ounce "Wilson" deposit probably holds the key to LEG's immediate growth.

Cheers!