reliability of production cost estimates, page-4

Thanks Kacy,

El Algarrobo

Located in the III Region, it supplies Huasco Pellets Plant iron pre-concentrates. Its reserves reach 7.7 million metric tons, with an iron average content of 51,99 % and a magnetic iron cut-off grade of 30%.


Compared with the above resource grade 52% iron, ADY's current resources are graded between 14% and 18%. This means that ADY will be required to mine and benefact about 3 tons of ore for every 1 ton the above mine produces to produce the same standard of pre-concentrates.

Thsi is not necessary a show stopper. It will just require extra capital and operating expenditure to a achieve this outcome.

The question then is how much? Or more specifically, does the estimated Mining Costs of US$9.33 (US$23M over 10 years @ 2.5 MTpa) adequaetly reflect this total cost?

Can you mine 3 tons of ore and benefact it to produce 1 ton of concentrate for a total average cost of US$9.33 per ton of concentrate?

Gets down to how reliable are those cost estimates given by ADY quoted above. Were they produced specifically for ADY for ADY's mines. Who produced them? etc. etc. etc

I will keep on looking.

Regards

SP