scoping study, page-24

Agassner,

As far as I understand they are just scoping the open pit mining part of the resource. As they explicitly state in their announcement:

Two main options are being examined:

i)A processing plant at Archangel, processing the Archangel (Kay Tanda)“stock work” resource and transporting the high grade South West Breccia resource to the central processing plant.Targeting average production of 30,000 oz per annum for >5 years.

ii)Asmaller, lower capital cost,processing plant at Lobo, initially processing South West Breccia high grade resources only then processing potential additional resources discovered through the new, planned,drilling campaign. Targeting production of 15,000oz per annum for >5 years.

With the lesser of the 2 that's $18mill processed per year (based on gold price of $1200). It's all about the profit margin but let's say cost of $600 per oz, that's a profit of $9mill. Add a PE of 20 (conservative but would need backing up of cost-effective deeper resource), then you have a marketcap of $180mill. What's it currently $10-$12mill? There's plenty of fat in this (even if lower gold price, higher cost per oz, royalties to govt etc) should it produce the goods.

Initial production will be low-cost and can begin relatively quickly and is close to infrastructure which is why, if scoping study is positive, I think we'll see the share price rise to new levels from here.