The Cashflow Bullet, page-509

What are those figures based on?

Tallman seems to have the 400-500k ounces I mentioned based on 3 hits in the shear zone, open-pit depth of ca. 100m, strike length of 250-300m and grade interpolated from the hits. It is supported by the sampling Cathedral did in 1995 (110m at 113 g/t with average true width of 1.5m, translates into 17g/t over the 10m width of the shear zone). If you do the math and try to estimate what artisanal miners did extract at Tallman, 110m strike length, 10m width, 25m depth, 2.2 t/cbm (should have been in Saprolite) = 60k tonnes at 17 g/t, translates into 33k ounces.

Fact check no 1: Nine Mile open pit (also now on Troy ground) had 70k ounces at 18 g/t. 33k open-pit seems plausible.

Fact check no 2: There seems to have been production for a at least 25 years. Cathedral mentioned there were 20 workers employed. 33k ounces at US$800/oz average gold price = US$26.4m, divide by 25 years and 20 workers = ca. US$50k / year and person. Plausible too considering that is only revenue per head.

So far we only have data on Ohio Creek and that is very limited. The best guess is 400-500k open-pit mineable ounces. Very probable there will be an underground mine later on with multiple of those ounces. We have no data on that yet. No data on any other targets except historical data on Kaburi Hills. Upper Itaki might be the best target as there is compression between intrusives and multiple trend get together. But it is just an extremely excellent target of world-class potential. Might be there is a multi-million ounce deposit at Upper Itaki, might be there is nothing. While the chances are elevated they are still way less than let's say 25%. Putting any figure on that is extremely misleading.

The beauty of the 400-500k ounce mineralization concept at Ohio Creek is that it is clear how the calculation changes based on new data from certain proposed drill holes. If a line to the west finds something, easily +50%. If holes on the same lines as current hits find nothing, easily -50%. If average grade of new hits are way less than current interpolated grades, also easily -50%. I will update the concept once Troy releases new data. But even if we get disappointing drill data and the deposit is only a fraction of the size, let's say 125k ounces at 4.5 g/t, both LOM and margins will be better than current production. And that means it is nearly a given that Troy will be able to internally generate the funds needed to develop Smarts u/g where a rough guess seems to show at least A$50m in LOM proceeds after capex and operating costs. And it also means A$28.5m in unrecognized deferred tax assets will get back onto the balance sheet.