The Deposit is not Economic Warning!!!!!

I just did a bit of a read up on the Bundarra assets. The are around 2g/t over all and have very high strip ratio (this means for every tone of mineralised dirt you have to move X amount of waist dirt).

Lets look at the facts I will use gold at todays price Australian $1,540.00 per ounce so $50 per gram.

$45 per ton - Costs of processing at a near by mill if possible
$5 pert ton - transport ore to the mill
$5 per ton - to dig up the dirt from the pit same cost for wast - they report 6.7million tons of ore and the deposit has a
10;1 strip ratio this means for every ton of ore you have to move 10 tones of waist material

$55 per ton to dig up the pit waist and ore as you have to move 11 tones at $5 to get 1 ton of 2gt dirt?

Total cost $105 per ton of 2g/t dirt which has a value of $100 per ton??

Also they might get a ore recovery of around 80-90% so you have to reduce the above processed grade by what is actually recovered.

Recoverable gold per ton $80 to $90 per ton - what they get at the end
$76.8 to $86.4 So they get this amount after 2.5% state Government gold royalty and 1.5% royalty from the Royal group and this is before tax at 30%

Costs to get a gold $105 for $76.8 to $86.4 return before tax - So no profit!

Wait there are more costs to consider and add in:

This project is under water and not economic at current gold price and you have to use a lower gold price of any projections due to fluctuations in markets.

Also you could add another $5-$10 cost per ton on top for corporate costs to run the company and costs for pre mining studies and permitting and rehabilitation costs at the end etc... and lets not forget cost of capital?

Glug Glug Glug this project is under water until the gold price is ranging between $1800 to $2000 per ounce.

The thing has been drilled like a swiss cheese and its been mined before and they left this gold behind for a reason.

Celtic mineral zone goes under a 2 lane sealed road. You have to more the road this will cost millions of dollars and take years to get approvals etc.. you more capital costs and the grade dose not carry these costs now let along more delays and costs.

The project has big environmental liabilities with the WA government you cant walk from these!!! and good luck in court against the DMP if you have not done the right thing!!!!