"The problem is we have no idea what the profitability is given...

"The problem is we have no idea what the profitability is given management havent provided cash cost targets for the mill. So trying to project a value is hard as there is no indication of margin. Anyone investing at the moment is putting faith in the notion that this little mill will produce reasonable quanitites of gold at low costs. "


mkabk

i understand your point, but in the short to medium term at least, i believe this concern is unwarranted.

unless you have some knowlegde that the various sbl ore bodies to be mined have special requirements (that could double the cost of processing) then it's not difficult to predict profitable production given the very high gold price. even if the gold price fell to AUD$1000 you would expect some profit to be made. you only have to consider the historical profits of gold mining operations in many different locations around the world (in times of much lower gold prices) to be re-assured in this regard ...

re yr comment on low gold grades for initial production: from SBL "africa down under" presentation (slide 15):
"Old Konongo Tails Dam - Source of early millfeed: JORC resource of 1.7M tonnes at 1.09g/t Au (61,150 oz) includes high grade area of 448,500t at 1.66g/t." this doesn't sound too bad when it can just be scooped out of the old tails dam with an excavator?

k