valuation

Hi guys,

Off the back of requests, I have modeled MYG'd deflector project as follows

a) 7 yr mine life with 1 yr Oxide, 1 yr Transitional and 5 yr underground operation
b) Average LOM costs of $617 Au Equiv (that takes into account copper and silver credits).
c) 3/4 of a year for mine development
d) 1st year ops running at 250kt (4.8 g/t Au head grade) followed by year 2 to 7 at 330ktpa (4.4g/t Au)
e) $225,000 p/q ongoing costs
h) 7yrs of depreciation
i) FLAT 1700 AUD gold price with NO FX.

NPV - AUD$110.3m @ 8%
NPV - AUD$81.7m @ 12%
NPV - AUD$64.4m @ 15%

With my own FX Curve and Gold Prices

NPV - AUD$83.5m @ 8%
NPV - AUD$59.9m @ 12%
NPV - AUD$45.6m @ 15%

I might need to make some further refinements to the Copper Price Forecasts but seeing as they are only producing 14kt over 7 yrs its impact will be relatively minimal.

Let me know if there are other scenarios you'd like me to run, its pretty simple. Sorry I can't send over copies of my models as you'd know who I work for and I'd rather you didn't!

Thanks