value, page-11

As McSheath says the ratio of Au/Ag in the bars is now very close to expected.Its the overall dore' production that is now being ramped up.It appears earlier in the piece they were not getting expected silver recovery.

A slight correction to what I previously assumed was to be the case with dore' production and that is that the increase from 120Kg to 200Kg were both to be achieved over approx 2 week periods so we are still only seeing around 100Kg/week of dore' in the last week of August IF all is going to plan according to the last annmnt.The designed output calls for 380Kg/week and was to take between 2-3 months to achieve.I believe we have now passed through the 4-5 week period and if we get confirmation of the 200Kg being shipped it must be relatively safe to assume that its going to take the full 3 months to achieve 380Kg/week.

Given how difficult it can be to upsize a new process to production it will be admirable if PGI can achieve above 350Kg dore'/week and hence around a 10% higher cost of production than the stated $340/Oz.Still very cheap compared to the likes of Newcrest who have average production costs near twice this.

I have watched several upsizings of new processes and rarely do recoveries reach pilot plant levels.Dont get me wrong Id love to be disproved!

d.