WAF valuation, page-26

Davo, its not my role to validate all the assumptions in the feasibility study or to provide you with examples. Since what you are trying to do is effectively look at each different variable and compare it to other operations, my suggestion of Mana was mainly looking to isolate one specific variable - operating in Burkina Faso. I see you didn’t investigate the Sissingue or Edikan (actual, not feasibility) costs, both of which I suggested to get a feel for processing costs.

The company has paid for numerous technical experts to do the work and the financiers have no doubt done their due diligence. As much as I would like to go through every detail I don’t design processing plants and don’t have time to teach myself. There is a danger in thinking everything can be solved with a spreadsheet. Some of these numbers may have contingencies, factors, confidence levels etc and I don’t fully understand how these come together to get a final number.

Your point about the Sanbrado feed composition is true and I couldn’t find the actual oxide/sulphide mix yesterday skimming through. I would note that while you have done the digging now and found a weighted avg number of $15.5/t you assumed $20/t in your spreadsheet. This assumption does not make sense in light of the other feasibility studies. In fact if you had assumed $15/t in your original post I would have said that was a fair, conservative assumption.

The mill size and throughput is one of the key things for the feasibility update this quarter. The production schedule is also changing to ~8 years. I think I’ll wait for that update before looking into it further.

Your point about targeting an M1 underground feed increase is true however the processing cost for this high grade ore will likely not significantly shift the average milling costs. This is one of the benefits of having extremely high grade - a low proportion of the overall tonnes processed.