in any project, there are timelines, which include the...

in any project, there are timelines, which include the following

resource definition
scoping studies
pre feasibility studies
bankable feasibility studies
project financing
construction
commissioning

and some extras for bih

ground water studies
environmental impact studies

etc


how long does all this take - mmm years, and how much will the whole lot cost mmmmmmmmmm a full development might be about $150m (watso more than happy to be challenged on this). mxr are thinking in terms of declines into both deloraine and bih.

from what watso can see, is that the present resource at bih is about 237,000 oz. for a stab in the dark, assume a all up cost of bih (ie exclude deloraine) is about $120m, then the capital cost works out to be about $500 per oz. given the grade, then the cash cost of production should be low - maybe as low as about $300 per oz (mmm very iffy - could be higher) ..

just for a bit of a stab in the dark, but watso can see development costs, mining costs, financing costs etc etc to be in the order of $900 per oz (based only on bih), when one starts to think in terms of discounted cash flows, then this is a donkey. if shareholders are interested, perhaps they could question directors about the relevant costs. this is why deloraine is so important, because at least the cost of the mill is spread over a greater resource. if the grade is there, then the transport costs are a none issue

not that for one minute that watso ever believed in selheim, but an alluvial operation can be set up over night

frankly, given all that needs to be done, then production will not happen till about 2012 (if everything goes according to plan)