Supatcha Resources Inc. (SAEI)

[Kelte]

Here is an article I found with some pretty good figures on cost for mining in Eastern Ukraine even though it is from 2009. IMO Eastern Ukraine seems to have a lot of gold and we have every reason to believe the properties held by SAEIE have equal or more than this company. The company in the article is used for informational purposes only and I do not own stock promote or support it in any way.

Korab Resource's Andrej Karpinski has high hopes for gold production from Bobrikovo project
Thursday, August 27, 2009

Australian and Berlin listed mining company, Korab Resources (ASX: KOR; Berlin: C6S.BE) has reworked some key parts of its definitive feasibility study for the Bobrikovo gold project in the Ukraine.
Bobrikovo is gold/silver project located in eastern Ukraine, containing in excess of 600,000 ounces of gold. It has similar tenor and style to 170 million ounce Muruntau gold deposit in Uzbekistan and the 50 million ounce Sukhoi Log gold deposit in Russia.
Andrej K Karpinski, executive chairman of Korab said the results of the revised study indicate a very profitable, robust project with low start-up and operating costs, and a high profit margin.
Karpinski said the base case is targeting 15,300 ounces of gold production for a pre-tax profit of US$4.7 million for 2011-2012. The estimated operating costs including mining, processing and overheads are US$280/oz.
He said Korab’s share of this targeted profit will be US$3.36 million. Assuming an exchange rate of US$/AU$ 0.83, this equates to a pre-tax profit of AU$4 million attributable to Korab.
The company plans to re-commence mining of ores in 2009 at a rate of 100,000 per month, while processing of gold to concentrate is scheduled to commence in late 2010 or early 2011.
Donetsky Kryazh Ltd (DKL) owns the project, which is 74% owned by Korab’s Australian subsidiary Lugansk Gold Ltd. The remaining 26% interest in DKL, is held by Ukrainian investors.
Korab holds its equity in the project through Lugansk Gold Ltd, which is an Australian public company. Various financing options to cover the capital costs and the working capital requirements of Lugansk Gold Ltd are currently being evaluated, Karpinski said.
Stage 1 capital costs of the project of US$2.2 million to US$2.8 million. The two alternatives being evaluated are the project debt financing and spinning-off of Lugansk Gold Ltd. Lugansk would then undertake an IPO to raise the necessary funding and would seek a dual listing on ASX in Australia and on AIM in London.
Korab shareholders would receive free shares in any spinoff of Lugansk Gold Ltd by way of an in specie distribution. Korab holds 100 million shares in Lugansk Gold Ltd.
Metallurgical test results have shown good recovery of gold from both primary and oxide ores using variety of methods including gravity, cyanidation and heap leach.
The deposit is open at depth. KOR is currently developing the deposit having completed the open pit pre-strip and all site works.

http://www.proactiveinvestors.com.au/companies/news/2377/korab-resources-andrej-karpinski-has-high-hopes-for-gold-production-from-bobrikovo-project-2377.html