Correct me if I'm wrong but the remaining balance due on those notes, if paid in cash, would be $84,636 as of the last 10Q (see post #60746). The discounts are the additional shares that would be expensed if the notes converted according to the conversion agreement. For example, at a 30% discount and $1 pps, your $70,000 loan would be converted into 100,000 shares. 30,000 shares - or $30,000 - is your unamortized discount.
If they have paid off the convertibles and have indicated that they anticipate that the same funding sources would help them through the mill opening, they may very well have an understanding with those funding sources that they could go back for more money if certain conditions are met.
Assuming that you're correctly estimating $40,000 per quarter to to survive, that would only be 4 million shares at $.01 or 2 million at $.02. We can only speculate at this point on the cash to complete the mine deals. Perhaps it will be renegotiated to a later date, perhaps they can get a conventional loan using the "proven" ore in the mines as collateral, perhaps convertible loans with a restriction beyond the mill opening date (at which time it could be paid in cash). We just don't know.
In any event, issuing restricted convertible shares, with the expectation that the loans would be paid in cash after the mill opens would seem a reasonable way to fund the operation without significant dilution. You're predicting we may go to 150,000,000 shares from the current 73,000,000. I'm saying it should be closer to 100,000,000. Realize that an additional 50 million shares at $.01 per share is about $500,000 (or $1 million at $.02 pps) between now and the mill opening. That's quite a burn rate.