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Re: gharma post# 261

Thursday, 10/24/2013 6:41:14 AM

Thursday, October 24, 2013 6:41:14 AM

Post# of 1870
I do agree that the cash could get tight pretty quickly. I believe I have this figured correctly. I am coming up with around 210.00 per tone revenue at 1350.00 per ounce after adding the silver (20.00 Per OZ) credit even at the 4.03 gpt. (About 203.00 at 1300.00oz)

The feasibility study provides the platform for increasing the accuracy of cost estimations
relative to the 2011 and 2012 PEAs. Furthermore, the design production rate has been
increased from 1,500 to 2,700 t/d. Average site operating costs over the LOM are now
evaluated as follows:
• Mining: $94.4/t
• Processing: $18.2/t
• Surface Services: $19.6/t
• G&A: $25.5/t
• Total: $157.7/t
The $180/t NSR cut-off grade provides a minimum $22.3/t operating margin on ore