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DigiTech

07/08/13 1:09 PM

#20902 RE: JustForFun7 #20901

Well, you need a few small things before you start with the Spanish ore:

Get the ramp built. They started but it will take 6 months

Get the water out. That's a lot of water down there and it needs to be processed.

You got to ship it and for that you need to get the logistics right with all permits

You are correct about the fact that there are other processing issues but I do not have a good answer for you. I am guessing that they will schedule the mill to process the different types of ore at different times. It is the mill manager's job to figure that one out and I do not want that job. It is a 4,000 t a day mill so it would take only 60 days to process the 240 KT. They have plenty of room to figure it out.

Here is another guess on my part:

It will take a very long time to fund and build the 1,200 t/d mill in Spain ($50M to $60M price tag). I think we will be shipping ore to Panama for a long time to come and if we maintain cash cost below $700 I do not see anything wrong with that.