Ok, Lar (you old pumper, lol), your comment about me being too conservative led me to the following considerations:

WARNING ! This is an extreme point of view and shouldn´t be taken as granted !

You decide for yourself, how realistic this scenario is !

In my previous post about the history of Catanava, I described that the historic average grade mined for 3 million tonnes was 52gpt Gold and 260gpt Silver.

If you look at the table on page 19 of the January 2012 presentation, Tim has shown in different graphs what the effect of various grades and mill capacity has on the generated cash flow situation. In the start-up phase (probably beginning as soon as April) the mill is fed by dump material grading 1-3gpt Gold. When the vein material is milled after achieving full scale production, it´s not unreasonable to expect grades of 9gpt (and higher), looking at the average historical grades quoted above.

But even at 9gpt, a planned 750tpd mining operation would generate cash flow of nearly $ 40 million per year. Tim wants to use half of that for ongoing operations and dividend out the other half to investors. Even with a fully diluted 95M shares (I think most of the warrants and options will be exercised, if we become that successful, Lar), that would equate to a dividend of $ 0.21 per share !

Not even thinking of the possibility of facing even higher grades ! How about that, Lar, for being too conservative ? lol

FANTOMAS