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Saskatchewan's SECRET Gold Mining Development.

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via Tom's Inflation Calculator

If you will remember correctly, production in the Komis underground was at a minimum before it shut down, much as you would have going on at Roy Lloyd.

The magic number was $390US/oz at Komis. Using Tom's Inflation Calculator, and choosing the shadowstats option, you will see that the inflation adjusted number for the time period from 1997 - 2012 is now $1475.92US/oz. Actual mining Q2 cash costs at limited production remained below this line in the sand @$1377US/oz.

The spot price for gold has remained $100US/oz. above this line in the sand. At the same time, you have positive lease rates, denoting a bottom in gold prices.

Gold is becoming a "risk-off" asset as prices rise during treasury price rises. This should also denote a sea change in the metric for evaluating gold mining projects.

Also in the Q2 report, IFRS changes to be adopted will probably take effect, meaning risk assets will arise should debentures, notes, bonds, or credit derivatives of any sort be issued. This means the company will be evaluated on its productive capacity, rather than as an interpretive dance ensemble.

http://www.halfhill.com/inflation.html

-F6

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