Thanks Surething. So $4.50 is the overall operating cost. At 1200 tpd Total operating cost is $58.97 /20 = $2.9485 per lb (17.5.46 page 100).

So even with increasing oil costs our operating costs really are not bad.

So our financial results are positive down to a break-even price of $5.50 per lb of Ni. (p109)

The main method to be used at the mine, will be Longhole Stope Mining. The mine will essentially constitute a single stope 80-110 metres long that will be subdivided into various mining blocks. These blocks will be primarily separated by a temporary central pillar 20 metres wide down the centre of the deposit and covering its entire vertical span. The resultant stopes will have mining widths that vary between 15 and 40 metres and generally dip at approximately 83 degrees from horizontal.

The stope will be accessed by a footwall ramp and cross-cuts. Cross-cuts will access the stope at three horizons;

1. 65 m level overcut

2. 100 m sub level

3. 135 m level undercut / extraction drifts.

All sill development will be 5 metres wide x 5 metres high, and will be excavated using a mechanized equipment.

Draw points to pull broken muck will be situated at the 135 m level off the footwall ramp. The 135m undercut will be opened up as cones with 64mm diameter holes (uppers) on a 1m x 1m pattern, 10m high. All broken ore from the three mining elevation will be extracted on the 135m level. This implies that full production will only occur once the ramp reaches the 135m level and the lower stopes are at blasting stages. *

Stope sequencing will advance from the 135m level up to the overcut, and be split into two blocks by the central pillar retreating from longitudinal extremities towards the pillar. The pillar will be recovered after the primary stoping is completed and the central stope (LH1 in Table 25.7.3.1) has been completely backfilled. At this point selective mining of the pillaris to commence leaving a final 4 metre pillar between the active stope and the backfilled portion of the mine. Remote mucking capabilities are to be employed during this phase of mining. Once selective mining has been completed, remaining open stopes are to be backfilled with unconsolidated waste material.

Once backfilling is completed to the 65m level a ramp will be driven to the 40m level where an additional sublevel will be esablished to extract the bottom portion of the crown pillar. Stope widths at this horizon will be kept to a maximum of 15m to ensure crown pillar stability. The drill pattern employed on this level will be similar to those employed at the 65m and 100m sub levels. A remaining resource of 91,755 tonnes @0.574% Ni has been planned to be left as the permanent crown pillar. Future pillar extraction might be achievable depending on the geotechnical information gathered during the production period.

The mining recoveries for longhole stoping are estimated at 90% for the stopes and the crown pillar based on these being primary sequenced stopes. The mining recovery is dropped to 75% for the rib pillar recovery within the mine, based on this being secondary stoping sequence.

The dilution for the longhole stopes has been set at 15%. The planned dilution for both types of pillar mining has been increased to 20% due to backfill and increased ground stress due to he primary mining sequence.

There is also Longwall Panel Stope Mining is planned for several small tonnage, higher grade independent blocks from the footwall ramp accessing down to the 155m level block, and , at various elevations off the main level sills. (pp86-87)

* Company has stated that full production may be started at higher level if company has not reached the lower level by the planned full production date.