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Message: Q3 OZ Produced

Q3 OZ Produced

posted on Sep 01, 2008 01:17PM

Ok so im just taking a step back here an trying to get a realistic expectation. looking at there MD&A it says for the past 6 quarters they produced from 1427 to 3420 oz of gold.

They have also milled as low as 15 000 tonnes but typically around 30 000 tonnes. I have a hard time imagining they will mill much more than that. So lets go on the high side. Lets say they send 40 000 tonnes through the mill.

There head grade has never even hit 0.1 oz/ tonne at best 0.096. Now sure they may get some high grad in but im still thinking consider that it dropped to 0.76 last quarter that the best we can expect is 0.2 and that is being very optimistic.



So lets say they hit 40 000 tonnes at 0.2 oz/tonne that gives them 8000 oz for the quarter. Say the price per oz realized is 900 (once again higher then average) then they would make 7.2 million oz. That wouldnd even come close to covering the loss for the last quarter so how could they be profitable?



Now im not sure how much they need to be profitable but i just cant see how they can become anywhere near anytime soon.

Im getting more skeptical about them turning any profits till Q3 2009 if we are lucky? I hope i have some bad inforamtion or am missing something. Can anyone shed some light on my thoughts? Preferably possitve but ill take anything



Jeff

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