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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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From: loantech	7/26/2006 4:23:59 PM
	of 78421

This looks good to me: <An internally generated scoping study was completed concurrent with the revised resource estimates on the oxide resources only. The results of this study estimate expansion capital expenditures at $71,700,000. In addition, we estimate life of mine sustaining capital expenditures at $19,500,000. Life of mine average cost of goods sold per ounce is estimated at $325. The estimated average annual production is 170,000 ounces for ten years. Production is expected to commence in 2008. Our preliminary after tax internal rate of return at an assumed gold price of $500 per ounce is 25% and at an assumed gold price of $600 per ounce is 52%.> 110 million fully diluted. Will need 90 million of debt to build and sustain the mine. But 52% IRR at 600. 25% at 500. Hedge at 777 = 100% IRR? That would be some fat profits . Set up to make money at 325 gold. 30,000 meters of drilling coming they will bring inferred into resources and do exploration drilling. Some VERY high grade has already been found below Big Chief: westerngoldfields.com

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