Metallurgical Testwork
Metallurgical test work including; rougher flotation, locked cycle testing by closed circuit flotation and concentrate quality was completed on six samples of mineralization from the Paramount zone. The test work was completed by G&T Metallurgical Services Ltd. Six samples (totaling 810 kgs) were tested for metallurgical performance. These samples were prepared using 80% passing 150 micron grind size, tested individually and then composited for similar test work. Results of the test work on the two master composite samples (with average copper grades of 0.42% copper) yielded average recoveries of 89% copper, 64% molybdenum, 73% gold and 58% silver. Concentrate produced from this testwork averaged 31% copper, 1.30% molybdenum, 16 g/t gold and 131 g/t silver. The concentrate was low in other base metals and other common penalty elements. These results will be combined with the previous metallurgical test work from the Schaft Creek deposit to determine the estimated average metal recoveries to be used in the feasibility study that is expected to be completed in the first quarter of 2012.

When you want to sell concentrates you have to prove the grades. This is required for a number of other reasons but signals production is coming. The could sell futures on the stream at this point. I doubt they will hedge so this indicates that the final tests for the FS are being done. To calculate true values on the output you can't leave it to eq's.