Thanks Traps, ive always found your posts insightful and informative. To answer your question, I am not buddies with the WPG group. Im just a lonely investor from Toronto trying to make it in this world. Im hoping that SGR is going to help me along this journey. I`ve been in and out of SGR since 07, but now Im just all in.

Correct me if Im wrong, but what you are saying Traps is that the way sgr lowers its production costs are by running higher grade rock through the mill. So basically the cost to run x amount of tonnage ramains at a constant but if the grade is increased this will increase the ounces produced which in turn decreases the cost to produce the ounces.

just to make an example lets assume it costs 500,000 to mine and mill 1800 tons

1800 tons at 7 gpt = 450 ounces

1800 tons at 10gpt = 642 ounces

500,000 divided by 450 = 1111.11 cost per ounce

500,000 divided by 642 = 778.81 cost per ounce

(I know these arent the real numbers, but is that the right idea on how management is going to reduce cost)

Thanks