The assumption that all tailings will be at 1 oz./t could easily be too large a figure since a portion of the rock in the tailings was from tunnel areas without economical ore (even today).

The upgrade of milling equipment did make the tonnage/shift jump from 100t to 400t/shift. (see PR of 2-06-09). The milling circuit equipment we own will crush and process 400t ROM ore, either as tailings and/or new ore from the mines, in a 10 hr. shift. Once the milling equipment is calibrated and running at 400t/shift, could a second shift be arranged and started? Yes (see PR of 1-5-09). Pierre has to have (by jan., 09) already seen any number of high Au assays that along with talks with the geologist and mine engineer, convinced him that there was enough high value ore easily available for mining and milling, to warrant going to a double shift plan early on. I think Pierre will be using mined ore from high Au-Ag areas to add to the ROM on an as-can basis. The high Au-Ag ore from WEM mines will probably be sporadic in the mill feed as the geologist and mine engineer sample areas that are already open for extraction.

Rather than assuming the 1 oz./t for all tailings, I suggest using half the tailings total tonnage as being low value ore (relatively) at 5.1 g./t. Start with .5 oz. Au/t x 800 t/d = 400 oz. Au/d. @ $1050/oz = $420,000./d - COP of $75./t (?) = -$60,000= $360,000./d - $3,000./d as rent to GC = $357,000/d - 15% to GC = $303,000./d as basic profit before taxes. 250 days = $75. mil. profit before taxes to SFMI/y.

Depending on how many tons of high grade Au-Ag are mined and entered into the mill along with the tailings, the figures get larger for sure in 2010 as the mining starts.