Modest ESTIMATES versus Reality
posted on
Oct 21, 2010 03:48AM
General Note Regarding Estimates
The following information should be considered in connection with our estimates below, which we are disclosing in accordance with applicable SEC standards and regulations:
� Assumed Prices of US $1,100/oz for gold and US $4.00/lb for antimony.
� Process Recovery Rates of 85% for antimony and 90% for gold (as provided by Hazen Research from work done on an underground bulk sample from the D tunnel of the Workman's Bench A vein and using gravity and water recovery systems only).
� Estimated Operating Costs of US $375/ton, based on operation of a 92 ton per day underground mine.
A cutoff grade of 4% antimony was used in our analysis. A 4% cutoff grade should be regarded as 4% antimony equivalent. No cutoff grade was used for gold, as antimony was the primary commodity being examined, and none of the resource polygons contained less than 0.05 oz/ton gold.
Total Probable Lode Mineral Reserves, Nolan Creek Area effective January, 1 2009
Cautionary Note to Investors concerning estimates of Probable Reserve
Readers are cautioned that the following estimates are under the category of a probable reserve and they are not a proven reserve, which requires a higher degree of feasibility study. These values are based off of a preliminary feasibility study, which is not the same as a legal feasibility study.
Guess what folks: Gold at $1340/oz. (Not $1100)
Antimony greater than $5.00.lb. (Not $4.00)
Lot of antimony @ 28% not 4 %