We will have a grade average of .47%. The first 2 years of the starter will be upwards of .68%. We have to wait for calculations to determine the final average for the whole pit. They will take from 2 high grade spots if the number require it. They are determined to have the 3 year payback. The 8% discount will have much less effect on the price they pay. What they are looking for is 15 years of above .32% after the fast payback period.

What is not know in detail is how big the silver hit is. My calculations say the high density hit will be found within the 600 meter area spread over several bands (mini swarms) and could total 200,000 ounces. Adding that to a starter feed would definately get their money back faster. This type of brechia hit does not occur as a singularity. That was a core with 4 pounds of silver in it! Put another way, that was a cylinder only a few inches in diameter with 4 pounds from just a few meters of rod. And, we drilled through the brechia at an angle. Call it $500 a meter bonus.

I expect gold to be found in similar fashion. Less ounces in total but a serious plus in the long term. Teck knows this stuff is in the mix hence the longer term outlook.