The IssueThe issue that troubles me are in the following two quotes from the MD&A:
"In order to reach the targeted production rate of 150,000 ounces of gold under steady state operations, the
Company intends to continue milling available stock piles while pursuing opportunities to purchase new
stockpiles or mill through a tolling arrangement."
"During 2010 the Company has engaged SMD to recommence mining operations at the Smith mine, resulting in
the delivery of 66,782 tons containing 15,687 ounces from late January to June 30, 2010."
Basically, they are able to mine around 32,000 ounces from existing mine - makes 150,000 ounces per year difficult.
If you read between the lines, if they were to purchase 110,000 ounces per year from other companies, they can get to 150,000 ounces per year.
pouring gold and making money?