Old API Wind-down Ltd - Ordinary Shares ARLZQ

RE: RE: Terrible Joanna Feasibility Study

[jsnfernley]

I listened to the webcast the other day, it's not presently on their web site although the PDF presentation is.  Two key words came up--non-refractory and de-risk.  The Hosco West deposit is refractory, it accounts for about 8m mt of ore--that's what the autoclave and the special tailings impoundment costs are for.  The Heva deposit is higher grade (1.8-1.9g/t) and is non-refractory.  It is not presently included in the Reserves or FS.

By deferring the processing of the refractory ore and associated capital costs, and exploring the Heva deposit which presently has about a 50% higher grade of non-refractory ore, they may be able to lower the execution risk of the project by lowering the initial capital cost and operating cost per ounce by processing only non-refractory ore  from Hosco and Heva (blend) and evaluate the autoclave operation at a later date.  There was some talk about higher grades in the Hosco West area at depth that could use some exploration to further define, which might make the non-refractory/autoclave operation more attactive in the future.

They also discussed the other projects in the Q&A session, relative ranking and whether or not anything else jumps ahead of Joanna in the queue.  The answer was that nothing else changes at this point, the other projects are moving ahead on their own merit, including trying to fill the Casa Berardi mill capacity.  Another project may move ahead of Joanna (Marban JV with Niogold seemed to the most advanced) but it was too early to make any statements.  They stated they were very conservative with their capital and wanted to be sure whatever move they made was the correct one (de-risk).