RE: RE: A little help It is very difficult to determine the burn rate, based on past numbers. However, based on the latest numbers below, the feasibility number could be far less with the benefit of gold credits.
The overhead business expenses were circa $4 in the 12 months to June 2012, when non cash depreciation & amortisation was stripped out.
The key expenses for the year, related to exploration and evaluation, which amounted to $22m [below]. However, much of this is non recurring after production. However, if this continued in the 6 months to the end of this year, that would amount to $11m less gold sale credits. Assuming December gold ounces were as November, then the total recovered since July would be circa 8,000 ounces.
Therefore – ball park cash flow in 6 months to December would be as follows:-
| Cash Flow | Income / (outgoings) |
| $10.9m | Income - 8,000 ounces x 80% x $1700 |
| | Outgoings |
| ($11.0m) | Exploration and evaluation expenses $22m [12m to June 2012] x 50% |
| ($2.0m) | Administrative $4m [12m to June 2012] x 50% |
| ($2.1) | NET OUTFLOW FINANCED BY DEBT |
Source – MTO Accounts
For the year ended June 30, 2012, the exploration and evaluation expenditures were of $22,172,827 compared to an amount of $19,837,907 for the same period last year. The increase of $2,334,920 is mainly due to the increase in the labour, drilling and underground maintenance and installation expenses and the decrease in the consulting and ore processing expenses such as detailed in the analysis of the exploration and development expenses presented at page 4.
See below for the detailed analysis of exploration and evaluation expenses by property during the year ended June 30, 2012.
| Expenses | Bachelor
Lake | Hewfran | MJL- Hansen | Barry | Total |
| | $ | $ | $ | $ | $ |
| Drilling | 185,267 | 1,192,038 | - | - | 1,377,305 |
| Labour | 10,140,876 | 67,820 | 22,607 | 50,778 | 10,282,091 |
| Lodging | 712 | 534 | 178 | 2,747 | 4,171 |
| Core library | - | 2,604 | - | - | 2 604 |
| Equipment rental | - | - | - | 222 | 222 |
| Stripping and line cutting | - | 26,340 | - | - | 26,340 |
| Assays | 2,192 | 136,966 | - | - | 139,157 |
| Professional fees | - | - | - | 2,980 | 2,980 |
| Consulting | 800,301 | 2,518 | - | 139,899 | 942,718 |
| Maintenance | 8,154 | 5,950 | 1,983 | 21,460 | 37,547 |
| Material | 2,831 | 729 | - | 57,645 | 61,205 |
| Fuel and Energy | - | - | - | 93,203 | 93,203 |
| Maps and reports | 16,668 | 7,497 | - | 10,678 | 34,842 |
| Office expenses | 349 | 339 | 87 | 729 | 1,504 |
| Telecommunications | 475 | 356 | 119 | 31,819 | 32,769 |
| Taxes and permits | 1,284 | - | 1,153 | 4,172 | 6,609 |
| Road maintenance | - | - | - | 122,809 | 122,809 |
| Depreciation | 499,722 | - | - | 6,410 | 506,133 |
| Accretion expense | 80,288 | - | - | 62,951 | 143,239 |
| Royalties | 20,082 | - | - | - | 20,082 |
| Underground maintenance and installation | 8,050,407 | - | - | - | 8,050,407 |
| Geophysics | 18,736 | 30,669 | 10,121 | - | 59,527 |
| Interest on long-term debt | 134,892 | - | - | - | 134,892 |
| Financing fees | 59,997 | - | - | - | 59,997 |
| Stock-based payments | 30,474 | - | - | - | 30,474 |
| TOTAL | 20,053,707 | 1,474,360 | 36,248 | 608,512 | 22,172,827 |