Hi Guys,The hedging will be done at the spot rate not the gold...

Hi Guys,

The hedging will be done at the spot rate not the gold forward rates. Mac Bank takes the difference as part of the deal.

However, even if we get $1,275 per oz USD that is massively greater than the first NPV study indicated (even in AUD it is currently $161 per oz better which really adds up given that it all goes to the bottom line.)

For conservative investors this locks in a very good profit for EVG for the LL project and de-risks the investment greatly (from a pricing perspective cy7!).

For bullish investors it still leaves 70% of project production open to gold price movements which, according to most commentators now should continue to move higher :)

Also note that silver is a reasonable % of the LL project. There will be a total of 4,000,000 oz of silver extracted. This is the equivalent of 66,666 additional gold oz (ie divide by 60).

The original NPV used silver price of USD $11.75. POS is now USD $20.80 or 77% higher !!!

In terms of what the market cap may be by the end of 2011 I have some firm ideas on this.

I'll refrain from saying anything more at this stage until the next EVG presentation is out which should only be a few weeks away at the latest. I'll then write some thoughts. We should all be impressed though I think :)

I will say, however, that I am very confident that this will be a very fruitful (eventual!) investment for all investors that have held through this period and new investors coming on board at these prices.

Cheers
John