Ann: TOMS GULLY FEASIBILITY SUPPORTS LOW COST GOL, page-3

re: Ann: TOMS GULLY FEASIBILITY SUPPORTS LOW ... SLR was only able to produce 3.6g/t mined ore in March from Daisy, well below historical mines grades above 6.5g/t. Lower grade=less ounces=higher costs. Also PGO has an advantage that it is only heading to production now, meaning they can lock in contractors (mining, drilling etc) and staff at much lower rates than SLR who had to pay a premium during the boom, lowering PGO's costs. Look at MYG recently claiming 30% decrease in costs for their deflector start up. SLR's forced 7.5% pay cut supports the view they were paying a premium for manpower. SLR with multiple operating mines in multiple areas needs a larger organisational structure than PGO being a.single mine.