gold (last 3 year average) for their just published preliminary economic assessment.  It will be interesting to see what figure OLE uses in their feasibility study.  I believe using that 3 year average would yield a very nice NPV.  SPA's initial capital cost for the mill and every other miscellaneous expense to get gold into production was $755 million or 50% more than their 2010 figure.

This just highlights the benefit of a TGZ/OLE merger or buyout.  It is much more expensive now to build a mill no matter where you are in the world than it was 2 years ago.  What a TREMENDOUS benefit for TGZ to have so much and such high grade gold next door. Equally, what a TREMEDOUS benefit for OLE to have a ready to roll, more than capable mill next door in TGZ.

I would love to see an economic projection study (lets say for the next 3 years) that incorporates a TGZ/OLE combination without the the expense for the buliding of an already existing mill.  I bet those economic numbers would be astonomical assuming they keep costs at around $600 to $650 per ounce (TGZ had a $594 per ounce cost in their last report) and gold at or above $1500 to $1600 per ounce. 

Lets see if they can put any differences they have aside and think about the value they can create for themselves and for us shareholders with a friendly deal.  I am actually considering holding on to my shares if they do this.  That is how much faith I have in the potential of this combination.  Trust me, if I can see this you can be sure that any interested parties can as well.

I have recently heard not surprising rumours that molasses moves faster than anything to do with governmental issues in west africa.  In other words Chet is not necessarily what is holding things up here.