'critical mass' silver deposit at kempfield , page-2

This is a heads up of what to expect.

Remember Price of Silver in 2001 was below $5 now its above $19, also back in 2001, at that time they had around 11M ounces of Silver.

Positive scoping study - Kempfield silver-barite property
GOLDEN CROSS RESOURCES (26 MARCH 2001)
POSITIVE SCOPING STUDY POINTS TO POTENTIAL START-UP AT KEMPFIELD SILVER-BARITE PROPERTY

GCR has received the results of a Scoping Study on its 100%-owned Kempfield silver-barite-base metals property. The study was undertaken by Resource Management Group, a Perth-based mining consultancy recently involved with the re-opening of the Radio Hill mine in Western Australia.

The study was based on a measured, indicated and inferred resource of 4 million tonnes grading 93 g/t silver, 25.3% barite and minor amounts of zinc, lead and gold. The results assume the sale initially of 40 thousand tonnes per year of barite concentrate, increasing to 80,000 tonnes per year in year five, for which a marketing exercise is continuing.

The Scoping Study produced the following results, assuming a discount rate of 7.5% and an exchange rate of 0.52 US$/A$:

Mine life 10 years
Throughput 400,000 tonnes per year
Capital expenditure $12 million
Cumulative after-tax cashflow $40 million
NPV after tax $21 million
Internal rate of return 43%
Payback period 2.6 years


The economics of the study have been assisted by the lower Australian dollar. The large, world-class barite resource at Kempfield provides an opportunity to generate significant cashflows if suitable markets can be developed.

A 19-hole programme of RC drilling is presently underway to confirm and increase the resources in the McCarron, Quarry and Mather zones. Results of this programme should be available in the June quarter.

A Pre-feasibility Study, incorporating the results of the current drilling programme and the barite marketing exercise, is scheduled to be completed in the September quarter. If the Pre-feasibility Study is positive it would be followed by a Feasibility Study aimed at developing the project with production to commence during 2002.