the indicated high grade is now approx 20million ounces. Plus 1.2% lead.
They need a five year mine life at 3million ounces pa and it looks like they are there, good enough to give green light.
At current lead/silver prices and assuming 50% lead recovery we are looking at net cash costs under $8 for the high grade, thats my rough estimate
it gives a margin of $10 an ounce, $30million cash flow pa for 5 years at current silver price
CAPEX payback likely to be under 12 months
They can risk a "silver loan" for half the CAPEX I would imagine.
Maybe another 50million shares to be issued, depends on many factors so hard to say.silver price is the biggest factor. Leverage to silver from here is very high
The fact they refer to releasing a mining reserve figure is of course significant
CCU Price at posting:
16.5¢ Sentiment: LT Buy Disclosure: Held
