Ann: Positive PFS for Admiral Bay Lead-Zinc-Silve, page-13

re: Ann: Positive PFS for Admiral Bay Lead-Zi... I read this announcement in the context of confirmation that the resource is there, it is likely to be economic even under a small scale operation using a fraction of the known resource, so lets get going on the BFS.

After all, up until now there has been skepticism as to whether the resource was really there.

The NPV estimate is of little consequence at the moment until the shaft is sunk, they know more about the resource and a potential mining operation is sized up given the economic climate at this time, working through development issues with JV Partner(s) and bankers.

Given that they have based the PFS on 10% of the resource, it will likely always be more economic to upscale the operation but if KZL had based its PFS on a huge operation with a correspondingly larger capital cost even though the resource could support this, then it would lose significant credibility at this stage.

The answer as to how valuable Admiral Bay will be to KZL is someway off being roughly defined IMO and will always be a moving target.