oxr acquires gold grove, page-4

SCD I ran some numbers over the mine and I get a DCF calc of $333million US dollars. I used 10% discount rate, the prices from the presentation and applied a life of mine cost of 30cUS per lb.

I assumed that all other commodities are used as credits to get the cost of Zinc down to 30c per lb. So in other words i calculated the dcf assuming 125k tonnes of zinc at a cash cost of 30c per lb.

As you can see they managed to get the project very cheaply. I have them producing $100million AUD in operating cash flow in 2006 alone just form this project. Pay back will be very quick I think.

Unless there are some hidden gotchas in the mine then OXR has done an amazing deal.