jebigabree

Afternoon Jeb,
The follow is a summary of the presentation given by Terry Allen on HER at the three day "Mining 2002 Resources Convention" in Brisbane on October 30th and 31st, and November 1st.

HERALD RESOURCE LTD:
BASE METALS PROVINCE IN AN UNPOPULAR NEIGHBOURHOOD Speaker: Terry Allen


· Dairi zinc project in Indonesia is a world class discovery – resource statement is 12 months old – a new calculation would look much more impressive
· Old Indicated resource is 7.5 mt at 16.7% Zn, 10.3% Pb, Inferred is 2.5 mt at 11.3% Zn and 6.8% Pb
· Most zinc mines in the world have grades of 3-10% Zn – only about five mines have grades better than 15%, and Dairi will join the exclusive club
· ASSIRT has done a study based on a resource of 10 mt at 15% Zn, 9% Pb – assumed 1 mtpa operation producing 120,000 tpa Zn, 72,000 tpa Pb, 334,000 oz pa Ag – using metal prices of $820 pt Zn and $450 pt Pb – the mine would produce a gross metal value of US$130m p.a.
· ASSIRT valued the company at $1.61 - $1.72 a share i.e. four times the current share price.
· Prefeasibility study has commenced and a final feasibility study will be done next year
· “Equivalent of finding Mt Isa or Broken Hill”
· Herald also a gold producer again at Coolgardie, with MPI – four year mine life at this stage
Comment: Had Herald made the Dairi discovery in the mid 1990s the shares would have been well through the $2m mark and it would have developed a mine. However, there is no escaping the political reality of today. No-matter how good the project is the investors will heavily discount the value due to its location in Indonesia.

Cheers Jeb,
Carl.

BTW, Other Company Presentations Covered, if you are interested, are on:
Acclaim Exploration
Aztec Resources
Arrow Energy
Avoca Resources
Charters Towers
Consolidated Minerals
Croesus Mining
Emperor Mines
Fox Resources
Gold Aura
Golden Kingdom
Gunson Resources
Gympie Gold
Ivanhoe
Lionore Mining International
Macmin Silver
Mincor Resources
Minotaur Resources
Oxiana Resources
Queensland Gas Company
Platinum Australia
Range River Gold
Sydney Gas Company
West Musgrave Mining