broker update

Intersuisse:

Kalgoorlie-Boulder Resources Ltd KAL Monday, 21 April 2007
Positive results from Norseman scoping study
Recommendation Speculative Buy
Overview
A scoping study on KAL’s wholly owned Norseman project has delivered positive
results. Based on a throughput of 1.8 million tonnes per year and a gold price of
A$990 per ounce the project has an NPV (10%) of A$80 million and an internal rate
of return of 40%. Annual gold production from open cut operations and CIL
processing is forecast at 100,000 ounces over an initial seven year mine life. The
project is located 30 km south of Norseman, Western Australia.
The study was based on resources of 25.4 million tonnes averaging 1.7 g/t gold and
containing 1.37 million ounces of gold within the Selene and Mt Henry deposits. The
larger portion of this is contained within the Selene deposit which is hosted by
banded iron formation. This mineralisation dips gently at 20 degrees towards the
west. With down hole intersections in excess of 40 metres in length, the low strip ratio
and bulk nature of the ore body lends itself to low cost mining methods. Including
resources at North Scotia and Abbottshall the global Norseman project resource now
totals 26.3 million tonnes averaging 1.7 g/t gold and containing 1.44 million ounces of
gold.
Capital costs for the project are estimated at A$75 million and include A$56.4 million
for the processing plant. Operating costs are projected at A$660 per ounce. The
project is forecast to generate net cash flow of A$143 million over seven years after
allowance for the capital cost. A capital payback period of 32 months is expected
before taxation considerations.
During the scoping study, KAL considered conveying and trucking options to toll treat
ore at Norseman and Higginsville. Although these options are not optimal when
compared to on-site processing, KAL believes that they provide low risk options to
realise value for the project. KAL has decided to proceed immediately with a
prefeasibility study which it aims to complete before the end of 2008. This study will
include infill drilling, resource upgrades, metallurgical testwork, geotechnical
considerations and updated capital and operating cost estimates.
The company has recently completed a VTEM survey at the project. It is the first time
that such technology has used for gold exploration in the area and has delineated 16
targets which the company considers as high priority for follow up. KAL is planning a
program of follow up ground based EM in order to better define drill targets.
The company is also advancing the Clinker Hill nickel sulphide project in the
Kambalda nickel province. The project is in a favourable geological setting on the
western margin of the Bulong ultramafic complex. The historic gold mining centre of
Bulong is to the north of the project, the Blair nickel mine is located 10 km to the west
and the Carnilya Hill nickel mine is located 20 km to the south.
Previous mapping has shown that there is a 7 km strike length of relatively under
explored basal contact zone between the west facing Bulong ultramafic complex and
a fractionated ultramafic/gabbro sill. The company is currently conducting a SQUID
geophysical survey at the project.
Impact
KAL has received encouragement not only from its scoping study but also from an
initial VTEM survey that has outlined 16 new anomalies for follow up. Success at any
of these could add considerable momentum to the Norseman project.

www.intersuisse.com.au/files/Morning%20Notes.pdf