a reminder of our upside

This is taken from the last Activity Report. It makes a mouth watering read. I love the surplus cash flow figures.

Development Plans
Wolfram Camp
QOL is progressing towards a development decision on the Wolfram Camp project based on a 150,000 tonnes per annum operation. At this stage, capital costs for the treatment plant and associated infrastructure, excluding pre-production expenditure, are estimated to be approximately A$19 million. Based on estimated operating costs of A$55/tonne, 15% mining dilution, and 80% process recovery, the project will produce 41,800 metric tonne units (mtus) of wolframite and 321,000 lbs of molybdenite in concentrates per annum. Based on recent commodity prices of US$200/mtu WO3 and US$2/lb Mo, and an exchange rate of 0.75 to the US$, annual production value is projected to be A$21.4 million. Annual operating costs are projected to be A$8.3 million, providing a projected surplus cash flow of A$13.1 million.

The Company expects to make a development decision shortly. Provided the necessary equipment for the process plant is available, QOL intends to see first production of tungsten and molybdenum concentrates in the third quarter 2007.

Mount Cannindah
Indicative figures for the Mount Cannindah Mine project have been based on a 500,000 tonnes per annum open cut operation. Capital costs have been estimated at A$43 million and operating costs are estimated to be in the order of A$36/tonne. The Company is aware of cost escalation being experienced with capital projects in the resources industry. As this project approaches a development decision, opportunities to reduce costs by the use of second hand equipment will be investigated.
Assuming 10% mining dilution, and process recovery of 93% for copper and 90% for gold, the operation is planned to produce 4,100 tonnes of copper and 5,100 ounces of gold per annum. At US$3/lb for copper and US$600/oz for gold and an exchange rate of 0.75 to the US$, annual production value is projected to be A$42 million. Annual operating costs are projected to be A$18 million, providing a projected surplus cash flow of A$24 million.

Assuming exploration results and metallurgical testwork are in line with earlier results, the Company expects to be in the position to make a development decision in the fourth quarter of 2007.