I agree Sack,theres much to be asked as to why they continue to...

I agree Sack,theres much to be asked as to why they continue to go at this project the way they are.

I think simple project momentum has a lot to do with it.It certainly makes sense to get to the ore body and if they have to hold off on concentrate production until zinc market conditions firm up again then so be it.I think they probably have their eye firmly on that possible deficit moving into next decade for which this project would be perfectly aligned.

There are some pretty major negatives atm with oil rising so strongly but then this is effecting many marginal projects in the same way so there should be some tendancy for metals prices to bounce on the shortening of supply due to project closures.Interestingly logistics carriers tend to absorb quite a lot of the increased costs due to fuel.So maybe this might be the case with the transporting costs for the concentrate.It certainly wont be the case with the fuel used on site though.

Anyway theres still much to be said for the tenacity of this current management and this is ultimately whats needed in this kind of relatively hard environment in establishing a greenfields zinc mine.

d.