admiral bay and the strategic alliance, page-3

HK100,

When Debt free KZl would be able to start to fund the shaft sinking from cash flow @ current metals prices.

If you take into account for the lost production from the big wet we had Zinc cash cost's of around 40c and copper was running @ $1.20 this will of course be higher this quarter due to the shutdown but we do now have a margin of $1.10 lb copper and 30c lb Zinc. Ad Bay is an elephant size deposit which will be low cost and high quality so i think they will have no problems finding someone to help them exploit it.

When i last heard at an AGM they expected the shaft to cost between $100m and $150m, this was at the height of the boom when fuel and associated cost's were astronomical, also labour was very very tight, i would assume that this would mean that the cost could now be even less than the projected cost.