Ann: Green Light for Silver Superpit at Nimbus , page-7

re: Ann: Green Light for Silver Superpit at N... I spoke to the MD at the the Brisbane Mining 2012 resources convention in Nov 2012. He was adament that cash cost can be kept below $10/oz if target production was achieved. He made reference to the pit optimisation and process flow model and that the operation will only require 7 operators. As per roadshow presentation he indicated payback 12 months at the current silver price. Based on the information I worked out that FCF is at $40m and hence capital cost ~ $40m.

I asked him what would be the payback if the silver price increased to $50/oz. He said 4.5 months. I can't confirm about the arsenic issue, I assume the Nimbus mine closed becuase of the low silver price i.e. fell below cost of production. Maybe worth shooting an email to MD I am sure he be happy to address your concerns.

The sp is down because of the funding issue overhang and the sp chart don't look good. Perhaps the technical traders can comment?