Ann: Iranian Project Update , page-10

Acecant, Mehdiabad was the largest undeveloped zinc mine and I think it is still right up there in sheer size on discoveries since. It is also one of only a couple of major resources that are ready to finance and commence in the next few years.

Financial figures need to be updated as much has changed since the BFS was completed years ago but a 25% share will be many times the value of current market cap. The following was presented at the 2007 AGM for the Mehdiabad Zinc project:
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Quote:
? Assumptions
? US$1,750/tonne zinc price, US$950/tonne lead price and US$10/ounce silver price
? Mine life of 40 years
? Capital cost of US$1,611 million (development, expansion and sustaining)
? Cash operating cost per tonne of zinc of US$426/tonne
? 8% discount rate
? Results
? NPV of US$1,179 million (pre-tax and finance)
? Although high capital cost of development, cash operating costs are at the low end of the cost curve
End quote.
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Zinc is currently over US$2500 pt. Since then further studies have suggested cheaper ways of doing the mine so returns and NPV may well be higher however 25% of the NPV then would be roughly US$300 million against UCL's current cap of about AUD$36 million ie about 9 times.

In addition to the zinc project the overburden ie waste rock above it actually contains a solid copper resource of 72 mt of Cu at an average of 0.54% for contained copper of 392,864 t - that's US$3.5 billion in ground value at US$9k pt. Attributing 5% value to that would equate to US $175 million for the copper 'waste' alone. 25% of that would be about US$44 million against UCL's current cap of about AUD$36 million so the 'waste' is worth more than UCL's current market cap.

It is a major thing if this project is rescued and continued.