re: Ann: Option extends Pilgangoora Lithium t... Great in depth...

re: Ann: Option extends Pilgangoora Lithium t... Great in depth read for anyone interested in Hard Rock Lithium production in Australia - http://www.talisonlithium.com/media/9876/bda%20ni%2043-101%20greenbushes%20report%2026%20july%202010%20rev%2018%20august%20sedar%20submission.pdf

Quote from the Behre Dolbear Australia Pty Limited report "Talison Lithium Limited - Greenbushes Lithium Operations July 2010" - "BDA considers that Talison's financial model for the Greenbushes lithium operation including corporate costs provides a reasonable projection of future performance. Over the life of mine ("LOM") of 12 years, Talison projects that 9.3Mt of ore will be processed to produce 4.6Mt of lithium products; the LOM capital costs are projected to total Australian dollars ("A$") 51M, of which progressive plant expansions and sustaining capital comprise 45% and 41% respectively. Projected operating costs over the LOM are generally consistent with recent actual operating costs. Projections for revenue are based on the production plan summarised above and on product prices which reflect Talison�'s supply and demand scenarios and a current forward exchange rate curve. Talison has forecast that cash flow over the LOM will total A$493M and that the net present value ("NPV") of the Greenbushes lithium operation at a real discount rate of 8% is A$308M. The operation is most sensitive to variations in product prices."