Ann: Strategy Revised to Target Larger Scale Production, page-8

Hi Guys,

Does anyone know what the likely cost would be for a 250k tpa production facilities will be ?

Warwick Grigor (mining analyst) advised the upgrade from 60k - 115k tpa would only be around $8mil.

"The real sweetener for CZL is the availability of a small processing plant already on site, that was last employed in 2011. While only having a capacity of 60,000 tpa, CZL believes it can be refurbished and expanded to a capacity of 115,000 tpa at a capital cost of US$8m and the use of a contract crusher. The underground infrastructure has a capacity of up to 1,000 tpd with there being three shafts and two 4.5m x 5.5m declines. Mining capacity is much greater than the planned production rate of 300 tpd. At this rate CZL could be producing 14,000 tpa of metal in concentrates, generating US$25m p.a. in revenues. Mining, processing and overhead costs are estimated at US$70, $25 and $15 pt respectively. Government royalties will take 7.5% and corporate income tax 30%. Net cash flows could be in the order of US$7-10m p.a., which suggests an attractive payback period of 12-15 months."

link to the full article.
http://www.fareastcapital.com.au/imagesDB/newsletter/WeeklyComm22April20171.pdf