This is a plug from Sonray to their clientsGood Morning - please...

This is a plug from Sonray to their clients



Good Morning - please find the following note on Intec, who are now a producer of Zinc with strong cash flow to follow.

Regards - Peter Taylor

Date 1/12/2006 - Commercial Zinc Production Commences at Hellyer

Commercial production of bulk zinc concentrate has formally commenced at the Hellyer Zinc Concentrate Project - a 50:50 joint venture between Intec Ltd and Polymetals (Hellyer) Pty Ltd.

This commencement of production follows a six month preparatory period, during which the Intec Hellyer Mill and related infrastructure have been refurbished; new equipment (including the tailings dam dredge) have been ordered and installed; all unit operations have been commissioned; and finally production has been ramped up towards the ‘base case’ commercial rate.

Operating on a 24-hour, 7-day basis, the dredge, grinding mill and flotation circuits are now operating at 80% of the capacity planned in the 65,000 tonnes per annum ‘base-case’ projections, and this output is daily continuing to improve.

The dredge is collecting 130 tonnes per hour of tailings, now grading 2.2% average zinc and increasing with depth. This tailings slurry is then delivered to shore tanks for temporary storage, prior to being pumped over 2.5km, with 30m vertical lift, to the Intec Hellyer Mill. Each of the dredge, shore tanks and pumps are operating within specifications.

At the Intec Hellyer Mill, the ball and tower grinding mills are operating consistently, regrinding the tailings slurry to 20 microns before passing it to the flotation circuits. Mill grinding availability has been 100%, with no down-time. Flotation efficiency is increasing through 65% of the targeted zinc recovery from the reground tailings to the bulk zinc concentrate.

The concentrate storage shed at Hellyer now has a stockpile of approximately 800 tonnes of ‘inspec’ product, grading 41% zinc, 10% lead and 200g/t silver, with all other elements within the specifications of the offtake sales contracts. Daily trucking of this product to the Project’s 8,000 tonne export storage bay at Burnie port will commence soon.

Monthly shipments of 5,000 (and sometimes 10,000) tonne lots are expected to commence in the first half of January, based on recently-agreed attractive shipping rates and terms

Current Market Cap - $142,000,000
No. Shares - 556,787,206
Zinc Price - US$4,527 per tonne
Forecast Prodn - 65,000 tonnes per annum