hellyer ann out, page-12

INL are yet to release the economics of the Hellyer residues Project. However, someindication of what they may expect them to be can be obtained from the recently released Development Application
(DA) and Development Proposal & Environmental
Management Plan (DP-EMP) for the Hellyer Residues
Project located o their website at:

http://www.intec.com.au/?/Projects/Hellyer_Residues_Project

Extracts:

Page 13 - produce a Zinc high-grade concentrate 65% Zn and
Page 13 - produce a Lead high-grade concentrate 82% Zn and


Page 15 - recover Zinc, Lead and Silver as well as other base metals
Page 15 - 11,000 tpa of high grade zinc sulphide
Page 15 - 13,000 tpa of high grade lead sulphide

Page 22 - 10 year life project
Page 22 - metal prices reducing to Zn US90c/lb and Pb US50c/lb from 2012

Page 45 - the plant could commence commissioning by mid to late 2008

Page 45 - price of zinc expected to reduce towards historical levels in 2009-2010
Page 45 - a minimum 20 year project life is eveluated for treating EAFD only.

Page 83 - Revenue A$43 pa, Costs A$16M pa

Page 86 - A$44m of Capital Expenditure in Australia

My interpretation is that they expect the project to cost at least A$44M and at metal prices of US0.90/lb for Zinc and US$0.50/lb for lead they expect (at this early stage) to make a profit of A$27M pa.

Regards

SP