igv of $2.008b smashed with zn & pb price rise

In a previous company presentation dated back on the 21st May 2009 the Lennard Shelf Zinc Project had an IGV (In Ground Value) of $2.008B.

The recent substantial increases in Zinc & Lead prices (see below) has significantly impacted on the NPV of the project!

I have reworked the figures (from a previous announcement) factoring in current resource prices and MII developments...

Key points:

◆ The $10.5M placement is at an issue price of A$0.08 per share to a state owned Chinese Resource Company

◆ Since the above valuation was completed the price of zinc has increased 46% to US$0.92/lb from US$0.63/lb at the time the MOU for the Project was signed and lead has increased 54% to US$1.00/lb from US$0.65/lb

◆ A Scoping Study has indicated that the break even zinc price required for a combined Kapok/Kapok-West mining operation is potentially $0.68/lb

◆ The significance increases in zinc and lead prices are extremely positive for the economics of the Project

◆ The Lennard Shelf Zinc Project currently has defined Inferred, Indicated and Measured resources of 8.2 million tonnes (Mt) @ 7.4% Zn and 4.5% Pb (comprising 24,000t of Measured resource, 3,039,000t of Indicated resource and 5,137,000t of Inferred resource)

◆ Meridian will soon commence a +20,000m diamond drill program in order to infill drill and look to extend the Kapok West resource

◆ Exploration drilling is planned for a number of quality targets with the potential to deliver new resource discoveries

JB