lack of interest, page-12

JamesMc,
great questions indeed. To answer your queries, there are many factors to consider.

Higher grades are always a good thing but we have to also look at the strip ratio, slope pit angles, metallurgy, cutoff grade utilised etc. These factors [including the size of the deposits] all factor in the Life of Mine [LOM]. For example, in the gold sector, porphyry deposits generally have a much better return on capital then vein deposits. Alternatively, contrary to popular opinion, copper/gold deposits are much more lucrative then most precious metal operations.

In relation to OVR, the key question is if the discoveries and corresponding deposits are "economically feasible". The answer to this critical question has actually already been shown. The management do not just move to another country to expedite the liason with the government and first nation groups if the calculations deem the project to be not feasible. They have also requested for warehouse space at the Skagway ports!

In relation to your last question, they are in the midst of upgrading their resource base at the Darcy and probably getting a preliminary resource figure for the Darin. This has been implied with the last few announcements. Do have a read of their recently published quarterly...it speaks volumes and gives a good summary of their intentions and progress.

Personally, i would think that a resource figure of 20MT at 5.5% Zn is possible...the numbers are starting to look lucrative with zinc prices at 1.00/lb. There are expansionary capabilities with the area too. I would be paying close attention to the cash costs to extraction [C1 costs], IRR, NPV and life of mine. These are the numbers that the financiers look at to make their decisions...FYI, Macquarie has already agreed to debt finance 50% of the project and is currently the biggest substantial shareholder.