long term target, page-17

based upon the results released to date in this infill drilling program, Im expecting a resource upgrade to around 280,000t @ 11%, based upon a slight widening and increase in depth in the really sweet high grade spot (50m @ 9%).

Following this onto a DCF model, with the below assumptions.
- ROM @ 70,000t/yr
- factoring in dilution on mining, 9% grade
- plant recovery of 80%
- copper price of $3.50 (keep you copper bulls happy)
- Cash cost of $1.70
- Capex of 11mil in 2012 @ 1mil in 2013.
- discount value of 12%
- Capital raising of $12 mil @ 20c for 60mil shares. Assuming they can get the majority of the options exercised early to give them $3mil US(total scrip on issue 810.9 mil shares)
- production ramp up commencing in 2012
- payable metal 96.5%.

Gives us a value per share on the high grade stuff of 5.8c