miningnews article, page-8

re: miningnews the plot thickens well said seals.
i think mining news have miss printed the article where they have said $15.7 mill where they mean $515.7 mill.

still i think this has been an opportunistic announcement at the right time for the market.
It sounds as though the company was just about out of money and needed a boost in SP to raise some more capital.


The desktop study showed that at a production rate of 39,000t of copper and 127,000 oz gold/year
for 10 years, capital cost of US$235,000,000, an assumed copper price of $US2.80/lb and a gold
price of US$640/oz:
�� IRR is 55%.
�� Cumulative cash flow to shareholders is US$1,300,000,000.
�� NPV is US$515,700,000.
Note that the copper price on 7/7/2006 is $US3.60/lb (www.kitco.com) or ~30% higher than the
$US2.80 assumed above.