new royalty-bowdens

As per announcement from Kingsgate (see attached) and article on page 21 of today's Fin Review:

http://imagesignal.comsec.com.au/asxdata/20110801/pdf/01203166.pdf

RCO hold a 1-2% NSR Royalty over this project which by my calcs and understanding of NSR Royalties could equate to $1-$2m a year extra income starting in 2014..

5mozs of silver per year at a current margin of roughly $20oz (spot price $35 - anticipated production cost $15)= a net cashflow of $100m per year of which RCO's royalty entitles them to 1-2% so $1-$2m per year. If silver price increases substantially, well I'll let you all do the maths. Looks like another Reefton in the making.