perspective

From the July 2006 announcement



"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.

- 2 -

12.0 mtpa 12.0 mtpa 20.0 mtpa 20.0 mtpa

Current Long Term Current Long Term

Prices Prices Prices Prices

Operating Assumptions: Unit

Project Life years 10 10 10 10

Copper Sales Price US$/lb $2.80 $1.30 $2.80 $1.30

Gold Sales Price US$/oz $640 $500 $640 $500

Average Cash Operating costs (after gold credits) US$/lb $0.57 $0.54 $0.16 $0.13

Tax rate % 30% 30% 30% 30%

Tax Holiday years - 0 - -

Ore Reserve:

Ore Tonnes t 120,000,000 120,000,000 200,000,000 200,000,000

Copper Grade %Cu 0.36% 0.36% 0.36% 0.36%

Gold Grade g/tAu 0.47 0.47 0.47 0.47

Contained Copper tCu 432,000 432,000 720,000 720,000

Contained Gold ozAu 1,813,301 1,813,301 3,022,168 3,022,168

Waste Tonnes: t 120,000,000 120000000 160,000,000 160,000,000

Strip Ratio t:t 1.0 1.0 0.8 0.8

Production:

Ore Mined tpa 12,000,000 12,000,000 20,000,000 20,000,000

Average Copper Grade %Cu 0.36% 0.36% 0.36% 0.36%

Average Gold Grade g/tAu 0.47 0.47 0.47 0.47

Copper Recovery % 90% 90% 90% 90%

Gold Recovery % 70% 70% 70% 70%

Concentrate Copper Grade % 25% 25% 25% 25%

Concentrate Gold Grade g/tAu 25.4 25.4 25.4 25.4

Annual Concentrate Production dt 155,520 155,520 259,200 259,200

Annual Copper Production tpa 38,880 38,880 64,800 64,800

Annual Gold Production ozpa 126,931 126,931 211,552 211,552

Project Cost/Funding:

Capital Expenditure US$ 235,000,000 235,000,000 483,000,000 483,000,000

Total Project Funding Required US$ 235,000,000 235,000,000 483,000,000 483,000,000

Debt/Equity Ratio % 0% 0% 0% 0%

100% Project Evaluation (excludes Feasibility Study costs)

IRR (after tax and before finance) % 55.1% 16.3% 53.3% 22.3%

NPV @ 10% (after tax and before finance) US$ 515,711,856 57,406,420 1,015,352,904 251,510,512

Cumulative Cashflow - available to shareholders US$ 1,301,382,830 480,924,741 2,597,300,551 1,229,870,401

If much lower metal prices of US$1.30/lb for copper and US$500/oz for gold are used the project is still

robust:

�� IRR is 16.3%.

�� Cumulative cash flow to shareholders is US$481,000,000.

�� NPV is US$57,000,000.

If a reserve of 200Mt at the same grades as the Inferred Resource can be proven and a copper price of

US$2.80/lb and gold price of US $640/oz are used:

�� IRR is 53.3%.

�� Cumulative cash flow to shareholders is US$2,597,300,000.

�� NPV is US$1,015,000,000."




That are some impressive numbers, especially when you take into account the lower metal prices in 2006 and the resource considered is only 340,000 t copper and 51t gold.
Issued capital in 2006: 72 mill shares and 39 mill options.



Share price went to 52c.
_______________________

Today we have a resource of 754,000 t of copper, 83 t of gold, 21,200 t of molybdenum and 475 t of silver and higher metal prices.
Issued capital today: 133 mill shares and 83 Mill options.

If much lower metal prices of US$1.30/lb for copper and US$500/oz for gold make the project still
robust, then you can be sure it's a goer. The conceptual mining study should be a hit, but there is more on Monday to advance the share price.

Good luck to all