pfs calculations, page-3

jqb,

1) agreed

2) it's actually 12 years; this is according to the mail I received from Michael Fotios last week. He was pretty confident that at least the 12.3 Mt will be minable but with further drilling he is pretty confident to further upgrade the resource

3) my assumption was 50:50 (debt:equity) as for Capex and I assumed 35mln shares issued at .80$-0,85$ for 30mA$ equity (+some 2m$ from option conversions). 20m$ to use for Capex and 12m$ for drilling campaigns. Of course a 100% debt finacing would be more favourable but I doubt we'll find an institution to fund us.

My primary interest was to get a better understanding of the project financials. Of course we can use 8% discount rate and we can calculate different scenarios with different commodity prices or we could implement escalation factors bt I wanted to keep it as simple as possible. I was surprised by the high IRR and the short pay-back terms. At 12 years minelife I wouldn't say we have a company-maker at Mt. Cattlin but Michael would propably tackle this assumption because he seems very dedicated in regard to the Mt. Cattlin project.

In my view GXY is definately undervalued at 30mln$ with a PFS and JORC resources and a short term (2 years) route to start the Mt. Cattlin project. I had a close look over the other GXY projects and I'm convinved that a company with those projects (excluding Mt. Cattlin) would be valued at around 15m$ - just look at VEC with there Fe properties for comparism.

Feed Back is welcome

Lenni