Some diehards are prone to cut and pasting recent proclamations....

Some diehards are prone to cut and pasting recent proclamations. Well what about this golden oldie? So much to choose from, but my favourite, the one that has me dabbing my eye and slapping the thigh is this one, "simple, relatively easy and low cost mining/processing." But then, is it fair not to include this inspired flight of fancy? "unit production costs are estimated to average A$5.80 oz for the first three years"

Press Release 19 April 2005

MACMIN TO OPEN AUSTRALIAN DEDICATED SILVER MINE THIS YEAR

Highly leveraged to silver price

Macmin Silver Ltd plans to bring a new silver mine into production in southern Queensland within six months.
The new mine, Macmin’s first, is being developed at Twin Hills near the town of Texas, approximately 250kms south-west of Brisbane.

In a Project Update issued today, Macmin Executive Chairman Bob McNeil said that the mine start-up would coincide with an expected further increase in the world silver price.

Bob McNeil also commented: “While production costs are expected to make the operation consistently profitable at today’s silver price, the mine is highly leveraged to the price.

Many analysts are forecasting a substantial rise in the price of silver within the next year. As a dedicated, single metal silver mine, Twin Hills has exceptional leverage to rising prices.

• mine construction is 40% complete

• production of silver powder (98.5% silver) by a leaching and electrowinning process will commence in late 2005 at the rate of 2.5 million ounces (Moz) of contained silver a year

• processing plant capacity of 3.5 Moz will allow for rapid expansion in a rising silver market

• Measured, Indicated and Inferred Resources total 55 Moz silver equivalent

• unit production costs are estimated to average A$5.80 oz for the first three years

• while revenue would total some $40 million in the first three years at the current silver price of approximately A$10, revenues and margins are expected to increase significantly with the forecast price rise. Every one dollar increase in the silver price will add $2.5M to $3M to Macmin’s bottom line. The silver price could easily spike to A$15 to A$25 or higher in the near future.

• simple, relatively easy and low cost mining/processing (open pit and heap leach)

• close to transport, sealed roads and infrastructure at the town of Texas.

Within six months, Twin Hills will lift Macmin from explorer into the ranks of substantial silver producer that is highly leveraged to the expected rise in the silver price.

We have excellent potential to extend and expand production based on the Project’s resources and the prospectivity of the exploration permits we hold covering 300 square kilometres in the Texas district.