Huge, I agree that IVA's copper/Gold projects are not in the...

Huge, I agree that IVA's copper/Gold projects are not in the same league as P Hill or Carrapateena, but I am coming to the conclusion that there is nothing else out there that is. (certainly around the parameters of grade and LOM - you may get a good grade and small mine life or a poor grade and a long mine life).

Financially, if you are building something, you want a long mine life - this allows you to depreciate the asset over a greater time. So a resource of 5% copper for 500,000t of copper in total would not normally be as good as a resource of 0.5% copper for 1mt of copper in total.

IVA's Mt Elliot resource (including Swan) has 2.5mt of copper at 0.44%. That translates into a 50 year mine at 50,00tpa of copper. (based on the scoping study block cave mining). Now I would suspect that as the resources move to reserves that tonnage will drop, but currently, IMO, it is a reasonable option for OZL to consider. Mt Elliot appears also to not have the issue of multiple resources requiring transport to one processing facility. (Moving dirt a long distance is expensive and I agree that a mine plan like that would not be good)

From what I can see, IVA has 2 potential projects and one in production. They cannot develop them all, and so selling one or more to raise the cash to develop the others is not an unreasonable process. Selling in the middle of the EU crisis is unfortunate for them, potentially good for OZL.

HT1