re: bfs - without feldspar/stoss Stoss(and for the sake of...

re: bfs - without feldspar/stoss Stoss(and for the sake of others interested)

Know your doing it hard on a beach somewhere but here are some more figures that might interest.

What I was predominantly interested in was what is happening with the tin(which I think Ive tied down now)and how much it will bolster stage I and subsequently increase stage II.

Using the next to last scoping study dated March 2003 with an NPV $212M A including the feldspar

-tantalum 340,000lbs X US$47.30/lb = 16.08M

-feldspar 800,000lbs X US $31/lb = 24.8M

-tin 985T X US $3,954/T = 3.9M

Total revenue(Gross) = 44.78M

Which corresponds to the revenue indicated in the above scoping study.

For a new stage I(1.26Mt plant) scoping study based on

- tantalum US$47.30/lb

- tin US$8,000/t

excluding the feldspar

- tantalum 530,000lbs X US$47.30/lb = 25.07M

- tin 1489t X 8000/t = 11.9M

- Total Revenue(Gross) = 36.97M

So for the new stage I (ex feldspar) the revenue are figures are down by a fairly substantial $7.8M on the last known scoping study.

However stage II figures(2Mt plant) become

- tantalum 840,000lbs X $47.30/lb = 39.73M

- tin 2364T X $8,000 = 18.9M

Total Revenue(Gross) = 58.63M

A substantial 58.5% or $20.58M above stage I.

So these figures should at least give some indication of how the revenue will be affected in the coming(?) bfs by some of the variations to the project as announced.

The new tantalum scoping study figure was derived from the last indicated 1Mt output figure of 420,000lbs which will increase to 1.26Mt with the new plant giving an output of 530,000lbs.The variation of tantalum output from 340,000lbs up to 420,000lbs occured when GIP was able to increase the tantalum recovery rate by a factor of 20% after SGS Lakefield conducted a research program into said recovery rates.

Its interesting to note that in the SGS research the tin had a similar increase in recovery rate so that in these above figures has been included the increase of 20% from the March 2003 scoping study from 985T to 1182T.This consequently becomes more of a factor when a further 26% increase occurs from the plant size increase which gives 1489T of tin as indicated in the stage I calculation.

What does all this show.

If these figures are in the ball park then without the feldspar the projects revenue does suffer in stage I but as GIP have stated the project is still very robust even without the feldspar.

It also shows as to why they are so keen to get the project running at 2Mt capacity as it pushes revenue to near US$60M.

This is all without the possible feldspar production.Its hard to envisage the feldspar happening though within 2 years of commencement as they will be installing the second 1.4MW ball mill a year down the track.As indicated by Cso1 this may well not happen untill 2008/9.It may well not happen at all if they come up with some interesting drill results in the land of the Pharoahs gold.

Cheers d.

I know sabre we'll never see it happen-please put me on ignore.