shareholder briefing feedback

Just listened to the shareholder briefing this morning. Some salient points I picked up were

1. The Ankata mine will produce approx 25,000tpa of copper. This will NOT be in addition to the open pit 100,000tpa of copper. Open Pit operations will be scaled back to keep full year output at 100,000 to 110,000tpa of Cu. The milled tonnes per annum of ore is already 20% above nameplate capacity, so I am assuming that this is the bottleneck at the plant and the current LOM does not provide justification to increase the milled tonnes throughput rate. I am assuming that slowing the open pit down will add about 1 to 2 years to current mine life.

2. The P Hill exploration under the Malu deposit in 2012 and 2013, if successful, has the potential to add another 3 years to the P Hill mine life. (increasing the mine life from 7 years to 10 years). Over the next 2 years, the plan is to explore all the P Hill deposit.

3. There is still significant exploration to do in the regional province. In the Q and A at the end, TB indicated that he would want to find something by the end of 2013 so that he can bring it on in time to use the current processing facilities. He indicated his "drop dead" date for the regional exploration was end 2013.

4. There are 2 drill rigs on site at C, 5 months ahead of schedule. He is anticipating that exploration results will be released in the 1/4 reports. In 2012, the exploration shaft decision will need to be made as it is on the critical path. (In passing, another small miner has to sink a shaft for a Zinc deposit and does not have the cash to do it alone.) Having the cash flow from P Hill to allow a shaft to be sunk when OZL wants to do it means that OZL is in charge of it's own destiny, to do things when it wants to, without any cash or JV or bank constraints.

5. Some discussion on M & A occurred. TB reiterated yet again that he wants to spend shareholder money wisely to build the company going forward.

HT1