spoke to richard taylor yesterday

Asked him when TGS looks like getting a decision on the mining review and he said the latest they have got back is March. I also asked him if TGS are putting pressure on the DRC and he said they are but have to very careful of not pushing it to far otherwise they'll take their time. He also stated the DRC has no regard for the oppie expiry date. Richard also said TGS are extremely confident the mining review will be in their favor because all boxes have been ticked and the feedback has been very positive.

PRODUCTION

I talked to him about the time-frame on production and he said if the review is ok TGS at the moment are looking at stock piling at the end of the year and producing 1st qtr of 2008. Initial mining infrastructure costs will be around $30mil and this will be paid for in the first few months of production. Type of processing technology being used is a SX/EW process which will treat 1,000,000tpa ore for 35,000tonnes pa of LME grade copper.

Operating costs will be around $1600USD PER EACH TON OF COPPER METAL PRODUCED. That equates to around $190USD mil net cash flow. YES THATS RIGHT. A $190USD MIL PA NET CASH FLOW FOR A COMPANY CAPPED AT $63AUD MIL.

The COBALT at the moment is being treated as pure credit and has not factored it into the economic modeling for the Kipoi Central deposit. On current prices, the cobalt would return very impressive figures however their are plenty of COBALT projects starting up and prices should slip in the medium-longer term. How much the COBALT price comes off is of course pure speculation. But at the moment COBALT prices have risen 70% in the last 12mths and look set to go further because its in a serious supply crisis at the moment.

TGS being in the richest COBALT province on the planet also suggests the prices would never come of to the extent of the project being non-viable.

So in a nutshell we have a 100% safe geophysical project which will generate huge amounts of revenue that is being held back by a politics. If the mining review is in our favor and we go into a smooth production IMO TGS will reach the billion dollar club in 2009. The Nth Americans will make sure of that!

Very exciting times ahead

Regards