woodlawn mine, page-2

Looks like we are looking for funding for the WRP project, then, with the profit earned from that project, we start up the WUP and that's when the big money will kick in. Problem is WRP is not that sexy, and no doubt investors will want a slice of the WUP. I think mgmt have been negotiating to try and get the best bang for our buck when it comes to funding, and hopefully a higher Zn price and Cu price, will make WRP sexy enough by itself. WUP looks very exciting though. Higher Zn price, higher/same Cu price and a lower AUD this year could make funding available for this project. After all, the WRP is ready to go, we just need the money.

WRP statistics.
Proven & Probable Reserves: Mining Rate:
Mine Life:
Av. Annual Production:
11.2 Mt @ 2.2% Zn, 1.3% Pb, 0.5% Cu, 31 g/t Ag, 0.3 g/t Au 4,300 tonnes per day (1.5 Mtpa)
7.5 years
Cu: 14,000tpa @ 22% Cu
Pb: 15,000tpa @ 35% Pb
Zn: 49,000tpa @ 45% Zn
Ag:~ 470,000 oz/yr
Au yr ~ 1,800 oz/yr

Development Capital: Operating Costs:
A$92.8 million including a A$5.6 million contingency

Net Smelter Return Revenue: A$586million
Pre- Tax Net Cash Flow: A$199million
Capital Payback: 3.8yrs
Pre-Tax NPV(10%): 81m
Pre-Tax NPV (5%): 128m
After-Tax Project IRR: 23%

WUP
A resource estimate for the Woodlawn Underground Project of
10.1 Mt @
1.8% Cu,
4.0% Pb,
10.2% Zn,
0.55 g/t Au
85 g/t Ag.

GL all, any other HC member holding any TRO?