Ann: High Grade Results Continue at Oposura, page-66

OK I will have another go at this.
There is an estimated 2.5 - 3 million tonnes of ore.

@ 10% zinc. this is a very high level of mineralisation. San Felipe is more like 7% but it’s deeper in ground.

That means inground value of 250 - 300k of zinc = @ $3,500 $875 million or $1.05 billion.
Assuming we have 3 million ore in the targeted resource.

Assume 3 years mine life for one million tonne of ore each year..
365 x 3 years = 1095 days
3 million tonnes divided by 1095 days = 2,740 tonne of ore per day.

In this case we have mine capex precendent with San Felipe in 2014 of $ 27.8 million for 2000 metric tonne per day.
So this mine will be a bit more expensive IF it’s a short mine life of 3 years. The capex is in the order of $30-40mill as anticipated earlier. There is a sliding scale as the capacity of the mine goes up.

Recall that San Felipe takes a lot more effort to extract the ore, underground mining takes longer and is more expensive.   You cannot compare Oposura with San Felipe.  Their deep mining costs were ten times the cost of open cut /room and pillar. We may have some deep mining costs with the fault at the western end.

Assuming a more standard 6 years mine life: for 500k tonne of ore processed each year.

365 x 6 years = 2,190 days
3 million tonnes by 2,190 days = 1,370 tonne of ore per day.

In this case you get well within the capex of $ 27.8 million for 2000 metric tonnes per day.
500k tonnes of ore each year, @ 10% = 50k of Zn each year.
Recovery rate of extraction 80%. = 40k  x $3,500 =
$140  million per year. Less opex.

For 6 years. Which is very cheap in Mexico.

We do need to prove up the resource but I can’t see what is wrong with these estimates.
If you are going to criticise, please be factual and precise. Thankyou.