re: Ann: News Release - Massive Zinc-Lead Tai... KRM may have...

re: Ann: News Release - Massive Zinc-Lead Tai... KRM may have stumbled upon a fantastic project and further opportunities. Based on the numbers they have quoted the metal in the tailing dams could be worth anything between A$2 to 5 billion.

After doing some basic research Sardinia have a real problem with contamination from heavy metals. Resulting in reduction in the population of fauna and flora, reduced fertility of soils previously used for agriculture, contamination of drinking water (well above Italian legislation levels). In southern Sardinia there are areas where 96% of the soils are contaminated by the earlier mining activities. Most of the mines are now closed and abandoned on Sardinia, along with spoiled heaps, flotation tailing dumps and tailings.

Another significant problem in Sardinia is unemployment (18 - 20%), with youth unemployment over 50%. Therefore cheap labour should be available to KRM, well at least compared to the rest of Europe.

imo the EU, Sardinian and Italian governments will make hugh grants available to restore these tailing dams and reduce the polution of the water tables. I am sure there will also be grants for increasing employment in this very poor country. Reducing KRM's costs.

If KRM find that this project is economic (I would be very surprised if they have not already done some every high level numbers) and they make it work the benefits could be hugh:
* Cheap mining costs (labour, low strip ratios, 80% of Zinc mines are underground so compared to these costs will be very low, EU grants, etc).
* Large Zinc and Lead tonnes, hugh profits!
* Zinc usage will continue grow (last 20 years as grown at 2.6% per annum), therefore prices will only increase.
* A long life of mine (?)
* Excess electricity capacity (compared to the rest of Italy) on the island for refining (but may be a bit expensive).
* There must be other sites in southern Sardinia, where the potential is just as good.
* Opportunities to review closed mines which could be profitable with modern mining techniques
* Gain a reputation in Europe for holding the skills to reduce pollution, leading to more projects
* Re-rating as an environmental company, with specialist skills (?)

Great potential project! Get the exclusive rights for the whole of Sardinia! Go KRM.