Ann: Positive PFS for Admiral Bay Lead-Zinc-Silve, page-10

re: Ann: Positive PFS for Admiral Bay Lead-Zi... Be interested to hear what others think. The NPV is $160m for 10% of assessed region, how is this supposed to be interpreted in context of entire operation? I'm sure it's not as simple as extrapolating to an NPV of $1.6bn should remainder of deposit produce similar drilling results, since wouldn't the NPV be factoring in development costs? What is meant by 'Net present Value at 8% discount of $159.8m' towards end of report?

"IRR of 12% - pretty low considering the cost of capital."

What would be considered a high IRR? Capital payback within four years sounds up there with quality projects like Prominent Hill. I've not a lot of experience interpreting feasility studies though..

Forecast zinc price of $1.20/lb doesn't sound like a conservative estimate though (not unrealistic either), I'm more interested in where production costs lie relative to other projects, as more comfortable holding producers at bottom of cost curve.