Classic breakout pattern, page-37

There is a difference between producing and processing. 3000 tons at 14% grades 90% recovery rate will get you 378 tons. Zinc prices at US$2400 per ton but I am not sure what the agreed off take amount is. @$2400 works out to about $900K less production costs and off take discounts. If I understand it correctly,, please correct me if I am wrong. I am confused about the production costs. The announcement states less than 50c per pound. Is that for raw ore or zinc concentrate. If it is raw or than that is about 40% of the zinc market price. I am doubtful that it is for the raw ore. I think I read CZL only has 51% interest with option to buy extra 39%. I don't think initial profits will be massive but will increase as processing heads to 10000 tons per month and interest increases 90%. All in my opinion, DYOR.