While they are contemplating the sale, I think Geoff should jump on a plane and fly to Myanmar to meet with the Ministry of Mines and see what tenders are being issued for rich zinc pickings in the East Kachin-Shan region. There's been no real investment there since 1989 and hardly anyone is in there.
It's also saddled between China and India, so zinc supply deals could be struck directly with customers in those regions without being shipped to the LME and without zinc traders. China at the moment pays a 20c premium for Shanghai zinc. If you could find and develop zinc tenements in Myanmar, your C1 costs and shipping costs would be very low and you could even sell direct to the Shanghai exchange for a much greater margin. Trading 80% of the capital from AB to push projects in North Queensland and the balance to acquire tenements in Myanmar and PNG would be a very good move in my opinion.
KZL Price at posting:
15.0¢ Sentiment: Hold Disclosure: Held
