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Gold/Mining/Energy : NORTHGATE EXPL (NGX.TO)

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To: Elizabeth Andrews who wrote (48)	1/4/2003 3:12:08 PM
From: tyc:>	Read Replies (1) of 158

>>Did you look at the NGX-DSR deal? What do you make of that? The final feasibility study of SUSTUT is underway. It's an opportune time to sharpen our pencils, Elizabeth. Perhaps you have already done so. I recently posted on the Winter thread about Sustut from the DSR point of view Message 18394543 I also have notes from an old DSR website that included this statement; "The capital costs are estimated to be in the range of $12 to $14 million and scoping studies indicate that the return to the project is in the range of $40,000,000 some of which is to be shared by Kemess. Depending on copper prices used, project internal rates of return of up to 69% are indicated (@$.90 copper)...." Elizabeth, according to my schoolboy arithmetic (caveat emptor), if annual production of 36 million pounds CU @ .90c, produce a 69% IRR over 6 years, a copper price of .73c would produce an IRR of 16%. Breakeven would be in the low sixties. Does this sound reasonable to you ? If so, and if the feasibility study proves the scoping study correct, the project looks promising, don't you think? NGX will enjoy half the profits.... so it's as if their copper profits will increase by 25%.

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