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Strategies & Market Trends : Ride the Tiger with CD

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To: TheBusDriver who wrote (78188)	3/18/2007 5:30:14 AM
From: Condor	Read Replies (2) of 312908

EPM.t is conforming to the following graph nicely. Since we are 8 months from production startup one can conclude where we are on the below graph. Project Economics Post Tax, Royalty and Financing Costs ---------------------------------------------------------- Gold (unhedged ounces) 525 /1.30 600 / 2.00 /Copper Prices US$ ---------------------------------------------------------- Project Cash Flow US$225 million US$374 million ---------------------------------------------------------- Net present value 5% US$113 million US$213 million ---------------------------------------------------------- Internal rate of return 20% 32% ---------------------------------------------------------- Payback in years for EMC 4.1 2.5 Equity contribution ---------------------------------------------------------- Cash operating cost per ounce of gold net of copper credits () Years 1-3 US$127 US$9 Life of Mine US$261 US$189 ---------------------------------------------------------- ( Cash operating costs exclude taxes, royalties and financing costs) From the recent Resorce Report, the following is very interesting and may also account for recent stock excitement: Drilling Results at the base of the planned Open Pit During 2005/2006 most of the Company's drilling focused on infill and condemnation drilling. However diamond drill hole VC32 was drilled to test for a possible down dip extension to deep mineralisation outlined in the Feasibility Resource Model. The hole was drilled to a depth of 352 metres and intersected 28.6 metres (266.9 to 295.5 metres) grading 13.23 g/t gold and 0.61% copper (true width calculated at 23.6 metres). This intercept is located close to the projected base of the main open pit and may continue to depth. Included within this interval is a high grade copper intercept of 12.3 metres averaging 11.66 g/t gold and 1.37% copper which contains a 0.85 metre intercept reporting 69.5g/t gold continuous with a 1.05 metre interval carrying 47.6g/t gold. A one metre intercept within the lower grade copper section reports 176g/t gold. The mineralisation is focused on a footwall limestone contact and is associated with skarn development - a common control to mineralisation at Varvarinskoye and appears open to the North and at depth.

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