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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (7182)	1/31/2003 8:15:33 AM
From: tyc:>	Read Replies (1) \| Respond to of 39344

Yes, I believe so. Their scoping study said capital costs wd be <$14,000,000 and with cu at $.90c IRR would be 59%. I have read that annual copper production would be ~36,000,000 lbs of copper; doesn't this allow one to reduce cash flow by $360,000 for every penny lower than $.90? My arithmetic says IRR might therefore be 23% with copper at .78c. However I am not sure this "schoolboy arithmetic" is adequate and wd appreciate your thoughts I think I recall that the company has said that they expect the feasibility study to prove strongly viable. It was paid for by all three interested parties; DSR, Northgate, and the contract miner Procon Tunneling. I believe the strength of the project lies in how it will benefit Northgate, and the Kemess concentrate.