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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (26923)	12/3/2006 10:05:35 PM
From: tyc:>	Read Replies (1) \| Respond to of 78405

Dak With metal price curves as they were on April 14th, the feasibility study showed an IRR of ~30% based on then current prices. However, because of backwardation, futures prices were not so generous. Based on futures prices that would be used for hedging, the project could not be financed. And the institutions just dumped it.... this destroyed its credibility. Now, however, zinc futures prices are as high as spot prices were then, and spot prices are ~50% higher... hence my belief that futures hedging could provide for financing and the property should be very profitable. Investor confidence needs to be restored ! And I think they are still waiting for permitting. That's my take and I shall be interested to hear what more negative voices say. Some people dumped their shares just because prices fell, without regard for its "option value">

To: LLCF who wrote (26923)	12/3/2006 10:07:11 PM
From: Gib Bogle	Read Replies (2) \| Respond to of 78405

They had been making predictions about the amount/value (don't recall precise details) of their deposit, then the feasibility study came out with much worse numbers. Instead of a healthy return, it now looked uneconomic to mine. I owned a decent chunk of YZC, and sold a lot at a loss because the management's credibility was shot to hell. The whole sorry saga can be found on stockhouse.com. There is probably some info on the SI zinc board as well.

To: LLCF who wrote (26923)	12/3/2006 10:42:41 PM
From: heinz44	Read Replies (2) \| Respond to of 78405

YUKON ZINC REVISES FEASIBILITY STUDY Yukon Zinc Corp. confirmed the results of a feasibility study on its Wolverine property in Stockwatch on May 9, 2006. In the normal course of preparation of the 43-101 report on the feasibility study, a computational error was discovered in the mining portion of the operating costs that were estimated by Yukon Zinc. The result of amending this error is to increase the mining cost from $24.93 to $35.18 per tonne and overall operating costs per tonne mined from $90.26 per tonne to $100.51 per tonne. Yukon Zinc is undertaking a thorough review of all aspects of the feasibility study, which is expected to take several months. The effect of the change in operating costs will reduce pretax cash flows in the feasibility study by $5.5-million per year before any other effects. Yukon Zinc will provide a more detailed review of any other impacts of the change in operating costs as those numbers are confirmed. For the moment, the sensitivity table in the May 9, 2006, news release is being retracted due to the changes in the base case.