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Gold/Mining/Energy : Silver Bull Resources, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: AurumRabosa who wrote (426)	1/29/2007 1:10:44 PM
From: Mr. Aloha	Read Replies (2) \| Respond to of 5637

MMG plans on building their own refinery to produce SHG 99.995% pure refined zinc (which gets a premium over lower grades), so they won't need a smelter. They may locate the refinery in a different country to save on taxes and power. This is a huge advantage over other zinc miners, as most zinc miners are subject to a giant cut from smelters. On the Yukon Zinc conference call, they mentioned that zinc miners only get about 60% net from smelters after the 85% payable rate, treatment charges, and penalties, and that's after they do their own milling to produce a concentrate. Another MMG advantage is they have 100% ownership of their project and aren't subject to back-in clauses or high royalties that other projects are. MMG's refinery planning is also one reason the feasibility study is more complicated and longer than for other zinc miners. Once they complete the mine plan, they still need to complete the refinery planning, whereas most zinc miners don't need to go through that step since they give a huge cut to the smelters instead.