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Gold/Mining/Energy : ZINC The base metal. News and Views. Symbol Zn -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (169)	4/14/1999 3:03:00 PM
From: Ray Hughes	Read Replies (1) \| Respond to of 3270

Howdy Claude: Full package coming your way today. The truly frustrating thing is that we've been saying all along that the old drill data base (Portuguese State mining company - 1980s) showed sections of very high grade zinc/lead in the Feitais deposit and that our assays from new drill holes (1998) from the geologically-related Estacao deposit consistently returned silver grades averaging about 2 ounces/tonne as well as zones of strong copper grades. Our pre-feasibility financial model employs the Feitais deposit's average zinc grades whereas we believed that above-average grade zinc might be mined over at least the first two years. Also, we did not project any revenue from copper or gold. Drill data exhibited in the latest two News Releases strongly support our contention that preliminary modelling was conservative. Smelters indicate we would be paid for gold and copper in zinc and lead concentrates. The immediate impact of this is that some mining Analysts are beginning to anticipate that a) the Feitais deposit mineable zinc/lead/silver resource could be larger than Rescan Engineering suggested in the 1998 pre-feasibility study, b) that we may develop a sufficiently large high-grade Feitais deposit copper resource to warrant adding a separate copper mill some time after zinc/lead/silver production commences, and c) that exploratory drilling of the other Aljustrel Project deposits(Estacao, Gaviao, Moinho) may develop additional mineable tonnage. BTW, we have applied to increase our Concession area to 165 square kilometers along the trend of the Iberian Pyrite Belt (same as the trend of our deposits) from 11.5 kilometers. This is to cover known geophysical targets as well as to give us control over the area along trend that could be most economically served by the present Aljustrel Mill. RH