Fabled Silver Gold Corp T.FCO

Most Interesting Numbers

[lawnmoredan]

It will be interesting to see the "new feasability study" when its released,using current numbers.***The mine is forecast to produce approximately 1,500 tonnes of super-alloy grade cobalt per year, representing 3.3% of world consumption and 14.9% of North American consumption. This would make Formation the leading primary producer of cobalt in North America, offering a reliable and stable source of cobalt to a growing industry with ever-increasing demands.***My guess is the USA would have a vested interest in having this mine succeed.These numbers from FCOs website.---------------------------Earnings Projections & Economics------ Based on Mine Development Associates Pre-Feasibility Study, (a Definitive Feasibilty Study is currently in progress) and utilizing a cobalt price of US$13.80 per pound (after GFMS, 2003-2010 forecast low average), US$1.30 per pound copper and US$425 per ounce gold with a $3.00 per pound premium (after deBeer, 2005) for producing cobalt oxides, the EBIDTA discounted cash flow analysis averages more than US$30 million per annum, for 10 years. This infers a Net Present Value of over US$105 million, with an Internal Rate of Return of 68%. Utilizing a cobalt price of US$19.40 per pound (after GFMS, 2003-2010 forecast high average) under the same conditions, the EBIDTA discounted cash flow analysis averages more than US$46.8 million per annum, for 10 years with a Net Present Value of over US$220 million and an Internal Rate of Return of 108%. P.s.-The potential to dramatically increase reserves is considered excellent with a district potential of 50 million tons (after Hughes). The project contains over 20 distinct target zones and of those only four have been drilled to date.