13.5% copper grading with after-tax IRR of 106% for Timok Management is doing great job, I can say now. They have delayed acquisition until now to find the best project ever. Still left with 200 million for safety and no need to raise capital with continued income from Bisha. Timok is by far better than Ivanhoe's Kamoa Project. Zinc price doing well and copper price showing signs of rebound. I think $6 price target by TD is achievable.
The Upper Zone has an extremely high copper and gold content consisting of 1.7 million tonnes of indicated resource grading 13.5% copper and 10.4 g/t gold and 35.0 million tonnes of inferred resource grading 2.9% copper and 1.7 g/t gold (see detailed table below for details).
Reservoir's Preliminary Economic Assessment ("PEA") on the Upper Zone alone, using a 1.0% copper cut-off grade, has an after-tax NPV8 of US$1.63 billion and after-tax IRR of 106%, using US$3.00 per pound copper and US$1,200 per ounce gold (refer to Reservoir's April 19, 2016 news release for PEA details).