ECUADOR GOLD AND COPPER CORP V.EGX

PEA Estimates

[paperbiz89]

What are folks estimating the after tax NPV of the project will be? Too bad they will not be able to incorporate the upcoming Ecuadorian fiscal changes in the report as that will come much later. I just hope that the existing terms will not depress the value of the project too much!

Lundin seems to have got the Fruta Del Norte project for cheap. Does that reflect the level of risk in Ecuador? Crucially though, Kinross will still particapte in the project through its ownership of shares in the new vehicle to be created.

I am just hoping for good figures when they are announced. Hoping for no more dealys, but it wouldn't be surprising if it does happen.

ALL THE BEST.

[BrendanC]

I have no idea what the NPV will be honestly. If it wasnt open pit, id say that the 4 year low in deisel prices will contribute etc etc... but its open pit and cheap anyway. The low fuel price will help but not the effect as if it were not open pit. You answered your own question with the Lundin Kinross. They still have a stake but no hassle with Ecuador. I don't think that it is an issue of

[paperbiz89]

My main concern is how viable the project will be based on the current "harsh" mining laws. The PEA will be prepared based on the current mining laws i.e. the same laws which make the Ecuadorian sector so unattractive and has pushed big players away.

[BrendanC]

The same reason why big players such as Lundin and Ross Beaty are investing in Ecuador now. Everyone knows the change is coming. Just a matter of when. Buy now while everything is cheap. The PEA will likely have to be based on the present tax law, yes, but the fact that we have such large resources, be it low grade. Extraction is CHEAP. Extraction rate for gold is good, copper I assume will be