Feasibility Study Summary

Highlight

Units

Bankable Feasibility Study

Development Plan

Evaluated Operating Period

Years

5

15

Annual Throughput (Flotation)

Million Tonnes

3

3

Copper Production

Tonnes Cu pa

34,400*2

36,400*2

Silver Production

Moz Ag pa

1.0*2

1.1*2

Average C1 Cash Costs

US$/lb

1.28*2

1.23*2

Capital Expenditure

US$Millions

175

175*1

Copper/Silver Price

US$/lb,US$/oz

3.00/17.00

3.00/17.00

Operating Surplus

US$Millions

390

1,142

Project NPV10

US$Millions

251

375

Internal Rate of Return

%

32%

32%

Payback (after production commences)

Years

1.7

2.0

*1 US$40 million for coal-fired power funded from operating cash flow in 2012 and 2013
*2 During debt repayment period Jul 2012 to Dec 2014

A ground water resource for the Boseto Project that exceeds the Project’s supply requirements has been defined.  The concentrate off-take was awarded to Transamine in March 2011 for the first 5 years of production.

The Boseto Copper Project is located in an area approximately 20 kilometres away from the nearest village but within close proximity to highways and infrastructure.  The Company generates its own power requirements.