Tyler released its initial scoping study,
http://biz.yahoo.com/ccn/070928/200709280415860001.html?.v=1
At conservative Base-Case long term metal price assumptions of US $1.50/lb copper, $0.80/lb zinc, $15.00/lb molybdenum, $500.00/Oz gold and $10.00/Oz silver, the project has been estimated to be able to produce on a life-of-mine ("LOM") basis a yearly average of 183.76 million pounds of copper, 311.26 million pounds of zinc, 2.33 million pounds of molybdenum, 2.77 million ounces of silver and 14,180 ounces of gold for 12 years on the assumption of a 60,000 tonne per day milling operation. Total capital costs on a LOM basis have been estimated at US$619.25 million, with a Base-Case capital payback period occurring during production year 4. Using August 2007 three year backward average metal prices of US$2.43/Lb copper, $1.10/lb zinc, $30.85 molybdenum, $10.00/Oz silver and $544/Oz gold, capital payback period would occur during production year 2.
I think those numbers blow away any nay-sayers of the project. Stock ran up 25% to 78 cents on Thursday, which still represents extreme value, as I wrote in the July weekly update:
"I just don't think the market understood how much Copper AND Zinc that Tyler has, and how cheap it is relative to its market cap. "
http://www.goldmau.com/stock_update_718_07.php
Technically, the stock has strong support at low 60 cents (200 DMA and 50 DMA). TYS might settle here for a bit before advancing to $1. |
