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Message: From Bundtzen NI 43-101 amended report June 2009

In the Base Cash Flow case study, assuming an antimony (Sb) price of US$2.25 per pound and a gold (Au) price at US$700 per ounce, a seasonally operated 125 tons per day concentrating plant could ship stibnite concentrates during a five year mine development period. The net present value (NPV), using a 4.0 percent interest on investment, amounts to US$7,589,441. An NPV, using a 6.0 interest rate on investment, is US$6,478,071. The internal rate of return (IRR) is calculated to be 31.2 percent for the Base Cash Flow case study. Other alternative assumptions were modeled including 1) reduced metal recovery; 2) ore dilution; 3) reduced metal recovery coupled with dilution of ore. All of these scenarios generated IRR values ranging from 25.2 to 29.4 percent, and all indicated positive NPV values, and favorable return on investment. Price sensitivity assumptions were also further explored in the economic analysis, which confirmed that antimony drives the project. This case study is based on $700/oz gold and $4500/ton antimony???????? You gotta be kiddin me. Look at todays prices $1400 gold and $11500/ton antimony!

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