Pegasus Resources Inc (SLTFF)

[Sam Dan]

I found an interesting PR from a mining company CNX Callinex Announces Results of Initial Preliminary Economic Assessment on May 14.

“The mine plan generates a strong economic return with a pre-tax internal rate of return (“IRR”) of a 34.1% (25.2% post-tax) and a pre-tax Net Present Value (“NPV”) at an 8% discount rate of C$230 million (C$128 million post-tax) based on pre-production capital costs of C$168 million and a zinc price of US$1.25/lb “
They are excited with their results and are confident of justifying a going forward to become a producing and profitable enterprise .Although, they, rightly caution, that at this stage variables must prove the viability.

I would point out that their ore contains zinc, lead and silver at relatively low percentages.
PST’s ore has higher percentage zinc, copper, silver and gold. At current prices a significantly higher priced potential.
As well the reported assays from PST last hole drilled was 8.42% equivalent zinc significantly higher than CNX reported.

“The mined material will be processed at a new 3,950 tonne per day dense media plant and a 1,950 day tonne per day grinding and flotation plant located on the Project site”\
The PST mine ore located in the shield are usually course enough that a simple flotation mill should be sufficient to recover the minerals.

“Callinex proposes open pit mining of their ore.” Hence their lower grade may be acceptable.

PST’s Arrow zone is definitely an underground mining prospect.With initial results from current drilling indicating a major ore body at depth being indicated.
Fredart may be open pit mineable and other zones in PST’s Confederation holdings hopefully will clarify status.

CNX’s IRR and NPR estimates are interesting but I lack the experties to venture a comment
I look forward to further assay results from PST drilling. That is the only true proof of our viability. Do your own DD