Nickel & Cobalt

[Tackler]

Lundin says buy Geovic for Nkamouna economics


2007-04-04 20:25 MT - In the News

Brien Lundin, in the March, 2007, edition of the Gold Newsletter, says buy Geovic Mining Corp., recently $2.20, because of the economics of its Nkamouna deposit in Cameroon. Mr. Lundin has never before recommended this company. Geovic has a 1,250-kilometre piece of land in Cameroon with seven cobalt-nickel occurrences. Mr. Lundin says these conducters represent the world's largest primary resource in cobalt. Nkamouna, the most advanced of these occurrences, has impressive economics, he says. A prefeasibility study last year projected the deposit could produce, based on three-year average of metal prices, a 10-per-cent discounted NPV of $529-million (U.S.) and an IRR of 78 per cent. The study suggests Nkamouna can hit a production rate of 4,000 tonnes per year of cobalt and 3,000 tonnes per year of nickel. A final feasibility study is due out in July, with production scheduled to start in July, 2009. The Cameroon government seems to approve of the project and timetable, so Mr. Lundin fully expects the project get the green light. Mr. Lundin further discloses that he owns this stock through a private placement. However, most of his shares are restricted for some time, and he has been looking for a price weakness before recommending.