Mark,

Thanks for pointing out Mooster3's post, and your speculations/discussions. Let me chime in on a few points

1. Off-take agreement: Yes, a company can hide behind the cloak of confidentiality not to divulge "some key details" about the deal, including the name of the off-taker does not help the outsiders/retail shareholders much for their valuation of the deal, hence the worth of the company. You have raised the point with respect to insiders (of course they have an edge over the lowly shareholders resulting from this agreement).

The description in the NR was too general and hence would be subject to interpretations/speculations. Some SH posters already raised question on "up to 40,000tonne/yr". Question was: Would 1000tonnes/yr be considered as within the "up to 40,000 tonnes agreement"? Also, the NR the "agreement" cover the entire spectrum of concentrates (large, medium and fine) and value-added products

2. Concentrates:Presumably these are those listed in the updated PEA (7 Nov 2013) with an average grade of 96.6% Cg (from 92% Cg). Note: they are below 99.5% for which ZEN (10 April 2013 NR) has indicated this level could be could be produced at a cost of $4-5k per tonne for selling at a price $7-9k per tonne (ZEN used $8.5 k). The cost for concentrates up to 96.6% would be around $1850 per tonne, as used in page 7 of FMS Corp Presentation. Purity is higher from the latest test at SGS at 98.1%, Corp Presentation, slide 18, but this is still below the 99.5% for $8500 per tonne as used by ZEN. To get to this level some form of purification must be employed, and this would cost money.

3. Thermal Purification: If it was decided not to purify the concentrates to save the cost of purification (big sum of money, $6.5k per tonne, quoting spreed sheet 1-12 of the PEA as indicated by Mooster3) then the price for the concentrate can only reach something like $1850 per tonne. So, it`s a balancing act to weight purification cost against the price you can fetch for the products.

4. Tests have shown that ZEN has produced excellent purity (greater than 99.5%) using a caustic baking process to be sold for $8.5k per tonne. At a net profit of 8.5-4.5k = $4k per tonne ZEN would make enough money for us. If they can get a price of $10k per tonne then there would be gravy on the top.

goldhunter