By Michael Berry

International Enexco (IEC TSXV) is a company that we are actively researching and scoring for our copper data base. Evidently this is a company that is executing its business plan just the right way. First and foremost, look at the share structure. There are only 32.34 million shares outstanding (38 million fully diluted) with $3.7 million dollars on the balance sheet and a strong board and management team. We met with IEC management in October and found them to be focused on achieving objectives.

Take a look at their exploding resource(s) and resource potential. They are focused on the Contact oxide copper project in Elko County of Northern Nevada but well diversified with several other interesting assets as well. What better place to explore and develop a copper deposit and with a former Governor of Nevada on the board of directors of IEC?

Recent drill results and a significant land acquisition seem to indicate that the 54 million tons of copper ore reserves will grow much larger. The company recently completed a twelve hole drill program (reverse circulation and so much cheaper) in which they discovered significant and consistent copper oxide mineralization. In addition, the company is pushing hard for a bankable feasibility study this year.

We believe that eventually the company will be able to use low cost SX-EW recovery to produce cathode copper on site. The resource, given the recent drilling, will expand substantially from its current 54 million tonnes of .29% oxide copper. This reserve equates to 316 million pounds of copper. However the company has also developed a Measured, Indicated and Inferred resource of approximately 1 billion pounds of copper.

Last week COO Bill Willoughby told me that the original plan was to produce 25 million pounds of oxide copper each year. The IRR of the original study was an estimated 20%, using US $2.25 copper. This study will have to be reworked given that the recent discoveries to the east of the original ore body, on land recently acquired from Allied Nevada, seem to indicate that the copper deposit is much larger. Here are a few of the drill results for the drill program. These results were released February 14th.

• 0.92% Cu over 45 feet (13.7 m) in hole ENR-3
• 0.43% Cu over 55 feet (16.7 m) in hole ENR-6
• 0.24% Cu over 130 feet (39.6 m) in hole ENR-8
• Drill program increased to 30,000 feet (9,144 m)
• 23,000 feet (7,010 m) of the drill program completed

This AM I include my scores for this company and the Discovery Investing Scoreboard rank (between 0 and 10, 10 is best in class) of IEC.

IEC's precise score (rank) is 6.21 which covers our highest confidence interval ~ 6.1 and 7.6. This places the company in the top decile (10%) of Incubator Discovery companies in my personal Incubator portfolio. More important, its ranking has increased over time as I have followed the company. Below I show the "Footprint of Uncertainty (FOU)" for the company. This diagram graphs the score of the company relative to our level of confidence in the score. There is an interval on the x axis of our highest confidence because of the imprecision which we allow you in the estimation of the factors. This is the power of computing with words.

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