Ontex Resources (ONT Alberta) Message Board

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Gold/Mining/Energy : Ontex Resources (ONT Alberta)

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To: Biff who wrote (342)	7/7/1999 10:50:00 AM
From: mark warburton	of 519

Gold market took a beating again. BOE gold auction oversubscribed by 5.2 times and the market plummets 6 bucks and change. Unbelievable but that is the way it is. Gold mines closing at a faster pace leaving less and less future production. Gold demand outstrips present supply by 150 tonnes a month. The Bank of England will sell 25 tonnes every 2 months a nd the price stil falls. Lots of talk of price manipulation in the gold market. One can only wonder as the price of Gold is not reflecting supply-demand at all. Then again the markets always have a way of correcting themselves in with that you should see an amazing rally in the golds somewhere in the foreseeable future. Would love that to start anytime now but it appears that the central banks want to keep infaltion low and gold is a major component in that measure. Selling has dried up on Ontex. Buying is also lack lustre to say the least. Biff I agree we need some coverage on the stock as this forum only reaches a very limited number of investors. There is also more information on this forum then in all the published news on Ontex in existance. The magic million mark is one way to generate coverage by the brokerage houses. That will take a little longer to achieve. A TSE listing is also a benefit as you take a quality stock off a questionable exchange to list in a more professional environment. And most importantly as you stated a brokerage house or two doing indepth coverage with buy reccomendations would be a major plus for the stock price. In all we have a decnt understanding of the stocks potential from word of mouth or by researching the limited data available. The fact that every major took a shot at hte property lets you know that something is definitely there worth exploring. The fact that for any investor to get involved with this stock will require word of mouth references only is a stumbling block in that you can only obtain a certain level of confidence form your best freind when your talking about the potential of losing money on any venture. The company is presently not interested in any cheap hype which is a very professional attitude to take and they will painstakingly develop the property over time. the property will speak its own merits but still a proper marketing plan needs to be forwarded to develop a larger shareholder base and potential equity financing for the future. I don't have any answers but continue to accumulate stock. Their is the potential for a BONANZA type strike on the property which could in itself be the only catalyst required as papers and the mining community jump all over a potentially megafind. 1 major strike on the fault could ptoentially triple the value of the company over night. of course that bodes the same for every other junior explorer in the marketplace. The difference I hope is that the property has the goods. All indication so far is that the property will continue to develop on all 7 finds so far plus potentially a lot more. Just one of the finds developing to a million ounce deposit warrants the price at mutiples of its current value. Hemlo began 150 miles from there Lac minerals began just around the corner from there. Who knows but their is the potential for a new junior to join the big leagues with a major find on a very large property indeed. by the way for calculating reserves form drill holes if you use 11.6 cubic feet for one tonne of ore you can evaluate holes for yourself. For example cherbourg claimed 45 feet of .13 on the last hole 80 metres deeper then before. If you assume that the entire strike length known to date is 500 feet and that this drill hole intercepted a value which will be found to be consistent over the 500 feet you haev the numbers to calculate the implied potential of the drill hole. 80 metres equals 260 feet roughly so. 500x260x45=5,850,000 cubic feet 5,850,000 / 11.6 = 504,310 tonnes x grade (.13) = 65560.3 ounces 65560 ounces at current prices is in the neighborhood of 26 million Canadian dollars. Those numbers are based off assumptions that the entire depth remains at 45 feet wide and that the entire strike length remains intact for the 500 feet. Additional drilling will confirm or dispell any of those assumptions. The cost of drilling that hole was around 15 dollars a foot or less then 20,000 dollars. As you can see by the above math the 5 million we will spend on drilling can prove up a veerrry large resource. At a certain point the market will notice the magnitude of the deposit for what it is worth. As for now be patient and accumulate on weakness.

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