PLEASE READ
As it hasen't been done before on this thread, and should have been done long ago, i've taken up the task of providing some info provided in the Forefront Ventures company info pack. This includes a summary of company projects, along with projected earnings at the end of 1997. OK, here goes, and remember this is one finger search and peck, so if ya find spelling errors, your gonna have to live with them. All of the info, including a copy of the Slanker report is provided with the info package which you can recieve by calling, or e-mailing Mr. Brij Sharon at the following addresses. You won't be dissappointed at what you read.
tel. 604 681-1967 or toll free 1-888-603-1133
fax 604 681-1647
bjsharon@planeteer.com
I noted with interest that Brij Sharon (Company president) is a mining engineer/gelogist, businessman and financier. His experience includes Chief Mine Engineer for Bethlehem Copper Corp., where he supervised a 5000 ton per day operation.
THE PROPERTIES
A. Chihuahua, Mexico, 50% interest in 4 mineral claims the San Francisco de Yoquiva Mine;
B. Kalimantan, Indonesia, 25% interest in a joint venture with Stirrup Creek Gold Limited. the company is carried for $250,000 in exploration expenses plus all acquisition costs;
C. El principo, 100% interest in 500 acres located in Caborca, Sonora, Mexico;
D. Voisey Bay, a 25% interest in a syndicate that owns 419 mineral claims in the Harp Lake area of Labrador, Canada;
E. Louisiana, USA 1.6% interest in a producing oil and gas well located in the Jefferson Parish. The well started paying in February 1995 and about $1500.00 US dollars average per month for a total of $16,970.00 US recieved in 1995.
PROJECTED CASH FLOWS
Cash flow at the end of 1997 should be as follows:
Mill Operation 100 tonnes per day
ore grade 15 gms gold@$380. per oz $170.00
500 gms silver@$5.00 per oz $75.00
total value per ton $245.00
at 85% recovery -$37.00
Net Recovery $208.00
Less mining @$20 per tonne
milling @ $15 per tonne
overhead @$5. per tonne -$40.00
Gross Profit Per Ton $168.00
=$168 x 100 tons x 300 days per year
Gross Profit Per Year $5,040,000.00 US
Vat Leach Operation 100 tonnes per day
Ore Grade
5 gms gold per ton $56.00
350 gms silver per ton $50.00
Total $106.00
@ 80% recovery $85.00 per ton
Mining Cost $10 processing $10 -$20.00 per ton
Net Recovery $65.00 per ton
=$65 x 100 tons x 300 days per year
Gross Profit Per Year $2,145,000.00 US
TOTAL GROSS PROFIT PER YEAR $7,185,000.00 US
FOREFRONTS SHARE $3,592,500.00 US
OUTLOOK
A projected gross profit of US $3,592,500 may be reduced to a net profit of of US $2,000,000.00 or CDN $2.7 million by the end of 1 year of operation. Assuming a total of 7 million shares issued at the time, it gives earnings of 35 cents a share. At 6 times earnings, Forefront shares should trade at around $2.00 per share within one year of start up of production.
Ted Slanker "works" the numbers within his report (Vol. 13 No.1 January 21, 1996) and sees Cdn $1.84. He also covers all the properties in detail.
For the record. I'm a geologist in Nova Scotia with no interest in Forefront other than being a shareholder. I believe that in the wake of the Bre-x fiasco, regardless of outcome, investors in junior golds will be attracted to profitable production first, attractive exploration properties second.
Hope you found this info as interesting as I did.
Best Regards
Bruce Little
carraigh@atcon.com |
