Pacific Rim Mining V.PFG Message Board

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Gold/Mining/Energy : Pacific Rim Mining V.PFG

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To: charred who wrote (12638)	2/14/2000 2:11:00 PM
From: Quickdraw	Read Replies (1) of 14627

charred, You are entitled to disagree. I agree the NSR is important but in a low cost operation with a certain number of ounces, it becomes less of a factor. This is the risk I and it appears a number of other individual and institutional investors are prepared to take. CMS makes the following comment from her speech "Well you know, there is no arguing that it is expensive compared to the norm, but I think that Luicho is not the norm as far as prospects go. It had outcropping mineralisation at the time we had acquired it. I think we had decided that - I'm making this up as I go along - I can't recall the exact measurements - over a kilometer long and several hundred meters wide of what would be considered ore grade if you had enough of it and have completed all the engineering to categorize it as ore grade. That's a prospect that you would hardly ever see. For a company like ourselves to compete with the majors who were also after the property we had to use our wallet and make somewhat of a gamble. I guess that's what I am saying. What we looked at is the fact that the $25 million payment would only come into play if we had a deposit of significance. We thought that the odds were very high that Luicho could be a deposit of significance. So, we viewed it as a very good bet. Other people have put in writing the potential for 8 million ounces - 10 million ounces. We would concur with those people. But I think it could end up being relatively cheap. If you look at the Yanacocha deposit in Northern Peru, its owned 60% by Newmont and 30% by a Peruvian partner - mind you a very good partner, that I'm sure Newmont would be very proud to have as their partner and I am sure have been very helpful in the development. I think, from a monetary point of view, if Newmont had done a purchase option instead of a joint venture it would have looked cheap to get 31 million ounces for $25 million dollars. I think that the jury is out as to whether it was expensive." I believe you have made your point a number of times. As a fellow SIer (and I believe you have a geological backgound), I would appreciate any commentary you might have as time goes on with regard to the more technical aspects of Luicho and any guestimates you might have on the potential size of the deposit. Did Tom Shrakes speech provide any clues? Qd

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