Corner Bay Silver (BAY.T) Message Board

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Gold/Mining/Energy : Corner Bay Silver (BAY.T)

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To: Paul-D who wrote (790)	4/19/2000 10:27:00 AM
From: Claude Cormier	Read Replies (1) of 4409

Paul, Recovery rates are certainly the most important issue here. Rates of 50% will give a IRR or 30% and a NPV of $2.50+ per share, but rates of 70% implies an IRR of 57% and a NPV of $7+. Base on the 100M ounces number. Metallurgical studies take from 4 months to 6 months, sometimes more if you need to tune in the formula. The tests were scheduled to start in December, but only started in mid January, pushing back the delivery date from April to May/June. Although the company has a good idea of what to expect, I am convinced they have nothing official from Metcon that they can release. In the mean time, you are right that the reserves picture could change dramatically in the next two months and we may be looking at a completly new ball game when the recovery rates are release. One thing is sure, no major will act before those rates are known.

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