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Gold/Mining/Energy : Corner Bay Silver (BAY.T)
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To: Claude Cormier who wrote (1118)7/14/2000 4:57:02 PM
From: russwinter  Read Replies (2) of 4409
 
Certainly the issue has not been dilution to date, and that's the reason we have so much upside potential in this stock. How much do you think a mining operation would cost and how long would it take to construct? The problem as I see it is that the market will give no premium to them if they try take this puppy into production. If that is the case then heavy dilution at current price levels wreaks the equation, and mires us (one year, two years) into the uncertainty of a risky development play.

The last few years are riddled with busted small company producer plays. I think the Pangea model is the way to go. They recognized the risk in developing Tulawaka and sold at a price some criticized. All I can say, is that shareholders who bought a year ago on that one made 400%, and a big chunk was their announced intention to sell. Obviously I'm in BAY because I hope this one plays out the same way. I'll bet that BAY gets mired at $3 if they lean towards a production play, and investors who see it my way will get out. I see a great reward here with the Pangea (or Hunter-Dickinson) model and a possible dud otherwise.

The question of who buys this is an important one. Are you saying large or mid tier producer interest would be limited because of inexperience with this kind of operation? That concerns me, as it raises the go alone odds.
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