I just read the Annual Report for 1996. Some things of note:
Regarding Hinoba-an: "The initial years in which copper grade
will exceed 0.55%, will permit production at under $0.50 per pound,
allowing for a raspid pay-back on the estimated U.S.$235 million capital cost. Estimated average cash costs of $0.61 per pound of copper suggest a high level of profitibility can be maintained over the life of the operation" (p 5). "The company has the right to obtain the remaining 50% . . . by making a payment of $15,000,000"
(p 13).
Regarding Khan uul Property in Mongolia (p 9): "One mineralized zone grading 0.8 to 6.2 g/t gold is reported to contain a possible resource
of 550,000 ounces of gold. Additional resources are likely to be located in this promising area, where no drilling has occurred."
(N.B. no drilling has occurred. So how do they know it has 500,000
oz?)
Pursuit's expenses for 1997 are projected at $15.1 m (p 12).
"In October 1996 all of the Company's COWs under application were approved by the Indonesian Department of Mines and Energy and, as the final step in the ratification of the COWs, must be forwarded by the
Department of Mines and Energy to the Indonesian Parliamentary Committee for signature. While the Company's management expects that the Company's COWs will be signed by the Indonesian Parliamentary Committee within the next year, there can be no assurance that this will take place." "To permit the exploration of the areas subject to the COWs underapplication prior to the final ratification of the COWs, the Company entered into temporary exploration licenses ("SIPPs") covering each of the Company's COW areas. The SIPPs became effective between April 1, 1996 to July 1, 1996 and extend for a period of one year each. The SIPPs are renewable for periods of one year each,
subject to the completion of progress reports satisfactory to the Indonesian government, until the COWs are signed by the Indonesian Parliamentary Committee."
Pursuit now has a website at www.pursuit.gold.com. (I haven't checked it out yet).
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Nice gain Monday in the stock. Anybody care to speculate why? Have we finally made a solid bottom?
Bear |
