SRU-ASE : STARFIELD RESOURCES Message Board

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Gold/Mining/Energy : SRU-ASE : STARFIELD RESOURCES

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To: CIMA who started this subject	1/29/2001 10:25:03 AM
From: jamesandrews	of 1239

Fom another board,Regards Jim The interest by numerous majors over the last year indicates that there is substance to this play. Apparently, there are another two talking to them presently. The fact that no majors have stepped up to the plate yet is indicatative of the state of mining plays and the major's intention of playing vulture. Why pay fair value for Starfield shares, when the belief is that Starfield can't raise enough dough to keep their program going? Why not sweep in after Starfield's finances have dried up and get it for a song. This won't happen here! The company continues to raise capital and keep their program moving forward. Ultimately, the play will turn out to be too spectacular and the majors will move in, particularly if the PGM prices prove sustainable. The extra value provided by Cobalt (and now Rodium)only serves to strenghten this play. The value per ton at current prices is apparently around $180 US per ton. The GeoFin report was interesting. They priced this play based upon current data at $4.61. I have modelled it myself, and I concur with their valuation, assuming that the capital costs are accurate. The GeoFin report regrettably did not provide any kind of sensitivity analysis on what this play might be worth if the resources prove up to be significantly higher. If I extend my model to tonnage circa 100 million, with existing grades, the number of $20+ Cdn is in range. Based upon everything I have read, 100 million tons is plausible. The wild speculation on what this thing could ultimately command is not unreasonable. One of the things that seems to be a recurrent theme in all of the various analysts critiques of this play is the remoteness of the area. The current value of the company appears to be carrying a large discount because of this. One of the company's Directors is a Northern Canadian mining veteran. The company has econically viable options for dealing with this concern that address this concern. While many are aware of this, I think the company has got to nail this objection so Nanuvut is not longer regarded as something not unlike putting a rocket on Mars. Apparently, moving the product via pipeline to Rankin inlet for barging to where ever is more than viable. I've got a huge chunk of this stock. I've been in it for a long time and the play has done nothing but improve in its potential. I'd like nothing more than to see it north of $20 sometime next fall. I've seen it over all it peeks and valleys and have accumulated over the last two years. The play is not for the faint of heart. I'm still sticking around for a hopefull payoff. Cdn Clipper Advertisement: « Previous Message

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