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Gold/Mining/Energy : Francisco Gold - FGX.V
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To: Claude Cormier who wrote (1851)3/22/2002 4:35:45 PM
From: russwinter  Read Replies (3) of 1907
 
<strip ratio appears a bit high near 2.5:1>

I spent a good half hour talking with Dale Corman (seems like a real good guy, toiling geologist type) about this property when I wrote out my check for the WTC PP. Their feeling is that the stripping ratio could be towards 2:1. Of course there has already been work here so were not talking grassroots. The goal is to establish a substantial proven and probable reserve this season using 50 by 50 grid drilling.

The arbitrage spread on FGX is too wide with only a six weeks or so wait on the conversion. Based on a 1.578 currency conversion rate, I calculate 14.13 versus the 13.36 close: (5.06 X 1.55 X 1.578+ 1.75). And that assigns a very conservative value of only 1.75 (1.50 for the cash and only .25 for the prospects) for the exploration spin off. If you don't need the money right away, just wait for the spread to narrow or just take GLG and the exploco spinoff and then sell GLG into a more liquid market. Also US investors especially, watch out if you use discount brokers like Greenline on this. Don't assume they will just send you the proxy form to exchange your shares and they definitely won't call. It might be worth while for a few people to indicate here when received.
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