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Gold/Mining/Energy : Golden Eagle Int. (MYNG)

MYNG 0.0700

+5.7%

Feb 21 4:00 PM EST

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To: steadyasyougo who wrote (30473)	2/8/2003 1:24:33 PM
From: Claude Cormier	Read Replies (1) of 34075

Dear Gerald, >What is your current thinking on value of gold in the >ground in terms of proven and probable reserves, at >today's gold price of say $370? Assuming you stick to the real definition of proven and probable reserves (ounces that exist or that have very high probability of existing, and that are economic to mine): Canadian Definition cim.org International Definition jorc.org I would say that that the value of an ounce is probably between between $50 and $200 depending on specific operating and capital costs as well as tax specifics in the country where the project is located. This will vary widely as you can understand. >What would your numbers be at $500 gold? Add $80-90 to the numbers above. >And, is it appropriate to use probable reserves? You can use resources if you want, but then the numbers go from $0 to $50 depending on the quality of the resources and the likelyhood of them becoming reserves. >I thought you should only use proven reserves? Yes, preferable. It is how the US Gaap works. According to US GAAP, only those ounces that are proven or probable and that can be mined at a profit can be added on a balance sheet as an asset. That is why in the US all exploration expenses that prove only resources cannot be capitalized. BTW, there are additional factors that will help you evaluate a company. There is more than ounces in the ground (proven or else).

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