Armada Gold 10 Million oz of Gold & 1 billion lb of Cu ! Message Board

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Gold/Mining/Energy : Armada Gold 10 Million oz of Gold & 1 billion lb of Cu !

AAU 0.380

-5.0%

Sep 29 5:00 PM EST

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To: ASHLEY5 who wrote (313)	8/27/1997 9:12:00 AM
From: Ross Orr	of 552

Ashley, I think there are a number of reasons for the increase. The feasibility study is due in approx. 6 weeks. If you put on the hat of the corporate development person at a major gold mining company you have a couple of options. One is to go back into the jungle and start punching holes in the ground hoping to discover a new deposit. The other is to sit down and evaluate all the known deposits being held by juniors who have no money with which to proceed any further. You would then decide which countries would be acceptable to do business in. In our case, Russia took a very positive step in the past month when they allowed the banks to participate in gold purchases from Russian mines. Effectively Armada has become a turn key operation assuming the project is bankable and I have no reason to think that it is not. AAU has about 110 million shares o/s fully diluted (I am not including some of the warrants that are way out of the money) This means that 8.5 million ounces of gold and 50 years+ of copper production is being valued at approx. $60 mill Cdn. If a major were to offer a dollar for the whole company they would be paying about US$10 per ounce and get the copper for free. The subsequent sale of the copper would lower the purchase price even further. Again I keep going back to the split of the company into two pieces. I think we should have the right to determine what is sold and for what price. If someone were to make an offer we could have an interesting bidding contest open up. Remember that the important thing for a major is to have reserves in the bag. 8.5 million ounces would add a significant amount to a lot of companies reserves out there. Ross Orr

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