GITENNES Exploration (ase:GIT) Message Board

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Gold/Mining/Energy : GITENNES Exploration (ase:GIT)

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To: E. Charters who wrote (889)	11/23/1997 4:26:00 PM
From: charred	Read Replies (2) of 1092

You are right on when you say that you need to drill the zones off and determine the resource. However a geologist who works for a company must use his best judgement to determine to continue with the project or to drop it. He must ask himself, can I get a better bang for the shareholders dollar here or there. My worry on this property is exactly what you said that there is poor recovery in the drill holes. This shows even more reason to be careful with this project. It is not a sure thing as some say. Actually this scares me and you should be very careful. I have read the geological report on this property. What it tells me is that they probably have a gold hosted shear zone in the Chimu quartzites. There were many uncertainties in the report. These breccia zones are a result of an early folding event. When you fold a quartzite, it breaks up. They mention there are several breccia zones and only one is hydrothermal. I not killing the area. I think the area has great potential. The Oroperu's Tres Cruces and Cambior's La Arena project are in the area and turning out to be excellent prospects. For example the La Arena property is reported to contain 677,000 ounces of gold calculated from 4000 meters of drilling. This zone is hosted in the contact between the Tertiary intrusives and the chimu quartzites. They also reported 350 meters of 0.55% Cu and 0.3 grams Au/tonne in the intrusive. This porphyry style mineralization is not even reported in their reserve calculation. It seems to me the GIT and Cambior has done the same amount of work. The difference is that Cambior has done more with their exploration dollars. Check out the web page for Cambior. They have cross-sections and drill location map. The GIT property indicates that the zone is brecciated but where is the intrusive with respect to the mineralization. I like junior companies who have several projects and are not afraid of dropping projects. I am not saying that GIT should drop the property. They need to drill off the resource at the Rio Suro Zone. They haven't said anything about the resources. How many ounces up to date? Cambior released their data. Some juniors can have too many properties and maintaining them is costly. Juniors with joint ventures with majors are attractive at this time. Why? because they have the financial background and more important the major would quickly terminate the option if the property doesn't pan out. I believe if Cambior had this property they would a release their present resource as they did with La Arena. I like junior companies whose management are not afraid to drop a property. Oroperu, Inca Pacific, Corner Bay to name a few. The market cap of these companies are not based on one property as GIT. Therefore spreads out the risk. The market cap combined of these three companies do not even add up to the market cap of GIT. That tells a lot. The market cap shows that the market says there are over 1.5 million ounces. I think that this company is still overpriced even in this market. There are so many companies at the moment that are great buys where their market caps are lower than their asset values. This is a great buying opportunity.

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