CORNUCOPIA RESOURCES CNP.t Message Board

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Gold/Mining/Energy : CORNUCOPIA RESOURCES CNP.t

CNP 39.00

+0.3%

3:59 PM EST

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To: Debt Free who wrote (141)	3/16/1998 5:35:00 PM
From: Ed Fishbaine	Read Replies (4) of 336

I find it very surprising that there is no activity on this thread. I also find it surprising that CNP is not trading at much higher prices. Consider the facts: The Ivanhoe is on the Carlin trend between the Midas mine and Goldstrike, Newmont and Barrick. The Midas contains mineable reserves of 2.75 million ounces of gold equivalent. Infrastructure costs are estimated at $80 million and the mine is scheduled to be operating in May 1999 at 250,000 ounces per year at a cost of $80 per ounce. Ivaboe has a mineral resource at surface of very low grade gold amounting to some 2 million ounces. There is every reason that this gold leaked up from below, either from the Valmy or deposits below the Valmy.The initial holes on the Ivanhoe produced results comparable to the Midas mine, some 15 miles away. The likelihood of of comparable values is very good and even greater values are not impossible. As I see it, had the Ivanhoe been drilled prior to the Bre-X scandal the shares would be trading at $3 on the basis of the first drill holes. Assume that gold will trade indefinitely at $280-300. Most mines will become inoperative. Only mines with low costs will survive. The low gold price does not hurt Midas or Ivanhoe (if it proves out). There is no rational reason not to speculate on Ivanhoe based on the possibilities of making a mine. The failure to speculate at this time is based IMO on irrational fear of a collapsing gold price ( because even at $200 Midas is very viable) and the irrational fear that any gold situation could be scam. If you know anything about the people behind Great Basin (CNPs senior partner on the Ivanhoe) you would not be worried about a scam). If gold recovers or explodes certainly CNP would be more valuable. But I am accumulating the shares with the assumption of a long term narrow range for the gold price. Parenthetically, the reason I don't believe the gold price will collapse is because if this happened it would drive out of business those companies which have sold gold forward. They would have to deliver gold they borrowed by incurring the costs of producing gold without any ability to generate income. By being driven out of business there would be fewer supplies.This would then support the price. At this level gold is a compressed spring even though there is a lock on this spring (i.e. the political factors). I would be interested in hearing comments about the above. In the meantime I just keep accumulating the shares which at 21 cents say the the company is worth some $6 million. This is a joke.

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