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 !

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Sep 29 5:00 PM EST

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To: stockman who wrote (451)	5/13/1998 12:15:00 PM
From: Mr Metals	of 552

Comparison of Bema/Arian (Juliette Deposit) VS. Armada Gold (Taseevskoe Deposit) Julietta is located in NE Siberia north of the Arctic Circle. and is an underground gold/silver deposit with a reserve/resource containing 975,000 ozs gold equivalent. Arian owns 79% of the project and has completed a feasibility study (Kvaerner Davy, Toronto) and organized a $60 million financing package to meet the major portion of a $70 million development of the project to produce 95,000 ozs per annum. Bema Gold recently announced a friendly takeover of Arian issueing 10 million shares to Arian shareholders valuing Arian at $36 million. Bema is paying $33.15 per ounce for for the Julietta ounces. Armada's Taseevskoe deposit is located in SE Siberia (52N) in an area with extensive infrastructure. Taseevskoe has a reserve/resource of 5 million ozs with Armada owning 100%. Armada is currently finalizing (June completion) a supplementary study to their main Feasibility study (Kvaerner, Davy- Toronto). This is expected to confirm the viability of a low capital, start up project for their major deposit. producing 95,000 ozs per annum. Expected capital cost is $40 million. This initial development is a natural lead in to a major expansion of their facilities to exploit their larger resource. This will be done at an appropriate gold price (the project needs $340 per oz). and improved market conditions. If the Bema valuation is applied to Armada, ie. US$33.15 per oz., it values Armada at US$165 million or Cdn$235 million. against a current market capitalization of Can$ 40 million. These numbers do not include the producing copper leaching operation in Mongolia. Armada would be 3 to 6 months behind Arian in finalizing its project so a discount needs to be applied. However you slice it, Armada is trading at a 17% of its gold valuation and significantly more when you consider the copper assets in Mongolia. Mr Metals

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