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Gold/Mining/Energy : ARP - V Argentina Gold
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To: Claude Cormier who wrote (1619)12/12/1998 9:30:00 PM
From: Daytek77  Read Replies (3) of 3282
 
Claude

I have looked at Barricks' acquisition record. They paid 1 billion dollars for what they said was 4.1 million oz of gold in August 1996 at Arequipa's Pierina project. The reserves now show more than 8 million oz of gold at a cash cost of $50 per ounce and $56 million oz of silver which reduces the costs by $15 per oz. So they effectively have 16 million ounces of gold which have a cash cost of $35 per oz to produce. Consider this deal was done in 1996 when gold was $375 -$380 per oz. The acquisition cost at the time it was done was a steal. The deposit was worth $2 billion at that time using the data as it is know today. I realize this is based on information not known but Barrick had a good idea of what was eventually reported. If there had been no agreement with Barrick and another company was allowed in to look at the site the price shareholders could have received would have been considerably higher IMHO.

Second, the acquisition of LAC Minerals Pasqua mine was an even bigger steal. On Jan 30, 1996 Pasqua was was considered to have identified reserves of 3.4 million oz of gold. On Feb 6 1997 Pasqua now contains 10 million oz of reserves and 6.7 million oz of resources. Another coup for Barrick.

The bottom line here is that Barrick knows there is more gold here than Argentina realizes. They do not want more drilling and they want a lock-up to prevent competing bids. Considering their track-record, whatever the value is placed on Argentina's property it is worth more and if you are a shareholder you should wait for more results which will undoubtedly show what Barrick already knows. The project is bigger than most realize.

Tony
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