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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (20894)	6/18/1999 7:03:00 PM
From: Andrew	Read Replies (3) \| Respond to of 26850

I certainly think that the stock will hold up but trading may be volatile. Any opinions on where it opens. I mean these values are still better than Diamets as far as I know.

To: Rocket Red who wrote (20894)	6/19/1999 5:48:00 AM
From: Bob Fairchild	Read Replies (1) \| Respond to of 26850

Red, the market will probably dwell on the lower valuation from pit #4 vs. the combined valuations of pit#1/#2 and ignore significant improvement of grade and larger diamonds from this "inferior" pit. PIT #1 (100 tonne) PIT #4 (3000 tonne) stones>3 c. 2 88 stones>10.8 c. 0 6 grade .848 c./tonne 1.85 c./tonne The grade is more than twice that from the original smaller sample. Because we are dealing with a bulk 30 times in size, it goes to reason that 60 stones > 3 carats be pulled from pit #4. Instead we got 88 stones. The larger stone population could not be extrapolated because none had been found previously to this bulk sample in that weight range. Continuing onto comparing pit #2 and pit #3 if we were to do the following extrapolation, we would get the following: PIT #2 (100 tonne) PIT #3 (3000 tonne) grade 1.5 c./tonne 3.27 c./tonne stones>10 c. 1 30 The valuation should work out accordingly and bring the total valuation of the two pits to around $275/tonne U.S. if pit #3 sees similar improvement in grade IMO. Bob