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

To: Mike Hermann who wrote (22582)	7/7/1999 12:32:00 AM
From: Ron Struthers	Respond to of 26850

Free 4 month trial subscription to RSA Hello folks, don't mean to intrude and I am a Winspear fan with my previous comments on WSP below, I do drop by this thread now and then, thought I would offer this on a couple threads on stocks RSA follows. This offer is open to anyone who has never subscribed to the newsletter before and is open to the first 50 who respond by e-mail to resource@bmts.com Please respond with full name as well as e-mail address I only ask that you have a genuine interest in the possibility of becoming a subscriber if you like what you see after a free 4 month trail. The newsletter follows resource stocks only, mostly mining plays (base and precious metals, some diamonds, PGEs) as well as oil&gas stocks, market and commodity analysis, as well as frequent e-mail updates. RSA believes a newsletter does not tell you how/what to invest but provides ideas and opportunities to act on, however the newsletter does follow a particular investment strategy to those interested and uses this to track buy/sell and performance (listed below). Following is an excerpt from RSA's last update on Winspear ************************************************* Resource Stocks Advisory V5 # 3.2 June 20 1999 Winspear Resources WSP on VSE Recent Price - $4.05 Entry Price - $2.16 Opinion - hold In my original write up on WSP, I reported on their mini bulk sample and that the results were simply excellent and doubted a large bulk sample could match these results. The first results from the bulk sample came out on Friday when Winspear reported the processing of 3,003.9 dry tonnes of kimberlite from Pit 4 on the NW dyke and this recovered 5,542.27 carats of diamonds valued at US$98.42 per carat. The value per tonne reported was US$181.58 compared to US$343/tonne in last years mini bulk sample. I commented that I expected lower results from this larger bulk sample but as long as it was reasonably close that would be fine. MRDI Canada did a scoping study on the mini sample and used a value of $400/tonne Canadian. The current bulk sample comes in at $267/tonne Canadian (Cdn$0.68/US$) and I believe these results are pointing towards another Canadian diamond mine. Five thousand plus carat sample gives a very good indication of value and Winspear's diamond value of US$98.42 per carat compares very favorable with Canada's other two major diamond discoveries/mines. The Dia Met/BHP Ekati Diamond Mine was valued at US$89/carat when it was in it's feasibility stage and the Diavik diamond venture, 40% Aber Resources has diamonds valued at US$56/carat in their feasibility. In fact the Diavik feasibility at US56/carat and 3.6 carats/tonne, works out to a value of US201.60/tonne, quite close to the Winspear results and Diavik is advancing towards production. These results are encouraging and positive and we should see a clearer picture on average diamond grades when kimberlite removed from Pit 3 is reported. Pit 3 is approximately 260 metres south of Pit 4 and is adjacent to Pit 2 that was excavated in 1998 and from which 94 tonnes were processed to yield 138.21 carats. Processing has begun and results from Pit 3 are anticipated about the end of July. I expect Pit 3 will have a similar value/carat, but what will be most interesting is how the grade or carat/ton compares with Pit 4. I would like to see consistent or similar grades to Pit 4 or a slight upward bias would be fine. The key to look for is consistency. The next question of course is how the stock will react. The market probably had higher expectations so a sell off would not surprise me. However the stock has already come down from $5 and does have strong technical support around $3.75, a drop to $3.50 or less could be a good buy opportunity for traders. If you have been following RSA's strategy, you should have taken part profits and I would continue to hold the remaining position. Results from Pit 3 and drill results to give more indication of the tonnage or size of the NW dyke could bring the kind of news to move the stock much higher. RSA Performance as of July 2/99 Current 12/31/98 Gain/loss Avg YTD Gain of current 46 RSA picks............ ................. +1.79% Gold London PM Fix ................... 263.10 ........ 289.50 ........ -9.12% Handy Harman Spot Silver ......... 5.39 ........ 5.95 ........ -9.41% Copper NY nearest future ............ 75.75 ......... 76.90 ...... -1.50% Toronto Gold&Silver Index ......... 5322 .......... 6379 ......... -16.57% Cdn PM Funds, 5 mths to May 31........ ................. -7.50% Vancouver Mining Index ............. 295 ......... 527 ....... -44.02%