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

To: russet who wrote (83)	7/8/1999 8:09:00 PM
From: Claude Cormier	Respond to of 585

<<I was hoping you had more on the subsurface geology than I knew at present. They did put in some adits, and trenches I thought. >> Indeed. One 103 meters decline averaging 1.5 g/t. 65 trenches over a 4.8km strike lengtht with between 1.5g/t and 2g/t gold. And a 50 meters shaft with a crosscut. I will know more on the geology soon. << I guess the problem I have with gold is the price.>> I have the same problem and will do as long as the trend is not reverse. And that is why I like SWG, it is much more than gold. Add in diamonds, natural gas, silver, zinc. << At $250 US it is at the average cost of production worldwide, and that means gold has now joined all the rest of the commodity metals in that regard. There is no gold premium now. >> Indeed..and it will be extremely hard to justify new projects. I wouldn't be buying underbalued situations if I thought that gold would not move back to new highs in the years ahead. << I don't know anything of the metallurgy of this deposit, or its proximity to power, water, roads etc., >> Not a lot has been published in that regards, but I know that the property is accessible by road and is only 40 miles from a train. <<but it would amaze me if 1 g per tonne gold could be processed and marketed profitably in many places in the world today. >> It always depends on how continuous and close to surface the gold is. Glamis has a below 1/gt deposit in Honduras... They think they can produce at a cost below $150. But I will agree with you 1g/t gold is very low at current gold prices. SWG seems to have at least 1.5-2 g/t. CC