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Gold/Mining/Energy : Ontex Resources (ONT Alberta) -- Ignore unavailable to you. Want to Upgrade?

To: wharryr who wrote (358)	7/31/1999 6:56:00 PM
From: mark warburton	Read Replies (2) \| Respond to of 519

Dr. Myke is right in pointing out what has already passed. He points out also that the vlaue of Ontex is back where it was before the settlement. Back then a bidding process had taken place between a number of large firms. In each instance the bids were roughly 7.5 million for 55% control of Brookbank and Cherbourg only. At the time you had 15 or 16 million shares outstanding. So the majors were offering 7.5 million for 17 million Ontex shares or 44 cents per share. Now that included the 2 claim areas. The current seting is the entire property with additional drill results in outling a further 1500 foot extension on Brookbank and deeper testing if Cherbourg at very positive values. In addition up to a 70 percent stake in the balance of the claims and Fox Ear as a kicker. I think with the current stock price the market price of Ontex reflects the bare minimum a major would be prepared to pay. They were offerong 44 you have additonal claims, more positive drill results and likely a very good chance of continuing to expand the Cherbourg zone. Downside from here is minimal on fundamentals, but markets are not always efficient and are prone to over reaction over correcting and price manipulation. If you stand back and look at the property for its merits only you have a very good prospect for multimillion ounce deposits. Geraldton Beardmore is one of the top 5 producing gold camps in Canada. Geologists comments on the area are that grades stay fairly consistent and are reasonbly easy to find in slanting veins. This has proven so with past and current drilling of the properties we have. Seems like you can go up and down the fault and target the 1000 to 1500 foot range and continuosly pull in good grade. Thickness varies but grade is consistently high. The numbers they are reporting on these holes are good. Not great but good and consistent. Hemlo is a .30 deposit. Considered world class by anyones standards and yet .40 with Ontex gets a ho hum. Only cause we expect that as a minimum. Dr. You pointed out in a previous post this property will take years to define properly and you are right in that observation. As you are well aware though the tide can change in a hurry and pessimism can turn to optimism at the drop of a hat. In all my conversations with any of management they are all extremely cool about the situation. That bothers me!! When something gets out of control at my workplace hey we correct it or find out whats wrong whats up and react. We don't say oh well the markets soft or a price of some commodity is off. Real sorry but when the best guesstimate to produce the gold up there is running around 220 canadian and the price of gold sits around 375 canadian there is still lots of profit in the resource. Just the inferred resource on Brookbank is well in excess of the current market cap. If more then one major was offering around 44 cents a share for part of the property they must have assumed they would get their money back probably minimum ten times over. The stock will pan out just got to be patient. To quote you once again Accumulate on weakness when nobody is interested. Beggining to think your a contrary indicator. when you say buy we should sell when you say leave it I would imagine your just about on the bid. Myke whats up? Mark

To: wharryr who wrote (358)	8/3/1999 8:22:00 AM
From: mark warburton	Respond to of 519

Interesting article below sorry about all the space. Would be nice to see that! Mark Search by: Enter keywords IndustryNews The Internet Trade Events Worldwide Gold Price To Go Up To Us$325 By Year End Source: Africa News Service Harare - A South African commentator, who predicted 20 years ago that the price of gold would sky-rocket from US$266 an ounce to US$850 an ounce in six months, but was ignored by the market, says the price of gold, now currently below US$260 an ounce will rise to US$325 by the end of the year. In an article in the Smart Investor, Clive Roffey says, demand for gold is outstripping the normal supply by about 1 500 tons a year while production has been falling, declining by 7 percent in the March quarter. He says the combined sales by the United Kingdom, the International Monetary Fund and Switzerland will not make up this shortfall. The UK plans to reduce its gold reserves from 715 tons to 315 tons and plans to sell 125 tons this year. The IMF which holds 3 200 tons plans to sell up to 10 million ounces for debt relief. It needs 85 percent of its members to support this move before it can go ahead. The United States, however, has 45 percent of the weighting in the vote which means if the United States congress approves the sale it can go ahead. But some lobbyists are already arguing why the IMF should sell the gold to help poor countries when they are likely to be the worst hit by the collapse of the gold price. Switzerland plans to sell 1 200 tons over five years starting in 2002. Roffey says since demand is higher than supply, the only reason the gold price is depressed is because there has been a well-documented attack on gold by the hedge funds that borrow gold from banks and immediately sell it to generate cash that is then invested in other markets to yield a positive return. "Ultimately, these funds have to return the gold to the banks from which they borrowed it. Provided the hedge funds can keep the price of gold down they are making huge manipulated profits." He says it is interesting to note that every time bullion starts a substantial rally, out pops a leading politician or banker to demand sales of gold. Another commentator puts the gold price at between US$250 and US$280 but quickly cautions: "The gold price has a mind of its own. It may be very negative now, but it can easily spike up US$10, US$20 or even US$50." Flemings forecasts the price at US$270 an ounce for this year, US$275 for next year and US$281 for 2001. It says, however, for the 1999 target to be attained the average price of gold should be US$260 for the second half. It says on the negative side is the threat that central bank sales will continue to depress sentiment, potential IMF and Swiss sales approvals, the availability of gold loans which support short position-taking, the continued US dollar strength and the likelihood of the lowering of forward sale "trigger prices". On the positive side though is the opposition lobby which is gaining strength, the probability that the US congress may not approve the IMF gold sales, inflation concerns which are beginning to build and gold demand which is up 61 percent. In Zimbabwe, gold production has continued to expand in spite of the depressed prices. Output has increased by 35 percent in the past five years, from 18.5 tonnes in 1993 to 25 tonnes last year. Barclays Bank says there was a further 5.6 percent rise in the first quarter of this year with output for the year expected to increase to 26 tonnes. It says gold has played a very large role in defending the balance of payments position in the absence of IMF funding. In the first quarter of this year, gold sales accounted for US$57 million, or slightly more than 50 percent of all cash exports. (Copyright 1999 The Insider.) Distributed via Africa News Online by Africa News Service. (Copyright 1999 Africa News Service) _____via IntellX_____ Publication date: Jul 30, 1999 © 1999, NewsReal, Inc.