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

To: Marshhawk who wrote (1749)	8/22/1999 9:55:00 AM
From: Marshhawk	Read Replies (1) \| Respond to of 2769

More news from down under. [this was actually on Reuters yesterday] commods.reuters.com Just one major problem at Bulong [and this to me, is most instructive in seeing how they define "one" problem] Moody's downgraded Preston from B2 (junk) to B3 (worse junk). In response Preston released a statement including the following: During the course of commissioning the Company has experienced only one significant commissioning problem, that being the failure of agitator assemblies in the pressure leach circuit at the very commencement of the commissioning period. Since that time there have been no significant delays and although "Moodys is concerned that further unforeseen commissioning problems cannot be ruled out,", the Company has taken all reasonable precautions to ensure that adequate backup exists within the system to counter unforeseen problems. In particular down time recently experienced as a consequence of interruptions to steam supply due to boiler malfunctions [not a 'significant' problem right?] will be further insured against by installing a back up boiler system [for free?] which will remain in place until such time as the permanent boiler achieves design availability. [again, not a significant problem and redoing the whole boiler system essentially twice won't cost a lot of money, I guess]. Major mechanical components of the leach circuit now show good reliability and high availabilities in line with design specifications. Flow restrictions in the leach circuit, as a consequence on inappropriate choke valve sizes on flash vessels (a fundamental design defect) are being rectified by insertion of larger valve inserts. One of the four valve inserts requiring change out has been replaced and the remaining two will be available by 21 August 1999. [I guess this was not a significant problem] Gypsum precipitation in the nickel solvent extraction circuit has caused some practical operating difficulties however not restricted throughput of that circuit. The company identified both mechanical and metallurgical means of resolving this situation. The location of gypsum precipitation has now been severely restricted and bypasses will be installed to enable isolation and cleaning of gypsum from the circuit. So boys, if you like this story, Preston is going for 71c Australian. Load up, if you so choose. One remaining question: Do they run out of money before they make money? Moody's seems to think so.

To: Marshhawk who wrote (1749)	8/22/1999 11:36:00 AM
From: dave brown	Read Replies (1) \| Respond to of 2769

There are a number of categories in the 1998 income statement Ted and friends can collect funds from. These are:Consulting,wages,management fees,travel and vehicle, office and general. These alone make up $1,158,774 of the $1,786,040 total expenses. I am not saying they are...but is a possibility. Russia...Norilsk is definitely an awesome world class deposit. The Russian govn. high-graded parts of deposit four or five times already each time causing serious engineering problems. There is talk of engineering problems once again, but they've managed to fix this before only because of its size. Also, new capital injection has to be a major problem right now, however I here the China have been securing future production by providing necessary funds for current operating expenses. Try and find out more. We usually refer to a company as an intermediate producer when they start producing. Intermediate referring to the amount of product being sold on the market. If Canmine was to become a significant provider of cobalt to the market, they could be referred to as a senior producer. Interesting bit about Preston. My source helped engineer the Preston facility and told me many months ago that the recoverable grade was directly proportional to the temperature of steam provided to the system. Meaning by delivering higher temperatures they were able to improve recoverable grades. Doesn't surprise me that they would what to build a back-up boiler system. Interesting. Many analyst and mining heads alike are questioning the laterite delivery, such as yourself. I honestly think its a matter of time, however in the meantime the laterite delay may give Inco an opportunity to develop Voisey Bay. This of course will be good for Canada, but not so good for smaller higher cost nickel producers or potential nickel deposits going into production. Inco is producing nickel for $1.24 avg per Ibs from existing operations and Voisey Bay is expected to be under a buck per Ibs. This makes it tough for upcoming producers, unless of course there is a serious shortage of nickel. Next 18-24 months is going to be interesting.