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Gold/Mining/Energy : Corner Bay Silver (BAY.T) -- Ignore unavailable to you. Want to Upgrade?

To: Scripts who wrote (265)	10/22/1999 1:19:00 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 4409

Ed, BAY owns the Alamo Dorado deposit in Mexico. The deposit is in scoping/pre-feasibility study and a fair estimate of the start of production date is mid-2001. There are still a few unknowns but the deposit characteristic are exceptional and will make of it one of the most profitable silver operation in North America with a very high rate of return in the 45-55% range. The operation could produce as much as 6-7 millions ounces per year for 10-12 years at a cost that would be near $1.25 in the first year and averaging between $2.25 and $2.50 I guess in the following years. I think this project would go even with a silver price of $3.50-4.00. The question is who will be the operator ? The odds are very strong that BAY will be taken over. It interesting to notice that Alamo Dorado is shaping as a heap leaching open pit silver operation. There is only one other like that in the world, the Rochester mine owned by Coeur D'Alene and producing 7 millions ounces a year at roughly a cost of $4. BAY is currentlty working on the metallurgy of Alamo Dorado (which apparently is much better than Rochester). Logically, they have choosen Metcon Research in Tucson for that work. Metcon are the ones who worked on the Rochester metallurgy. So they know the stuff. BAY is worth your investigation. I am in at $0.50 since last fall and have a target of $5-$6 for the stock...assuming I am not wrong in my analysis. Of course there are still some risks with BAY and these include: confirmation of reserves and metallurgy, permits and licensing, financing. Alamo Dorado is in Sonora state, the best place for mining in Mexico.