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Gold/Mining/Energy : Pangea Goldfields T.PGD -- Ignore unavailable to you. Want to Upgrade?

To: salva who wrote (433)	11/4/1999 5:00:00 PM
From: Syncrude	Read Replies (2) \| Respond to of 1178

salva, I think the operative words are "proven and probable". Trying to compare the price at which Sutton got taken out with Pangea is premature at this point, apples and oranges, well maybe oranges and tangerines! LOL Pangea is still at the resource stage and gets valued accordingly. It is not enough to present good intercepts. It must pass the pre-feasibility step first. The indications are very good for speculators. The investors will want to see a bit more.

To: salva who wrote (433)	11/4/1999 5:22:00 PM
From: russet	Read Replies (1) \| Respond to of 1178

SUTTON: *Bought by Barrick for US$ 535 million Perhaps my memory sucks today,...but wasn't the Sutton deal a share purchase? Printing shares doesn't cost much, except a little shareholder dilution. I'd be careful using that value, as the value of the resource if Pangea trys to develop it alone, or looks for a cash offer. I would go along with a share buyout by another major though. Perhaps Homestake should come and take a look. I liked their buyout of ARP. Found the NR on ABX site. Memory still works (ggggg). Barrick Gold Corporation and Sutton Resources Ltd. announced today that Barrick will offer to purchase all the outstanding shares of Sutton. The offer of 0.463 Barrick shares reflects a value of C$13.25 for each Sutton share and is based on the February 16, 1999, closing price (C$28.60) of Barrick shares on The Toronto Stock Exchange. The value of Barrick's offer will be about C$525 million for the approximately 39.6 million shares of Sutton on a fully diluted basis.

To: salva who wrote (433)	11/7/1999 3:58:00 PM
From: timbouctou	Read Replies (2) \| Respond to of 1178

Great news! (I was away on business), better than expected (by me). Everything that we have seen from Tulawaka so far points in the same direction : high grade, high volume, large open pit portion, low cost... (I admit I am a "little enthusiastic"). If the trend continues (not a big "if" IMO), I will have to review my estimates, and $15 will be for Tulawaka only! I note that the strikes are open at depth and on the south (previous release; three plunging ore shouts over 1 km etc.. So, IMO much (?) more good news to come. I believe this a first of three PRs on Tulawaka. If these guys know their business (no reason to doubt) there should be a "news" crescendo. The next news should also be very good. Normally they have set the table with this one and we could expect more details in the coming ones. On the PR front: I think that they are approaching their PR in a prudent low-key manner, which is OK with me (though I am anxious to see the price of the shares pass the $5 barrier to increase my margin..). They will (should) try to make as much mileage as they can with the very impressive results that they have. To do so (other than sequencing their releases) I think that they have to focus on brokerage houses and their research people (though an article in the Globe or National would be nice!) so that they start using real "market values" to estimate the value of PGD. The brokers use a figure of C$20 to C$30/oz for gold in the ground as oppose to actual reference prices in this part of Tanzania of US $50 to $60/oz : a huge difference on the value of PGD! I would like to stress the fact the US $50/$60 an oz is not a dream or a target: it is a market price for these properties (BTW Syncrude, I am waiting to see the basis on which you evaluate PGD) Eventhough the results have been great, and I believe will continue to prove so, the number of meters drilled are LIMITED (2500+ m.). Therefore we cannot expect that they will be in a position to prove (in a manner acceptable to the TSE authorities) that they have millions of oz of gold reserves in Tulawaka. Since they are not in the e.com business, they need more drilling for that. This why I think that the company SHOULD announce soon (the sooner the better) a massive drilling program on Tulawaka for the first 3 months of 2000 (20,000 to 30,000 meters). Given the results so far, it is difficult to think of a better way to use their money than to drill this property. This decision should be made irrespective of negotiations going on with any major. We need to have data to bring the evaluation of reserves in the proven/probable category (note that they can probably provide an estimate of proven reserves on a portion of the talus, since they drilled at 12.5 meters intervals). I think that this is the single most important strategic decision that management has to make. It will further substantiate the strong belief among the investing community (and the mining community) that company is convinced of the value of its property. So an announcement of massive (relative of the size/means of PGD/MDN) drilling program should be made ASAP. Imwero (100% PGD): Obviously the results will be interesting (though very limited); otherwise, why would they make an announcement on a drilling program and a property which we (the "outside world") did not know they had! So this will contribute to further improve the attractiveness of PGD. So again, we should watch for: 1- Imwero rab drilling results (week of Nov 8) 2- More Tulawaka results (Nov ??) 3- More Tulawaka results (Nov or Dec ??) 4- Golden Ridge results (Dec or Jan??) 5- Announcement of major/aggressive drilling program for 2000 (Nov ??) 6- News from various brokers indicating a positive review of their target price for PGD (Nov/Dec) : this would reflect the effectiveness of PGD in their discussions with brookers. 7- A possible take-over bid (Nov-Dec)?? Finally I am more convinced than ever that $15 is a realistic target price for a pre-emptive take-over. This of course will be possible only if a potential buyer knew or feared that a competitor was also interested. If there was currently only one interested buyer, then PGD should not accept an offer too far from the target price and wait after the winter drilling program. I am eager to sell (I also have a fair number of shares, unfortunately not as much as you seem to have) but I would rather wait a few months than accept a "low price". Given the results that we have seen so far on Tulawaka, the real interest demonstrated by Barrick on Golden Ridge (expansion of drilling and probable exploitation in early 2001 to feed their mill in Bulyanhulu with important positive cash-flow implication for PGD), other drilling programs (Mgusu), what can we lose? Nothing IMO given the current share value. What can we gain? A lot I think, and $15 will not be enough in May or June (providing that a serious drilling program is initiated in Tulawaka).