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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: PHILLIP FLOTOW who wrote (5231)	12/22/1999 9:09:00 AM
From: gemsearcher	Read Replies (1) \| Respond to of 7235

Hello Phillip. Interesting NR. My 2 cents : 1. Grade and valuation from Leopard are lower than what I had hoped for. That said , pure fissure development feed processed earlier in the fall was c. 30 cpht , and the combined development/stoping material processed in November was > 41 cpht (I wish the NR gave a %age breakdown). If the stoping grade is c.50 cpht and development costs are c. $25/tonne , then @ $100/carat , the mine is economic. Looks like the DB price book is becoming increasingly out of step with market - i.e. SUF's independent valuator had valued the Klip parcel greater than M1 product and M1 is currently @ c.$110/carat. Therefore , I would hope that the $101/carat valuation for Klip will improve. 2. Although still early , grade and valuation (especially latter) from Camafuca are higher than I expected. Time will tell I suppose. Fingers crossed , hoping SUF cuts a deal on this asset - I am sure DB is squirming a bit - if this proves economic , SUF could get a fair coin for farming out a piece to a JV partner if Endiama consents to some marketing rights flowing through to the buyer. Happy Holidays.