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Gold/Mining/Energy : Canadian Golden Dragon (V.CGG) -- Ignore unavailable to you. Want to Upgrade?

To: Mohammed Bhimji who wrote (114)	1/6/2000 12:45:00 AM
From: dave brown	Respond to of 125

Field work commencing in prep for a winter drill program. Remember CGG have half the number of shares outstanding than EWR, so we should theoretically trade at twice the price. Canadian Golden Dragon Resources Ltd - Canadian Golden Dragon geophysical surveys under way Canadian Golden Dragon Resources Ltd CGG Shares issued 11,466,593 2000-01-04 close $0.08 Wednesday Jan 5 2000 Mr. Ken Crosby reports Ground magnetic and induced polarization surveys are being completed this week on the McIvor magnetic anomaly in preparation for selection of drill targets. This property is located within the Nipigon Plate area, however, exposed Quetico rocks in the immediate vicinity of the property suggests this anomaly is caused by a Quetico-type pyroxenite-gabbro body more similar to the Lac des Iles intrusion that hosts North American Palladium's 94.1-million-tonne palladium, platinum, nickel-copper-gold mine. Ground magnetic survey results to date suggest the McIvor body is 60 metres to 8000 metres in diameter, similar in size to the "Eastern Gabbro" at Lac de Iles. IP surveys will be completed this week, which will assist in mapping alteration and disseminated sulphide zones within and at the margin of the intrusive body. The McIvor property is jointly held by East West Resources (50 per cent) and Canadian Golden Dragon Resources (50 per cent). Both companies are jointly working on three other nearby properties called Hele, Disraeli, and Seagull.

To: Mohammed Bhimji who wrote (114)	1/6/2000 12:48:00 AM
From: dave brown	Read Replies (1) \| Respond to of 125

NAP will really help boost PGM exploration interest in Thunder Bay: North American Palladium Ltd - North American Palladium receives Lac des Iles study North American Palladium Ltd PDL Shares issued 11,837,836 2000-01-04 close $7 Wednesday Jan 5 2000 Mr. Keith Minty reports North American Palladium has received a positive detailed feasibility study on the proposed major expansion of the Lac des Iles open pit palladium mine. The feasibility study was prepared by AGRA Simons Limited and supports an expansion of the operation to 15,000 tonnes per day from the current 2,400 tonnes per day. AGRA Simons concludes that the Lac des Iles expansion project is technically feasible and economically viable and recommends its development as an open pit mining operation combined with ore processing facilities to produce a bulk flotation concentrate. The expanded operation is expected to produce an annual average of 248,900 ounces palladium, 24,200 ounces platinum, 19,100 ounces gold, plus copper, nickel and cobalt over an 11-year mine life. The study follows a highly successful core drilling program during 1999 which significantly increased the geological resource at Lac des Iles to over five million ounces of palladium. As a result of the feasibility study, the company is pleased to report a new minable proven and probable reserve of 74.2 million tonnes with an average grade of 1.64 grams per tonne palladium, 0.18 g/t platinum, 0.14 g/t gold, 0.066 per cent copper, and 0.055 per cent nickel. The reserve is based on a cutoff grade of 0.92 g/t palladium equivalent. The reserve is diluted only on the east side of the deposit where high-grade reserve blocks in contact with the barren hanging wall are diluted by 15 per cent. The average strip ratio over the life of the mine is 2.26 to 1. The company reports an additional measured and indicated resource of 23.5 million tonnes at 1.46 g/t palladium, 0.18 g/t platinum, 0.11 g/t gold, 0.049 per cent copper and 0.052 per cent nickel which is outside the proposed pit shell. Subject to the availability of financing and environmental permits, the company anticipates construction startup in March, 2000, with concentrator commissioning in second quarter 2001. The expansion capital is estimated at $126.5-million (U.S.). The capital cost includes a new 15,000-tonne-per-day concentrator, larger primary and ancillary mining equipment, preproduction stripping, expanded tailings management facility and new site infrastructure. During the expansion phase, the existing concentrator will continue to operate at capacity until commissioning of the new concentrator. The new concentrator will process 5.5 million tonnes of ore per year and palladium recovery is estimated to improve to 80.7 per cent for the life of the mine as a result of finer grinding and a longer floatation retention time. AGRA Simons expects that the initial capital costs will be repaid within 2.5 years, following commissioning of the new mill. The after-tax internal rate of return is expected to be 26.6 per cent while the net present value of the after-tax cash flows, discounted at 7.5 per cent, is $100-million (U.S.). The study was based on conservative palladium prices of $350 (U.S.) per ounce for the period 2000 to 2002 and $320 (U.S.) per ounce thereafter. Currently, palladium is trading in the range of $450 (U.S.) per ounce. The direct operating cash cost of palladium production during the mine life is estimated at $131 (U.S.) per ounce. This cash cost is net of other metal credits, excluding royalties. The company intends to finance the project capital requirement with debt and has been in discussion with several lenders. With the receipt of the positive feasibility study, the lenders can now finalize their due diligence process which will permit the company to select the lead bank to finance the expansion. The Lac des Iles palladium deposit is mainly contained within the Roby zone which is fully open at depth and from surface exploration indications appears open to the southeast. During the first half of 2000, the company has committed up to $3-million (U.S.) for further exploration. This program will consist primarily of core drilling to test the down dip and southeastern extensions of the deposit plus additional targets in close proximity to the proposed expanded pit. The drilling program will be initiated in mid-January, 2000. The Lac des Iles mine is 85 kilometres north of Thunder Bay, Ont., and is Canada's only primary producer of platinum group metals and one of the largest platinum group metals deposits in the world. Palladium is a vital and essential component in the production of auto catalysts, which significantly reduce harmful automobile emissions. World demand for palladium continues to increase as a result of legislation enforcing stricter vehicle emission limits. WARNING: The company relies upon litigation protection for "forward-looking" statements. (c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com