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Gold/Mining/Energy : Manhattan Minerals (MAN.T) -- Ignore unavailable to you. Want to Upgrade?

To: Sailfish who wrote (3959)	1/14/2000 8:59:00 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 4504

Hello Ray, Basically in-fill drilling includes these drill holes that are within the known perimeter of the resource. They are designed to confirm continuity and grades. I agree with you that the results on the sulfides were very good and should cause some increase in the copper resources. As for the market reaction to the news, it is rather neutral and here is why, I think. The copper/zinc sulfides are a great resource for the long term and any increase should be viewed as positive. However, you must keep in mind that these resources will not be mined before 5 or 6 years as the gold cap must be out of the way first. In other words they will not contribute to cash flows before 6 years. However, the gold cap is of strategic importance because it will be mined first and will generate the cash in the first 4-5 years. These cash flows must be large enough to pay for the CAPEX, the removal of the town and the diversion of the river. I think they are... but the larger is the gold cap the better it is. I am sure you are familiar with the discounting mechanism of future cash flows which means that a dollar earned 5-6 years down the road is not worth the same as a dollar earned today. Since the news were not too good as far as the gold cap is concerned, I think that this good in-fill copper holes brought very little to the whole equation. Would MAN had announced results that confirmed a major expansion of the gold cap to the North, the stock would have reacted upward more strongly. That is my opinion... for what it is worth.

To: Sailfish who wrote (3959)	1/15/2000 9:20:00 AM
From: Bruce Robbins	Read Replies (1) \| Respond to of 4504

Hi Ray, >>definition of "infill drilling"<< They are filling in the gaps between previous drill holes. In a feasibility study one goal is to be able to reliably estimate the grade and tonnage at any point in the deposit. In order to do that, you need to drill a number of holes over a set distance (in this case it appears to be 50 meters) to acquire enough data to be able to say that you are x% certain that the grade and tonnage at an unknown point is ... I would be careful about interpreting the results from the sulfide orebody- MAN has been doing infill over the central part of the deposit, which usually has the most copper and the thickest widths (compare one new hole with an old one nearby). When the definition drilling is complete, IMO we can expect to see the already stated resources change by plus or minus 10% (if they change). The main thing that will change is that they will carry the terms proven and probable reserves. Bruce