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Gold/Mining/Energy : Pacific Rim Mining V.PFG -- Ignore unavailable to you. Want to Upgrade?

To: skynight who wrote (13028)	4/24/2000 7:21:00 PM
From: charred	Read Replies (1) \| Respond to of 14627

<<<<What do you base that on?>>>, experience. <<<<Is that maximum or minimum time?>>>>>, minimum. They will be a year into the option after they finish the first round of drilling.

To: skynight who wrote (13028)	4/25/2000 8:32:00 PM
From: Bill Jackson	Read Replies (1) \| Respond to of 14627

Sky, WHen they use the term "Bankable feasibility study" it means an exhaustive study of all aspects of the deposit that usually includes drilling it off on 25 foot centers to assure the bank that the $200 million they lent you to build the mine is not based on some enhanced surface chips. So this thing is large enough to take 4000 holes to drill it off. Of course they drill on larger centers at first to step out to the edges in all directions and then they start to make infill holes to meet the banks criteria for granting the loan. At any time if they fail to meet the early feasibility requrements they could cancel the operation. Now if you are Barrick you can make the leap faster as you only need to satisfy your own engineers since Barrick can borrow anytime based on their track record and credit rating. PFG on the other hand must go the long road. This is why many juniors opt to sell to a major instead of trying to become a major. If the deposit is good enough that it alone will make PFG a major they will either ask and get a huge amount for it and bring it to market themselves. It is a daunting and long task to do this drill off. 4000 holes at $10,000 each is $40 million in drilling and development costs....how would PFG raise that? Loans? not good enough to get loans. Equity capital?....quite a dilution factor there, and it would probably take a minimum of two years assuming the $$ were at hand...longer if they have to have ebb and flow fund raisers. So a good case can be made to sell out to a major no matter if I would like to see PFG a self made major. I suspect they will sell out after they prove up a basic deposit worth the majors while. Value?? it all depends on the cubic meters and average grade of the deposit. Bill