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Gold/Mining/Energy : Pacific North West Capital Corporation-PFN on Alberta -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (1363)	4/30/2000 1:22:00 PM
From: Brumell	Respond to of 2255

Koan the following is from a recent news release by Consolidated Venturex. The point is to notice the grades typical for Inco and Falco within the Sudbury area complex. Despite these grades, both companies continue to look elsewhere. One reason is the high mining cost in the area. <<< The Quartz Diorite Offset Dykes are one of the main sources of economic Pt-Pd-Ni-Cu deposits in the Sudbury camp. Of the 10 known Offset Dykes, all are known to have numerous mineral occurrences with 8 dykes hosting current or past producing mines. An announcement by Inco, on 12th April 2000, demonstrates the potential of the Offset Dykes. The new Totten deposit on the Worthington Offset is reported to have resources totalling 8.4 million tonnes open to depth, with a grade of 1.42 % nickel, 1.90 % copper and 4.7 grammes per tonne of platinum group metals. On the Copper Cliff Offset Inco is reportedly outlining a deposit with over 20 million tonnes grading 3.5 % combined copper-nickel and 5 grammes per tonne of platinum group metals. >>> It should be noted that the area we are currently talking about is completely different from above geologically. It's like apples and oranges. Something to think about before we all get too excited.

To: koan who wrote (1363)	4/30/2000 2:52:00 PM
From: winston.s.c	Read Replies (1) \| Respond to of 2255

Adding to what you were saying about production costs at one of PFN's meetings they were estimating it would cost them about $10 a ton.The value of their rock at that time was about $40 dollars a ton. Production would be very cheap if this turns out to be an open pit mine.Inco and Falconbridge have already built the infastructure. Now it's quite a leap to a 100,000,000 ton from 10,000,000 and that's assuming they have 10,000,000. However let's say for arguments sake they had 100,000,000 tons. If the average value was $40 a ton and production costs were $10, the gross profit excluding capital costs and the rate of recovery would be about $3 billion. Now if they have 100,000,000 tons be assured they will only be left with 35% of this project.That would mean their end would be worth $1,005,000,000.Now of course they will have to do more financing between now and then.So if we said at that time they would have 25 million shares (I think that is generous)gross value per share would be around $40. Now the real question would be how much would another company pay for $1 billion dollar profit earned over a number of years? Now af course there are many factors that are unknown.Higher grades,Price of PGEs just to name a few. When you look at North American Palladium's market Cap and then look at PFN's it seems to me PFN isn't cheap for this stage of the game. Only continued drilling will tell us.

To: koan who wrote (1363)	4/30/2000 5:03:00 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 2255

<<And people don't use it as a flight to quality like they used to>> I disagree. Demand exceed mine production by far and not all is going into jewellry. <<at say 2 grams per ton, open pit what do you think it will cost to produce? I think Claude guesssed $300 to $350 per oz.>> Never said that. The cost may be much lower. I said that if PD prices go below $300-$350, deposits of 2g/t must have very good specifics to reach production. << Some have guessed in excess of 100,000,000 tons ultimately>> Way too early to predict these kind of numbers. They don't have 10M tons has yet. And even if they reach 100M tons, it will depend on the specifics like ore continuity, strip ratios, recovery rates and the like. That looks like a pretty good profit to me. Right now some have guessed at least 10 million tons. <<Many say the price of PGM's will drop dramatically, specifically what would cause this drop?>> It is not so much the price of Pt that is at risk. But the price of Pd. A few years ago, many industrial uses switch from Pt to Pd because Pd was sellint at $100/ounces while Pt sold for $400/ounce. They could switch back again. Keep in mind that less than two years ago, Pd was below $300/ounce. I doubt it will get back to $100, but $250-$300 is not out of the question.