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Gold/Mining/Energy : Francisco Gold - FGX.V -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (777)	5/5/2000 10:12:00 AM
From: Claude Cormier	Respond to of 1907

<<Very unusual to find 1/2 oz per ton material right on the surface anywhere isn't it?>> Exactly. And it is more than on surface. The trenches and pits are 3 meters deep. This 1/2 ounces material goes as deep. The exposed part of the main zone is 350 X 200 meters. Grades of that sort over this area and to a depth of 9 meters would yiel almost 1,000,000 ounces. For sure the average grade will be lower, but it tells you the kind of potential we have if mineralization goes to 50m, or to 100m! As well, such a grade implies an extremely low cost. If they get say .25 opt per ton average... and a cost per ton of $5 which is rather high for open pits/heap leach operations, then the costs can come at $25/ounces assuming a reasonable recovery rates. We are speculating here, but that is the kind of situation we have. And in my book, 2M ounces that can be mined at $25-$50 per ounce are better than 4M ounces mineable at $150. <<Any idea about the schedule?>> They are starting to drill in the next few weeks on the MAIN zone. Will at least 6 drill holes before the rainy seasons starts. Results will be available in June. Then work will concentrate on geophysics and more sampling on the entire property for a much larger drill program after the rainy season in late August/September. OTOH, they might not have the chance to drill further as the drill results could well trigger that takeover we have been expecting for sometimes.