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

To: Andrew who wrote (1649)	5/26/2000 10:38:00 AM
From: Brumell	Read Replies (1) \| Respond to of 2255

Andy, I grew up with mining and have been trading mining stocks for 40 years. While not claiming expertise, I passed the novice stage some time ago. A week ago you said PFN was headed south of one dollar. When we debated, you referred to PFN's chart and inferred T/A abilities. I'm not a technical analyst type but at the time thought I saw a condition forming. It looked to me like a double bottom would form somewhere between $1.25 and $1.35 which indicated that might be a good buying range. That's happening. We are now in that range. I believe this is now a buying opportunity. Naturally, that's opinion and FWIW. I'm saying it now rather than later to avoid being accused of hindsight. Who knows!! Perhaps once again I'll be proven an idiot. Bob

To: Andrew who wrote (1649)	5/26/2000 11:25:00 AM
From: Claude Cormier	Respond to of 2255

<<I call a spade a spade 1.5 grams per ton is uneconomic at those depths >> It is way too early to make such an affirmation. With PGM's above $500, this grade can certainly be economic if the characteristics of the deposit are good. For now, we don't have enough data.

To: Andrew who wrote (1649)	5/26/2000 3:52:00 PM
From: Brumell	Respond to of 2255

Andy - here's something I received yesterday from Queenstake Resources. It is a study on bringing a comparatively small low-grade gold deposit into production. It shows some of the criteria involved in a production decision. Check the tonnage, anticipated rates of recovery, and gold prices. It looks like a thin deal. Then think about PFN's property, the metals and their prices involved, etc. A few other considerations about PFN. Their exploration program has just begun on a large property. What they have uncovered has real merit. Chances are good they'll also encounter other areas with better grades. For that reason, I think PFN's morning prices were an excellent buy. Just an opinion, Andy. Time will tell!! _________________________________________________________ FEASIBILITY STUDY RESULTS FOR QUEENSTAKE'S MAGISTRAL PROJECT The feasibility study on the Magistral project, situated in Sinaloa State, Mexico conducted by Kappes Cassiday and Associates of Reno and Pincock Allen and Holt of Denver is now complete. The study is based on the open pit mining and heap leach treatment of 6.15 million tonnes ore at an average grade of 1.86 grams per tonne gold at a production rate of 1 million tonnes per year. The ore will be mined from four discrete pits known as San Rafael, Samaniego Hill, Sagrado Corazon and Lupita. Historic tailings in the Samaniego area will also be mined and retreated. Production from the currently known reserve will total 268,500 ounces over seven years at a recovery of 72.9%. Potential exists for the discovery of additional resources both in the area of the existing defined pits and in other as yet undrilled structures. Proven and probable ore reserves determined by PAH are as follows: Area Tonnes Grade Contained Strip 1,000's Grams per Ounces gold Ratio tonne gold San Rafael 1,284 2.25 92,900 5.2 Samaniego Hill 3,127 1.93 193,800 7.3 Sagrado Corazon 582 1.39 26,000 1.4 Lupita 997 1.37 44,100 4.2 Tailings 166 2.17 11,600 0.0 Total 6,156 1.86 368,400 5.6 Capital requirements for the project in the preproduction and first year of operation, based on the use of suitable used mining equipment, total U.S.$13.7 million, of which U.S.$0.8 million is value added tax ("IVA") and will be refunded during the first year of operation. An additional U.S.$0.9 million will be required as working capital. Over the life of the project, an additional U.S.$3.4 million in capital will be required. Ore will be crushed to 80% -12.5 millimeters and truck stacked in 8 meter lifts; agglomeration is not necessary. Based on metallurgical testwork, recoveries are estimated to range from 63% for the Samaniego tailings to 76% for San Rafael ores and to average 72.9%. Operating costs net of IVA and fuel tax, both refundable, are as follows: U.S$/tonne ore U.S.$/ounce gold Mining 4.49 101 Processing 2.31 53 Lab and Water 0.26 6 General and Administrative 0.89 20 Total 7.95 180 Results of an economic analysis of the project performed at a $300 gold price demonstrate a net undiscounted cash flow of U.S.$27.9 million on a pre tax basis before pre-production capital cost of U.S.$13.7 million and working capital of U.S.$0.9 million. The break even gold price is $249. Other results of the economic analysis are as follows: Pre tax After Tax Discount Rate Net Present Value Net Present Value U.S.$x1000 U.S.$x1000 0% 13,297 10,463 10% 4,669 3,158 Internal Rate Of Return 20.5% 17.7% A detailed project development schedule has been developed which indicates that approximately 9 months will be required from the time detailed engineering begins until the start of operations and 11 months until the first production of gold from the project. Queenstake President Chris Davie commented: "The potential of the project to demonstrate a robust rate of return has been realized. We believe that the project should attract project financing on competitive terms and look forward to building the project over the coming year. We are particularly pleased that publication of these results allows shareholders and analysts to assess the value of the company's major asset."