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

To: Elizabeth Andrews who wrote (13743)	10/8/2000 5:09:56 PM
From: russwinter	Respond to of 14627

Elizabeth, capital costs were alluded to by management in this quote from Tom Shrake. They seem to point to numbers that could be quite reasonable. "Finally I will move on to the infrastructure. Luicho is a challenging location to mine. As such, we have spent a great deal of time and money evaluating the infrastructure as these costs will also factor into the value of the project. Three sites have been preliminarily identified for leaching - all are within the land that we have the option to purchase. The smallest site is a valley-fill site located directly adjacent to the mineralization and therefore best suited for run-of-mine leaching. The second site is located at the south end of the mineralization and the third site is located further to the southeast. Power will be either generated by diesel fuel or alternatively hydroelectric. No mine camp will be required as there are communities totaling over 10,000 inhabitants immediately surrounding the Luicho project. Water is abundant. The only significant extraordinary capital costs expected are higher than average unit costs for the leach pads and the construction of a new access route that crosses the canyon to the south of Luicho, providing a more direct and safer access route for consumables. In summary, Luicho has obvious potential for a low cost multi-million ounce gold deposit. We will continue the long uphill climb to prove the value of the deposit and minimize the risks for potential buyers. By doing so we are maximizing the value per ounce for Pacific Rim shareholders." Lastly, I think you have been right on to question the "blue sky" that was put into this stock before now. I'm wondering however, if we are at the point where the pendulum has swung too far the other way? Perhaps under 1.15, there is a fair chance that the upper sandstone theory is a pretty valid one, and that we may have a couple million ounces of easily extractable gold here? The recoveries on the earlier metallurgy was very impressive and suggests that excessive crushing will not be required. Of course the $100 cash cost theory won't hold up unless there is continuity of the 2 gram plus grade and we are too early to confirm that, although I for one can't just ignore the great trenching results. If the more modest, conservative theories about this deposit hold up though, I see the takeover price per ounce going well above $10/oz, closer to $30 or $40. I also don't think mid-tiers or majors will ignore a two million ounce deposit if the quality is there.