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

To: Elizabeth Andrews who wrote (995)	10/19/2000 10:52:17 AM
From: russwinter	Read Replies (2) \| Respond to of 1907

Elizabeth, Looks like there is no justice in these stocks, opens at 5.80-5.95. F_______ amazing! Excuse my French. Guess I'll just buy more, but getting a little tired of all these "buying opportunities".

To: Elizabeth Andrews who wrote (995)	10/19/2000 11:45:59 AM
From: Claude Cormier	Read Replies (2) \| Respond to of 1907

<<The size is now the issue. It is probably in the 500,000 ounce class after this first phase of drilling using just the first interval in each hole. The average grade is clearly economic with a very favorable stripping ratio and good metallurgy. Heavens, this is making me hot!>> My conclusion exactly. Add to this excellent infrastucture and the potential for more deposits like this one being discovered along this several kilometers long mineralized trend. <<The distribution of gold appears also to be good as there is a high-grade zone that can be mined early which achieves faster payback and enhances project economics. >> Hum! I certainly agree with that but I am surprise you mentioned this here and didn't on the Corner Bay thread. BAY has a high grade starter pit of 11.9 millions tons grading 131 grams silver (2.4 g/t gold eq) near surface with a strip ratio of 0.87:1.00. This will allow them to produce 17 millions ounces of silver in each of year 1 and 2 of the proposed mining plan and 9 millions ounces of silver in each of year 3-5. The early mining plan bumps up both the IRR and NAV. I expect similar results for FGX... although it is a bit early to have a clear picture. <<The rock appears to be worth US$30+ which will likely be more than twice total costs including depreciation and G&A.>> I come up with US$35... but we are in the same ballpark <<My rough calculation suggests a present value of US$3 per share with lots of blue sky. >> Here you appear to be very generous. That is US$45 millions for 500,000 ounces of high grade stuff ? At current gold prices I would be comfortable with US$40-50/ounce for this ore for a possible value of US$20-$25 millions. Can you elaborate ?