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Gold/Mining/Energy : NDT VENTURES -- Ignore unavailable to you. Want to Upgrade?

To: Elizabeth Andrews who wrote (933)	1/4/2001 9:39:29 PM
From: russwinter	Read Replies (3) \| Respond to of 992

And you have the staged purchase price to consider for the deposit if it comes through. My eyes nearly glazed over doing the strange formula, but essentially I came up with about $7 /oz (two thirds after feasibility and the rest as a royalty) to buy in for their 80% of the deposit (assumes 1.6 million of 2 million oz). That adds a good chunk to exploration expense. Here it is from the IR: The company can earn its interest by paying (all US$) $1.15million, with $200,000 payable on signing; and conducting $2.25 million in exploration over four years, completing a feasibility study, and purchasing economically recoverable ounces of gold as defined by the study. The Company will initially earn a 50% interest by completing the above payments and work expenditure, and purchasing 30% of the defined gold ounces at $10.00/ounce. It can increase its interest to 80% by arranging financing for the project and by purchasing an additional 25% of the defined gold ounces at $8.00/ounce based on a $300 gold price, payable out of cash flow from any mining operation. NDT will receive preferential payback until all capital costs have been repaid, with Minera Solimana then receiving 20% of cash flow. Unless this comes in well under $145 cash cost (??) why not just buy an advanced stage deposit like Minefinders four and half million ounces ($145 cash cost) at two bucks (ten million mkt cap, EV) an ounce already proven up. A lot cheaper.

To: Elizabeth Andrews who wrote (933)	1/4/2001 11:03:20 PM
From: charred	Read Replies (1) \| Respond to of 992

"Does the structure have the potential to hold 50 million tonnes?", don't know yet. But to the southeast samples returned 1.75 grams Au. What about 30 million tonnes at 1.2 grams Au. "Mining rate 20,000 tonnes per day? Costs less than US$6 per tonne? Average grade 1.2 g/tn? 80% recovery? Overall stripping ratio 3:1? Average thickness 30 meters? Strike length?", this what the scoping study will tell us. About risk. I prefer the treasury to be spent on drilling than on management salaries and the Vancouver office. It takes a lot to find good quality projects. This one shows promise. For myself I see no risk. I know when to bail. Cheers