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To: Claude Cormier who wrote (842)	4/25/2001 6:15:51 PM
From: russwinter	Respond to of 4051

Thanks, that jives closely to this mining cost model for a smaller 5000 tpd open pit operation from Western Mining Engineers: westernmine.com They use about $4 for processing and 1:1 stripping in this model. G&A has to be factored in and I've seen $1.50/t used. So a back of the napkin approach is to plug in grade and estimate stripping costs at a $1/t rate. Let's play around with Marlin (FGX) since results are coming. Assuming (good probability) that Marlin hits at least the one and half million to two million oz threshold to justify a 7500 tpd operation. That should knock processing down to 3.50/t? 15000 tpd or a three million ounce reserve would be 3.00/t? All indications are that stripping should be 1:1, maybe even better since everything has been at surface. But let's just say they have to stretch waste to 2:1 to hit the threshold, add a buck/t. Add G&A and I come up with $6/ton. Everything so far has been well in excess of 3 gram/t. Assume an 80% recovery rate to a lowered 3 grams and that's 2.4 recovered. At 275 POG, that's $20 1/2 t/rock. If 3 grams recovered is sustained that's $25 rock. Taking the $6/t cost to that first number I arrive at $80/oz cash cost for my "russwinter back of the napkin early bird scoping study". Maintain the higher three grams recovered and we get $66 cost. As an exercise and evaluation lesson, care to have a crack? Of course depending on the numbers used for the variables, things can jump around. Probably the key for Marlin is hitting threshold tonnage even the grade slips some.

To: Claude Cormier who wrote (842)	4/25/2001 7:42:52 PM
From: d:oug	Read Replies (1) \| Respond to of 4051

Claude, Question about the government of Canada. With 10 of my 15 penny companies in Canada, and with only one at same price, with all rest below and way below and two way way below my investmint cost, might the following be a topic of discussion here? [start.] SI: StockTalk: Cusac Gold Mines (CUSIF) To:Robert J Mullenbach From: Dale Schwartzenhauer Wednesday, Apr 25, 2001 Guys: thanks for the responses! I'm going to wait for the BC provincial elections May 16 before doing anything with an issue that has heavy BC holdings... ... If the NDP is ousted in BC, as widely expected, it should usher in a wave of mining and exploration activity. Dale [stop.] Also, any chance that you may investigate into one of my holdings that is a Canadian exploring in the Northwest Territory. tyhee.com There is an SI thread for this company, and the president of this company Dave Webb who has a Ph.D. in geology reads and posts on the thread. thanks, doug