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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsheet who wrote (68390)	4/28/2001 3:36:31 PM
From: russwinter	Read Replies (1) \| Respond to of 116760

<just plain common sense> Certainly, and the main point of the "high grading" question with prices this low is true replacement of the same quality reserves. That's what I've been suggesting. When you mine 100,000 oz of oxide right from the surface, it is not the same as 100,000 oz of sulfide 200 meters down. Yet both might be called a reserve (at 300) from a reporting point of view. But, from a profit point of view and ultimately from a company health perspective you want to replace oranges with other oranges, not with limes, even if they are both fruits. The reserve quality question gets thrown out there once in while, but I've seen little good research (probably because the industry is now so poorly covered) done on it. This issue to me is about the most important question I have about any depletion business.