Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : SRU-ASE : STARFIELD RESOURCES -- Ignore unavailable to you. Want to Upgrade?

To: winston.s.c who wrote (1181)	5/14/2001 8:40:21 PM
From: SWW	Read Replies (1) \| Respond to of 1239

Just another positive story According to Barry Davison, CEO of Anglo American Platinum, the world's top platinum producer, the global platinum market will likely face a supply shortage this year, with the growth in demand being stronger than a rise in output. Addressing a group in Tokyo, Davison said that while there would be a decline in demand in Japan, the world's largest market for platinum jewellery, a healthy demand from the global automobile industry should offset that decline. "Overall, we still expect growth in platinum demand for this year, but production won't increase much," he said, adding that "the deficit [between supply and demand] this year, we think, will be at least as big as last year." It is estimated that the shortage last year was nearly 300,000 ounces. (May 14/01)

To: winston.s.c who wrote (1181)	6/3/2001 4:31:37 PM
From: CIMA	Respond to of 1239

MII SRU-V OReSEARCH UPDATE - May 13, 2001 mininginsights.com WE STUDY THE PRESENT Starfield Resources stock put on $0.03 Friday with the news that the first hole of the 2001 drilling program hit some decent mineralization a long way down. Drill hole FL01-68 hit two bands of mineralization over 33.13m. We estimate true thickness to be between 28m and 30m with overall grades of 0.72% copper, 0.49% nickel, 0.06% cobalt, 1.19 g/t palladium, and 0.23 g/t platinum. Note that this includes the interval between the two richer zones. The company didn't supply results so we've taken it to be zero. It is certainly more than zero, however, not economic, which makes our grade estimate likely the most conservative you'll see. This hole was drilled 120m east of hole FL00-67. This hole is a bit more complicated, with five mineralized bands separated by varying degrees of lower grade (unreported) mineralization. For the same exercise, we calculate a true thickness of 72m of 0.61% copper, 0.33% nickel, 0.04% cobalt, 0.87 g/t palladium and 0.17 g/t platinum. Same caveats apply. TO PREDICT FUTURE POSITIVES Assume a simple average thickness for the two intersections 120m apart. The current hole, number FL01-70 is testing an area 80m down dip. So, the results of the next two holes will define a box 120 wide and 80m tall. Add our estimate of the average true thickness of 52m with a specific gravity of 3.0 tonnes/m3, corrected for a 75% recovery of all metals, with a gross margin of, say, 12%, and we're looking at 1.25MM tonnes of (at current metals prices) US$57/tonne rock hitting the bottom line. Or, C$16MM of potential post-production value. In other words, conservative arm-waving shows that about half of Starfield's current market cap is tied up in the box the company is now drilling. AND MITIGATE FUTURE NEGATIVES There is still some risk that two unknown corners of the box now being drilled won't return the same kind of values. However, our previous analyses of the Ferguson Lake drill results show a remarkable degree of consistency in grade, value, and metals leverage. Still, for our peace of mind, we're in the process of studying the statistical relationship between assays of the mineral you can identify in core (copper) against the minerals you can't identify in core (everything else). We'll report on the results in the next MII SRU OReSEARCH UPDATE. STEP BACK 4 BILLION YEARS OR SO Now think back to the time when the original mineralizing system spewed these metals out into an anoxic basin. The areal extent of anything that could provoke a thickness of more than 50m is by definition a lot more than 120m on the horizontal and 80m on the vertical. SRU shareholders, we think you are going to greatly enjoy the next set of drilling results. VALUATION PARAMETERS Spread Ratio: 5%. Good. Last Bump:$0.70 Max. Block: 104,000 shares Profit Appreciation: 2.3 consistently low, but that's the price of extreme liquidity. INVESTMENT CONCLUSION We have found no items that concern us in our analysis. There are no liquidity concerns, which means you can build or divest holdings without paying too much or watching the price drop like a stone. The low share price volatility and high Max. Block are your guarantees of a stable holding driven by asset creation. And in the next couple of months, there should be LOTS of that. Jim Steel Mining Insights Inc.