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 : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: marcos who wrote (127)	10/11/2001 6:09:32 PM
From: russwinter	Read Replies (1) \| Respond to of 39344

To me the kiss of death is the combo punch of South Africa and high cost production, i.e: most of the gold miners there. In SUF's case though you have South Africa, and a low cost structure ($150/oz on PGMs). That's OK, plus right now it's out of favor with the big decline in PGM prices. I mean ultimately if one is to be a PM investor, one has to wander into SA ,and of all my holdings, less than 5% is there (ARQ). SUF also has the takeover angle (I think, except that the govt seems anti-foreigner and anti-capital, if that's a fair characterization?), it's fundamentally very cheap, and it's a growth story, and I think most serious PM investors might use a little diamond exposure. And can I really stomach another junior (Saskw.)? SUF a nice portfolio fit for me, and I'm looking for another dip to enter. The ideal would be to hedge the SA political risk with something in a safe setting. Obviously if SA ever blew up, you would have interruptions to what, about two thirds of the world's PGM supply and a monster home run elsewhere. There's SWC, but it's a dog. Leaves all the beat up neglected Canadian junior explorers, but does one really want to go that route? I already own SLR, and GEO (if you could even call Marathon viable at all now) and a tiny PFN position. Is PDL cheap enough to fit the bill?

To: marcos who wrote (127)	10/11/2001 6:21:43 PM
From: russwinter	Respond to of 39344

And speaking of SA and PGMs, this looks intriguing. Say what you will about Robert Friedland and "the personality issue", the guy can party. This whole Platreef thing may play out quickly now, with ARQ financed and ready to go in the south and Friedland in the north: Northern Miner: Anooraq deals Rietfontein 10/11/01 Vancouver - Hunter Dickinson-led Anooraq Resources (ARQ-V) has dealt a portion of its 122-sq.-km land package in the prolific Bushveld Complex of South Africa to a private affiliate of Robert Friedland-led Ivanhoe Capital. Lying in the northern limb of the intrusive complex, African Minerals can earn a 50% interest in Anooraq's 2,900-hectare Rietfontein farm property by spending $1.5 million over 2 years. The Rietfontein property adjoins African Minerals prospective property, which is rumoured to host a major large tonnage nickel-copper-platinum-palladium find. The company has multiple diamond drills turning in the area and expects to begin targeting Rietfontein shortly. Drilling is expected to test the PGM-bearing Platreef horizon on the west side of Rietfontein and two strong soil geochemical anomalies with platinum, palladium, copper and nickel. These anomalies measure 1.6 and 2 km long and cover the length of a pyroxenite intrusion. The Government of South Africa recently granted Anooraq a 5-year exploration extension over its platinum-palladium properties. The project covers a 14.6-km strike length of the platinum-palladium bearing Platreef horizon. The prospective horizon is stratigraphically equivalent to the high-grade platinum-palladium bearing Merensky Reef located in the eastern and western limbs of the complex. Armed with a newly completed $3.2 million financing, Anooraq aims to resume work shortly. Following two drill programs, the junior has been eyeing the bulk tonnage potential of the project.