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Gold/Mining/Energy : Corner Bay Silver (BAY.T) -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (2012)	11/13/2001 12:56:00 PM
From: russwinter	Read Replies (1) \| Respond to of 4409

Claude, I tend to lean a bit more towards MFL for the following reasons: 1. MFL's Delores is a bigger "threshold" deposit that has district implications (NGT also). It will only get much bigger and at fairly low discovery cost. I know Mark Bailey is pumped about El Malacate, but I'm not assigning much blue sky to that as yet. BAY's Alamos Dorado seems more finite in terms of expansion potential? 2. BAY has great start up economics: $1.55 cash costs for Phase I, and 2.51 for Phase II. It's the longevity and cost down the road (life of mine is 2.96) I'm a bit concerned about. I think Delores will be humming along pretty nicely 5-10 years in. I suspect cash cost are below $140 (silver equivilent would be $2.10 at current POS/POG), and the capex is very reasonable. Alamos Dorado is more problematic later, or do you feel they will improve in that respect? I suspect that the new silver assays and recoveries, may give Delores a shot at a low cost starter pit also. I do feel longer term that POS may have a greater call value than POG, thus favoring BAY somewhat. 3. I totally understand your point about the need for juniors with good deposits to not depend on majors for the takeout. However, I suspect that Delores fits the senior's parameters more so than Alamos Dorado? And that's the preferred exit strategy if you can get it.