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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: gold$10k who wrote (692)	11/29/2001 9:45:44 PM
From: Gord Bolton	Respond to of 39344

Someone may want out of a stock for all kinds of reasons, but there is only one reason to be getting in- because it is the best investment that you can find for your money at the current moment. In that context I see the large block trades as bullish. On the fundamental side the picture should be improving going forward. Claude has been treading water with current gold prices processing 7 to 8 gram per tonne ore. The latest drilling indicates that there is ore 3 to 4 times or more richer directly below current and past workings. I do not think that they will waste any time heading for the richer ore. Even if they blend it in with the 7 gram per tonne stuff, of which they have plenty, they can easily be feeding 16 gram per tonne ore to the mill and turning some good profits out of Seabee. The upside is in the current drilling programs both at Seabee and Madsen. The intersections mentioned in the 3Q were not standouts amongst a lot of loosers, they were "Five consecutive holes, between 450 and 650 metres below surface, yielded ore grades, cut to 75 grams across true widths, as follows: - 46.0 grams per tonne over 4.20 metres - 14.6 grams per tonne over 3.44 metres - 20.9 grams per tonne over 1.97 metres - 35.0 grams per tonne over 2.25 metres - 25.0 grams per tonne over 1.80 metres These grades are superior to the historical milled grades at Seabee, which average 8.5 grams per tonne. The ore, expected to be accessible for milling by late 2002, supports continued confidence in the immense potential for longevity of the Seabee mine." These are mineable widths with little or no dilution. It is said that narrow vein mining (and drilling) is a hit and miss affair. Five consecutive holes with outsatnding results speaks volumes for the continuity of the vein. This is a no BS situation as there is no need to drill off 500,000 ounces, endure feasibility studies to justify setting up a mine and raising finances, etc. etc. The evidence is compelling that the vein becomes richer at depth and the natural conclusion is to simply mine your way down to it as opposed to following the vein laterally. This year the problem that Claude experienced was in mining laterally. They encountered a large blow and produced one of their largest ever stopes, unfortunely the ore was not as rich as the mine average. So it was a tough year and the stock price reflects that. The future, however, looks much brighter for Seabee. At Madsen many investors were expecting instant fireworks and were disappointed with the published results. Placer was working on their own plan and methodically filling in their own blanks. What did they learn? #1 The geological structure at Madsen hosting the #8 zone is the same structure or an identical structure to the structure hosting the snowbank high grade veins at Goldcorp and the Campbell mine. 15 million ounces of gold have already been mined out of relatively minute portions of this structure including 2 million ounces at Madsen (not from the #8 zone.) #2 Sampling suggests that the #8 zone may extend to surface on the Madsen property over 15 kilometers of strike length. Now wouldn't it be nice if we could find some high grade close to surface. Drill a few holes, intersect the zone but unfortunetly, no super high grade intersections. #3 Global data interpretation indicates that grade increases with depth on the Madsen property as it does on the Goldcorp property and Campbell mine. So we already know where to find 3 ounce per tonne gold ore at Madsen. Why not drill a few holes underneath that location and see what turns up? Well that is where the Placer drills are headed now. Do you want to be seriously interested in what the drill finds or merely curious? Goldcorp is the lowest cost producer of gold in the world and continue to produce spectacular intersections at depth. Both Placer Dome and AngloGold have aquired a serious interest in the juniors holding land along the Red Lake Break and are spending exploration money here when few exploration dollars are being spent anywhere. For more information on the Red Lake area check out this URL. rubiconminerals.com and of course this URL goldcorp.com "Depth Extensions of the High Grade Zone – We believe there is excellent potential for more reserves to be found at depth. Current ore reserves have a vertical extent of approximately 1300 feet to a depth of 5800 feet. Our primary exploration focus is to expand these reserves at depth. We will complete diamond drilling to test for the potential to double the vertical extent of mineralization to a depth of approximately 7000 feet. In this work the main focus will be the HW5 zone, which is the highest grade zone and represents almost 25% of our total high grade reserves. Drilling to date has been very successful having produced a number of high grade intercepts of up to 30.64 ounces of gold per ton across 9.5 feet, almost 350 feet vertically below the current ore reserve limits. This mineralization remains open at depth."