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

To: Canuck Dave who wrote (2562)	12/31/2001 7:37:58 PM
From: marynell	Respond to of 4409

Canuck Dave, I have followd First Silver Reserve for the past five years and also traded it several times. I don't own it now. A few comments: (1) FSR is in production, unlike SSO and BAY. (2) FSR mines a continuous and consistent vein that is widely thought to have a resource over 100 million ounces, ounces that could very quickly be put in the reserve category. The vein is known to extend for much further than the drills have indicated the reserve. Mexican miners do not prove reserves for more than necessary because it adversely affects their taxes. (3) FSR has costs of around US$4.00/oz. so they have excellent leverage now. (4) I have spoken to people who know this industry well, and they question the quality of FSR management. Collect what info you can and study it. There may be a lot of silver one FSR's property. If silver takes off to $8/oz and FSR quickly proves 100 million ounces and expands their already-operating mine, it could be a huge win.

To: Canuck Dave who wrote (2562)	1/1/2002 12:45:49 PM
From: Claude Cormier	Read Replies (2) \| Respond to of 4409

CD, Happy new year to you and all other friends on this thread. FSR and BAY cannot really be compared yet as FSR is a producer. FSR has only 12 millions ounces of silver in reserves. These are barely profitable at current silver prices. Let say that they need $4.50-$4.75 to start making money. They need a much higher price to generate enough cash flows to sustain the development of their silver resources. I have looked at their deposit and followed the development of El Banco, an underground area where 3 rich veins are coming together from surface. Basically, there is no doubt that they have a lot of resources that will be eventually be converted into reserves. In the end, they could well have as much silver as BAY. The problem is that this is a vein system that is costly to develop and mined. To produce as much silver as BAY will produce, FSR would have to spend several dozens of millions which would imply heavy stock dilution. Assuming that all goes fine for BAY and they bring Alamo DOrado to production, there will simply be no comparison possible between the two. BAY will be a lot more profitable than FSR, no matter what silver prices. Still, I think FSR is a stock to watch if you want diversification. With silver in a bull market, FSR would be in a position to expand both reserves and production.