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: TheBusDriver who wrote (2397)	3/13/2002 10:26:59 AM
From: Fishfinder	Read Replies (2) \| Respond to of 39344

Regarding MFL.TO From Jennings capitol (or what ever it is) Minefinders holds one of few established gold – silver resources in the Americas … and as new resources are acquired, Minefinders will be on the list! Yesterday Glamis Gold (GLG-T, NY) announced it was making a friendly bid for Francisco Gold (FGX-T). The bid values the 1.8 million ounces of contained gold held by Francisco in their El Sauzel project, Mexico at USD77 per ounce. Francisco shares jumped over $4.00 on the announcement. This has huge implications for Minefinders and the Dolores project which the company holds. Dolores has a resource of 2.08 million ounces of gold, and 129 million ounces of silver. Recoverable gold and silver are 1.8 million ounces, and 81.6 million ounces, respectively. Taken on a gold – equivalent basis, using a simple 60:1 ratio of gold to silver provides a gold-equivalent resource of 3.2 million ounces. By using a simple comparison of the Francisco transaction to what could be possible for Minefinders, an imputed value per share for Minefinders comes out at $14.20 per share, more than four times yesterday’s close. The Dolores project has some features that could be viewed, by potential acquiring companies, as less attractive than the El Sauzel project, such as the high silver and low gold grade (under 1 g/t Au, compared to 3 g/t for El Sauzel). Our calculation compares Life of Mine Capital, Operating costs, and the per – ounce Acquisition fee of Francisco, then implies an acquisition price for Minefinders to arrive at the same total per ounce transaction number: $US244 per ounce. We believe that the Glamis – Francisco transaction will mobilize other gold producers on the sidelines to step up and start aggressively pursuing acquisitions. Minefinders is one of only a few projects with established resources of gold and pre-feasibility level engineering studies completed in North America. After the suspended animation that the junior gold companies holding resources have been in for the past five years, we expect several consolidations to be completed in the next year. Minefinders has spent much of the last two years advancing its other exploration prospects in Mexico, shown in Figure 1, below. Any comments on this press. Scott