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Gold/Mining/Energy : NOVAGOLD RESOURCES INC. (TSE:NRI; OTC BB: NVGLF) -- Ignore unavailable to you. Want to Upgrade?

To: Elizabeth Andrews who wrote (53)	3/26/2002 1:08:01 AM
From: AH	Respond to of 137

You promised to go technical. Have you started yet?:-) OK, I will fire the first shot... Just a couple of comments about your recent observations regarding Donlin Creek. I am fully aware that the real devil is lurking in the details but let's try to look at the 'big picture'. 1. It's difficult to disagree with you that NRI would face an enormous challenge trying to raise funds for a mine at current POG. Regardless of size of such mine. However, Placer has the option to buy back into Donlin. If gold goes up significantly, a strong possibility considering the rotten state of US economy and financial markets around the world, Placer will exercise the option and carry NRI's 30% through all the stages of developing the property. Just today, JPM, the King of Leverage and Financial Deception, upgraded PDG to 'buy' from 'long-term buy'. (Yes, I agree, this recommendation coming from the JPMerlin itself is a suspect but let's concentrate our attention on Gold.) One of the reasons for the upgrade is, surprise, surprise, that their analyst (brrrr...) is 'encouraged by the company's resource potential at ITS Donlin Creek' (emphasize mine). The article continues: 'Bridges (the analyst-AH) acknowledged that these numbers are only at the resource level of confidence with a very limited portion drilled to the measured category. But he says the scale of the resource is "impressive" and its sensitivity to changes in cutoff grade or gold price is "substantial."' So here you go. Donlin is on PDG's plate. PDG moved up by 2.6%. Needless to say, gold goes nowhere, PDG does not make the move, NRI goes down in flames, AH looses some dough. 2. Donlin is still an exploration project and as such should be an object of ever blood pressure raising speculation rather than nickel and dime considerations of an accountant. The 2001 results should be cherished for their spectacular beauty. 20 mil oz. may be just a beginning of uncovering a massive resource. In a major bull in gold, the upside potential cannot be overlooked. Conclusion: As you can see, I am not even trying to be technical. After all, it is your job, isn't it? :-) As a speculator, I would like to mention GLR.A. They went over $20 several years ago, sit on a hopelessly (at current POG) uneconomical property and still don't have mine. And now I will stop flapping and go to bed knowing that you are sharpening your claws to tear apart this little puppy. Are you finished yet? If so, please go ahead and let BLOOD flow.