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

To: Claude Cormier who wrote (2859)	4/2/2002 5:54:11 PM
From: GeoDude	Respond to of 39344

Claude, looks like the market is valuing the deposit at about US$100MM (30MM shares X $1/share for 35% of deposit). That's $30/oz for widely spaced exploration. The funny part is the 1MM oz around hole 1A. They don't believe in nugget effect ... But lots of blue sky and a "blue chip" operator i.e. not a Bre-X look-a-like. Conclusion: tough to value but $1/sh seems fair. Could see much more tomorrow on hype. LIA

To: Claude Cormier who wrote (2859)	4/2/2002 8:01:03 PM
From: ogi	Read Replies (1) \| Respond to of 39344

Yes Claude the metallurgy may prove problematic but it is far too early to quantify the impact of increased extraction costs. Furthermore, I think the market will overlook this in favour of the 3.6 million. It is a credible report and to me it means that, although 3.6 is a preliminary stretch, there is still huge potential in future drilling with 20 holes coming shortly and the certainty there will be many more to follow them. Those anticipated results also create the possibility that sheer rich numbers could overwhelm any concern for the metallurgy, either in reality or in the market perception. In short, this has lots of room to run before we worry about the economics Rio Tinto will be facing. I have a stop loss in place but my best guess is I will be raising it as we go along. Regards, Ogi