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

To: Gord Bolton who wrote (2913)	4/7/2002 6:00:20 AM
From: Gord Bolton	Read Replies (5) \| Respond to of 39344

One chance in a lifetime. If we could go back in time knowing what we know today and play in the stock market we could all be millionares. Life is not like that and all investments are rife with future risk. Our job as investors is to quantify risk and reward and act accordingly. Every now and then an opportunity presents itself where the reward greatly outbalances the risks. If gold were trading at US$525 per ounce and a company that you were looking at had 15 million ounces that could be produced at US$80 per ounce with about 40 million shares out what would you expect to pay per share? Now suppose that the company had completed feasibility, financing and was at an advanced state of construction of mine and mill. What would you expect to pay for shares in this company? Does CAN$5.00 per share sound like a fair price? I don't think so. Southernera Resources owns more than 70% of the Messina Platinum Mine which will go into production this year. " TORONTO, Feb. 8 /CNW/ - Following an independent audit, SouthernEra announced today an updated platinum group metals ("PGM") resource of 15.9 million ounces at its 70.4% owned Messina project in South Africa, representing a 60% increase from previous estimates. Of this updated resource, approximately 8.2 million ounces are in the measured and indicated category contained in 41.6 million tonnes at an average grade of 6.1 grams per tonne." newswire.ca "The feasibility study estimated a total peak funding requirement for Messina of approximately 460 million Rand or about US$75 million at that time. Total peak funding requirements were revised upward to 488 million Rand when project financing was completed in September, 2001. As at December 31, 2001, this total capital requirement equaled approximately US$41 million, a 45% percent reduction from the feasibility estimate. Similar benefits are evident in operating cost estimates. The feasibility study estimated average life-of-mine operating costs of R918 per ounce of 5 PGMs plus gold, net of base metal credits. In U.S. Dollar terms at that time, this amounted to an average operating cost of about US$150 per ounce. Using the December 31, 2001 value of the Rand, these operating costs have been reduced to about US$80 per ounce, a reduction from the feasibility study of approximately 47%." newswire.ca Almost all of Messina's costs will be paid in S.A. Rand. In 1998 an ounce of platinum traded for 2000 Rand. Today an ounce of platinum trades for 6000 rand. Messina was feasible at 2000 rand per ounce. Plot platinum ounce against S.A. Rand. pacific.commerce.ubc.ca The profits in this project are mind blowing. But there is more, much much more. "SouthernEra of Canada Mulls Second South African Platinum Mine SouthernEra of Canada Mulls Second South African Platinum Mine By Antony Sguazzin Cape Town, Feb. 13 (Bloomberg) -- SouthernEra Resources Ltd., a Canadian platinum and diamond mining company, may open a second platinum mine in South Africa to boost future production, the company's top executive said. The mine would be dug on the Millennium Platinum concession 60 miles south of SouthernEra's existing Messina site, near South Africa's border with Zimbabwe. The company expects additional exploration to be complete by the end of March. ``Millennium has the potential to host a new mine,'' said Patrick Evans, SouthernEra's president and chief executive officer, speaking at a mining conference in Cape Town. He didn't estimate the size of any new mine. SouthernEra has focused its foreign investment on southern Africa, where besides Messina it has interests in two South African diamond mines and plans to start digging a diamond mine in Angola with Israeli gem trader Lev Leviev. That mine, Camafuca, is expected to produce 330,000 carats a year from a deposit of 23 million carats. The deposit is worth about $2.5 billion, Evans said. ``Development will commence in a matter of months if not weeks,'' he said." 204.29.171.50 "SouthernEra's Klipspringer Diamond Mine Commences Early Production From New Mine Level More than 47,000 carats of Diamonds Produced by New JV TORONTO, Sept. 26, 2001 /CNW/ - SouthernEra Resources Limited reported today that diamond production has commenced from its newly commissioned No. 4 level at its 50% owned Klipspringer Diamond Mine in South Africa, approximately six months ahead of schedule. The Company now estimates that full production will total 33,000 tonnes per month (186,000 carats per year), or approximately 18% above feasibility estimates." newswire.ca