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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?


To: Jon Matz who wrote (5283)6/2/2002 8:59:43 PM
From: loantech  Respond to of 8010
 
Jon,
I couldn't possibly speak for Claude as he forgot more this morning than most of us know, but I think a lot of drilling has already shown Penasquito has the silver. It just takes closer spacing of drill holes to legally say its there in the ground. Kind of like the point after in football to ice a victory in hand.BTW I spoke with a director of WTC last Thursday and results have been delayed because of a mess up at chemex that is affecting multiple companies results and is causing a delay of about a week from now. So results on the first batch of holes should be middle of week after next or so. They said 10 days from last Thursday I believe.
Tom



To: Jon Matz who wrote (5283)6/2/2002 10:09:23 PM
From: Claude Cormier  Read Replies (2) | Respond to of 8010
 
<To Claude. It seems you're suggesting placing Bay/PAAS money into Western Copper, is that true? >

Not all money... but some. It make always good sense to move dollars from higher price stock to still inexpensive situation.

<Why I ask is that you usually wait for confirmation of results before buying into something that is pricey with the current results.>

True. I wait for results to move a lot of money. But I like getting in with an initial stake when the project make sense and increase progressively with favorable results. I have studied further WTC's penasquito project and the drill results announced so far and I think that the odds are very good that the current infill drill programs will confirm continuity of the grades between previous drill holes. Nothing is garanteed, but the odds are very good.

<Doesn't Western Copper need good exploration results or higher metals prices to justify a higher stock price too?>

Yes.. Unless they come up with other news on other properties. Their Penasquito silver play is not their only shot.

The stock has been moving steadily with silver prices, this tells me that participants also think that the odds of confirmaing the grades at Penasquito are excellent.

Given the fact that we are talking a target of 100 millions tons of 3 ounces per ton silver, 2% zinc and 0.5 g/t gold, it could be that the stock will react furiously if there is a single new that goes into the right direction.

As well copper prices have started to move a little in the good direction. Hard to say if the trend will continue. But one of WTC assets is already drill indicated: their San Nicholas JV with Teck which only awaits a combination of higher silver/base metals prices.



To: Jon Matz who wrote (5283)6/2/2002 10:32:38 PM
From: Canuck Dave  Read Replies (1) | Respond to of 8010
 
Jon, arbitrage is a simple enough concept. Here's what's going on.

After a company offers to buy another at a fixed exchange rate, the company being bought out always trades at a discount to the exchange rate until the deal is verified. Arbitrage players often try to make money off this differential depending on whether they think the deal will go through or not.

In BAY's case, each share will be exchanged for .54 shares of PAA plus .25 shares of an exploration company. The exploration shares are worth about .35 cents to the BAY shareholder (maybe). PAA closed at 13.20 on Friday, so if the deal went through, that values BAY at 13.20*.54+.35 = 7.48 . BAY's last trade was at 6.77, so it is undervalued relative to the deal. If you think the deal will go through, BAY will rise even if PAA does not.

Just my opinion.

CD