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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: d:oug who wrote (89482)	9/11/2002 4:41:31 AM
From: E. Charters	Read Replies (1) \| Respond to of 116807

Well there is no feasibility done on the ground. On the other hand there were three mines operated on the ground. And there were 20 drill holes drilled on one property. After 25 years in this business, you get to know what the potential for ground that is drilled, and mined is. But generally bankable feasibilities cost money. Few claims in companies on the VSE have them, they must be done by third party egineers to standards set by the exchange in order to establish reserves. The standard for a reserve is that it must have drill holes at certain spacings, and drifts or horizontal tunnels above and below the ore. Probable ore has greater standard of drill spacings and may not require drifts below the ore. Potential ore, as an exchange derived term, has still greater spacings up to 200 feet between drill holes perhaps. These are legal terms defined by the stock exchange for public companies that are not producers. Engineers reporting to companies that are producers, may go by a different standard, that is acceptable to the company internally for their planning. I know that Dome Mines will call a reserve only what they have drilled at 50 foot spacing, drifted through above and below, channel sampled and in some cases in non mined ore areas, tower sampled or trial mined. The way it works in the industry, is that buyouts for net smelter returns royalty or gross profits royalties are set by the seller for buyout at some arbitrary figure that most companies will entertain a smelter return might be worth after some sort of feasibility is done. This can be anywhere in practice from 500,000 per percent to 2 5 million dollars CDN. Generally you do not buy them out until you know you have a lot more ore than the percentage is worth. The only case I know of where a buyout was done and it was worth it on the selling side, was the deal negotiated by Larche and Mackinnon on the Hemlo claims. They made their smelter return royalties convertible to shares at two million shares each per their royalty. This came to be worth 50 million each. The buyout Verbiski and Chislett negotiated on the Voisey Bay claims in Labrador was worth more, but was turned down by them and that was 150 million. That is called insanity as I would have grabbed it in a nano second. The buyout on the Texas Gulf Kidd Creek claims accepted by the patent owner was worth 38 million in 1964 and they had to sue for that. Non of these buyouts could be assessed until much drilling and work was done. I can know the potential and probable ore that is there. But to absolutely state what may lie on strike, or at a depth of 2000 feet, perfectly possible to mine, I do not know. I can state it is probably there but I am not god. On the other hand I went to school to take geology and worked in many gold mines, so I can state the worth of drilling down that deep with great confidence. I would be insane to state I would take X dollars for it right now, if I could not positively state what it is worth to the dollar. I can say there is most probably by the great amount of work done, the mining, surface sampling, the gold in the tailings pond, and the drilling that there is good ore there. It is worth taking a chance on. But exactly how much to the penny so I am happy with cheque right now? I am not willing to say. Lets drill a few hundred holes first, then we both know. In other words, you take your bets on properties based on what you know about the probabilities. Everyone does that. Some people's judgement is better than others. I like to think, perhaps naively, that any place you get 12.0 ounce samples on the surface, they mined 100,000 tons of one ounce per ton, has tailings ponds of 0.30 ounces per ton, and one ounce per ton, has 20 unmined drill holes on it at 6.0 ounces per ton, and has proven ore in three places up to to 1000 feet deep, is worth taking a chance on. So does the Msc Geological enginner I paid to make report on the area. He recommended work. He has to know it is worth if for his reputation to do that. But that is just my judgement. Perhaps I am fooling myself. Perhaps I should be prospecting desert dirt in Nevada. If I said I wanted X dollars for ore that is unproven to reserve standards, then I might be blowing smoke unless there is good paper in existence, done by unimpeachable people. But if say it is worth spending 2 million to establish a feasibility or any other amount for that matter, then it depends on the positive indications of mineability that I say are there. And they are, by my experience, there. My experience with most companies is that what may a priori exist, in order to engineer a mine and locate veins, you have to drill and do your own work. You cannot establish the absolute unimpeachable grade, or the absolute 3 dimensional location of the vein, unless you drill it yourself and survey the holes in. And it would help to do your own metallurgical tests. And if raising more money is necessary it would help to hire a 3rd party qualified engineer to sign off on all your results and have chain of custody on all your samples. No matter what the orebody or property tells you by back of the envelope or seat of the pants calculation, which may be in the end as right as rain, this is how it is done. You have to go in and do the work no matter what. I know a few "turn key" mines, but get out a big checkbook to make them happen. Generally the people have sunk in 15 to 30 million dollars to get to that stage. On the other hand they have 500 million or more ore proven by exchange standards. You may want to start with something a bit cheaper, that still has undeniable potential. EC<:-}

To: d:oug who wrote (89482)	9/11/2002 5:27:54 AM
From: E. Charters	Respond to of 116807

In other words, there is metalology, metallurgy, mineology, geology, reportology, closeology, airology, and VSEology. Most of the time, on this and other threads we listen to companies with reportology, closeology and VSEology. Then with baited breath on brokers guarantees we buy stock. A few times like in the cases IPMCF and Golden Eagle, we have airology. Airology is worth anywhere from 15 cents to 20 dollars a share, depending on whether the stock holder breathes through their mouth or nose. I used to write a newsletter where I explained the difference to people willing to pay for this explain, and I was right nine times out of ten. I could tell by the reports who had gold in the drills and who had crap in the reports. Sometimes you get fooled. Sometimes the lying is done by professionals with great application and endurance. I like to deal in metalology, mineology and geology. People mined it before, they can see gold in it and there are the kind of rocks we know and like there. This separates it from the standard VSE report even of things like Brewery Creek, where yes they have gold, but it is large low grade and difficult metallurgy. So you never know if they are going to make money from it. This adds to the mystery and the excitement. So the shares go up and up. Tra la la. I like to deal with properties that have simple quartz metallurgy. This reduces the cost of the milling and capital cost of the mill, by half or more. Then we deal with free gold. All the gold grinds out of the rock at 160 to 200 meshes to the inch. This reduces the cost of milling and recovery. Then we get ore that has no complicated metals like oxide iron, copper and arsenic in great amounts. This reduces the cost of the environment and milling. If the gold reports in high grade, is visible to the naked eye then we know that it's there. I can deal with difficult ores, but it requires a more expensive milling and concentrate treatment facility. Doable, but its a whole other thing. Even better if someone mined it for few tons, then we can look in their tailings, and see the nature of the gold, whether it is free gold, or not, and what the probable head grade is. And if you worked for and know the people who mined it and they can tell you what they mined and what kind of milling it had, so much the better. Then you know the tenor, or grade, and recoverability and metallurgy of the ore. That is what I know and that is what I deal with. Ore. Mined. At high grade, Good simple ore, cheap to mine and mill lots of it left. If further by geological experience and knowledge of drilling the area of unmined ore, a statistical probablity can be established of the occurrence of ore then a reasonable extrapolation can be made of finding it in similar and likely structure that are as yet undrilled but in the same environment, i.e. on geological strike an in deformation zones of type. But never mind that. If mining stopped not due to ore exhaustion, but in veins of grade, and you know that, then you may extrapolate continuation based on geology and other factors due to numerous mines that continued to greater depth in the area. Now with all that and 70 years of gold history, you want to turn over the reports and scratch and sniff, so be it. Mineology, metallurgy, geology. And knowing the situation. That is the difference. You ain't gonna get that from a broker on a VSE stock are you? And if the indications are all there, you inch into it establishing certainty as you go. Nobody asked you to bet the farm on economics from the get go. But with mighty former high grade mines in sight of you, gold in your eye in front of you, and 20 holes beneath you before you even start, the betting is just a tad better, isn't it? EC<:-}

To: d:oug who wrote (89482)	9/11/2002 6:05:06 AM
From: E. Charters	Respond to of 116807

To put it succinctly and fairly, I would take as a buyout on behalf of Wildcat, 10% of the net present value of the profitability, before taxes, calculated from a bankable feasibility study of the ore, at an internal rate of return of 13 per cent, with a carried smelter return outstanding of 2% of the total value of all of the ore mined beyond that figure.

To: d:oug who wrote (89482)	9/12/2002 6:39:14 AM
From: d:oug	Read Replies (1) \| Respond to of 116807

of Mice, Men, Gold, Russians & BBQ yellow fat v white fat . lemetropolecafe.com The James Joyce Table Gold, Commodities, Midas du Metropole Topic du Jour ... The Gold Anti-Trust Action Committee has done its best for years to warn the American public what is going on, but the U.S. financial press will not allow us to be heard. . Whatever happened to America’s free press? . Another cherished American principle bit the dust, gone down the drain in this land of the rigged market. . Ironically, I received a call this morning from Moscow from a very respected gold producer CEO. He called to tell me of a big spread in a prestigious Russian magazine that featured significant GATA coverage, naming names, etc. . The web address is ruspred.ru but it is in Russian. . He was ecstatic. . GATA can be heard in Moscow, but not New York or Washington. What a revolting state of affairs! ... Meat prices... enormous amounts of cattle being sent to market because there is either no pasture, no silage, and no prospect of baled hay for over-wintering. . The land can no longer support the number of head of cattle it is being asked to do when conditions are this dry, and the farmer has no choice, and off to market they go. ... before the cattle can "go to market" they have to go through a process called "cattle on feed", where the animal is grain and chemical fed to change its normal yellow fat to white fat, and to remove the "gamey" taste the meat would have if the cattle were slaughtered right off the farm. ... has to look good on the shelf... and smell like "beef" when it's cooked on the BBQ. Mostly what cattle are fed is a mixture of corn, soybeans and some grains... but mostly corn... check the current price of these... Any questions? The real crunch will come next year when all the cattle... The farmers will be in the process of rebuilding their herds ... the process takes years, and he's not going to be selling his breeding stock while he's in the process of doing that. It's like eating your seed corn. You are looking at the last of cheap beef...