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Gold/Mining/Energy : Golden Eagle Int. (MYNG) -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (30608)	2/23/2003 10:15:17 PM
From: jimthebody	Read Replies (1) \| Respond to of 34075

"But they have to live with the consequence that they will not have quantifiable proven reserves if they do production only. " Golden eagle will have proven reserves once in production. How much weed are you smoking tonight?

To: Claude Cormier who wrote (30608)	2/23/2003 10:54:41 PM
From: ubetcha	Read Replies (1) \| Respond to of 34075

Claude, "If you do not drill or trench or do bulk samples (or whatever other sampling methods), how will you know the concentration, distribution and grades of the gold. This is vital information that will allow them to make up the best mining plan in the most economic way. Miners cannot blindly take ore from a location unless thye have a very good idea of what they will collect." I agree. However after mining for 2+ years do not you have the same information? You now have an idea of the grade of ore that you are working with. What does it matter when you determine the grade? It may be harder to get financing, but once the "resources" have been established by either method, the mine should be valued the same. That is my point. "No for sure. But farmers can tell by looking at the first few inches on the top if a given piece of land will grow stuff. Miners do not have this ability. They dig to find out if their is potential to harvest gold." Gold is known to exist. That has already been done. Crude methods for sure, but many have made a living taking gold from this property. The trick is to find out how much can be extracted by means other than panning and small scale. As you said in another answer the grade can go from .5 to 5 gpt. If after 2 years of finding these grades, could you not statistically say that conservatively 1 gpt exists in the rest of the field? (back to the farmer scenerio). Especially if you had food (gold) coming in from many areas of the deposit? Then you could estimate reserves, and establish the life of the mine (mines). Makes sense to me, but than I am not a miner. The trick here is that it is known where the gold is, and sampling has been done. Now the "sampling" (mining)has to be done in order to determine the amount of gold on the property. The catch is that this will take longer, but in my opinion prove equal or superior to sampling the property first. My real argument is that you seem to imply that sampling is required in order to prove resources. Mines that have sampled are priced at a higher value than those that do not. Before a mine can reach its highest value it has to establish its total value. You say Myng can never do this, so its long term actual value may never be reached. If one cannot say with confidence after mining for a period of time, than something is wrong with this formula. An area has been established, and the truth is in the pudding. In my opinion, total resources can be statistically determined after a period of time. Now back to lurking, Terry