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

To: ge-believer who wrote (30639)	2/25/2003 2:07:00 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 34075

<The SEC did argue that an American company should not be pemitted to rely upon a Bolivian geologist. > I agree. That was probably the first line of defence for them. All reports stating resources and reserves must be done by an acreditated professional. Not sure it has to be a US geologist. How about Canadians or Australians? The SEC probably did not even consider the smapling methodology. <but that number must depend greatly on the sample size (500# in this case), and consistency of results> For sure the size of the samples is one factor. A good example of that is diamonds exploration where miners explore a 400m by 200 m kimberlite pipe by first drilling a few holes and then processing mini-bulk samples of 20,000 tons and more. The density of the samples collected over a specific zone is really what can will determine the classification of the resources from inferred, to indicated and then to measured. Once you have indicted & measured, then only a feasibility study will confirm that these resources can be processed economically will transform the resources into reserves (either proven or probable). But the number of ounces claimed by GE in whatever category and the low grades implies a that this gold is distributed over a very large area over several squared kilometers. In my view 3500 samples is not enough to have resources in the measured & indicated category no matter their size. Even if you take 500 pounds or 10 pounds from one location, you are still sampling a very limited area. However, yes they have resources in the inferred category. How much I do not know. Consistency is of less importance because when you have dozens of thousands samples and sometimes hundred of thousands samples (like many 5M ounces deposits have) have, you can calculate a statistically viable average. <It seems to me that this kind of analysis would have to be done by a mathematician, like Guido, rather than a geologist. > Geologists have all they need to calculate reserves, including software tools.