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

To: bmccra who wrote (21920)	10/8/2003 10:46:21 AM
From: TrueScouse	Read Replies (1) \| Respond to of 39344

It's certainly frustrating for a little company like Metallica to be sitting on a huge deposit like El Morro while their major partner does nothing! From the same link you posted... <<Under the terms of the agreement, Noranda can earn a 70 percent interest in the property by making aggregate exploration and development expenditures of $10 million over a six-year period beginning September 1999 and a payment to Metallica of $10 million in September 2005. In addition, Noranda is obligated to complete a bankable feasibility study on the project by September 2007.>> I can't see Noranda walking away from this, so they'd better start doing some more work soon. On the other hand, if they do walk away, MR will keep 100%. So longer term, it's a huge asset. It's also interesting to note that at Cerro San Pedro, MR has a proven reserve of almost 2 million oz of gold-equivalent but an overall measured and indicated resource of about 4 million oz (including the reserve). These were estimated at $325 POG, so the current figures would be somewhat higher and the project economics even better. So I agree with you that this is reaching the size where a mid-tier company could be interested in buying them out. H'mmm... Maybe I'll buy some more... <vbg> Regards, Howy