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

To: Michael Bidder who wrote (25807)	12/20/2003 10:27:43 PM
From: E. Charters	Read Replies (2) \| Respond to of 39344

The odds? What are the odds that one hole shows the increase above all others should continue? Do you want math or geology? Or geochemistry? With our knowledge these questions are imponderable. To make up geology, geochemistry or ore deposit modelling with such limited information is at best speculative. The electrical correlation with structure does not give dollars. If the deposit had no political questions and no legal questions, I would say 100 drill holes would show what 100 drill holes knows. Beyond that once the character is known guesses can be made as to continuance in any direction, or correlation with geophysics, rocks, or structure. They are in new country, so it is guesswork. Quite honestly I would drill the deposit with about 500 holes if it were in Mexico, or Chile, and if there was no legal question. As it is, I would seek legal advice of a better nature, and either settle with AQI/Newmont, or move on. If I were given the deposit, and it were not where it was, and with no legal problems, I would sell it to Pan America, or Hecla. Ore bodies are tough. I spent my life in them, and there is far more to them than even meets most engineer's eyes. There is distance, product, politics, metallurgy, capex, labour costs, structure, mining type,.. and that is just the start. There are other variabilities including waste, and metal/metal prices... competition.. In this body there are many thing to overcome. Politics, country problems, money repatriation, money troubles with exchange, cost of development in a corrupt country, legal entanglements, and legal issues with ownership. To overcome all that the deposit must be very rich. If it is, further greed problems with the people in that area surface, and more problems continue. Add to that it is low grade and high capex. Spread your risk. EC<:-}