Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: russwinter who wrote (26349)	1/5/2004 11:14:51 AM
From: bmccra	Read Replies (1) \| Respond to of 39344

It does certainly seem unusual that the transaction was so cheap. I'm not sure what to make of it, but I still very much like the company so I will be holding and watching. b

To: russwinter who wrote (26349)	1/5/2004 12:28:31 PM
From: Elizabeth Andrews	Respond to of 39344

It appears that the skarn related mineralization, which is where the higher grades are, is erratic and is going to be difficult to mine, so the resource value is much lower than believed, I think.

To: russwinter who wrote (26349)	1/6/2004 12:48:15 AM
From: que seria	Read Replies (2) \| Respond to of 39344

Russ: Negative was also my first reaction on Anatolia news, but I only lightened the tax-free part of my position. If (see Elizabeth's later post) the resource is less mineable or smaller than now touted, the shares may take a hit. The exit of Rio Tinto gives me pause, even though I realize its threshold for mine development is far higher than Anatolia's. But perhaps the initial scoping study due from Rio Tinto will focus just upon the starter pit resource. My bet is that the scoping study will be positive for an initial, affordable open pit operation, with resources in place that will allow a much longer life at a higher POG. If so, I bet the market (after different "story" investors have changed places) will embrace a modest number of ounces being mined initially, and a lower resource estimate. Even if there are "only" 3 or even 2.5 million ounces at Copler (rather than the 4MM mentioned), it is still quite a resource for a small company. Dilution and/or debt can be value killers, which is why the post-Rio story may now hinge upon the apparent feasibility of a good starter pit and further projected mineable resources. I still have a good weighting in the stock, expecting positive news, to which the PR points. Perhaps there's only room for one project owner, and of the three there was one was too big and one too small. Since Anatolia is a small exploration outfit, I can't picture it building the mine unless it subcontracts all the work. I don't intend to fund such a learning curve, but I doubt it will come to that. I expect their outlook is that they have 100% to sell to a company bigger than ANOu.TO and smaller than Rio, and meanwhile they are going to promote a development plan for the mine they actually want an acquirer to build.