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Politics : Gold and Silver Stocks and Related Commentary -- Ignore unavailable to you. Want to Upgrade?

To: Proud Deplorable who wrote (2463)	1/4/2005 2:41:57 PM
From: Rocket Red	Read Replies (2) \| Respond to of 18308

SIR good things too come so get a position and hold it

To: Proud Deplorable who wrote (2463)	1/4/2005 2:44:03 PM
From: Rocket Red	Read Replies (1) \| Respond to of 18308

Did ya see the JK report on Moly??? Good companies will explode but also he states there is a reason most of these juniors got cheap properties as well

To: Proud Deplorable who wrote (2463)	1/5/2005 12:34:50 AM
From: hank2010	Read Replies (3) \| Respond to of 18308

"but the deal needs to be explained. Are they investing 10 million or 500,000.00 ? Thats the question. If all they need to put up is half a million then the obvious question is whats so great about the property and the grades?" Here is my explanation and my answer, Ralph. Going by memory, from what I was told by one of the principals, the payments (in thousands) are $50 the first year, $50 the 2nd yr, $75 the 3rd yr and 4th yr, $100 the fifth and every subsequent year, plus a 2% royalty on production. The "upset" price is $10 million. i.e. when the total paid (royalties plus annual payments) reach $10 million, the annual payments stop. The royalty can be reduced by a 1 time payment along about the 3rd year. In the words of one of the property vendors (who is a very competent and well educated man in the field of geology, and a very straight shooter) "I made a deal which the company can live with. I made the deal so that this deposit could be mined. I intend to make my money off of the royalty." What is so great about the property and the grades is the fact that there are two options here. Go for the 300 million tons of 0.06% Mo in the conventional way of a large open pit with a 40,000 tons per day concentrator, which takes time. Or go with an underground operation (the tunnel driven by Cyprus goes right into the high grade)to mine the 5.2 million tons of 0.165 % Mo. The presence of infrastructure (power, roads, interstate highway, mine suppliers, contractors and an experienced work force) and especially the presence of the Montana Resources Inc. (MRI) moly/copper concentrator within 40 miles is very significant. It may enable UNB to be able to take advantage of those high moly prices in the short term which Kaiser discussed). I note that at the present prices of moly, the UNB Cannivan Gulch 5.2 million tons is double the present day value of the ore being mined by Revett Silver at their recently opened silver/copper mine near Troy, Montana. You mention low volume and very unremarkable chart. I am not qualified to answer those questions, however, maybe if they hired you and/or that Michael Alexander fella to promote the story they would have large volume and a remarkable chart. at least they would have a lot more exposure.