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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: sporky who wrote (56648)	7/8/2006 5:37:03 PM
From: Land Shark	Respond to of 312755

SWG doesn't have the deposit that ARU has. Conservatively ARU has 10MM OZs deposit using their current drill results. They've not established yet the width and the strike length and this could, in Kaiser's words, "slay Bre-X". ARU is not a "pump job". It's probably safe to be cynical, but it doesn't work in 100% of cases.

To: sporky who wrote (56648)	7/8/2006 6:16:46 PM
From: Land Shark	Respond to of 312755

Another thing about SWG. It's prime property is in Yunnan Province in China. This has some political risks attached to it. Recall that ETG.to got a surprize 68% tax on Cu production from the Mongolian Govt.. If you look at the 6 mo. chart for SWG vs. ETG we see that SWG got wacked from $16 at the same time ETG got wacked. finance.yahoo.com The market is discounting ETG's China property on this taxation risk. You may say the same might occur with ARU, but IMO the risks are lower. This will probably be a problem for the PRODUCER that eventually buys out ARU. But, IMO, it wont if they keep good corporate governance or pay off a few officials. Anyways the producer that buys out ARU will probably get the property at a discount (i.e. with political risks costed in). This still means upside for ARU, given the deposit will in all likelihood be much larger than currently indicated. JMHO.