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Gold/Mining/Energy : Canadian Diamond Play Cafi -- Ignore unavailable to you. Want to Upgrade?

To: WillP who wrote (4780)	11/22/2006 4:39:09 PM
From: james flannigan	Read Replies (1) \| Respond to of 16205

WillP in my view Dr.Goldie is not that far off on his projection's.Its you that have a closed mind and can not see the future and will only look at things using static figures.Why do I say this?Well first off you strike me as a reasonable man.A reasonable man knows that at a 7% compounded RR money doubles every 10 yrs.Second we know the mine life of GK to be 20 yrs from construction to close.So lets say that the present value of GK for arguments sake is about C$5 billion. 4 to 5 more years permitting and construction =$7.5 billion First 5+5 yrs of production = $10 billion.Allowing for ten more yrs of mine life and depletion even though 7% increases during the next 10 yrs = $5 billion. $15 billion mined out of GK over 20 yrs sounds unreasonable?.Not to a reasonable man like Mr. Goldie. James

To: WillP who wrote (4780)	11/22/2006 4:41:35 PM
From: Bloomfield	Respond to of 16205

Will, On a different topic, I think the focus of the Canadian diamond scene may soon shift back over to the FALC. I'm more than a little interested in the outcome of LD drilling in Orion North - SE. This has the potential to be really BIG. I sold my shares shortly after the original $100M deal was announced including Newmont in March, 2005. If Orion turns out to be economic, it would more than double Shore's resource base overnight. How does this look to be shaping up from your perspective? -B-

To: WillP who wrote (4780)	11/22/2006 6:51:59 PM
From: Bloomfield	Read Replies (1) \| Respond to of 16205

Will, Thanks for your detailed response concerning the relative merits of debt vs equity. I always assumed equity was the way to go, but it really comes down to the IRR for each possible outcome. If, and that's a big if, you can get top dollar to issue shares, it can make sense. On the other hand, debt would be the way to go if the level of stock dilution would be prohibitively high. Six of one; half dozen of the other. The main issue here is not one of debt vs equity, but the low diamond values coming out of GK. If the value doesn't come up over the next two years, De Beers may very well decide to put the project on ice. An IRR of 3.6%, or even 6%, doesn't cut it. Thanks again for taking the time to discuss these issues. Yours truly, B