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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: heinz44 who wrote (37188)	3/28/2007 5:09:47 PM
From: ogi	Respond to of 78409

Don't own WGI but spent a good bit of time with Ray Threlkeld at PDAC. I was pleased and impressed by him and the progress/plans for the mine. Large sulphide target underneath, and some more oxides to come too I believe. I think hedging will be limited to what the banks force on them but not much more. Probably not a bad idea for that mine until they recover some of their CAPEX investment. must get out of the office, Cheers, Ogi

To: heinz44 who wrote (37188)	3/28/2007 8:01:13 PM
From: loantech	Read Replies (1) \| Respond to of 78409

heinz44, Yes Oliphant worked on the hedge book for ABX. It brought in money when things were really down and it helped get the money to buy properties. They did not have the toxic hedges such as Ashanti. But as prices rose above 400-500 it has hurt profitability.On the other hand they have liquidated a good portion of their book. But it has not waylayed the company like I and many others thought may happen. Barrick has remained a FORCE in the industry despite many urban myths surrounding it. They have better properties some say than Newmont so the basketball game is in the very start of the 2nd half after all these years IMO. Oliphant has connections in the world period. Very important to me. WGDF is domestic. I have reviewed many reports on WGDF and their geology. Easy enough for me to see a doubling of what they have in ounces now up to 8 mill or more. Easy IMO but IAJOBOTB. When I last spoke with WGDF they plan on keeping the drills running. Completed 70,000 feet in the last 6 months or less and with 33% of holes reported have increased resources by 400K ounces. Keeping that pace they will get another 800K. I heard they were planning on drilling 140,000 feet this year It is a very small world, their President Ray Threlkeld grew up about 5 miles down the road in rural Oregon from me. He and I know of all the backroads and watering holes in that area and even though we were not there together but at a similar time in the 60's I trust him. A lot. Knows the mine my dad was shop foreman of well from the 50's etc. He was the chief geologist for ABX in the Western Hemisphere and that says a lot. He came over with the management team with Randy O. Yes WGDF will have a hedging facility to go with their bank loan coming from investec the same people that financed a lot of EPM. But overall I trust the people who lead me to WGDF (A Ethical and good mining analyst) and I trust the judgement of Hugh Cleland and Bill Cara and I trust the judgment of Ray Threlkeld and his boss Randy Oliphant. They are not bozos on the bus. WGDF is a low grade set up but it is an operation called run of mine. They do not need a mill and can recover most of what they have with leach pads. This is a mine and a lot of ounces not just a speculation on dirt. They will get the permit to move more dirt as they are tied in with LA county waste management with a UNIQUE, yes UNIQUE plan LC, as they have an agreement in place for LA to have a multi decade waste dump in the exhausted pits.IN a few years WGDF will have floatation tanks in place for the non oxide that is higher grade than what the leach ore is now. NEM's metalurgy tests showed over 80% recovery. At that time they can produce IMO about 400,000 ounces annually for 20 years pending further exploration success and permits to increas dirt movement which creates more dust etc etc. I have drank the Kool Aid and glad I did. I can hold this stock until "H" freezes over as it is domestic, shows an IRR of about 42% at 650 gold and that is at 165K produced per year not the closer to 283K that the current permit allows for. Me and Jim are drinking the WGDF/WGI kool aid right now. Do your own DD a lot of those numbers are conjecture or made by me a non professional.