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

To: Mr. Aloha who wrote (42405)	6/13/2007 11:01:49 AM
From: LoneClone	Read Replies (1) \| Respond to of 78431

Re SPM, read further about the extremely conservative metal price assumptions. Also notice that it does not include 6300 metres of drilling that have already been completed, and that five drills are working on site for the foreseeable future proving up more. " - The Base Case Net Present Value ("NPV"), after tax, of US$14.3 million and an Internal Rate of Return ("IRR") is 26.2% (using US$11.00 per oz. for silver, US$1.25 per lb. for zinc, US$0.50 for lead, US$2.25 for copper, 10% real discount rate, $40.30/tonne operating costs (the operating costs include a contingency factor of 7.5%). - Current Metal Price NPV, after tax, of US$46.2 million and an IRR of 60.7% (using a 10% real discount rate and $40.30/tonne operating costs). Metal prices as of June 5, 2007, are US$13.63 per oz. for silver, US$1.67 per lb. for zinc, US$1.04 per lb for lead, US$3.26 per lb for copper." This is only the start for SPM. By the time production starts next year, those numbers will have improved considerably. SPM is running a middle course between IPT which doesn't really bother with drilling up reserves but concentrated on production, and companies like MMG which concentrate on proving up resources and reserves.

To: Mr. Aloha who wrote (42405)	6/13/2007 11:16:35 AM
From: jackjc	Read Replies (1) \| Respond to of 78431

I sold in 180-1.90 range months ago. Met with them couple times but have sold most silvers. Thought they were slow getting into production, but are developing a good resource. They had an amazing ramp to 4.00 perhaps based on Morgan's reco. Watched them struggle. Them took an initial at .37 and added many times on the way up. Thought they would eventually get back to the old high, but will take more than this fease perhaps. Most silvers need a metal advance IMO.