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

To: marcos who wrote (43894)	7/4/2007 10:23:00 PM
From: tyc:>	Respond to of 78424

Have you ever looked at the Fortuna project of Metallica ? Noranda (now Xstrata) has been working it for the last 5 or 6 years. The option agreement requires them to produce a final feasibility study by September of this year. Watch out! total measured and indicated resources with a .3% copper equivalent cut-off; 572,100 tonnes .54%copper .48g/t au There is an additional inferred resouce of 339,700M tonnes using the same cu cutoff. Another Inmet ? LOL The option agreement also requires Xstrata to provide 70% of Metallica's 30% share of the project financing, So Metallica will have to find only ~10% to finance its 30% share. Do you remember how enthusiatic I was about Inmet's 3% net profits interest in Antamina ? Metallica's interest in Fortuna is not a net profits interest, it is 30% ownership. With source of financing pretty well assured, I begin to feel the same enthusiasm. Note also that Metallica is compared to WGI in the WGI presentation Tom posted. BUT the details there gave no weight to La Fortuna ! Apparently Metallica's full market cap is supported by their small Mexican PM mine (Ag/Au). On that basis the leverage to their share of the 8,000,000 oz of gold (and the cu) at FORTUNA defies description ! Oh Yes ! There are warrants and I am long !