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

To: onepath who wrote (57319)	3/5/2008 8:37:12 PM
From: ogi	Read Replies (1) \| Respond to of 78408

Spoke with Imperial Metals at PDAC, III.T , Their Red Chris project has the most impressive drill holes I have seen in my lifetime, they only ended because after drilling down 1km they simply ran out of rods. Red Chris needs infrastructure to go ahead, they believe that is all it would take to allow investors to invest in the project. I don't own it, I want to, especially if I can time it. Freeport MacMoran rise to significance cannot be divorced from Grasberg and Rec Chris looks like Grasberg!!! Cheers, Ogi

To: onepath who wrote (57319)	3/5/2008 8:51:01 PM
From: tyc:>	Read Replies (1) \| Respond to of 78408

Thanks ! Your posting is timely. I have just been studying the company's web site. I am impressed. Total market cap including the preferred shares is only about C$211M. If I understand correctly, the project gives the company the opportunity to invest ~$900M, and that investment at reasonable base case metal prices would yield (IRR) something over 9%. In comparison, MR's El Morro requires a capital investment of $2.5B and that larger investment at similar base case prices would yield about 8% according to the brief report that MR issued. Both seem attractive to me, especially with current and future prices expected to be very much higher than base case. What will happen if Goldcorp continues to decline to participate ? My feeling is that it will be a slam dunk for some other cash rich miner to buy out their preferred share interest. Any thoughts ?