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Gold/Mining/Energy : Bema(Bgo) and Arizona Star -- Ignore unavailable to you. Want to Upgrade?

To: Don Billins who wrote (8129)	10/28/1997 8:21:00 PM
From: the Chief	Respond to of 10482

Cannacord report posted above, excerpts!!! This phrase summates the PDG deal "In other words, much of Placer's decision to participate in this project appears to be a commodity play with a low-risk entry fee." This paragraph summates what BGO/AZS got out of this deal! The pre-feasibility study released October 9, 1997 stated the net present value of the Cerro Casale project was US$2.75B at 0% and US$1.16B at 5%. The hidden value of the property is the additional targets on the Aldebaran property. With the future infrastructure at Cerro Casale, costs to develop neighbouring deposits will be lower. Items such as the water pipeline and the slurry pipeline for Cerro Casale are expected to cost US$105.0M and US$45.7M, respectively. The NPV of Bema and Arizona Star shares from a mine at Cerro Casale, using an 8% discount rate on cash flow and $325/oz. gold, would be about 6.00 and $5.44, respectively. These values are very sensitive to the price of gold. In the current market, we consider both stocks as HOLDs. Investors interested in a conservative gold investment with a geologic upside should consider Meridian Gold (MNG : TSE : $5.50). This is the result!! A "bad deal" the Chief