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Gold/Mining/Energy : Pacific Rim Mining V.PFG -- Ignore unavailable to you. Want to Upgrade?

To: Shirley Owen who wrote (7966)	12/8/1997 10:19:00 AM
From: rdww	Read Replies (2) \| Respond to of 14627

Pierina will be a low cost gold mine (correct)w/ 105MM oz Ag contributing $15 to the cash cost of Au (23%). The mine costs are $260MM - low since it is a heap leach - which per ABX's note reduces the recovery of Ag. $1B price tag for AQP divided by the 7MM oz adds $142 an oz to the Au cost (excluding the Ag credit) I think. $300M for mine building + interest = $42 per oz Au based on 7M oz. So Au now costs $234 + G+A less the 23% Ag credit. Just skinned in under the cost of todays Au price but that 23% bonus Ag credit will certainly help now.