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

To: Don craig who wrote (8088)	12/11/1997 4:40:00 AM
From: David R. Schaller	Read Replies (2) \| Respond to of 14627

Don, No one knows how much silver is at Diablillos. For one thing only Barrick has any idea what fudge factor needs to be used to convert the RC drill results to the more accurate DD results. The couple of DD/RC twined holes showed factors as high as 3x. (30oz/t DD vs 10oz/t RC) Was this a local condition due to the extremely high silver content? Does the same factor apply on RC holes with lower silver content? Secondly, only 15% of the anamoly has even been drilled. Thirdly, there are three other highly prospective areas at Occulto that haven't yet been explored. For whatever reason both Barrick & PFG have been very conservative in their estimates. If the resource has been expanded 38% then the 1.1mil oz GE reported this summer has grown to 1.516mil oz GE. This would project to about 90,000,000oz. This is basically a RC defined resource. Barrick has supposedly drilled 6,500m of DD. Assuming 250m/hole they should have reported 27holes. I don't find anywhere near that many holes reported by Barrick. I therefore conclude that they know quite a bit more than they're telling. If you chose to use a factor of 3x then we are at 270,000,000 oz. If you want to be conservative then assume 1x factor and 90,000,000oz. Take your pick. How does this compare to other world class deposits? Here are the total silver reserves for several companies. Battle Mountain Gold (BMG.Nyse)....1,451,000oz Coeur D'Alene Mines (CDE.Nyse)...109,000,000oz Echo Bay (ECO.Ase)............... 55,900,000oz Hecla Mining (HL.Nyse)........... 72,000,000oz I think its safe to say that Diablillos is big & getting bigger. FWIW, Dave