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Gold/Mining/Energy : Gold Reserves Limited GLR - TSE -- Ignore unavailable to you. Want to Upgrade?

To: barry doment who wrote (170)	12/13/1997 1:08:00 AM
From: alan miller	Respond to of 406

It's interesting to note that the domino effect in Ven. has begun to bear fruit in the form of veta rights. Getting dynamite into the hands of miners has been an onerous task and we'll see major changes here soon. CVG will be transformed - MEM has already started change - the major players are lined up. I'm a KRY holder and they are next in line for deep vein - all because of legal and economic reform. GLR is a great takover for ABX/PDG let alone KRY. Let's see how the PAC5 makes out with Cristinas before GLR worries...and Barry as mentioned, this is a MAJOR shift in policy for the legals in Ven. and they are flying this one as part of the beginning of a major reform package...I doubt that anyone will touch these rights adversely anytime soon. best regards, am

To: barry doment who wrote (170)	12/13/1997 11:04:00 AM
From: Syncrude	Respond to of 406

My best guess at this time is that shares should recover to the $6CDN range in the very short term. As we move towards the 1st quarter of 1998 when the feasibility study should be completed, the stock price should move up to the $10-12 range. Beyond that, if gold prices move back over $300, the share price should move north of $15. When, and if, markets value reserves at $50USD again, GLR should go to $25CDN and beyond, based upon: 10mm oz of Au equivalent time $50USD times 1.35 currency exchange plus cash divided into 24.6mm shares o/s on a fully diluted basis. Remember that the project will take 18 months to complete once it starts. Recovery grades are not yet known at this time. Further drilling will take place. Joint venture is likely. Enough variables to cause some volatility. Interested to hear what other think about share price movement over next six months, with supporting assumptions please.

To: barry doment who wrote (170)	12/13/1997 11:56:00 AM
From: The Vet	Respond to of 406

As far as I can determine this approval is the final one; all other approvals have already been obtained. There is a small tax payment of some sort to be made which completes all of the requirements, but the company have said that that matter is in hand. My estimate of the worth of the shares now considering the value of the proven reserves, cash in hand and the unambiguous title is $9.50 USD a share. I base this on the fact that the cost of finding and proving gold in the ground historically exceeds $20 per ounce. At about 9.5 million ounces of gold equivalent that is $190 million plus cash on hand divided by the number of shares to give me that figure. Also on the plus side, the fact that they are right beside Placer Dome who have announced plans to mine means that the deposit is almost certainly economic to mine either as a stand alone project or as a future expansion to Placer's mine. The current price of gold and sentiment are an obvious minus. There has been some comparison with other mines with low grade ore, but we must remember that this is an open cut operation in a climate that allows easy mining all the year round. I have been given estimates by consultants familiar with this type of mining of mining costs of $160 per ounce for this deposit, but I stress this was an estimate not a properly completed study. Of course I don't expect the market to reflect that price for quite some time with the current negative sentiment for gold, however if the share price remains below $5 US I expect at least one of the majors, maybe Barrick or Placer to take a good look at Gold Reserve as a takeover target.