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

To: Shirley Owen who wrote (8170)	12/14/1997 2:37:00 PM
From: Mr.Staya	Read Replies (1) \| Respond to of 14627

Hello Shirley and David, By the way Shirley that is $11.75 Ca/share is it not. It does get rather interesting, when you start crunching the numbers a little. It appears now, that we all have a much better picture in our heads of the actual deposit, geography of the area, and the resource itself, then we did last year at this time. It is obvious that we (PFG) are undervalued at the present time, however there is a few things to consider. What would Barrick pay an ounce for the 30% of the gold resources that PFG owns? Would they pay roughly $385/oz., or would they pay considerably less, due to there fixed costs and the steady decline in the metal. Furthermore, alot of the silver value would be used to cover costs and set-up, in order to retrieve the gold for next to nothing, like we have discussed in the past. They could then extract the gold relatively cheaply, however could Barrick still hedge their gold price at higher levels, or would they have to make do with these drastically reduced and falling gold prices? The other side of the coin would be the slow and steady increase in the silver price, appreciating the resource, over the next several months. Gold, furthermore, SHOULD? hit bottom sooner rather than later. Keeping in mind that extraction of any metals on their property will be one or two years away, and could be even longer. By this time, it would be very likely that gold would have rebounded to a certain degree. Obviousely Munk forsees this, and is starting to be more vocal, as indicated by many articles of late. I guess if the silver resource keeps expanding, you could always use the gold credits and mine the silver...........:-) I will try to look into more concrete silver extraction costs, set-up, etc. so as to have a clearer picture yet. Just some food for thought, Ric Staya P.S. Personally I feel that PFG'S 30% of the property is worth $10/share,Ca. which would be a drop in the bucket for Barrick, which could come within the next few months. Why would they want to prove up more and more reserves, just to pay a much higher price to PFG shareholder's. It seems like a win-win situation for us.