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

To: Feline who wrote (8235)	12/20/1997 6:43:00 PM
From: David R. Schaller	Respond to of 14627

Feline, I'm not sure the peanut gallery has the needed data to answer your question. From this years annual report there is a table that shows a silver resource of 91.3 mill oz @ .35g/t au. The same table shows the silver resource dropping to 67.5 mill oz @ 1.0g/t au. This would be about $10/t. So I guess at $4.80/t it would fall somewhere between 91.3mil oz & 67.5mil oz. The whole resource is much larger than reported and probably much richer anyway. Besides the increase in strike length, some of the extensions were not included b/c they hadn't either been proven to be continuous or they were outside the conical shaped excavation pattern used in their Kreig analysis. We also have the happy providence of the Diamond drill results being sharply richer than the Reverse Circulation results which have been the mainstay of almost all drill data. We suspect that the reason for this is that some of the silver compounds at Diablillos are very water soluble. So the richer the area being drilled the more silver we lose during the RC drilling process. No one is telling but apparently Barrick has drilled 12 DD holes that twin various RC holes for Metallurgical purposes. I'm personally expecting that when the confluence of all these circumstances resolve themselves, Diablillos is going to have a very large resource # associated with it. I would be interested in knowing the mining companies that met your strict investment requirements. PFG seemed decent to me but if there are others that are better, I'd be interested in looking at them. You can email me if you prefer to not post them. Thanks & good luck with your other plays. Regards, Dave