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Gold/Mining/Energy : MIRAMAR MINING (MNG) -- Ignore unavailable to you. Want to Upgrade?

To: Naibob who wrote (207)	12/30/1997 4:33:00 PM
From: aknahow	Respond to of 457

All extractable reserves are determined by economics. If it cost $1,000 to extract one oz of something that sells for $500 one does not have economic reserves. In petroleum one has producing, proven, probable and potential reserves. Potental reserves are not assigned any economic balance sheet value. In a mi its the same thing. At a given price the balanc sheet may reflect a value for reserves that is subject to depletion as ores mined. If a dropin price makes it impossible to mine a portion of these reserves becausecost of mining have not dropped than the reserves are adjusted downward on the books, by a charge to earnings or retained earnings depending on the accounting standards in use.