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Gold/Mining/Energy : Global Platinum & Gold (GPGI) -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (4855)	1/24/1998 9:48:00 PM
From: Alan Vennix	Respond to of 14226

DESERT DIRT INDEX VALUES AS OF JAN 23, 1998: NOTE: See "BACKGROUND" section at the bottom of the post on the "New Desert Dirt Gold Rush" thread for details on the 12/31/97 share values and outstanding shares as the basis for the three investment indices. Index companies include: CHIP, GPGI, IPMCF, MXAM and NAXOF. Several Press Releases appeared during the first 3 weeks in January: CHIP - Appointment of Mr. Childress as CFO and VP of the Cochise Mining Corp Subsidiary. Per prior PR's, CHIP will invest in Cochise to bring alluvial gold deposits online during the first half of 1998. GPGI - Receipt of payments for precious metals shipments to refiners during 1997. The company also released a letter from AuRic offerring to work with GPGI on refining of additional shipments, indicating that the recovered metals from the previously received shipment had a value of approximnately $1800 per ton of (enhanced/screened) head ore. IPMCF - Released information from an independent laboratory indicating wet assay values in the range of 0.07 oz Au/t, consistent with IPM's in-house measurements from 1995/6. NAXOF - Released information on the completion of the private placement announced in 1997 and stated that the date for committing to the Johnson Assay Method had been extended to Jan 21 (with later indications that it had been further extended by 30 days from Jan 21). A second PR contained certified gold results from LeDoux Labs on Franklin Lake material delivered under COC by Behre-Dolbear. Recovery from a composite sand/gravel interval was 1.66 oz Au/t using the Johnson Fire Assay on untreated ore, increased to 2.56 oz/t after the first stage of the Johnson Recovery Method, but decreased to 0.954 oz/t after the first and second stage treatment - an anomalous value that will be retested. For the year of 1998 through Jan 23, IPMCF is up 34%, MXAM is +8%, NAXOF is -10%, CHIP is -16%, and GPGI is -33%. Details on the indices are available on the New Desert Dirt Gold Rush thread: exchange2000.com

To: Zeev Hed who wrote (4855)	1/25/1998 2:30:00 AM
From: Larry Brubaker	Read Replies (1) \| Respond to of 14226

Zeev: I enjoy fiddling around with spreadsheets, so I built a cash flow model using your assumptions as you stated them. I came up with a valuation of $9.21 assuming 20 million shares and a discount rate of 10%. At 15% discount rate, the valuation is $7.29 per share. A couple of notes: (1) this valuation is for the 500,000 tons of stockpiled ore only. After the 500,000 tons is used up, I ended the analysis. Based on your assumption of doubling production every 3 months, I calculated they would get to 200 tons per day by 2000, and exhaust the 500,000 ton stockpile by 2006. (2) I calculated they currently can process 1.2 tons per day of head ore. This is based on GPGI's statement that they can produce 4,300 lbs. or dore per month, plus the previous posts which indicated that one ton of ore produces 120 lbs. of dore. Comment: At 1.2 tons per day, GPGI would generate $64,500 per month of revenue (assuming 30 days/month of production and $1,800 per ton). So far, GPGI has stated they have received checks totalling $15,000 for several months of production. Therefore, while GPGI may have the capacity to produce 4,300 lbs. of dore per month, it does not appear that their refiners have the capacity to refine this much material as of yet.