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

To: Mr.Staya who wrote (8606)	2/8/1998 4:40:00 PM
From: Ron Everest	Respond to of 14627

The ABX equation is very interesting. Perhaps PFG's acquisition of the adjoining properties is to bolster PFG's position relative to the strike. If so, then the G&M article about possible retreat from this venture is sour grapes because PFG wants to hold the adjoining properties outside of the jv? Have I misread this? or is this a possibility. '<<<<<<<< exchange2000.com Subject: Pacific Rim Mining V.PFG \| Previous \| Next \| Respond \| To: +Rick Tjepkema (8523 ) From: +David R. Schaller Saturday, Feb 7 1998 9:04AM EST Reply # of 8607 Rick, I had Samantha fax me a copy of a rough draft of the new properties and how they relate to Diablillos. It has the same outlines as the map you pointed out on PFG web page. It also shows the relative position of the heavily drilled Occulto zone, and the controlling fault lines. The long and short of it is that if there was to be any extension in the SW direction of Occulto then these new property additions were imperative. It looks like we may have bought another 1.5-2.0 miles of trendline along the controlling faults. I thought Shrakes point about needing the additional property for the development of Diablillos was also telling. If this were to be the case, Barrick will want these properties also since mining without them wouldn't be as feasible. Who knows maybe Barrick told them to secure these properties before a deal would be cut. Obviously Barrick couldn't move on them without major disruptions. Anyway looks it looks like a propitious purchase to me. Regards, Dave '>>>>> This could be telling for Barrick may well be saying that they will exit if they don't get a comparable deal on the new properties. I am going back to read more on the acquisition of the new properties. As I though, there is no mention of cutting in ABX on the new properties, see release below: Pacific Rim Mining Corp - Pacific Rim to acquire Fantasma claims and Nunez Cateo from Corriente Pacific Rim Mining Corp PFGShares issued 182713701998-01-29 close $1.5Friday Jan 30 1998Also Corriente Resources Inc (CTQ) Ms Samantha Cramer reports Pacific Rim Mining has signed a letter of intent for the option to acquire 100% of the Fantasma claims (600 Ha) and the Nunez Cateo (6000 Ha), in the Salta Province of Argentina, from Corriente Resources, subject to completion of due diligence and approval by Pacific Rim's board and regulatory bodies within 45 days of signing. The property lies adjacent to the 30% Pacific Rim owned Diablillos property in northwestern Argentina, being explored under the supervision of Barrick Gold. The proximity of Fantasma to Diablillos is both strategically and geologically important to Pacific Rim as the claims cover a portion of a large fault block that hosts the Oculto deposit. Most of this block is covered by wind blown sand on the Fantasma property. Under the letter of intent, Pacific Rim can acquire a 100% interest in the property by issuing to Corriente a maximum of 400,000 common shares: (a) 100,000 upon execution of a formal option agreement (b) 100,000 on the first anniversary of the option agreement, (c) 100,000 on the second anniversary of the option agreement and, (d) 100,000 on the third anniversary of the option agreement. Upon exercise of the option, a 1% nsr will apply with a $1 million buyout. The Cateo is subject to an option agreement between Cavok SRL and Corriente, and Pacific Rim agrees to meet Corriente's obligations, and assume all its rights as set out in that agreement. These obligations include underlying payments totalling $US1.3 million over a period of three years and a 2% nsr with two buyout payments of $US582,500 each. (c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com

To: Mr.Staya who wrote (8606)	2/8/1998 4:53:00 PM
From: David R. Schaller	Respond to of 14627

Ric, How the market currently evaluates the Diablillos asset is quite mysterious. We can't know how much Barricks share price is attributed to Diablillos but we can guess at PFG's. Take away the cash and our 30% can be worth no more than $1.10/share * 18m shares * .7us/ca = $14mil. Barricks 70% must therefore be worth $29mil. Total $43mil. Considering that Diablillos is a Billion dollar asset... something is completely out of whack. (Besides my brokerage account) PS: I think I scanned the Nunez/Fantasma/Diablillos map onto my computer. If anyone wants it, email me and I'll try to send it. Regards, Dave

To: Mr.Staya who wrote (8606)	2/8/1998 5:15:00 PM
From: Phil Jones	Read Replies (1) \| Respond to of 14627

Looks as if Barrick may be 'iffy'. I never could figure why they ever got involved with PFG for only 0.3M ounces of gold (at the time) when ABX's minimum was 4M. There's a Toronto Star article today that mentions PFG as a silver play, along with Pan American Silver (PAA), etc. It's clear that investment analysts are treating PFG as a possible silver mine, not a gold mine. If Diablillos is going to be a silver play, it would be good to get Barrick out as soon as possible so that Pan American or some other big silver mining company can get involved. From what I understand, Barrick has neither silver mining expertise nor any interest in such mining.

To: Mr.Staya who wrote (8606)	2/8/1998 6:09:00 PM
From: Marshall	Read Replies (1) \| Respond to of 14627

Good Post Ric; I definitely don't see Barrick just up and walking from the property- why should they. If they decide they do not want to mine it then they will just put their 70% on the market - can't they do this?? - I assume PFG has first right of first refusal in this case and vice versa. Also I fail to believe Barrick do not have expertise in Silver mining as I think they will be mining a considerable amount of silver annually especially when Arequipa starts production and if they don't have the expertise now they'll just buy it. Excellent point, Dave, it certainly would have been a dead giveaway if Barrick had to acquire these properties instead of PFG. Goodluck everyone