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Gold/Mining/Energy : GMD RESOURCE -- Ignore unavailable to you. Want to Upgrade?

To: VAUGHN who wrote (639)	2/16/1998 12:54:00 PM
From: Cal Powers	Read Replies (1) \| Respond to of 1030

Vaughan, The GMD AGM today should be a chance to clarify some of the questions everyone has about this company and its future prospects. Do you know anybody that will be attending that can ask the appropriate questions on your behalf? Cal

To: VAUGHN who wrote (639)	2/16/1998 2:05:00 PM
From: Richnorth	Respond to of 1030

Thanks for your response. (But apparently he looks forward to proferring his services for a "cut" (finder's fee) in return.) With reference to GMD News Release #187 dated February 12th 1998: Initially, I found the news release somewhat puzzling. But, after I sorted out the figures, I believe I am beginning to understand it. Comments, anyone? (a) Measured and Indicated Resource:- Ormsby Zone: 2,608,000 tons @ 0.108 opt = 281,664 oz. gold Discovery Zone: 243,000 tons @ 0.57 opt = 138,150 oz. gold Total : 2,851,000 tons @ 0.147 opt = 420,174 oz (close to 421,000 oz) ************************************************************** (b) Inferred Resource:- Ormsby Zone: 1,250,000 tons @ 0.10 opt = 125,000 oz. gold Discovery Zone 1,329,299 tons @ 0.80 opt = 1,063,439 oz. gold Total: 2,579,299 tons @ 0.46 opt = 1,188,439 oz. gold (~1,185,000 oz) *************************************************************** On combining (a) and (b), we get: Measured and Indicated oz. of gold = 420,174 oz. Inferred oz. of gold = 1,188,439 oz. Total oz. of gold = 1,608,613 oz. ****************************************************************** I was given to understand that, to date, GMD has explored only about 20% of its gold properties. If it is assumed that further explorations will prove up a total of, say, 3 million oz. gold, then at today's pog (US$300/oz) and assuming a total of 17 million shares are out, a GMD share should be worth about 20% of (US$300 x 3,000,000)/17,000,000) = US$10.59 (~C$15/share). At pog of US$400/oz, the share price rises to US$14.12 (~C$20/share). The above calculation does not take into account the potential of the Royce (diamondiferous?) property.

To: VAUGHN who wrote (639)	2/17/1998 9:10:00 AM
From: Dave R. Webb	Read Replies (1) \| Respond to of 1030

The company's intentions were spelled out in new releases in the first week of February, and haven't changed. Inferred resources are higher grade than the Measured and Indicated because of the reasons you mentioned....that there is approximately 1,000,000 tons of very high-grade material that is identified as extentions of old stopes at Discovery. Several drillholes targeted these zones, and confirmed the extensions. There are not enough drillholes to have the level of confidence required for Indicated Resources. As stated in the news release, all new exploration has been suspended. This doesn't mean cancelled. It means until we can be sure of the company's position, financial, management, and otherwise, it is not appropriate to initiate new programs, new expenditures. Dave