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

To: Mr.Staya who wrote (8696)	2/19/1998 8:06:00 PM
From: Phil Jones	Respond to of 14627

Ric: I agree with you. PFG has good value if Barrick should leave, but we'd have to go through a period of uncertainty that probably would push down PFG's share price for awhile. With 130M+ ounces of silver, I would think one of the big silver companies, such as Pan American, would be interested. Wish we could get a better feel for just where Barrick stands on its future with PFG!

To: Mr.Staya who wrote (8696)	2/19/1998 9:29:00 PM
From: Enigma	Read Replies (3) \| Respond to of 14627

I'm not sure how people have been valuing the possible value of this deposit. I don't think you can take the no. of oz X the price of silver, this takes no account of the (cash) cost of recovering the ore. Maybe some of you more familiar than I am with the situation should estimate how many tons/day can be mined, and how much this will net on an annual basis, and how this translates into annual profit and cash flow, and how much this is per share - all applicable to PFG's 30% share of course. Has anyone tried this, and if so what do you get? Stripping ratios, recoveries have to be taken into account? With gold mines analyists seem to come up with a value for gold in the ground (taking into account some ball park assumptions about mining costs). It must be the same with silver, although silver is often a by product of other mining, and pure silver ore bodies may be rarer. I don't mean to muddy the waters, but we should be realistic.

To: Mr.Staya who wrote (8696)	2/20/1998 12:03:00 AM
From: Enigma	Read Replies (1) \| Respond to of 14627

I've had another look at your message. It all depends on the assumptions you use. For starters, how many tons per day, in other words what size of mill do you suppose this size of deposit might support - 10,000 tons/day? I saw some rough (emphasise ROUGH) calculations by a friend which came up with a profit of $4.50/ton @10,000 tons/day -based on a 3:1 stripping ratio (some differences of opinion here), but on a lower price of silver - this was back in November I must say the potential looks very good. I've found Shirley's message - the next ones are warrants, so all that stuff of mine about options and tax is academic for PFG at least for now. All the best