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Gold/Mining/Energy : Altair Nanotechnologies -- Ignore unavailable to you. Want to Upgrade?

To: jas singh MD who wrote (256)	3/1/1998 9:53:00 AM
From: John S. Baker	Respond to of 603

I bought ALTIF as a technology stock, rather than as a mining stock, and I have absolutely no expertise in mining stocks, especially not-yet-producing ones. Having said that, my understanding is that mining stocks normally are evaluated on the basis of two factors; "proven reserves", ie stuff that's really in the ground but hasn't been brought up yet, and the cost of production (including refining, if any). If that's accurate, then I reckon that the Tennessee property would be valued by many outsiders at "near zero" because the cost of recovery BY CONVENTIONAL MEANS is more than the finished material is worth. Once the company has demonstrated that the Ti on that property indeed can be recovered cost effectively (using the jig), then the value of that property would skyrocket. On what date does this happen? I would reckon that the results of this test should be a pretty good indicator. Although with technology "stories" there always is some residual skepticism and some delay in getting getting the capability recognized. When will this be reflected in the stock's price? I dunno. My guess is that it is not been fully reflected by any means at this time. My take is that a lot of people view ALTIF as just another mining stock -- long on hopes, short on real stuff, possible high payoffs, but remember Bre-X! Clearly it is not a household name at the big-name Wall Street firms. This investment is in my "for the long haul" pile. I got in a under $9 and am waiting to see the technology enable the hidden value of this property. Your other question dealt with the issue of financing recovery of the Ti from the property. True, ALTIF cannot afford to do this themselves. And I question whether they really want to be just another mining company. But once they prove that the jig will work, they can sell the property ... or maybe better just the mining rights ... and collect royalties upon the use of the jig as well. That would be my game plan. But I am not a mining expert.

To: jas singh MD who wrote (256)	3/2/1998 7:37:00 AM
From: Mr Logic	Respond to of 603

Jas to be able to place a value on the property then they won't have to start production, but will have to achieve proven reserve status. That takes a lot of drilling, dependent a little bit on how homogeneous the dirt appears to be. Assays would be required on the material, and I would expect that at the very least a large scale pilot production process demonstrated to prove that it works, and to understand extraction costs. Many $millions will be required before a value can be put on the property. P.