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Gold/Mining/Energy : United Keno Hill, UKH, Toronto**** Opportunity Knocks! -- Ignore unavailable to you. Want to Upgrade?

To: The Lone Ranger who wrote (785)	3/3/1998 10:51:00 PM
From: Alan Whirlwind	Read Replies (1) \| Respond to of 1348

Hmm Keno Savvy, how many bottles of glue your horse make? Hey, silver is getting exciting these days! Question--when the merger goes through, what will happen to UKH share price? Will it drop slightly because of the added merger shares as I understand it's not a 1-1 matching, or will the successful merger itself be a bullish development? --AG

To: The Lone Ranger who wrote (785)	3/4/1998 6:18:00 AM
From: David Luton	Read Replies (1) \| Respond to of 1348

Give a 'big enough' lever and I can move the world was a saying from a famous greek philosopher that applies in this case. First I suggest that you take a close look at some excellent analyses of the various silver market players by Claude Cormier. They can be found elsewhere on the net. Claude knows what he is doing and he was looking at silver when no one else was. 3) Financing Costs : I calculated very conservatively $25,000,000 ($15,000,000 for startup and the rest to take care of everything else bad on the balance sheet including the convertible debenture at a total annual cost of $2,500,000.) Next I produced a simple chart of all the PRODUCING mines of all Claude's majors with their average yield in silver ounces per ton. (I ignored Russia got some concerns, they change the rules quickly) Pan American Silver (PAA) 6.5 First Silver Reserve (FSR) 12 - 13 Clifton Mining (CFB) 12 - 13 (Excludes byproduct) Avino Silver & Gold 5 (Excludes byproducts) American Majors (Hecla etc) are generally below this. United Keno Hill 26.6 (Silver Only - Mine Plan) United Keno Hill 32 (Silver Equivalent) (Allowing for Lead / Zinc Byproduct Credits) The mine plan assumed $6.00 per ounce silver) @ 4,650,000 ounces annually. (byproduct is worth additional 1,000,000 ounces.) Think I will get a coffee & let the pro's take over. You can quickly do the math to calculate the silver price I used to cover all financing, royalty, head office admin. costs and get my profit. THE LEVERAGE HERE IS REALLY INTERESTING ONCE THEY START PRODUCING BUT IT TAKES LONGER THEN MOST PEOPLE ASSUME. YOU CAN'T JUST GET ON YOUR HORSE. One note I have been up and down the web. Now that Clifton (CFB) is 'finally' starting up (I own shares in it as well) with the possible exception of Avino's Coneto mine this looks like the prospect closest to production. For this play you see why I like 'big' silver bulls. They may be slower then your horse but once they get going they last longer. I AM OLD GREY CAT FROM THE 60'S REMEMBER THE SONG: 'slow down you moves too fast, got to make the morning last'. One final note for your cold wakeup shower. "Now all we got to do is convince the bankers." Dave.