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Gold/Mining/Energy : AVL.V - AVALON VENTURES -- Ignore unavailable to you. Want to Upgrade?

To: DRT who wrote (603)	3/16/1998 11:40:00 AM
From: DRT	Read Replies (1) \| Respond to of 1474

Another analyst with a 12-month target of $5. Here are a few highlights/points of interest: Taurus Capital Markets Ltd Mining and Metals Michael Wm. Hitch March 1998 Avalon Ventures Ltd. Rare Metal Investment Opportunity Introduction - "We are initiating coverage of Avalon with a Buy recommendation and a 12-month target price of $5.00 based on the unique nature of the Company's portfolio, the significant up-side potential of Separation Rapids and Avalon's potential as a take-over target." Separation Rapids - "The Big Whopper is flanked by a swarm of narrower zones giving it a combined width of over 80 m. The importance of these dykes lies in the enriched tantalum and cesium values, suggesting a characteristic zonation common with this kind of deposit." - "... preliminary results strongly suggest that the Company may have one of the largest rare metal deposits in the world. The timing of development of any production from the project is critical in terms of a growing global demand for these metals and a depleting supply base." Wolf Mountain - "... we look for encouraging results from the phase 1 drilling program and the development of a solid exploration program for the 1998 season." Dubenski - "First phase drilling by the Company produced some spectacular results including the first hole of the program averaging 25.44 g/t over a core length of 14.1 metres including 32.6 g/t Au over 10.1 metres. Prospecting work in early November of this year also produced impressive assay results, including values in grab samples up to 117.05 g/t gold from a newly-recognized gold-bearing shear zone." VALUATION - "Based on preliminary resource estimates and approximate commodity prices and associated costs, Separation Rapids has a pretax NPV (10% discount) of US$75.6 million or US$3.78 (C$5.44) per fully diluted share." ________ DRT