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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: Goalie who wrote (733)	3/18/1998 3:41:00 AM
From: POLARBEAR	Read Replies (3) \| Respond to of 7235

gold-eagle.com Hi Goalie, Just finished writing an article on Randgold, in which I have a section on the M-1. Old news here for most, but thought you might want to take a look. Also, maybe there will be a few SUF buyers from the article. From all that I've gathered reading about the lawsuit, doesn't seem that the "heirs" including Mr. Lawyer, have much to stand on, thus I didn't include it in my article. RANDGOLD will do well without the M-1, just as SUF will, but seems like they'll both prosper more after being awarded the disputed property.

To: Goalie who wrote (733)	3/19/1998 11:00:00 AM
From: VAUGHN	Read Replies (3) \| Respond to of 7235

Hello Goalie I don't believe the stock price depression is exclusively SUF's problem right now. If you cast your eye down the list of Canadian diamond juniors and even the better names, most are selling well below their 52 week highs and in a few cases, book values. Most of these even have Canadian assets yet remain undervalued. While DMM.B remains near its 52 week high it is trading on very low volumes and is well below its target price based on proven assets and production in 6 months. ABZ has had a nice recovery from its winter doldrums and has probably moved (in $$ terms) more than any other diamond junior, but remains well below its 52 week high and more below its realistic short term (1998) high. MPV is well below its 52 week high achieved while it only had one pipe to brag about, not four with DeBeers indicating more may be found. LTL & partner are in development and continue to devalue shareholder equity with little indication of serious exploration plans for 1998 so there will probably be little joy in mudville there. KLA has moved up nicely but primarily on manufactured churning around their Mexican land acquisition not their impending Munn Lake residuals. IAR has also had a nice little move, but nothing like we can expect once SUF's drills actually start churning. GMD has shot its self in the foot and God knows when they'll get their act together. Hopefully, 1998 won't be a complete right off. At least their targets are under small lakes accessible after ice out but whether the market will recognize that fact is anybody's guess? WSP is still trying to return to the well, but even their supporters are finally realizing that it is probably dry. GGL and CYP have good stories but no positive record to support any confidence in their plans. Buffalo Hills and White Fish et all are good stories but again no happy endings to support the tale. And while REX, AAD, DMF and CNB all have intriguing over seas properties, even real assets with, in some cases, big player support, political and economic questions have effectively ham strung their prices for the short to medium term. To some degree, SUF still suffers from this same characterization or classification, and despite SA's apparent stability, shareholders remain cautious in assigning realistic multiples to Klipspringer and especially Angola due to the historic risk. As I have always maintained, SUF will never get the markets serious support until it established some long term and serious Canadian diamond assets. Munn Lake and to some degree Lac de Gras are the 1998 pokers in the fire for SUF so to speak. Despite SA and Angolan production, their price will not achieve its potential in the near term until Munn Lake's name is changed to Munny Lake! As always, the market needs a good Canadian diamond strike or story to ignite this sector. Right now that is looking like it will be SUF/KLA/IAR and ABZ/Kennecott this spring and possibly MPV/GMD a little later. Finally, I still believe the Canadian Diamond Sector suffers from being included as part of the TSE's Precious Metals Index and will only truly fly with inflation and/or when gold appreciates in 1999/00 or once a new Index is created for these players. That will come, but it is probably still a ways away. Until then, let the drills start spinning out a good story! Regards