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Gold/Mining/Energy : Peruvian Gold Ltd. PVO -- Ignore unavailable to you. Want to Upgrade?

To: Elizabeth Andrews who wrote (504)	3/30/1998 12:14:00 AM
From: Robert Dydo	Respond to of 892

I don't think that has been ignored. Gabriel share price was a $1.00 which is not bad for plenty of assumptions and just one single hole. The result was good but not enough to draw any conclusions, they better have more assays by end of April, or we will slip downwards. As to your previous comment. I do agree that certain fears are present in the market due to political risks associated with particular countries. My own experience as I am a shareholder of company which is working in one of those, is not a pleasant one. Nevertheless in order to find something enormous one must venture to the regions of undiscovered potential as chances are greater there than in crowded parts of the world. I must add that in some cases the risk is being a creation of misinformation while in other the argument could hold the ground. Personally I don't think Romania is a politically riskier than Poland,Chech Republic or Hungary. All those countries are a members of NATO and I would think that tendency is to follow their lead. Communism as a doctrine was forced on those nations by Soviets and I would doubt that the past will repeat itself in this format. Economically Romania is probably one of poorest countries in Europe, and in any case, any form of investment is rather welcomed than discouraged. There is an interesting news release by Gabriel about positive changes in the mining law in Romania. These includes topics like, export of minerals, tax law, JV with foreign capital, etc. Overall the conclusions are very positive and emphasis is put on Gabriel's long presence in the country (2 years), which has allowed to take most promising properties under their influence. Regards

To: Elizabeth Andrews who wrote (504)	4/6/1998 5:40:00 PM
From: Robert Dydo	Read Replies (1) \| Respond to of 892

Initial Rosia Montana results Peruvian Gold Limited PVO Shares issued 14,227,466 Apr 3 close $0.75 Mon 6 Apr 98 News Release Also Gabriel Resources Ltd (GBU) Mr David Henstridge reports On March 26 1998 (Stockwatch March 30 1998) Peruvian Gold announced a takeover offer to acquire all of the outstanding shares of Gabriel Resources. The offer was mailed to Gabriel's shareholders on April 2 1998 and is open for 21 days. Peruvian and Gabriel have determined that a combination of the two companies is mutually beneficial as it will permit the majority of Peruvian's working capital, which was approximately $12 million at the end of February 1998, to be used in evaluation of the Romanian, Peruvian and Bulgarian project areas. Priority will be given to re-evaluation and further confirmation of the existing gold resources at the Rosia Montana and Certej gold mines in Romania, followed by advanced exploration programs at the Bucium complex and Muncaceasca West areas in Romania and the projects in Peru and Bulgaria. Gabriel has interests in seven significant gold and gold/copper deposits and prospects all within the famous Golden Quadrilateral of Romania. Mining commenced during the Dacian days and the Romans occupied this area in the early part of the second century. Mining was very active during the Austro-Hungarian period from 1750 to 1918. The most advanced project in the Gabriel portfolio is the Rosia Montana mine, about 85km northeast of the major regional centre of Deva. Gabriel has the right to a 65% interest in the area and has the ability to increase this percentage to 80% through expenditure provisions from Regia, the Romanian state entity. At Rosia Montana, two strongly mineralized and hydrothermally altered dacite bodies have Intruded Cretaceous metasediments and volcaniclastics and there is evidence that the intrusives may coalesce at depth. The intrusives have caused widespread silicification and argillic alteration within a 5 sq km, elliptical and ENE trending zone. Several hundred kilometres of extensive underground workings exist at Rosia Montana, centred on hills containing the two largest dacite bodies named Cetate and Cimic. Mine and exploration workings cover a vertical range of 400m, and mineralization appears to continue at depth. Gold mineralization occurs both as free gold/silver and with disseminated sulphides. The best mineralization is associated with sub-vertical breccia pipes within the dacite, and no significant deleterious minerals (such as antimony, arsenic or tellurium minerals) are present. Regia commenced the open pit mining at Cetate in 1970 and is reported to have produced up to 400,000 tonnes of ore per year. All of the existing mining and milling equipment is outdated and will need to be upgraded. The Cetate mountain has been reduced in RL by approximately 120m by open-cut mining methods and is still several hundred metres above the valley floor and very amenable for future open pit mining operations. There is a large database of underground channel samples from the area and in excess of 24,000 samples were used to undertake a resource evaluation for the Cetate and Cimic zones. An independent resource statement by Resource Service Group of Perth, Australia estimated the inferred mineral resource to be 45 million tonnes at a grade of 1.7 g/t gold and 7 g/t silver or 2.4 million oz of gold and 10.1 million oz of silver. This is calculated from factored assay values, a +1 g/t Au cut-off, multiple indicator kriging and selected mining units of 5m x 5m x 5m which conforms with the AusIMM/JORC code of practice dated July 1996. Gabriel has commenced a significant exploration program at the site with the objective of confirming and expanding the existing resource estimates prior to a feasibility study. This will be achieved by underground channel sampling of selected levels in the old workings as well as by completing a 30,000m drilling program. To ensure all samples are prepared and correctly assayed by modern techniques, the company has paid for the construction of a modern preparation and assay laboratory in the town of Rosia Montana. The laboratory has commenced operation and will be independently managed and operated by Analabs of Australia. An extensive underground channel sampling program is also under way at the Cetate deposit. Sampling on 1m intervals is generally being undertaken along main E-W oriented access drives; this direction was considered to be at right angles to the dominant mineralized structural trends. Results are available for two levels and are summarized as follows: Level Length Length Au Ag Sampled +0.5 g/t g/t g/t Au cut- off (m) 873 375 233 1.6 13.7 820 280 182 2.5 19.5 This initial confirmation of widespread, continuous gold values is very encouraging. This sampling procedure will continue to confirm and expand the existing resource estimates. Drilling progress was slow at the Cetate zone caused by the new drill rig not performing to specifications, but the problems are being addressed. The first drill hole result (previously released by Gabriel on February 25 1998) was: Hole From To Interval Au Ag m m m g/t g/t G10 0 45 41.7 7.9 69.5 Inc 3 13.1 10.1 26.4 147.2 void 13.1 to 16.4 metres This hole gives evidence of the presence of high grade free gold shoots at Rosia Montana which will give considerable upside to any new resource calculation. Underground channel sampling at Cetate is continuing, and tenders are being invited for further drill contracts in order to escalate the rate of drilling at the site.