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

To: Gary K who wrote (698)	4/13/1998 11:22:00 AM
From: Gary K	Respond to of 1474

Seems like the typical AVL scenario , Good news release and stock sinks.

To: Gary K who wrote (698)	4/13/1998 1:27:00 PM
From: RMF	Respond to of 1474

Hi Gary, Taurus Capital figured a pretax NPV (10% dicount) of $5.44 per fully diluted share. Since then I think the marketing and metallurgical studies have increased the potential. There may be a great deal more to find on the Separation Rapids property. From the Northern Miner article..... "Intriguingly, an aeromagnetic anomaly identical in size and shape is found on the opposite limb of an apparent Z-fold in the northwestern portion of Avalon's property. Surface sampling has returned (significant petalite and tanalite grades), so the anomaly has been designated a target for further drilling". This could raise the NPV substantially. micap

To: Gary K who wrote (698)	4/13/1998 1:32:00 PM
From: Pete Mimmack	Read Replies (1) \| Respond to of 1474

Eight bucks seems reasonable by this measure: Netback of $9 mil US, $13 mil Cdn, divided by 16 mil shares is about .80/share. Ten times earnings is a reasonable stock price, so $8. But this is a quick and dirty calculation. It also doesn't figure in the cost of building the mine, which ain't cheap. I'd appreciate hearing from Micap or DRT or anyone else on how this plays. After all, financing can take place thru stock issuance (ie dilution) or via some major interest payments which could drastically reduce net payback. Thanks, Pete