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Gold/Mining/Energy : El Misti Gold Limited (EMG V) -- Ignore unavailable to you. Want to Upgrade?

To: robert b who wrote (142)	4/12/1998 1:17:00 PM
From: Dano	Read Replies (1) \| Respond to of 513

Hi Robert -according to Fri. paper, as of March 31, 210,000 shorts. That's after trading 3.5 mil shares over 7 trading days and running from $1.20 to a high of $1.77 to close at $1.55 . The shorts are nil. I don't think the pros are touching this as a short. Their buying the stock knowing it's potential for upward movement could be phenomenal. For all you folk who think emg doesn't deserve a market cap of 16 mil, absorb the following. (This is not directed at you Robert, as you already know emg potential. From the executive summary on the Sinchao Property, "The third style of mineralization and probably the best target for a large bulk mineable operation has been the discovery of a large copper-gold porphyry system in the northern area of the Sinchao Property. Here three RC holes (10, 11, 12A) were drilled on the periphery of a very large (1,300m. * 900 meter) elliptical shaped magnetic anomaly. All holes in this area bottomed in mineralization. Drill hole RC-11 cut through a section of 202 meters with .67 g/t gold, 17.78 g/t silver, .56% copper, and 1% zinc. The last 50 meters in this hole averaged 1.17 g/t gold, 1% copper, 27.82 g/t silver and 1%zinc. Considering a depth potential of 500 meters; an inferred surface area based on geophysics (1,300 * 900 meters) ;a 50% drill intercept factor and weighted average grades from the three holes of .56 g/t gold , 18 g/t silver, .47% copper and .63% zinc. This porphyry target would have a potential of 877 million tonnes having at current metal prices* an in ground value of $23.22/tonne containing an estimated 15.8 million ounces of gold, 4.1 million tones of copper, 502million ounces of silver and 5.5 million tones of zinc. Metal prices used: $US 290/oz gold: .80/LB copper, .50/lb zinc, $5/oz silver" Using the above: 877million ton =(1,300900500)3tones/meter.5(50%intercept factor) Now using $23.22/ ton we'll determine the in ground asset value. $23.22 877,000,000 = $20.364 billion At .05 cents on the dollar for in ground asset value using 50 million shares we get the following share value on a buy out. 20.364 * .05 / 50,000,000 = $20.36 per share US. Don't forget this is only considering a 50% intercept were porphyry systems are more consistent. This is also only using the average weighted grade when the bottom 50 meters was getting higher grades with depth. Thus the grades could improve along with the depth being greater than 500 meters. Change the numbers and the blue sky becomes phenomenal. The following makes everything more possible, "EMG is in one of the richest mining districts of Peru. Major, Asarco is also prominent in the area. " The Sinchao Property lies within the Yanacocha-Hualgayoc mining district. This district is currently the largest gold producer in Peru, with the Yanacocha gold mine producing 1 million oz. annually. Sinchao has many of the favorable structural regional features similar to other large mineral deposits worldwide, as is the case in Peru of the Yanacocha Mine. Sinchao is located at the intersection of major NE and NW lineaments near the boundary of two geological terrain types (Cretaceous sediments with Tertiary volcanics and intrusives.) Is it any wonder the company is in the process of buying nsr's of property owners. They certainly believe they have the goods. The price calculated above does not even concider the epithermal gold systems in the area, or Santa Rosa and San Nicolas which adds further blue sky potential. As I've said before, you sceptics are going to be saying " I should have, would have, could have" when the drilling commences. I don't believe there is any market player,speculator or investor that can afford not to be in this stock. Present price will not be around long. This response was written in consultation with my friend Peter Lieskovsky. Happy trading, Dan Hutchinson