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

To: Jeannie Dixon who wrote (154)	4/26/1998 4:03:00 PM
From: Dano	Read Replies (2) \| Respond to of 513

Jeannie,I think you'll get your $5.20 back and much more if you stay with this play. I don't know why you'd be in a hurry to jump ship when everything that originally caused you to buy this stock is about to unfold. News this week: Mon.Apr,20th. George Milton, with distinguished career in the investment industry, appointed to the board. Fri.Apr,24th. states, "Drilling of the first hole has commenced at Sinchao in the newly discovered major epithermal (high sulphidation) gold, silver, copper zone. Surface outcrop here demonstrates strong quartx alunite - pyrophilite alteration. Previous drilling in this zone by El Misti last year intersected from the surface to the bottom of the hole 126 metres grading 0.70 g/t gold, 27 g/t silver, 1.15% copper. This was the only hole drilled in this zone. The dimensions of the drill target have been revised upwards to 1200 metres in length by 300-500 metres in width and to 500m in depth. The majority of the drill pad outcrops exposed by recent earthworks for drilling machine access show strong alteration and visible disseminated pyrite and copper sulphide mineralization." If these numbers prove up on this epithermal zone, it alone could have an in ground asset buyout value of around $40 Canadian per share. Calculations: Volume = 1200500500 = 300 million cubic metres Tons = 300 mil cubic metres * 3 tons/cubic metre = 900 million tons Cu value= 900 mil * 1.15% * 2,204 lbs/ton .80cents/lb=$18.249 billion Au value= 900 mil .7 g/ton / 31.1 g/oz $300 /oz = 6.077 billion Ag value= 900 mil 27 g/ton / 31.1 g/oz * $6 / oz = 4.688 billion This produces a sum of $29.014 billion. At a 5 cent on the dollar buyout for in ground assets and using 50 million shares you get the following value: $29.014 billion * .05 / 50,000,000 = $29 US or *1.41 = $40.90 Canadian Using the above you can be as conservative or optimistic as you want by changing numbers, but the bottom line is emg has a potential value far greater than it's present price. Another point not to be over looked is a potential share value held in the porphyry deposit. ($28 Canadian, see posting #143). If this isn't enough to keep your interest, emg is also actively progressing on bring Santa Rosa into production. Do you think the stock's a good buy? Based on it's present risk reward ratio, I certainly do. Present volume and price movement would indicate that some major money also think so. Written in consultation with friend Pete. happy trading Dano