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Gold/Mining/Energy : Southern Metals - SUH.V (formerly Aranlee Res. - ARB.V) -- Ignore unavailable to you. Want to Upgrade?

To: Rick McDougall who wrote (246)	5/3/1998 3:51:00 AM
From: Abner Hosmer	Respond to of 254

Hi Rick - Well, I guess words can't do it justice ;o] Frankly, I'll be happy at this point if the company survives. In retrospect, they hung around too long in Kazakstan, borrowing money from Dragon, who are inside the company. Now they get a huge chunk of the company for their trouble. And what do we get for all the money they spent in Kazakstan. Jack Dick is what we get. Anyway, I think the interest of RTZ bodes well for the quality of the Argentine properties. Maybe a few years down the road.. And besides, the share split reduces the cost of commissions for anyone who wants to bail out now ;o] best regards - Tom

To: Rick McDougall who wrote (246)	6/8/1998 10:00:00 PM
From: Abner Hosmer	Read Replies (1) \| Respond to of 254

Hey Rick, it lives. What'll you bet they pull up some good holes on this one? Aranlee Resources Ltd - Rio Tinto commences El Acay drilling Aranlee Resources Ltd ARB Shares issued 18600000 1998-06-05 close $0.06 Monday Jun 8 1998 Mr. Stephen Kay reports Rio Tinto Mining and Exploration has commenced drilling at Aranlee's 100 per cent held El Acay gold-copper-molybdenum property in Salta Province, Northwestern Argentina. An initial program of seven reverse circulation drill holes totalling approximately 2,000 metres will test an area of strong hydrothermal alteration covering approximately 2km by 2km containing multiple anomalous gold-copper-molybdenum rock and soil values generated by Aranlee's 1996 and 1997 exploration programs. This area of strong hydrothermal alteration forms part of a much larger altered zone covering about 7km x 4km within intrusives and sediments. Drilling is expected to be completed in about one month and results will be announced by Aranlee when received from Rio Tinto. Under the terms of the formal agreement signed in December 1997, Rio Tinto can earn a 100 per cent interest in the property by (a) assuming all remaining option payments to the underlying property owner (totalling $830,000 (U.S.) over four years); (b) spending $2-million (U.S.) in work expenditures over a five year period, including a guaranteed $100,000 (U.S.) in the first year; (c) completing a bankable feasibility study within five years; and (d) at Rio Tinto's election, either paying to the underlying property owner a 0.9 per cent nsr royalty upon commencement of production or buying out the royalty for $1.0-million (U.S.) within 180 days of completion of a bankable feasibility study. Once Rio Tinto acquires a 100 per cent interest, Aranlee has the right to buy back up to a 40 per cent interest in the combined property within six months of the completion of a bankable feasibility study by paying to Rio Tinto 1.75 times the expenditures incurred by Rio Tinto up to that date (prorated for the percentage interest sought) up to a maximum of 40 per cent. If Aranlee elects not to exercise its buy-back right then it will receive a 3 per cent nsr royalty. Aranlee has a total of nine precious and base metal properties in Northwestern Argentina. In addition to the El Acay joint venture, Aranlee's 100 per cent held Rumi Cori property is subject to a joint venture letter agreement with High American Gold (see Stockwatch April 3, 1998). The company is also negotiating joint ventures for an additional two of its properties in Argentina. Aranlee is also active in the South Voisey's Bay area of Labrador through its 25 per cent joint venture interest with NDT Ventures (25 per cent interest) and Donner Resources (50 per cent interest). (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com