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Gold/Mining/Energy : Armada Gold 10 Million oz of Gold & 1 billion lb of Cu ! -- Ignore unavailable to you. Want to Upgrade?

To: stockman who wrote (451)	5/13/1998 12:15:00 PM
From: Mr Metals	Respond to of 552

Comparison of Bema/Arian (Juliette Deposit) VS. Armada Gold (Taseevskoe Deposit) Julietta is located in NE Siberia north of the Arctic Circle. and is an underground gold/silver deposit with a reserve/resource containing 975,000 ozs gold equivalent. Arian owns 79% of the project and has completed a feasibility study (Kvaerner Davy, Toronto) and organized a $60 million financing package to meet the major portion of a $70 million development of the project to produce 95,000 ozs per annum. Bema Gold recently announced a friendly takeover of Arian issueing 10 million shares to Arian shareholders valuing Arian at $36 million. Bema is paying $33.15 per ounce for for the Julietta ounces. Armada's Taseevskoe deposit is located in SE Siberia (52N) in an area with extensive infrastructure. Taseevskoe has a reserve/resource of 5 million ozs with Armada owning 100%. Armada is currently finalizing (June completion) a supplementary study to their main Feasibility study (Kvaerner, Davy- Toronto). This is expected to confirm the viability of a low capital, start up project for their major deposit. producing 95,000 ozs per annum. Expected capital cost is $40 million. This initial development is a natural lead in to a major expansion of their facilities to exploit their larger resource. This will be done at an appropriate gold price (the project needs $340 per oz). and improved market conditions. If the Bema valuation is applied to Armada, ie. US$33.15 per oz., it values Armada at US$165 million or Cdn$235 million. against a current market capitalization of Can$ 40 million. These numbers do not include the producing copper leaching operation in Mongolia. Armada would be 3 to 6 months behind Arian in finalizing its project so a discount needs to be applied. However you slice it, Armada is trading at a 17% of its gold valuation and significantly more when you consider the copper assets in Mongolia. Mr Metals

To: stockman who wrote (451)	5/14/1998 9:24:00 AM
From: Ross Orr	Read Replies (1) \| Respond to of 552

The annual meeting is to be held on June 23, here in Toronto at the Royal York (4pm). The annual report has to be mailed along with the proxy materials so they should be going out around the 20th of May. The gold feasibility is targeted for June 15th so lets call it June 30 (Murphy's Law) and the copper should be the end of June to mid July. I understand that there were some problems with the drilling equipment being used to test the dumps. Nothing serious just tough to get spare parts in a hurry. Ross