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Gold/Mining/Energy : Pure Gold Minerals (PUG)-TSE -- Ignore unavailable to you. Want to Upgrade?

To: ddl who wrote (611)	5/27/1998 2:57:00 PM
From: Famularo	Read Replies (1) \| Respond to of 1030

Extracts from Thabex's prospectus: Sponsoring broker: SMK Securities (pty) Ltd. >From geological reports of: J.P. van Wyk (M Sc, Pr Sci Nat) June 1997 Terrace Estimated Expected Grade mineable tonnes ct/100 t _______________________________________________________ A 1 020 000 1.2 B 228 000 1.0 C 2 286 000 1.1 D 125 600 1.0 Total 3 659 600 1.1 With regard to the above table, the estimated tonnes have been based on an average gravel width of 1.0 metre, which is taken to be slightly conservative. In this respect, a high degree of confidence may be placed in the estimated gravel tonnages. With regard to the grade of the ore, it should be recognised that it is difficult to prove the diamond content of alluvial gravels, short of actually working large areas. However, JP van Wyk states in his report that "experience has shown that the grades of the alluvial deposits along the Vaal River are fairly consistent". This statement, together with the fact that the area adjacent and to the west of the Douglas Project area is currently being actively mined on a large scale by another mining company as observed during our site visit, satisfies us that the estimated grades are realistic. Valuation and Risk Analysis The following input parameters were used in the evaluation of the Douglas Project: Mean STD ______________________________________________________________________ Mineable Tonnes 3 600 000 250 000 Carats/100 tonnes 1.1 0.1 Price/carat (Rands) R2 500 R200 Mining costs/ton gravel R5.00 0.50 Plant operating costs/ton gravel R1.00 0.10 Admin, security and rehabilitation costs R1.00 0.10 DME capital expenditure (Rands) 1 000 000 100 000 Total royalties 5% Consider the following: With an estimated 3.6 Rand = CDN$1, then Mining costs/tonne R5.00 = $1.4/tonne, or $140/100 tonnes Note that production has now increased to 500 tonnes per day.

To: ddl who wrote (611)	5/27/1998 10:34:00 PM
From: JKNF	Read Replies (1) \| Respond to of 1030

Hi Denis What is confusing about this announcement is that PUG came out with 160 carats in the first 100 tonnes of exploration data, and they go on to say that the resource is 1.1carats/100tonnes on over 3 million tonnes. Then how the heck did they come upp with over 160 carats , if the current plant is only processing 100 tonnes/ month, and then th4e release goes on to say that they are going to increase the output to 50,000 tonnes/ month, well if that is the case then what kind of recovery numbers can we put to this. In my opinion this is great news, just look at SUF, and what happened to them when they announced their venture, nothing, untill they started producing. I think that things will be great for PUG, only once they start prducing. Only my two cents worth Regards John