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Gold/Mining/Energy : Golden Eagle Int. (MYNG) -- Ignore unavailable to you. Want to Upgrade?

To: GC who wrote (6747)	6/25/1998 6:27:00 PM
From: the Chief	Respond to of 34075

Hi +GC. Sorry it doesn't work that way. What you have done in your calculations is excavated all 6.4 million ounces of gold out of the ground subtracted - the cost per oz - and then divided the profits of $9.28 to each shareholder. There is no PE that applies here and you have now removed all your "albeit proven" gold. Golden Eagle is not a producer and through my expierence in mining very few junior non-producers ever make the leap to production. So that leaves them JV (joint venture) with a major or selling out to a major. In both cases the property sells for a $$$ per ounce. Because this project has little to No overburden ( non productive ground above the deposit) and the cost to mine does not involve heap leach then it should be on a large scale very cheap to operate. This means that most majors would pay a premium per ounce. Pre Bre-X, US$100 was acceptable for a US $150 cash cost per ounce so the producer would have a net expenditure of $US 250 per ounce and everything else is gravy. Post Bre-X has seen purchases of US$5.00 per ounce to US$50.00, Assuming the number of ounces inferred were even 10% correct than I am sure $50.00 per ounce would not be out of the question. The property is now sold to a major: Assuming 25,000,000 ounces @ 50.00 ounce =$1,250,000,000 US $1,250,000,000 US / 100,000,000 shares = $12.50 per share (Still not convinced the ounces are there) the Chief