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

To: Mike Gold who wrote (7174)	7/2/1998 9:40:00 AM
From: the Chief	Read Replies (4) \| Respond to of 34075

Hi Mike. The more and more I read the more and more I is confused... My comments are in<< >> Your post: One comment I have-my guess is the problem the SEC has with the new report probably has something to do with the following from Guido's 1997 report. "8.1. The results are shown on the laboratory certificates, (See, Attachment 3, Lab Assay Results), and the 16 tables accompanying this report. (See, Attachment 2, Mineral Sampling Results.) Column 3 of those mineral sampling results shows the gold grades in grams per cubic meter, separated in groups for the different sectors of the claims under the Company's subsidiary's control. These values were calculated in the usual way--from pan concentrate grades and their weights--together with the weights of the field samples. A figure of 1.8 was used for the specific gravity of these field weights. The average gold grades for each sector vary from a minimum of approximately .100 g/m3 to approximately 6 g/m3, with an overall average of 1.499 g/m3. This grade is certainly good enough for massive types of mining, an open-pit techniques are highly recommended. 8.2. UP TO THIS POINT STANDARD METHODS WERE USED TO ESTABLISH THE GRADES RESULTING FROM THE SAMPLING PROGRAM. HOWERVER, A STRIKING FACT SHOWED UP IN THE SAMPLING: the batea (conical pan) fine tailings (the under-sized fraction) assayed with an average gold grade of 27.068 g/m3, meaning that this is by far the richest fraction in the Cangalli deposits. Obviously, from ancient times through to the present mining operations, this fraction has always been ignored and discarded. << This "fraction" is also the "fraction" that would showup in a drill core and indicate g/t. This fraction is also the contained in "debateable cutoff grade". EXAMPLE Bema Gold Cerra Casale property Bema claims approx. 30mm ozs at cutoff .4g/t but in fact cannot reach that cutoff grade. Pre-feasability study suggests 16mm ozs of gold! at a much higher cutoff grade. Then you must apply "percentage recovery" (recovery rate) which tells you how much of the stated cutoff grade you can actually recover, all these things drop a large deposit to non-super human size!!>> A similar phenomenon happens with the rock samples (the over-sized fraction) -- with an average assay of 5.657 grams per cubic meter -- of course also traditionally being discarded. From the over-sized fraction, or rock samples, I have calculated a conservative grade of 2.419 g/m3 for the pan gross tailings. The results from the assays of the over and under-sized fraction, plus those for the pan concentrates previously calculated, are combined for the total average gold grades shown on the tables' column 4 (See, Attachment 2, Mineral Sampling Results). These total results run from an approximate low of 10 g/m3 to a high of 19 g/m3 with an average of 14.049 g/m3, which is very high for these types of gold deposits. << At no point is their ever any indication in this narrative (nor any other info I have seen) of Percentage RECOVERY and CUTOFF GRADE. The point I am trying to make is that Bema Gold's property probably holds 100mm ozs of gold at .01g/t but.... who cares!! you can't recover it!! >> It is my opinion that this may even increase once better sampling can be carried out on the over-sized fraction. In formulating a mine plan for the near-term, the first thing that becomes apparent is that these deposits can and must be worked by open-pit mining methods. The recovery of the "microscopic" gold has to be accomplished by agitated vat cyanide leaching techniques. I believe that very significant and far-reaching discoveries will be made in the remainder of the Cangalli gold deposits specifically, and the balance of the Tipuani River Basin deposits in general, as a result of this concept." My guess is the SEC is worried about the nonstandard methods used by Guido in order to determine the assays. Using traditional methods you get an average fraction only 1.5 g/m3 which would make the deposit under a million ounces proven and probably not even economical to mine at this point. << I AGREE!! The more I read, the less I like the way this information is presented!!! I am not saying the "stuff" isn't there, but the presentation of this data becomes highly suspicious and raises more questions than it answers!!>> the Chief