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Gold/Mining/Energy : Prime Resources TSE -- Ignore unavailable to you. Want to Upgrade?

To: Buckey who wrote (6)	8/22/1998 4:53:00 PM
From: Ptaskmaster	Read Replies (1) \| Respond to of 9

PRU shares are worth more than HM shares, not less in my opinion, based on their short term speculative value plus the good fundamentals of the company. From information in the Qtr2 press release, it is clear that the Eskay Creek mine stands out among all the Homestake mining operations. It is the lowest cost ($158/oz Au equiv), highest grade (1.8 oz/t Au; 3.5 oz/t Au equiv) mine in their stable, and represents 24% of Homestake's production of Au equivalent ounces this year to date. Seventeen other mines make up the other 76%. None come close to Eskay Creek in the combination of high average grade plus total ounces produced. Prime Resources Group Inc owns 100% of the Eskay Creek mine. It is actively looking for another one in neighboring rocks. It appears to me that Eskay Creek/PRU could be the engine that drives Homestake for the next few years. It goes without saying that as a shareholder I am not pleased with the 0.675 HM share offer for each remaining share of PRU that HM does not own. In my opinion, Prime Resources has a lot of upside potential, both in the short and the long term. Considering its prospects, financial health and current activities, I believe that Homestake's offer to minority shareholders is not only far from "a fair premium for their shares" but is substantially undervalued. Anyone else have views on Prime Resources valuation and potential? Message 5564575 Message 5564676