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Gold/Mining/Energy : RED EMERALD RESOURCES -- Ignore unavailable to you. Want to Upgrade?

To: hugh thorne who wrote (122)	8/12/1998 8:37:00 PM
From: hugh thorne	Respond to of 862

A little bit of history here; i suggest you try to spot which of your friends is trying to average down their cost base. 1997-08-28 close $5.2 Neary Resources - Friday Aug 29 1997 In connection with the acquisition the VSE has accepted for filing documentation with respect to a private placement, 860,000 units which were brokered, announced June 17 1997: No. of shares: 1,000,000 Price: $2.50 Warrants: For 1,000,000 shares Wt exercise price: $3.00 for 180 days Placees: Angel Investment company Limited, Gibraltar (Kelly Hyslop) 40,000; Douglas Brazier 40,000; Bank Sarasin & Cie, Switzerland (Hans Moppert) 60,000; Karl Kramer 40,000; V&T Holdings (Vern & Trudy Marten) 40,000; Gwen Ellen Ho Griffiths 40,000; Herbert Buff 40,000; Kevin Winter 40,000; Clydesdale Bank International Branch, Scotland 80,000; Lois Mae Bennett 80,000; Paul Allen Ray 40,000; David Nicholas Silich c/o Royal Bank of Canada Global Securities Services 100,000; Kenrick Collidge Inc, Channel Islands 80,000; David Alexander Gillbanks, UK 60,000; Robert David Punnett 40,000; CCS Contracting c/o Alexander Holburn (Martin McLean) 40,000 Non-brokered portion: Marlow Cropper Trustee for Marlow & Carol Cropper Family Trust, Nevada 100,000; Elwin M. Johnson 40,000 Agent: Haywood Securities Agents' fee: $15,000 7.5% of the gross proceeds on 860,000 units, payable in cash

To: hugh thorne who wrote (122)	8/12/1998 8:42:00 PM
From: hugh thorne	Respond to of 862

It looks like my earlier post of this dropped off and i didn't notice. This is the news release i referred to in case some have not yet seen it. Neary Resources Corp - Settlement by Utah affiliate Neary Resources Corp NRY Shares issued 3,475,000 1998-08-06 close $0.8 Friday Aug 7 1998 Mr. Huitt Tracey reports The company's Utah affiliate, Gemstone Mining, has settled a previously announced adverse title claim made by Kildonan Corporation. Kildonan has accepted a comprehensive settlement payment of $100,000 (U.S.) and agreed to abandon absolutely its claim to an interest in the Ruby Violet red beryl property in Beaver County, Utah. Kildonan has agreed never to dispute the property owners' title to the Ruby Violet property. As a consequence of this settlement, GMI will now be free to develop the interest held by GMI in the Ruby Violet property under the option agreement GMI has with the property owners. The Ruby Violet property owners have recently agreed to extend the expiry date of the current option term from Sept. 24, 1998 to Dec. 11, 1998 and to extend the time for delivery of 2,000 carats of red beryl gemstones to the property owners until Dec. 11, 2000. In June 1998, GMI completed a feasibility study for the Ruby Violet red beryl mine consisting of an infill diamond drill hole program, a bulk sampling program, a cutting program, and a strategic marketing study. The feasibility study concludes $15,000,000 (U.S.) is required for the project, of which $10,000,000 (U.S.) will be required to exercise the option to acquire the Ruby Violet property, $3,500,000 (U.S.) for capital costs and a further $1,500,000 (U.S.) for working capital. GMI is examining financing opportunities for the Ruby Violet project

To: hugh thorne who wrote (122)	8/12/1998 8:58:00 PM
From: hugh thorne	Read Replies (1) \| Respond to of 862

AN ESTIMATED VALUE OF THE COMPANY inferred reserves are 5,000,000 tonnes caret count per study/audit is .38 to .45; say .42 estimated profit inferred from study is about US$1,000 per carat output is from 25,000 to 50,000 carats per year cdn dollar is about 1.50 to us dollar aprox 10 million shares will ultimately be issued Option 1 values assets on breakup and assumes that discount for stones in the ground is similar to gold, that is, about 30 cents on the dollar. Option 2 net present values the cash flow over 40 years at a risk of 16%( this is about 6.5 times if you check your tables) #1 5 million tonnes times .42 gives about 2 million carats; at $cdn 1,500 per ton times 30% this gives us about 900 million dollars of market cap; spread this over 10 million shares and you get 90 dollars per share. #2 35,000 carats at $cdn 1,500 times the 6.5 multiple you get a market cap of about 350 million, spread over 10 million shares again and you get 35 dollars per share. The range is cdn$ 35 to 90, quite a spread but then again we have only an estimate and we have 2 approaches.