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Gold/Mining/Energy : Exall Resources/Glimmer Resources -- Ignore unavailable to you. Want to Upgrade?

To: CLK who wrote (657)	8/12/1998 9:06:00 AM
From: Winzer	Respond to of 1319

CLK, Thanks for the tricky questions. On the question of reserves, only one guy knows and he would say "the only way to know is to add it up on the day that you close the mine 10-20 years from now". With this life of mine in mind, and only looking at (economically) recoverable reserves it can be inferred/speculated that there must be 1.5 to 2 mln POTENTIAL in this property. I have to reprint the excerpt from the RMN-T annual report where they state that, "Notwithstanding the unfortunate development of litigation with respect to the ownership dispute, the operating, exploration and long-term prospects for the Glimmer Mine remain better than originally anticipated". I would also SPECULATE that in a couple of years once the low POG is behind us and EXL/GME has their own mill, that 100,000 ounces per year for 20 years (James's 2,000,000 ounces, would not be out of the question (provided that they do not decide to replace the present technical management with a high grade crew). I guess when you're talking about such serious money for insiders and shareholders, no one wants to be the one to be accused of selling out. Exall (apparently) was quite rough on Glimmer when it was Mr Kent alone; but with Mr McCloskey's team to the rescue it is not as easy to stand back and watch them trip up. I remember a few years ago I phoned up Mr Kent (before a cash call- not much different than a margin call, I would assume) and he was very upset (he though that I was someone else who was supposed to help him with some money - like a white knight). So they both have lots to loose by giving up ground; Two million ounces @ 300/oz is a sizeable chunk of change. On the other (brighter) side of the coin with the recent job positions advertised and the technical staff in place, there is comfort in knowing that both "warring factions" are responsible enough to run the mine with a high degree of professionalism while the politics takes place on a different stage. So like James always says "go long". i.e. try to forget about the litigation, GME can only get more than the present split and EXL won't do much worse and at these prices. How can a long term investor go wrong? Cheers Winzer