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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (15848)	8/13/1998 6:56:00 PM
From: Gabriela Neri	Read Replies (2) \| Respond to of 116814

<Picture><Picture: Click Here><Picture> Here is an interesting article evidencing Goldman's interest in gold stocks: SAN FRANCISCO (CBS.MW) -- Several U.S. investment banks are seeking shares of aÿ Vancouver-traded exploration company on the heels of successful gold-drilling results in west Africa. St. Jude Resources Ltd. President Michael A. Terrell confirmed investors in New York and San Francisco are accumulating bundles of shares in the company. Problem is, shares of St. Jude (SJD-VC) these days are small change. At $1.25 Canadian earlier this week, St. Jude shares are faltering. Terrell says the company has $14 million Canadian in cash, or about $1 for each of its 14 million shares. "So investors are valuing our potential gold finds at 25 cents a share," he says. Actually, even less. Investors were less accomodating Thursday, when St. Jude shares fell more than 15 percent to as low as $1 Canadian, about 15 percent above an all-time low. The gold find sits in Ghana, a country once known as the Gold Coast and home of giant gold producer Ashanti Goldfields Ltd. (ASL). Terrell, a lawyer who helped bring the company public in 1990, says samples from the Ghana deposit "contain exceptional quantities of visible gold." Terrell said the area includes "notable amounts of visible gold." More about the company's Ghana activity in a moment. Terrell confirmed San Francisco-area investment sources who said several U.S. investment banks, including Goldman Sachs, are trying to accumulate large positions in the company. "We see big bids in there from houses that represent institutions ... we do see big bids in, one for 50,000 shares at $1.25 (Canadian) a share," Terrell said. "Goldman Sachs has clients with interests in the company; they've been very patient. Bear Stearns has also supported us over the years." Still, Terrell said no one these days, with gold in the gutter at $283 an ounce (GC=Z8), "is going to drive our stock to the moon." (See Futures Movers.) Terrell told CBS.MarketWatch.com that diamond-drilling results of the company's Hwini-Butre Concession in Ghana could lead to development of an open-pit, low-cost mine with more than 10 million ounces of gold. "We have the right address and all the right signs. The geologists who worked on our mine also worked on the Tarkwa mine, which has 13 million ounces proven," he said. Zoning in and zoning out Ghana has plenty of gold; no argument there. Goldfields of South Africa is doubling its production of the nearby Tarkwa mine. Ashanti's main mine in the country has produced almost 20 million ounces of gold and is said to have 20 million ounces in reserve. "It's in the same zone that we're in," Terrell said about the Ashanti mine. He estimates a St. Jude mine, at the southern tip of this high-grade zone, could produce gold at a cash cost of $200 an ounce. That's cheap by world standards. The Ghana government would receive about 10 percent of the profits of any successful mine. St. Jude also has a partner, Mindex of Oslo, Norway. Is this Bre-X Minerals all over again? As regular StockWatchers will recall, Bre-X is the now-defunct Canadian company that in 1997 suffered after a chief geologist fall to his death from a chopper. That was days before the company disclosed someone had doctored Bre-X's sterling gold-samples from Borneo. One of the things Bre-X did, said Terrell, was take the entire assay sample from its Indonesia discovery site, leaving independent analysts no way to verify the accuracy of the find. "We left half of our core sample on site," he said. Terrell's company is named after St. Jude, the Roman Catholic patron saint of tough-luck cases. Terrell owns about 10 percent of the outstanding shares. TV show: See Thom Calandra on KPIX-TV Channel 5 each market day from 5:30 a.m. to 7:45 a.m. PT in San Francisco.Please scan our CBS stock lists, including our Channel 5 MarketWatch stock list, which is crammed with Silicon Valley companies. <Picture> <Picture> Thom Calandra is CBS MarketWatch's editor-in-chief. CBSMW MarketPlace <Picture>Books for day traders at the CBS MarketWatch Bookstore. <Picture>Download software for your Palm Pilot or your PC. <Picture>Personal Finance <Picture>Re-financing? Need information? GetSmart here. <Picture>NextCard Visa. Apply on-line. <Picture>Free Products/Trials <Picture>Free trial subsctiptions to investment newsletters. <Picture>Free annual reports for hundreds of companies.ÿ <Picture> ÿFRONT PAGEÿÿÿNEWS INDEXÿÿÿHEADLINESÿÿÿCOLUMNSÿÿÿMARKET DATAÿÿÿGLOBAL MARKETSÿÿÿÿMARKET MONITOR CHARTINGÿÿÿPORTFOLIOSÿÿÿMUTUAL FUNDSÿÿÿWEALTH CLUBÿÿÿSTOCKCHATÿÿÿTRADING CENTER INVESTOR'S PRIMERÿÿÿFEEDBACK ÿÿÿADVERTISINGÿÿÿCOMPANY INFORMATION CBS MARKETWATCH RTÿÿÿCBS MARKETWATCH LIVE c 1998 MarketWatch.com, L.L.C. All rights reserved. Disclaimer. MarketWatch.com is a joint venture of CBS and Data Broadcasting Corporation. CBS and the CBS "eye device" are registered trademarks of CBS Inc. <Picture: CBS Home Page>

To: long-gone who wrote (15848)	8/13/1998 9:20:00 PM
From: rainman	Read Replies (3) \| Respond to of 116814

rh- My head is spinning as I sit back and read this thread. As a novice to the market with a recent (3 months ago) investment in a gold junior I am trying to make sense of what is going on. In my confused state I am wondering what I should be routing for to see the price of gold go up. Yen up or down? China devaluation...Russia...Soros...Lynch...etc, etc. It seems like all the classic signals are in place but still gold just sits there or goes down. Would you take a moment and offer, in your opinion, kind of a Letterman top 10 things that would have the most positive effect on gold...ranking them if possible with #1 being the most influential. Anyone else that may have the time feel free to provide your list.