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

To: Gord Bolton who wrote (8451)	10/16/1998 12:38:00 PM
From: Jim P	Respond to of 26850

Hi Gord, I agree with you to some extent. The markets now-a-days just doesn't react the same way. The 3,500,000 tons was in their Oct. 5/1998 release. As for tripling is size..the market already knows that..expects that...so how do you explain $1.35 a share. What reaction did the market have on Oct 5,1998? Ziltch if compared to our expectations. Its just the way it is. Jim Model 2: Assumes Combined Open pit and Underground Operation (Processing Rate equals 1000 tonnes per day) Assumed Total Tonnage of Kimberlite Mined: 3,500,000 tonnes Mine Life 10 years Assumed Ore Value(x) $Can400 / tonne Assumed Diluted Ore Value $Can380.95 / tonne Assumed Total Capital Costs $Can 103.8 million Assumed Total Operating Costs Over Mine Life $Can 305.0 million Total Cash Flow (Assuming Current NWT Tax Structure) $Can 572.4 million Discounted Cash Flow Rate of Return (After Tax) 55.6%

To: Gord Bolton who wrote (8451)	10/16/1998 4:22:00 PM
From: Sam	Respond to of 26850

Gord you have a quite a few ifs in there the biggest one is can they prove continuity of the value per ton .and the continuity of the macros ,this will be the big step to zoom this thing to the moon. sam

To: Gord Bolton who wrote (8451)	10/16/1998 4:43:00 PM
From: maintenance	Read Replies (1) \| Respond to of 26850

Assuming model 2 from MRDI, and assuming management , office and other overhead costs of $1,000,000 per year, and assuming 60% tax, and assuming 2 years to start production. Tons/year...............350000 Rev/ton....................400 Cost/ton....................87 Net/ton....................313 Gross margin.........109550000 fixed costs............1000000 Gross profit.........108550000 Tax...................65130000 Net...................43420000 Ten year life. Discounted at 10%.....227324376 Discounted 2 yrs......187871385.5 Startup cost..........103800000 NPV...................$84071385.5 NPV/Share..........$2.272199608 If you assume 2200 metres instead of 850, and all else equal, you may get 25 year life, or NPV/Share of $5.99, again at 10%