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

To: maintenance who wrote (8458)	10/16/1998 6:20:00 PM
From: Gord Bolton	Read Replies (2) \| Respond to of 26850

Thank you Maintainance I see what is in your numbers. Once one has established a viable resource the name of the game is reducing costs, maximizing shareholder value, and of course minimizing the tax bite. In Canada we have wonderful things such as accellerated depreciation and deferred taxes. These devices work especially well for corporations engaged in large scale ventures. If the cost of transport to existing or planned processing facilities is less than the cost of building processing facilities on site then the ore should be transported to the mill. Transport to mill may speed up the development time schedule. Transport to mill by standard trucks on an ice road looks reasonable to me. I would suggest that there may be even more efficient possibilities. A large cat tractor could move a virtual barge on ice. Something in between conventional trucks and a cat pulling a barge may prove most efficient in the particular application depending on grades, speed and volume. There is room here for some creativity. Equipment and development costs can be written off against profits. And of course, rather than declaring huge profits and stepping forward with a big check for the taxman---profits can be reinvested in exploration and development of other projects---just like everybody else does. Most governments are more than pleased with this arrangement and in Canada it is absolutely and positively encouraged. Governments are generally very pleased to tax the income of the employees, benefit from other payroll taxes, and of course they tax the $#@% out of each of us whenever we try to buy something. The spinoff benefits of development and employment are significant. Anyway, I would hope that the shareholders would enjoy a bigger slice of the pie than accounting 101 would indicate. This should be a company builder if the board of directors play their cards right. And if you slide your WSP shares into the RRSP account you might have a nice boost towards retirement. Getting an open pit operation going ASAP and hauling the ore for processing will generate income and should pay the costs of underground development, building dikes to get at the underwater goods or draining the lake to get at that pipe. I see very few impediments to commencing development of an open pit mine. Get those larger samples processed, let us see what we have and then lets get at it. And if you want the share price to move up big time---Don't sell your shares.