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Gold/Mining/Energy : Trump's 12 Diamond Picks, Discussions Limited -- Ignore unavailable to you. Want to Upgrade?

To: Sudhir Khanna who wrote (1431)	10/24/1998 1:21:00 AM
From: Tomato	Respond to of 2251

Sudhir, You lost me with your analysis. Let me reprint your answer and ask my questions with your words in front of me for easy reference: Think of it as contingency - from both an engineering and a market perspective. The economic study modeled the potential deposit on various ore values ($/tonne). This would be done as a sensitivity analysis to find out what is the minimum ore value needed to support an economic find that can pay itself back in less than X years. WSP probably chose to highlight the $400/tonne value scenario in the news release to establish reasonable market expectations. ********* 1. Contingency for what? In case the $343US/tonne figure is too high? But why would it be too high? And if it's too high, how did they choose the C$400? Did they pull it out of a hat? 2. Is it unreasonable to think that the values are $343/tonnne? Couldn't the values just as easily be higher than lower that $343? Why would the values be too high unless their valuation is totally flawed? Why should we believe $C400/tonne more than US$343/tonne? I don't get it. I would think that if they want us to believe the samples are accurate that they should use the values they got, not discount them. ????? 3. Do you think US$343/tonne is unreasonable based on the information you have? If so, could you explain why. 4. Has WSP explained to you why they used the $400 figure? 5. Wouldn't coloured stones raise the $343/tonne figure? Thanks in advance for any clarifications.