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Gold/Mining/Energy : Diamonds in Alberta, Ashton, Pure Gold, Montello, New Cla -- Ignore unavailable to you. Want to Upgrade?

To: JP who wrote (740)	10/23/1998 7:13:00 PM
From: Leigh McBain	Read Replies (1) \| Respond to of 822

Indication is that the project would be in production no later than next spring, there are other things in the works that have the potential to expedite the matter however, so I am hoping we will see things in place prior to that (just a hope at this point). As for profitability, the mining project ramp up costs themselves, are expected to run somewhere in the $1.5M range. Subsequently, even corporate "net positive earnings" should not be "several years away". In addition, although one would not want to funnel all of the cash flow off, into "exploratory projects", it may very well be more economically prudent to use some of the cash flow to handle expense requirements. With interest rates etc. where they are currently, and the share price being relatively low, it may make sense to use that cash flow, in the short run, on the other projects instead of rushing to pay off the small debt load, created to bring the project on line. The company may very well be in a position to generate positive earnings thru the cash flow from production, even while covering exploratory project related expenses. As the share price rises, to better represent the value of the company, then potentially look at a market driven financing. If the financing is done later at a higher share price, the debt costs originally incurred should be more than covered by a reduced dilution factor. Just my perspective on things, but the short form answer to your question is - no it should not be a long endured run before the company itself shows positive "net" earnings. Salut, Leigh McBain