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Gold/Mining/Energy : 1 Million oz. and up. -- Ignore unavailable to you. Want to Upgrade?

To: Robert Dydo who wrote (117)	10/24/1998 9:48:00 PM
From: S. E. Baker	Read Replies (1) \| Respond to of 144

Robert & All: I'd like to mention a company that meets 3 of Robert's criteria and potentially the 4th as well. I hope that's all right. The company is Energold Mining (EGD-Vancouver). They have 49% of a property called Longyear in the Dominican Republic, right next to the Pueblo Viejo mine (6M oxide ozs and >20M sulphide ozs). They have retained operator status, with $2M of financing for surface work and drilling to be provided by their JV partner. Energold has done surface sampling and trenching, as well as geophysical surveys, and has found that their surface results and underground geophysics (from what they can tell from limited old records) appear to be as good or better than the results achieved on the Pueblo Viejo property when it was first explored years ago. Surface results show a large area of 1.5 to almost 3 gms gold per ton, which I believe gets better in deeper trenches, and some copper. Potential tonnage is large, and the deposit appears to have relatively smooth areal grading of the minerals. Besides the Longyear property, they have a couple dozen other properties, one of which (Rey Midas) shows promise as a copper-gold deposit. I have found EGD's management to be careful, conservative and straightforward. They are very careful with cash and have about C$1.7M. Shares out are about 13-14M. Share price has been in the C$.30-C$.50 range. That's a market cap of about US$4M. Although the company meets the price, shares and cash criteria, they do not have drill-proven reserves yet on the Longyear property. I understand that EGD's management feels strongly that Longyear should have at least 500,000 oxide ounces, with 2-2.5M oxide ounces possible, and twice the oxide figures in sulphides. The area is a collapsed volcanic caldera, and the Pueblo Viejo mine's geology appears to extend onto EGD's Longyear property right next door. Mining costs for the oxides should be low, since the deposit is right on the surface. The stock has been held down by the financial problems of its JV partner, Eldorado (ELD-Toronto). ELD was supposed to finance everything for 51%, but they may be seriously on the ropes financially. It has taken EGD several months to work their way through that trouble, which has been the most likely reason for EGD's share price lagging to date. On Friday, Oct 23, EGD's stock price jumped C$.10 to C$.48, and I surmise that this may indicate that the resolution is near at hand. Several analysts have recommended the stock before. I understand Doug Leishman has said (I believe at the Las Vegas Mining Show) that he thinks the Longyear property is one of the most prospective properties he has seen. SI has a thread for EGD, and I as well as others have posted more info there. I would love to see the company's shares rise in price, since my connection with the company is as a shareholder. I hope you folks can find a way to benefit, too. Steve