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Gold/Mining/Energy : ARP - V Argentina Gold -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (664)	10/27/1998 8:44:00 AM
From: mineman	Respond to of 3282

If 84 & 85 hit, AGF will have 850,000 ozs, and value of $1.50(Can)/share! If hole #84 and #85 cut similar grades to #80 (.14 oz/t gold over 140 m), and if these grades coincide with the resistivity anomaly for 350 m south and 100 m west (the zone is cut-off to the north of #80 by low-grade 1.5 gr/t in #76 and #82) the zone would have a possible upside of 10 million tons, or 1.4 mil ozs gold total. ARP's value would then be 60% of 1.4 mil ozs = 850,000 ozs X $40/oz (value of open-pit ounces in the ground) = $34 mil. But ARP has 35 mil shares fully diluted, so ARP value would be $1 (U.S.)/share ($1.55/share (Can)) if #84 and #85 both connect.

To: Enigma who wrote (664)	10/27/1998 11:01:00 AM
From: Elizabeth Andrews	Respond to of 3282

I checked the 1995 annual report and it did not mention the RFR. All of the notes to the statements are just summaries of the agreements. I'm assuming it is boiler plate to have an RFR and not considered a material disclosure. As part of the deal Barrick got 60% and ARP got 40% of the Del Carmen JV which property is about 40 miles south of Veladero. It required expenditures of US$10.1 million. Barrick drilled 8 holes and dropped their interest. Other than the RFR (assumed) there may be no mechanism in the agreement for Barrick to increase its interest and they may have entered the JV as a 60/40 deal.