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

To: whiskeyjack who wrote (9780)	11/28/1998 12:51:00 PM
From: teevee	Read Replies (2) \| Respond to of 26850

Hi Whiskeyjack, First of all, it is clear that RTZ is calling the shots as operator. Remember that the diavik project is grouped with RTZ's industrial minerals division. Also, there have been 10% cut backs at RTZ worldwide. Second, the expansion at Argyle has gone ahead. Third, the two year old evaluations of US $65/carat at Diavik are likely half that today. Fourth, does RTZ want to produce even more Indian goods at at this time? Fifth, Aber does not have a marketing agreement in place for their 40% of production. This means that until they do, they will not likely be able to obtain debt financing for the balance of the funds they need. Additional equity financing, if available means lots of dilution. Alternately, RTZ could dilute them by proceeding and if Aber didn't have the funds....well....that would mean dilution on their interest. Although hypothetical at this time, Aber does have its share of development costs in hand for Snap Lake. Cash flow from Snap Lake could concievably cover their obligations at Diavik should it be delayed further and or go ahead at all. Finally, THE DELAY IS ACTUALLY 12 MONTHS. The winter road is only open about 14 weeks per year. What I find most interesting is that the "market" and various people on this thread have not apparently been able to put the Snap Lake results to date in a geological context. Given the very nature of a type II kimberlite, this is why IMO, the two 100 tonne samples have already acurately established grade and diamond size distribution. The cone sheet model (or variations thereon)is also highly predictive of tonnage potential. Because the"market" does not understand this, is why WSP remains and will likely remain an incredible bargain until the bulk sample results and additional drilling results are out. Then I expect we shall see a flurry of investment by various funds etc. and of course, much, much higher share prices. Interestingly, at this time, Aber will begin to move up in price as well (As Aber struggles to find a bottom here, prior to the anouncement of bulk sample results, Aber calls might be an interesting an highly leveraged speculation). Thats all I have to say for now. regards, teevee