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Gold/Mining/Energy : Pacific Rim Mining V.PFG -- Ignore unavailable to you. Want to Upgrade?

To: David R. Schaller who wrote (10891)	12/1/1998 1:42:00 PM
From: Nexus	Read Replies (1) \| Respond to of 14627

David, It would be nice to have a few more ounces at Diablillos but the grades are not high enough to mine it at present conditions. It would take a major move in precious metals for the investment community to add value to this property. It doesn't cost anything to Barrick to hold on until June 2000, that is why now that the resource estimate is out, this property will have no effect on the share price in the near or medium term. We now have to rely on a discovery to get the excitement back in this stock. Unfortunately, aside from the drilling at La Colorada, there is nothing major planned for the next few months. Let's hope they hit at La Colorada and that there still will be money in the kitty for further exploration programs or else...look out below. Nexus

To: David R. Schaller who wrote (10891)	12/1/1998 5:32:00 PM
From: Bill Jackson	Read Replies (1) \| Respond to of 14627

David, The leach were more or less preliminary ballparkers. A true reserve calculation would have it drilled at closer spacings and would have assessed the variations of structure and chemistry from place to place and each chemotype would need to be assessed by it's own series of leach tests. It is rare for the whole deposit to be identical. This would lead to a bankable resource calculation. Of course Barrick does not need that as it has financing available, but an unfledged junior would need to be able to show the bank it has economic gold/silver to borrow the $. Barrick does not need to give away information that can be used against it in negotiations to determine values. It is obvious that there will be no hostile takeover as CMS has sharelock on PFG.(a gigh enough price would loosen that up though?). So there needs to be a shared mine or a buy out. PFG will need to do it's own twinned holes at a few places just to verify barricks data, and they will be DD holes as some leach tests will need to be done also. I can see $250,000 being spent by PFG in due diligence in preparation to sell the 30% of PFG to Barrick. Now Fantasma could affect this enormously if it has gold values. It does at least have some land values and so enhances PFG as a pad and staging site in any event, but not critically so, as other cheap land abuts and if price too high there in enough land on diablillos and the construction will be only a few % more money. So CMS should start the horses of Fantasma this Argentine summer(it is now spring there,) ....right now is the time to start. Bill