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

To: dave brown who wrote (11040)	1/2/1999 12:15:00 PM
From: Chas.	Read Replies (1) \| Respond to of 26850

Hi again Dave.....I don't know for sure but I think $200/ton could cover the 5000 ton bulk sample cost........teevee or Taz or Walt or Vaughn might have a closer number.......trucks hauling ore around the clock to Yellowknife ain't gonna be cheap........DMS and diamond recovery ain't gonna be cheap either....one of the mining types could help us out here........

To: dave brown who wrote (11040)	1/2/1999 4:22:00 PM
From: Taz	Respond to of 26850

Dave: You got that right. It won't be cheap that's for sure. They might break even or net out a little above or below break even, but that's not how it works anyway. They will have to bear the full cost of extracting the bulk sample up front and pay off all the contractors and other services when the job is done. It will then be some time before they will realize a return from the diamonds, if any, extracted from the bulk sample. And if they get any walloping big'uns they may want to hang onto those for promotional reasons. (I'll bet ya dollars to donuts they haven't yet sold any of the three big stones they claim were extracted from the first bulk sample, in order to defray exploration expenses, would you? Not!). Any revenues accrued from the sale of any diamonds extracted from the planned bulk sample are likely to go towards general revenues to help defray the costs of all the exploration work and infrastructure supporting it, not just the cost of the bulk sample. It is unlikely that the sample will be trucked to YK. It is more likely that it will go further north to the Lytton plant installed at Lupin. However the situation in YK may change in time for the sample to come here who knows. If the sample goes north then there is no savings to be gained by having the trucks back haul, it would be a deadhead trip and thus cost more. Yes, the sample could generate some cash for the company but it won't be "ready" cash as some fantasize, nor is there any guarantee that it will generate the grade and value of the previous sample. Either way we aren't likely to know until June or July at the earliest. So lets's just get on with it. L8er Regards Taz