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Gold/Mining/Energy : Yamana Resources INC. T- YRI -- Ignore unavailable to you. Want to Upgrade?

To: Stephen O who wrote (1979)	1/26/1999 9:35:00 AM
From: Neil Irwin	Read Replies (1) \| Respond to of 2346

Thanks for correcting me on Black Hawk. However, Barrick can increase its interest to 40% on completion of the feasibility study. BTW, Manantial Espejo is estimated at 7.9 million tonnes grading 191 g/t silver and 2.87 g/t gold, or about 88.6 million ounces of silver-equivalent. The average grade is about 360 g/t silver equivalent, or about one third of Veta Martha's grade of 1050 g/t. I'd like to correct the NPV that I estimated last night. The $20M was the gross profit, but I forgot to remove the capital cost. This would reduce it to $12M. Using a 5% interest rate, a 3 year period to build the mine, and ignoring the interest cost of the capital cost, the NPV of the project would be about $9M, or about $0.25 per share. As Curtis said, "not a WOW", but it is a good start. Neil.