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

To: russet who wrote (2537)	2/4/1999 1:57:00 PM
From: robert azana	Read Replies (1) \| Respond to of 3282

At 11 am Silver is at $5.79 and climbing, dont tell me if we prove up 500 million ozs or better, even at 50% recovery that aint "HAY"! Its part of the package, and a pretty part indeed!

To: russet who wrote (2537)	2/4/1999 2:16:00 PM
From: Claude Cormier	Read Replies (2) \| Respond to of 3282

<<The costs to mine have been worked down to $50.00 / oz (- $15.00 for the silver) = $35.00 / oz gold. Sounds to me like its worth a more now than it was when Arequipa was purchased. >> My understanding is that the cost is $50 per ounce gold including silver credits. Also, keep in mind that this low costs is only for the frist two years...after that it goes to more than $125. With acquisition costs, Capex and opearting...Pierena will be an expensive deal by itself unless they double the reserves. One good thing though..it allowed Barrick to enter in much larger forward sales at $400 than it would have otherwise. <<only 3 targets have been lightly drilled to date and they have inferred reserves of 5.5 million oz Au and 120 million oz Ag.>> And ARP has 60% of this. Which makes Barrick offer's reasonable. With gold below $300, you cannot expect anybody to bid much more than C$200M for what is drilled inferred so far and owned by ARP... I know there is potential...but this is not an asset that is valued a lot these days. There are other 10 millions ounces potential properties own by juniors right now that are selling at market caps below $50 millions... That is the reality... It would be very easy for ABX to raise their bid to $6 and pay an additional $US20M for Veladero... if they are not rushing to do it...it is only for one reason.. for now, they think the odds do not favor a major increase in resources at Veladero from the current level. CC