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Gold/Mining/Energy : Winspear Diaminds (Bulls Board) -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (379)	2/6/1999 3:49:00 PM
From: Gord Bolton	Read Replies (1) \| Respond to of 1172

I think that things have changed significantly since the evaluation was being worked on last summer. The study was done using the portion of the deposit on the NW peninsula that was drilled off. Hence the 1000 tonne per day mill and all other calculations flow from those assumptions. Everyone uses their own methods of calculating the value of proven resources. Hence we see a dance everyday on the tickers of producing companies with finite reserves. Winspear is still wide open to speculations of all kinds about the potential on the various properties. On thing that I would caution about in using the 10% value is this; Most metal mining companies are running on very thin margins at this point in time and many are running at a loss. Most gold miners would be very pleased to see a 10% profit this year. Mining diamonds can be much more lucrative, especially with a rich deposit of high carat value. If Winspear were in production at this time their profit margin would be much closer to 90% than 10%. It would probably be more appropriate to compare Winspear to an internut.com. People who are considering the future earning potential of Winspear will naturally be willing to pay more than those who are using the formula for a standard mining operation. Even in gold mining operations there is little comparison between 1 ounce per tonne open pit heap leach and .05 ounce per tonne in thin veins 500 to 1000 feet down mixed with copper and arsenic. The economics are worlds apart.