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

To: Phil Jones who wrote (3199)	2/23/1999 8:53:00 PM
From: Bearcatbob	Respond to of 4066

Phil, From a prior MGR news release: Mongolia Gold Resources Ltd. (the "Company") today announced that it's 300 tpd mill at the Bumbat Property in Mongolia is expected to be commissioned during the first 10 days of July, 1997. The delay in commissioning the mill has been due to shortages of numerous small and seemingly minor parts such as drive belts, bearing covers, and return idlers for the conveyors. Individually these are minor, and in North America they are easily replaced, but in Mongolia the delays have accumulated to push back production. Now, tell me about low production costs. I simply do not believe it. Bob

To: Phil Jones who wrote (3199)	2/23/1999 9:01:00 PM
From: Ron Everest	Read Replies (1) \| Respond to of 4066

There was lots of time to prove the $120 per oz production cost and what was the answer?..........gold produced at >selling price. Well, the rationalization that we haven't yet mined the richer vein, or, production costs were higher due to processing material with low grades is still a rationalization. I too believe that it is potentially possible to get the costs below $200 and await that day. PROOF of $120 gold production will, IMO, attract a higher share price. True, the profits from production COULD finance additional exploration on what could be excellent property. The market is waiting to see the goods. This is reality. I'm not sure how the working capital will be found to restart the mill??? Best regards, Ron E

To: Phil Jones who wrote (3199)	2/23/1999 9:27:00 PM
From: Bearcatbob	Respond to of 4066

Phil, More on MGR operating costs and total costs from MGR. SE SYMBOL: MGR JANUARY 16, 1998 Mongolia Gold Announces Unaudited Financial Results for the Bumbat Project, Mongolia VANCOUVER, BRITISH COLUMBIA--THIS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Mongolia Gold Resources Ltd. (the "Company") is pleased to announce that it has received a draft, unaudited financial report from its 49 percent owned Bumbat Company, Mongolia. Initial results show a year- end cash operating profit of C$134,514 from operations at the Bumbat Mine, Zaamar District, Mongolia. The results are for the full year, ending December 31, 1997 and include the Company's first revenues from the mining of 22,000 tonnes of ore from the 118 vein. Milling of nearly 18,000 tonnes of ore with an average head grade of 3.72 grams per tonne (gpt) resulted in the recovery and sale of 28,456 grams of gold, and an inventory of 10,574 grams of gold in flotation concentrate. The balance of the gold remains in the circuit or in concentrate inventory. Mill throughput averaged 190 tonnes per operating day (tpd) during this period, and has operated at greater than 250 tpd on a sustained basis. Total gold sales plus inventory was C$490,833 and the total operating expense including general mine, mine geology and engineering, mill and maintenance charges, shipping, marketing, and royalty charges were C$356,319. Administration, head office, and non-cash depreciation and depletion charges are not included in operating expenses and upon consolidation will reduce the operation to a net loss position of C$605,313.

To: Phil Jones who wrote (3199)	2/23/1999 9:45:00 PM
From: Bearcatbob	Read Replies (1) \| Respond to of 4066

Even more on established operating costs: To: Bearcatbob (2197 ) From: Dave R. Webb Thursday, Jun 11 1998 6:42PM ET Reply # of 3203 Bearcatbob I don't mind negative comments, but you are making statements that are suggestive and misleading. When you say in effect that the costs at Bumbat are well established, therefor the mine is marginally economic, you are mixing fact with interpretation. The costs at Bumbat are established (as well as a commissioning run in will establish). They are in the $35 range to mine mill and recover. The average grade of the deposit is in the 10 gpt range. You do the math. If this is marginally economic, then say so. Gold orebodies are characteristically inhomogeneous. This means that the first tonne of ore, and all subsequent tonnes of ore are unlikely to be the same grade. The initial work at Bumbat stripped a low-grade portion of the 118 vein. Ore in this area averaged 6 gpt. Poor mining practices diluted the ore more than had been planned, resulting in a grade closer to 4 gpt. The mining practices are now corrected. Higher grade ore has been prepared for mining. I hope this clarifies your statements. Dave So, the limited run in 1997 has established operating costs? I doubt it. It may have established potential operating costs. However, I submit that all 1997 did was prove how difficult it is to operate a small facility in Mongolia where delays are encounter for things like belts and bearing covers. I submit that there is no reasonable way to estimate the total costs of operating that mine/mill for a year. This is especially true after it has sat idle for a year. Go back and look at the posts.