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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: Anne who wrote (1112)	4/6/1999 11:07:00 AM
From: mineman	Respond to of 3558

From Sutton's website the proven ore reserves in number 1 vein are 7 million tons at .35 ounce a ton equals 2.8 million ounces. But my source said the grade is too low for the vein constantly changes thickness from 2 to 20 feet so that it will cost more money to mine the rock and then truck it to the surface than the value of the gold that is in the rock! Does anyone know more about this? Is my source wrong?

To: Anne who wrote (1112)	4/6/1999 11:18:00 AM
From: mineman	Respond to of 3558

I asked how much his source said Wully-Bully was worth. He just told me the cost of mining, milling, and shipping the rock will be higher than the .3 ounce per ton gold they recover, so that the property was worth only a small fraction of the $520 million that Barrick paid! Is this correct, or does Barrick know something about the property that is not on the Sutton website?

To: Anne who wrote (1112)	4/6/1999 2:48:00 PM
From: mineman	Read Replies (1) \| Respond to of 3558

Sutton's gold ore reserves from Kilborn's study are: Proven: 7 mil tons @ .35 ounce/ton = 2.8 mil ounces gold Probable: 2.9 mil tons @ .3 ounce/ton = .96 mil ounces gold Total = 10 mil tons @ .33 ounce/ton = 3.8 mil ounces gold On the website the 8 million ounces are RESOURCES, not reserves, and they apparently need much more drilling before they can be called reserves. So the 3.8 million ounces is all that can be called true reserves. So we paid $520 mil. for 3.8 mil ounces gold = $136 per ounce. Does anyone have different figures than these off the site??