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Gold/Mining/Energy : Claude Resources TSE.CRJ Undervalued Junior Gold Anyone? -- Ignore unavailable to you. Want to Upgrade?

To: Gord Bolton who wrote (211)	6/1/1999 9:50:00 PM
From: Donald McRobb	Respond to of 359

I don't own any of this stock but came across this Daily Letter Analysts' Breaking News Monday, May 31, 1999 Canaccord Recomendation RECOMMENDATIONS 1. SWITCH Greenstone Resources (GRE : TSE : $0.42 : Issued 80.1M) James * Q1/99 results * SWITCH to Claude Resources Greenstone Resources (GRE : TSE : $0.42 : Issued 80.1M) SWITCH On Friday, Greenstone Resources reported a Q1/99 loss of US$3.3M or 0.04/share against a break-even quarter one-year earlier. At March 31/99, working capital was in deficit as to US$40.8M, and long-term debt stood at $59M. Gold production at San Andrés in Honduras began in March and is expected to reach a level of 25,000 ozs./month by year-end: Q1 production of 27,456 ozs. was at an average cash cost of 273/oz. At Cerro Mojón, Q1/99 production reached 14,533 ozs. at a cash cost of $265/oz., and at Minas Santa Rosa, 4,739 ozs. were produced at an average cash cost of $286/oz. The Bonanza Mine in NE Nicaragua produced 5,578 ozs. at $270/oz. cash costs (this project is in the process of being sold). Greenstone released its 1998 year-end results in late April, with a revised proven and probable reserve at Cerro Mojon and San Andrés of 1.74M ozs., basis $300/oz. All gold "resource" on the Greenstone properties were 5.98M ozs. When considering capital costs, sustaining capital and financing outlays in today's gold market environment, the debate remains somewhere between leverage and basic minerals economics. Greenstone has a market capitalization of approximately $33.6M: the 52-week range has been $7.50-0.335. This is a high-cost (high-debt) junior producer, and a SWITCH to Claude Resources (CRJ : TSE : $1.70) is recommended for junior gold mining exposure. With the Madsen gold mine near Red Lake, ON, in full production (probably) next year, Claude's overall Canadian gold production is expected to be over 100,000 ozs. on a market capitalization of about $56M (f.d.). (Please refer to the May 7 report on Claude Resources.) David James, P.Eng (204) 988-9602