+ data and comments +, page-153

re: ** + mining early 2007. target prices. The outlook of the big Gold companies has changed and the quantity of gold to be accepted for a takeover, is going down. "Financial Sense" is now referring to "Peak Gold". What is important is the duration of mining at high intensity. PJO can do that while there are also a lot more ounces to come yet.

So, 3.1 mill of Gold Equiv. is quite acceptable. Of course, it would have increased since as drilling at Guadalupe and 2 other projects is in full swung.

The Final Jorc estimate at Palmarejo is not that far away, so we'll know how much more than 3.1 mill ounces Gold equiv. there really is at that location.

Guadalupe will be the next one but drilling does'nt have to be so dense as it won't be used to secure Bank Finance. So, they wil tolerate a greater margin of error. I think that Guadalupe will be ready to mine at end of next year or at least when mining of Palmarejo starts in early 2007. Don't be surprised if Guadalupe will have at least 3 mill ounces Gold equiv. as well.

I am not too interested in talking about takeovers as I want to see them mining for years.

Gerry