the resource investor · the document was just a draft and “does not, in any way, represent...

THE BULL & BEAR'S RESOURCE INVESTOR E-LETTER

Published by The Bull & Bear Financial Report • © September 2002 • www.TheBullandBear.com

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GOLD

SILVER

PLATINUM

PALADIUM

BASE METALS

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The

September 2002

Inside...Special ReportMountain Province Diamonds Inc. ............................................. 5Discovers High-Quality, Top-Color Diamonds in Canada; GlobalDiamond Giant De Beers Funding All Exploration & Development Costs

Special ReportWPN Resources Ltd. ................................................................................. 8Company acquires oil and gas concessionsIn Italy’s Po Valley and offshore Sicily channel

The Bull & Bear’sResource Investor Advisory ............................................................... 11Corporate Update/Interim Reports .................................................. 21Higher Gold Price Despite Weaker Demand: GFMSInvestor Interest And HedgingDeclines Cited As Factors ................................................................... 24Web Sites for Investors ......................................................................... 25

Bull & Bear's

By Walter Lynch, editorThe Lynch InternationalInvestment Survey

The definition of a pendulum is “abody that swings freely from afixed point.” Today, we are seeing apendulum swinging in South Africa.As we advised subscribers early inJuly, some of the governmentalchanges that are being enacted intolaw are aimed at forcing majorchanges in that country’s miningindustry. At that time, the SouthAfrican Parliament passed a law

Pendulum SwingsCreeping Nationalization Hits

South African Gold Mining Industryreturning all mineral rights to thestate. The Mineral and Resources Actintroduces a “use it or lose it” policyto prevent companies from hoardingmineral rights that they have noimmediate plans to use. The applica-tion of this law raises investmentquestions.

What is more, according to themining industry, the law givesexcessive discretionary powers to theMinister of Minerals and Energy togrant or deny licenses, does not allowfor proper appeal procedures and

Continued on page 2

Gold MarketManipulation 101By James Turk, editorFreemarket Gold & Money Report

How do governments manipulatethe gold price?

I am asked this question all thetime. And it would probably requirewriting a book to do justice to thetrading techniques that can be used.But there is one basic principle thatcan be reviewed in order to explainsome basics - so here is a brief primer,a sort of Gold Market Manipulation101 if you will.

There are not one, but two goldmarkets. One deals in physical metal.The other deals in paper - namely, thepromise to pay physical metal. Thispaper market consists of varioustrading vehicles such as futurescontracts, forwards, puts, calls andother derivatives.

In terms of relative size, themarket of paper promises ‘to pay gold’

Continued on page 20



The Bull & BearFinancial Report

P.O. Box 917179Longwood, FL 32791Phone: 1-800-336-2855Fax: (407) 682-6170Editor: David J. Robinson

© Copyright 2002The Bull & Bear'sResource Investor E-Letter.

Reproduction in wholeor in part is strictly prohibited.

Continued from page 1

provides no certainty in a sector thatrequires long-term investments.It also gives the minister the“extraordinary power” to use the lawfor “social upliftment.”

Concerns have already arisenamong investors from the leaking ofdetails of a black empowermentcharter, which says that those whowere discriminated against underthe apartheid regime should control51% of all mining industry assetswithin 10 years. At one point, theconcern turned to “panic.” The SouthAfrican Department of Mineralsmoved to contain the investmentdamage by assuring investors thatthe document was just a draft and“does not, in any way, representofficial government policy.”

Many in the industry fromexecutives to mining analysts fearthat serious damage has alreadybeen done to investor confidence andthat this has been confirmed by asteady rush to sell South Africanmining shares. For example, AngloAmerican, one of the world’s largestmining companies with its anchorstill in South Africa, has lost about20% of its market value since the“charter” was leaked. Keep a closewatch on these developments. Webelieve that investors cannot ruleout nationalization of the miningindustry.

The #2 GlobalGold Producer

In the 2002 first half, AngloGold(NYSE AU $21.88) produced 2.8million oz. of gold, down from 3.48million oz. in the 2001 first sixmonths. This decline was primarilydue to the sale of its last fourproducers in the Free State goldfield.These include the Bambanani(Freegold #1 shaft area) , TheMatjhabeng (Western Holdings),Tshepong and H.J. Joel mines. All ofthese had been operating at aloss. The cutback in AU’s high costproduction resulted in a reductionin cash costs to US$156 per oz.compared to US$189 per oz. in the2001 first half. The mines were soldto the Harmony Gold-Afr ican

Rainbow Minerals Joint Venture.The latter is a black empowermentmining company.

AU’s management is looking toproduce about 5.8 – 5.9 million oz.in 2002, or more than 3.0 million oz.in the last half of the year. Right now,the Vaal River and West Wits minesare AU’s main producers. These arebasically the old Vaal Reefs andWestern Deep properties. The GreatNoligwa mine (Vaal Reefs #8 shaftare) is on its way to producing about975,000 oz. in 2002. It has completedthe replacement of major hoistingequipment with June productionimproving and total cash costs downclose to US$110 per oz. The GreatNoligwa and the Kopanang mine(Vaal Reefs #9 shaft) account forabout 38% of AU’s global operatingprofit. The Kopanang mine shouldproduce about 510,000 oz. in the fullyear. Total cash costs for 2002 shouldimprove to a range of US$160 - $165per oz.

In the West Witwatersrand, AU’smines include the Western DeepLevels East, West and South sectors.These are now the Tau Tona mine(WD East), the Savuka mine (WDWest) and the Mponeng mine (WDSouth). Seismic “events’ continue toaffect both production and costs here.However, production from thesethree units for 2002 should reach 1.3million oz. with the low costs at TauTona (US$130) offset by total cashcosts at Savuka and Mponeng, whichhave averaged close to US$190 peroz. in the first half.

Central AfricanInterests

AU wisely turned its interest toCentral Africa several years agowhen it came to the rescue of AshantiGoldfields from its hedging disaster.It acquired a 50% interest inthe Geita mine in Tanzania fromAshanti, which used the funds tostave off its counter parties in itsill-fated hedging. AU’s other CentralAfrican interests include a 38%interest in the Sadiola, a 40%interest in the Yatela and the Morilamines in Mali and 100% in theNavachab in Namibia. In the firsthalf of 2002, attributable production

was close to 450,000 oz., while totalcash costs rose about 10% to US$140per oz. For the full year 2002, AUshould be able to hit its productiontarget of 921,000 oz. with totalcash costs of US$143 per oz. Thisproduction should offset some of theuncertainties stemming from theS.A. governmental moves.

ProductionIn The Americas

In the U.S., AU’s main interestsare the 70% owned Jerritt Canyonmine in Nevada and its 67% interestin the Cripple Creek & Victor GoldMining Co. The potential here islimited as the Jerritt Canyon has avery limited life. In addition, its costpicture is definitely affected byweather conditions. Note that, in thefirst quarter, these costs averagedUS$308 per oz. due to extremely wetweather. The third quarter shouldshow a sharp improvement but thepotential is limited.

In South America , AU hasacquired an additional 46.25%interest in the Cerro Vanguardia S.A.that is located in the Patagonia areaof Argentina. This brings its interestto 92.5%. AU also holds a 100%interest in the Morro Velho mines anda 50% interest in the Serra Grandemine, all in Brazil. Attributableproduction in the 2002 first half wasabout 215,000 oz. with total cashcosts averaging US$131 per oz. Note

Pendulum Swings



that the additional 46.25% interestin the Cerro Vanguardia has justbeen acquired. It is estimated thatthis operation could see its totalproduction this year rise to 900,000– 950,000 oz.

AngloGold’s biggest disappoint-ment has been the loss of NormandyMines in Australia to the NewmontMining Co. AU has had four miningoperat ions in that country –Boddington, Sunrise Dam, UnionReefs and Tanami. The Boddingtonclosed late in 2001. The Tanamiterminated mining in mid-2001. TheUnion Reefs is in a closure mode withfinal close expected in late 2002or early 2003. Total Australianproduction attributable to AU for thisyear will not be more than 450,000oz. with total cash costs estimated atUS$178 per oz. Au had the right ideain bidding for Normandy consideringthe problems in South Africa and theAU infrastructure that was still inAustralia when the bidding ceasedearly this year. It may still be on theacquisition prowl there.

Ore reserves are estimated at 68.3million oz. Last year, depletions,due to production, amounted to 6.9million oz. We look for AU with itssubstantial cash position (US$338million as of 6/30/02), to be back inthe hunt for additional reserves viaacquisitions, expansion projects andgreenfield exploration.

In the 2002 first half , AU’soperating profit rose to US$309million, up 31% from US$236 millionin the same 2001 period. Theearnings, prior to unrealizednon-hedging derivatives, rose toUS$176 million, up from US$122million in the same prior year period.On a per share basis, earnings roseto $1.33 from $0.99. The interimdividend rose to US$1.32 per sharefrom US$0.85. Note that the hedgebook has been reduced a further 2.4million oz. in the June quarter andby 4.1 million oz. since Jan. 1st.According to management, theremaining 10.5 million oz. in thehedge “will continue to be activelymanaged.” The hedging reduction isa plus for the gold price outlook.

We believe that investors shouldlook at AU cautiously. The companyis one of the best gold miningoperations in the world. We can saythat without reservations. However,the South African investment outlooknow leaves a lot to be desired. Until

this is fully clarified (Does theempowerment draft become law?) weare reducing our AU recommendationto a Hold. Conservative investorsshould look to quality gold sharehedge opportunities in Canada or theUnited States as alternatives.

The #4 GlobalGold Producer

In June, Gold Fields, Ltd.’ s(NYSE GFI US$10.62) gold productionrose to 1.16 million oz., up from888,000 oz. a year ago and up from1.09 million oz. in the March 2002quarter. Total June cash costsamounted to US$171 per oz. Thiscompares to total cash costs ofUS$193 per oz. a year ago andUS$160 per oz. in the March 2002quarter. We used both the same yearago quarter and the recent Marchquarter for comparisons due to thefact that, a year ago, the importantBeatrix mine had to close its #2 shaftfor several weeks due to a fatalexplosion.

GFI’s key producers are the Kloof,Driefontein and Beatrix mines, all inSouth Africa and the Tarkwa minein Ghana. In addition, the St. Ivesmine and the Agnew mine inAustralia were acquired early in theyear from WMC of Australia, whilethe Damang gold mine was recentlyacquired from Ranger Minerals, Ltd.

In June, Driefontein increased itsquarterly production to 333,750 oz.,up 25,000 oz. over the previous quar-ter, while the Kloof mine increasedproduction to 250,000 oz., up 15,000oz. from the March level. Beatrixproduction remained unchanged at172,000 oz. for the quarter. Productionat St. Helena declined to 25,000 oz.(-3,000 oz.). In May, GFI announcedthat St. Helena would be sold to FreeGold, the Harmony-ARMgold JointVenture in the Free State.

In Ghana, June gold production atthe Tarkwa declined to 120,000 oz.from 129,000 oz. in March. Thisdecline was due to a decline in yieldsas well as slow gold-in-process move-ments. The newly acquired Damangmine produced 61,000 attributableoz. in the June quarter. In the March

quarter, GFI received only twomonths production (40,000 oz.) dueto the timing of the purchase. InAustralia, the St. Ives produced157,000 oz., a 19% increase over theprevious quarter, while the Agnewexperienced a 1,000 oz. decline in theproduction in June to 32,000 oz.

GFI is a participant with Outokumpuof Finland in the Arctic PlatinumPartnership. In August, the Partnershipannounced that its Suhanko projectin Finland upgraded and increasedplatinum group resources to 9.1million oz. A feasibility study of theSuhanko Project is underway and isexpected to involve open pit mining.Currently, there is considerable focuson the development of suitabledownstream processing for theproject. The feasibility study shouldbe ready in the December 2002quarter.

GFI has consistently maintaineda non-hedging policy, selling itsproduction at the spot price. In theJune quarter, it received a US$311per oz. average gold price, up fromUS$291 in March. As a result of theprice improvement and accompanyingcost reductions, the operating profitrose to US$157 million, up fromUS$145 million in March. The Junenet earnings increased to US$112million ($0.24 per share) from US$98million ($0.21 per share). The finaldividend was increased to aboutUS$0.23.

Gold Fields is st i l l heavi lyanchored in South Africa althoughit has global interests. The S.A.governmental policy problems cannotbe ignored. We believe that it isimpacting investor confidence and, asin the case of AU, we are, for thepresent, reducing our GFI recom-mendation to a Hold. New moneyavailable for hedging should berestricted to Canadian and U.S.quality producers. We will continueto keep you advised on this SouthAfrican policy problem.

Editor ’s Note: Walter Lynch iseditor of The Lynch InternationalInvestment Survey , 431 – 136thStreet, Belle Harbor, NY 11694.1 year, 52 issues, $175.

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Mountain Province Diamonds Inc. (OTC BB: MPVI;Toronto: MPV) is sitting on a potential world-class gem-quality diamond deposit in Canada’s NorthwestTerritories.

The in-situ diamond value – now estimated at nearly$3 billion – has attracted a partner with very deep pockets:South African diamond giant De Beers ConsolidatedMines Limited. De Beers already has spent more than$30 million to develop the MPVI property and shows nosigns of quitting.

Early results of the latest round of drilling and bulksampling should be available in August and new modeledvalues per carat are expected by November. At that point,De Beers will update the desktop study using the newvalues. After the results of the desktop study areavailable, De Beers will decide whether to begin afull-scale feasibility study to bring the property toproduction. When in production, Mountain Province isassured of a 36 % production share of a major newdiamond mine.

De Beers wants to know whether the discovery of a9.9 carat high quality, top color “super” diamond last year

Mountain Province Diamonds Inc.Discovers High-Quality, Top-Color Diamonds in CanadaGlobal Diamond Giant De Beers Funding All Exploration & Development Costs

Summary:Mountain Province Diamonds Inc. (OTC BB: MPVI; Toronto: MPV)is actively involved in exploring and developing diamond depositsin Canada's Northwest Territories through a joint ventureagreement with De Beers Canada Exploration Inc., a wholly ownedsubsidiary of De Beers Consolidated Mines. MPV and De Beershave already discovered seven diamondiferous pipes (three largeand four small). De Beers has completed major bulk sampling of

the Hearne, Tuzo and 5034 pipes and has discovered a high quality, top color 9.9 carat diamond valued at $60,000,raising the possibility these valuable, high quality stones could occur regularly during production. Results of additionalbulk sampling are expected by fall 2002. The joint venture agreement callsfor De Beers to pay for all exploration and development expenses. MountainProvince retains a 36 percent interest in the quarter-million-acre property,located 115 km southeast of Canada's first diamond mine, the Ekati minewhich produces 6 percent of the world's gem diamonds.

Company Contact:Jan W. Vandersande, President & CEO

3633 E. Inland Empire Blvd. #465, Ontario, CA 91764

Phone: 909-466-1411 • Fax: 909-466-1409

Email: [email protected]

Web: www.mountainprovince.com

Shares Outstanding: 50 million • Public Float: 25 million

52-Week Range: Hi: $1.08 • Low:$0.27



one. If we do, this will allow De Beers to be much moreaggressive in their value modeling.”

Recovery of additional large high-quality, top-colordiamonds could increase the values per carat sufficientlyso that the threshold required for the project to move tothe next stage of development (feasibility) is achieved,

says Vandersande.Mountain Province expects the results of the latestdiamond bulk sampling program to begin coming

in later this summer and a new value model tobe completed by November or December.

Continued ExplorationActivities

De Beers will decide whetherto conduct additional sill surface

sampling this summer based onthe results of a 10-hole drill

program to define the sizeand thickness of the MZ

Lake diamondiferoussill deposit (locatedapproximately 20 km

northwest of KennadyLake, which contains

the three large pipes). Thissill system has the potential

to add to the resource base.Experienced

ManagementMountain Province Diamonds

President and CEO Jan W. VandersandePh.D. has an extensive background and

expertise in diamond mining and the diamondmarket. He holds a M.Sc in Physics from Cornell

University and a Ph.D. in Solid State Physics fromthe University of the Witwatersrand in South Africa.

He has researched the conductivity of rocks andminerals, including diamonds. He is the author of over30 published articles and book contributions on theproperties of natural diamonds. While in South Africahe worked closely with the De Beers Diamond ResearchLaboratory. Dr. Vandersande also served as a financialand scientific consultant and mining analyst, and hasadvised brokerage firms, money managers and privateclients on natural resource companies and commodities.

“De Beers clearly wants to see

TheDiamondAnalysts

diamond production in Canada andthis project represents one of the company’s

best shots at early production.” –Lawrence Roulston, Resource Opportunities

“Mountain Province remains the best juniorCanadian diamond asset play. It is a

core component of any Canadiandiamond portfolio.” –

John KaiserBottom-Fish

Tracker

is indicative of a population of such high-quality gemstones. “A higher modeled value is almost a foregoneconclusion,” says John Kaiser, editor of the Bottom-FishTracker. “Kennady Lake is picking up steam within theDe Beers organization as a development priority.”

Northwest T erritoriesA Major Diamond Producer

Diamonds were first discovered in Canada’sNorthwest Territories in 1991, producing adiamond “rush” to stake promising ground.Today, the Ekati Mine, located about 70miles northwest of Mountain Province'sproperty, produces about 6 percent ofthe world's annual supply of gemquality diamonds.

MPVI began its explorationefforts in 1992 and quicklysecured mining claimsto properties totallingabout one-quartermillion acres. Thediscovery o f the5034 diamond pipein 1995 attracted theattention of De Beers.

In 1997, the two companiesentered a jo int ventureagreement calling for De Beersto finance all exploration anddevelopment costs, including anestimated $400 million to build the mineprovided a benchmark internal rate ofreturn is achieved. Over the course of severaldrilling programs, bulk sampling analysis hasproven out the value of the property, now standingat $2.8 billion in in-situ diamonds in the three largediamond pipes.

Large Gem-Quality DiamondPrompts New Bulk Sampling

by De BeersMountain Province has

discovered seven diamondifer-ous kimberlite pipes (threelarge and four small) andseveral diamondiferous sills,all bearing diamonds. Bulksampling analysis last year onthe two most promising pipes– the Hearne and 5034 –turned up a 9.9 carat highquality, top color gem diamondvalued at $60,000 from the5034 pipe. This diamond is oneof a population of high qualitygem diamonds recovered fromthe last two bulk samples.

“This is a really top dia-mond,” says MPVI Presidentand CEO Jan W. Vandersande.“We are doing additional bulksampling now to see if we findmore large diamonds like that



DisclaimerThis material is for distribution only under such circumstances as may be permitted by applicable law. It has no regard to the

specific investment objectives, financial situation or particular needs of any recipient. It is published solely for informationalpurposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments.References made to third parties are based on information obtained from sources believed to be reliable but are not guaranteedas being accurate. Recipients should not regard it as a substitute for the exercise of their own judgement. The opinions andrecommendations are those of the writers and are not necessary endorsed by The Bull & Bear Financial Report. Any opinionsexpressed in this material are subject to change without notice and The Bull and Bear Financial Report is not under any obligationto update or keep current the information contained herein. All information is correct at the time of publication, additional informationmay be available upon request. Mountain Province Diamonds Inc. paid The Bull & Bear Financial Report a fee of up to $29,000for their advertorials and for promotional services provided by The Bull & Bear Financial Report. The directors and employeesof The Bull & Bear Financial Report do not own any stock in the securities referred to in this report.

Paul Shatzko M.D., the com-pany founder and chairman, isalso closely involved in themining industry. He served ascorporate secretary and directorfor Valpar Resources Inc., andwas president of Trans-AsianResources Inc. and a director ofExcellon Resources Inc., Gee TenVentures Inc., Quattro ResourcesLtd., and Camphor Ventures Inc.

David N. Siegel, a companydirector, is currently presidentand CEO of U.S. Airways, andformerly was president and COOof the Budget Group Inc. andpresident of Continental Express Inc.

Strong Financial BackingMountain Province Diamonds enjoys the solid

financial backing of De Beers Canada Exploration Inc.,a subsidiary of De Beers. Under the terms of the jointventure agreement, De Beers is paying for all exploration,evaluation and production costs to earn a 60 percentinterest in the property. De Beers has spent about $30million on the AK property since 1997 and has just spentabout $8-10 million in the current bulk sampling program.

“They wouldn't be spending this kind of money on morebulk sampling if they didn’t believe there was a very goodpossibility of finding additional large good qualitydiamonds,” says Vandersande.

MPVI is only responsible for their administrative

costs. Last December MPVIraised nearly $600,000 whenit sold 1.6 million shares ofcommon stock at C$0.58. Awealthy Irish investor is a majorshareholder.

InvestmentConsiderations

The potent ia l po l i t i ca lproblems in Southern Africa,combined with the devastatinghuman tragedy of the AIDScrisis in South Africa – andits impact on the potentialincountry mining workforce, are

two of the reasons that led De Beers to focus ondeveloping diamond deposits outside of Southern Africa.

“De Beers is a company with a global reach,” De Beerschairman Nicky Oppenheimer said recently. “Explorationis particularly intense in Canada. We are committed tomoving these discoveries there through to production.”

Mountain Province’s AK property project is one of thefour largest in De Beers’ current Canadian exploration/development portfolio. Last summer, De Beers allocatedmore than half (C$47 million) of its annual globalexploration budget to diamond exploration in Canada.

“De Beers is clearly unwilling to allow the$3 billion worth of MPVI diamonds to remain in theground,” say analysts Gary Goldstein and Jin Chun ofGilford Securities (New York), who maintain a “Buy”rating on Mountain Province Diamonds. �



WPN Resources Ltd.Company acquires oil and gas concessions

In Italy’s Po Valley and offshore Sicily channel

Summary:WPN Resources Ltd., a Canadian company, is primarilyfocused on building a strong presence in the oil and gassector. The company has agreed to acquire four Italian oiland gas exploration concessions, granting the companycontrol over 192,000 hectares located onshore in the PoValley and offshore in the Sicily Channel. The company hasalso lodged two applications for exploration concessionscovering an additional 116,000 hectares in the Central

Apennines of Italy. This will give WPN a four-stage exploration and development program with the ability to provideearly cash flow and significant upside potential while providing a solid foundation for future growth. WPN’s seasonedmanagement team and board of directors are knowledgeable in junior exploration company strategies and have strongtechnical and commercial skills.

Company Contact: Glenn Whiddon, CEO

Suite 1500 Hong Kong Bank Building, 855 West Georgia StreetVancouver, BC V6C 3E8, Canada

Phone: 604-669-2099 • Fax: 604-699-3099Web: www.wpnresources.com

Investor Contact: Defero Inc. Communications

Phone: (604) 734-1297 • Fax: (604) 734-1605 • Email: [email protected]

Investor Information:

Shares Issued (Fully Diluted): ~25.7 million • Public Float: ~ 5million52-Week Trading Range: Hi: C$0.34 • Low:C$0.12

CDNX: V.WPR

WPN Resources (CDNX: V.WPR) has set its sights onpromising oil and gas concessions in Northern Italy andthe Mediterranean and intends to undertake anaggressive exploration and technical evaluation phaseover the next 12 months, drilling its first well in1st quarter 2003.

“We really like Italy,” says WPN CEO Glenn Whiddon.“It’s the 4th largest producer of oil and gas in Europe; aG-7 member; is the 5th largest economy in the world andhas no political risk. Further, an extensive gas trans-mission network crosses the country and it has the secondlargest refining capacity in all of Europe. What thismeans is that there is a domestic market for all futureproduction without logistical and transportationcomplexities.”

According to Whiddon, Italy imports 80 percent of itshydrocarbon requirements, which results in an assureddomestic market. The long term gas import contracts fromAlgeria, Norway and the CIS underpin the gas price atUS$3.40 per Mcfg, however end user prices are reported tobe as high as US$8.00 per Mcfg.

The Company is acquiring 100% of the concessions,which include two onshore concessions in the Po Valley

where in excess of 120 gas fields have been discoveredand two offshore concessions surrounding the Italianisland of Pantelleria, south west of Sicily. Recently, theCompany has applied for two further concessions inthe Central Apennines in its own name, north and ontrend of recent discoveries totaling in excess of 1 billionbarrels.

The Italian Government has taken a very proactiveapproach to enticing new players into the Italian oil andgas market via the introduction of new tax and royaltylegislation and the forced relinquishment of in excess of70% of the Po Valley exploration acreage previouslyexclusively held by ENI-Agip.

“That’s what attracted us to Italy. Low taxes androyalties, a politically stable environment and thepotential for significant discoveries. With all the problemsin Indonesia and other oil producing countries aroundthe world, exploring and discovering hydrocarbons inItaly means that we can extract full value for our assets,without discount for political risk,” says Whiddon, whohas been operating in the European and Eurasianresources sector for more than 10 years and has put

Continued on next page



Continued from previous page

together a seasoned team with extensive experience inthe gas and oil sector.

Italy’ s Highly Prolific Po V alleyTwo of WPN’s concessions (San Marco and Borsano)

are located in the highly prolific Po Valley. Theconcessions have shallow gas potential (2,000-3,000meters) and are both located in regions where gas hasbeen produced from nearby fields. At least seven signifi-cant gas deposits have been found within a 30 km radiusof the concessions, with the largest field, Dosso DegliAngeli, containing reserves in excess of 1 trillion cubicfeet of gas.

Seismic data has been purchased and reprocessed forthe San Marco concession. The company is currently se-lecting drilling locations based on that data, as well asfinalizing geological studies and prospect mapping. Theconcession lies in an area containing numerous producinggas fields including the large Alfonsine, Ravenna and DossoDegli Angeli Fields.

The Borsano concession, located north of Milan, has deepMesozoic carbonate oil/condensate potential. It is located

Po Valley / San Marco:• Shallow gas• Low exploration costs• Low development costs• Low risk, moderate reward

Pantelleria West(reserves offshore):

• Shallow oil• Moderate exploration and

development costs• Moderate risk, high reward

Pantelleria South(reserves in deeper water):

• Shallow oil• Moderate exploration costs• High Development Costs• Moderate risk, high reward

Borsano: Shallow gas• Moderate exploration costs• Low development costs• Moderate risk, moderate reward

Borsano: Deep oil/gas condensate• High exploration and development costs• High risk, high reward

Central Apennines:• Moderate depth oil with associated gas• Moderate exploration costs• Low development costs• Large reserves• Only moderate risk, high rewards

Italian Concessions

within 30 km of the Villafortuna-Trecate oil field, the sourceof over 20% of Italy’s cumulative oil production. This field,discovered in 1984, has produced at rate of up to 82,000 bopd.

The Po Valley, which has been producing gas since1944, extends across the whole of northern Italy fromTurin in the west to Venice and Ravenna in the east.

Two Offshore LicensesThe Company’s offshore concessions surround the

south and west of the Island of Pantelleria. Whiddon isvery enthusiastic about these two concessions as whilethey are located in Italian waters, they offer the benefitsof Tunisian geology with the more advantageous tax androyalty regime of Italy. The concessions are close to oildiscoveries in both the Italian and Tunisian sectors.

The Shell-operated Tazerka field is less than 6 km awayfrom the concession boundary where the tertiary oilreservoirs are less than 2,000 meters deep. The nearestdiscovery is the AGIP Zibbibo-1 well that was drilledbetween the two WPN concessions and tested more than550 barrels of oil per day.

Whiddon said a structural interpretation of seismicdata obtained from the Ministry archives is “considered




Continued on previous page

promising”, providing a number of leads for furtherevaluation.

Central ApenninesWPN has made two applications for concessions in

the Central Apennines, located on trend withthe Fina (Tempa Rossa) and Enterprise (Monti-Alpi)discoveries. In this region, in excess of a billion barrels ofrecoverable oil and at least 750 Bcf of associated gas havebeen discovered in the past 15 years.

Investment ConsiderationsWhiddon said the concessions will be developed in four

stages: 1) Po Valley shallow gas; 2) Central Apennines;3) Sicily Channel; and 4) deep oil or condensate in thePo Valley.

The Company is also examining other projects toaugment this staged strategy, particularly otherexploration and production opportunities in Italy and thesurrounding region.

The acquisition of a 100% interest in the Po Valleyand Pantelleria was accomplished with an exchange ofboth cash and stock. The concessions cover an area inexcess of 192,000 hectares.

The company has cash in the bank, partly from a$550,000 private placement this spring, and nosignificant debt. The company will probably bring in ajoint venture partner as the project moves closer todevelopment.

Whiddon expects the company to be drilling either bythe end of the year or the first quarter of 2003 on theSan Marco concession, with a target in excess of 50 bcf.“The conditions are very favorable in Italy,” saysWhiddon. “It is politically stable and is a proven area ofgas and oil production. One out of every three wells drilledin the Po Valley results in a commercial discovery. We’ll beselling to a ready market. It’s a significant advantage.

WPN has a couple of other advantages, as well. Thecompany has a large shareholder base among Australianinstitutions and a major insurance company presently holds20 percent of WPN’s shares. It is also entering a sector whereprices could soar, depending upon what happens in the

DisclaimerThis material is for distribution only under such circumstances as may be permitted by applicable law. It has no regard to the

specific investment objectives, financial situation or particular needs of any recipient. It is published solely for informationalpurposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments.References made to third parties are based on information obtained from sources believed to be reliable but are not guaranteedas being accurate. Recipients should not regard it as a substitute for the exercise of their own judgement. The opinions andrecommendations are those of the writers and are not necessary endorsed by The Bull & Bear Financial Report. Any opinionsexpressed in this material are subject to change without notice and The Bull and Bear Financial Report is not under any obligationto update or keep current the information contained herein. All information is correct at the time of publication, additional informationmay be available upon request. WPN Resources Inc. paid The Bull & Bear Financial Report a fee of up to $29,000 for theiradvertorials and for promotional services provided by The Bull & Bear Financial Report. The directors and employees of TheBull & Bear Financial Report do not own any stock in the securities referred to in this report.



The Bull & Bear’s

Resource Investor AdvisoryTHE LYNCH INTERNATIONAL INVESTMENTSURVEY, 431 – 136th Street, Belle Harbor, NY 11694.1 year, 52 issues, $175.

Barrick Gold continuing to buildWalter Lynch: “Barrick Gold Corp. (NYSE ABX

$15.30) experienced both a decline in June 2002 goldproduction and an increase in total cash costs comparedto June 2001. Part of the 250,000 oz. production declinewas planned due to the phasing out of 4 producers andthe earlier closure of 2 additional producers. ABX alsohad planned to process lower grades at the importantGoldstrike and Pierina operations. However, ABX didexperience lower than expected production at the Hemlo,the Kalgoorlie Super Pit and also at the Meikle mineon the Goldstrike property. At the same time, some ofthis production decline was offset by higher productionat the Eskay Creek (British Columbia), Round Mountain(Nevada) and Bulyanhulu (Tanzania) operations.

Both the Betze-Post and Meikle mines onthe Goldstrike property saw cash costs increasesubstantially due in great part to higher energy costsin Nevada. Cash costs at the Hemlo mine in Ontariorose to US$249 per oz. from US$209 in the same 2001quarter, while costs at the big Kalgoorlie Super pit inAustralia rose by 21% to US$213 per oz. At the Pierinamine in Peru, cash costs doubled to $80 per oz. fromthe almost unbelievable $32 per oz. achieved in June2001. Much of the Pierina cost increase per oz. was dueto the planned processing of lower grades and to 2002being the 1st year of amortization of deferred miningcosts. All in all, June 2002 was a very satisfactoryproduction quarter considering the wide diversity ofABX’s operations.

For the first half of 2002, gold production totaled 2.72million oz. compared to 3.08 million oz. in the same 2001period. Management is expecting to produce 3.0 millionoz. in the 2002 second half for total annual productionof 5.7 million oz. with total cash costs being slightlyhigher than in 2001 at US$172 per oz.

On the financial side, June 2002 gold sales totaledUS$490 million down US$28 million, from the June 2001quarter. The net income for June totaled US$59 million($0.11 per share), slightly higher than the US$58 million($0.11 per share) a year ago. The decline in revenuesresulted from the 11% decrease in gold sales which waspartially offset by a US$21 increase in the averagerealized gold price. Note that ABX had earlier adjustedits hedging program by selling 50% of its production atthe spot price and the balance through its hedgingprogram. The June spot price received averaged $313per oz., while the hedging program price was US$365per oz. In the June quarter, ABX averaged US$341 peroz. or US$28 above the average spot price. The planadopted by ABX generated an additional US$40 million

in revenue.Building Reserves / Resources

There is always the need for a producer to, at least,replace the amount of gold mined. If it does not, thenits production level (and profits) will decline, assuringa shorter mine life expectancy. Without new reserves,the producer eventually dies. Some build new reservesby acquisition, some by finding extensions to orebodiescurrently being mined and others by grassrootsexploration. Most of the majors have been able tocombine all three methods. Currently, ABX has had greatsuccess with all three methods, building up reserves to79 million oz.

In our Survey of July 15th, we reviewed the mostrecent news on ABX’s Alto Chicama property in Peru.In April, it announced the results of a drilling programwhich had outlined an inferred resource of 3.5 millionoz. In early July, following a drilling program at thatproperty’s Lagunas Norte deposit, the estimate wasraised to an inferred resource of 7.3 million oz.Remember, an inferred resource is very early in the gameat establishing a deposit with a demonstrated economicviability. However, it is the type success a producer mustconstantly have to retain its viability.

A Giant Exploration ProjectThe very large Pascua/Veladero exploration project

is spread over a large area of both Chile and Argentina– part of the property was acquired in 1994. More than95,000’ of diamond drilling have outlined about 17million oz. of gold.

ABX held a 40% interest in the Veladero property innorthwest Argentina with Homestake holding thebalance. With the acquisition of HM, ABX now holdscomplete control of the Pascua/Veladero properties withan estimated 25 million oz. of gold, one of the largestundeveloped gold deposits anywhere. ABX said that itis taking a unified approach to development with mostlikely two large open-pit mines about five miles fromeach other. The Veladero segment is being developedfirst. Right now, the impact of the Argentine peso onthe project should have a positive effect on both thecapital and operating costs.

Beyond these exploration programs, ABX now has theCowal project in Australia where early work is beingconducted following a court injunction concerning theprotection of “relics” on the property. In Tanzania,further exploration is being carried out about 200 milessoutheast of its Bulyanhulu mine. A 4-5 mile goldbearing structure has been delineated on a property herewith a feasibility study expected late this year.

We continue to recommend ABX shares. ABX is aquality gold producer, backed by strong reserves and awell-thought of exploration program. In addition, it hasa cash and short-term investment position of US$916million. This is a very valuable consideration in thisperiod of corporate consolidation in the gold mining



industry. It has a long-term debt of US$781 million, asof June 30th. Use the current market retreat as a buyingopportunity.

Placer Dome Under PressurePlacer Dome Inc. (NYSE PDG $8.50) has seen its

shares, in the past few weeks, retreat more than thoseof other major gold producers. It was hit by the removalof its shares from the S&P 500, along with Barrick andfive other “non-American” companies. S&P apparentlywas looking for a strictly US Index. This hit the shareprice just as gold retreated from US$315 to the currentUS$302 - $305 range.

At the same time, Placer Dome had run intoopposition in its bid for AurionGold. PDG’s originalbid (17.5 Placer shares for each 100 shares of Aurion)valued Aurion at A$4.51 when it was made in May.With its share price down 40% since then and withthe Aurion board telling its shareholders to reject theoffer, PDG was forced to sweeten its offer by cashA$0.35 per share on top of the all-paper offer. We, ofcourse, are quite far from the Australian scene, butanalysts there have described the cash move as “toolittle, too late.” One said, “I would be surprised if theygot more than 25% acceptances.” Aurion advised itsshareholders to take no action while it considered therevised offer.

A further problem affecting PDG is the tighteningby the South African government over the country’smining assets. In our July 8th Survey, we outlinedthis in the law that returned all mineral rights to thestate. It gave extraordinary powers to the Ministerof Minerals and Energy to use the law for “socialupliftment.” PDG has a very substantial investmentin Western Areas and its South Deep mine. It has beenestimated that up to 60% of its reserves are in SouthAfrica. This could play against PDG with Australianshareholders who previously gave the nod to Newmontover AngloGold with the acceptance of “Americanpaper” over the quality of “South African paper.” Itlooks like a replay.

Placer Dome has secured an acceptance for its revisedoffer from Harmony Gold, which has a 9.8% interest inAurionGold. PDG said it would not raise the cash offerbut, at the same time, it has removed the previouscondition that it gain acceptances of at least 50.1%. Itmay be willing to take a larger minority position inAurion.

Placer Dome has run into more than the normaloperating problems. Investors need patience here withthe proposed Aurion takeover. On the South Africanscene, PDG may yet need a government “approved”partner for the full development of the PDG/WesternAreas Joint venture.’

***************

Ian McAvity’s DELIBERATIONS on World MarketsP.O. Box 40097, Tucson, AZ 85717.1 year, 18 issues, US$225.

Mountain of debt and derivatives biggestlingering problem of the decade

Ian McAvity: “The Gold stocks have come off moresharply in recent weeks, as Gold rattled a $20 drop last

week, back towards the $300 level under an array ofpressures from a rebounding stock market, andrebounding U.S. Dollar.

The $20 Gold drop aroused much suspicion as itcoincided with heavy rumors about JP Morgan Chase,the dominant holder of derivatives, when their stockbriefly broke $20/sh, their Enron involvement cameinto focus and CNBC reported rumors of an emergencyFed meeting that sparked memories of the bailoutyears back of Bankers Trust having a derivatives‘problem’…

Adamant denials came from all sides the next day,with a remarkably arrogant interview by the JPM ViceChairman on CNBC refuting virtually every allegationraised at the Senate Enron sub committee hearings. (Theterm “financial engineering” never came closer tosounding like a four letter word…) The rumor mill wasskillfully steered away to worry about a large Germanbank instead, the storm appeared to pass, the Dow Jonesrose, the Dollar rallied and Gold fell… so for a few days,an extraordinary P.R. offensive appeared to work.

I continue to view the mountain of debt andderivatives as the biggest lingering problem of thedecade of the 1990’s.… I view it as unsustainable, andan accident waiting to happen.

The sharp drops by Copper and Silver hint at awave of deflationary fears blowing through in recentweeks. Both came down to, but not through supportlevels that might have jeopardized the lingeringbullish case.

Looking at the leading Gold Stocks, the two majorfatalities have been Barrick and Placer Dome, whichhave broken under their uptrend lines. That weaknesswas clearly exaggerated by their ejection from the S&P500 Index effective July 19, but announced 10 daysearlier. They also are the two least apologetic hedgerswhich rankles most gold bugs – and has some pointingout that hedging doesn’t seem to have benefited theshareholders much this year! (Gold broke by 10%, thenfell more than 40%).

Placer has upped its bid for Australian Aurion Gold,which has not impressed North American holders ofPDG. Their track record in acquisitions doesn’t inspireconfidence.

Last issue I noted, but neglected to follow up thatNewmont’s inherited hedge book (from the Normandyacquisition) was explained in detail by PierreLassonde on www.theminingweb.com in an excellentinterview dated July 7. They are delivering into it toreduce it, but he points out that it’s denominated inA$ which adds a second dimension. A rise in the goldprice does hurt them, but that rise typically firms theA$, which helps offset some of the paper loss. (Henoted the hedge book is more sensitive to A$ changesthan Gold price changes, and he’s very bullish on theA$.) I’m not alone wishing that hedge book would goaway, and that is their longer term intention, but theyare not going to blow a load of working capital to makea grandstand play that might help the markets, butwouldn’t be the most prudent transaction for theirshareholders. I trust their judgment on the issuebased on many years experience with Franco Nevadapreviously. Newmont remains my choice as theindustry leader to hold.”



THE MONEYPAPER, 555 Theodore Frend Ave.,Suite B-104, Rye, NY 10580. Monthly, 1 year, $90.

Inco on cusp of significant growthRobert Briechle: “Toronto-based Inco Ltd. (NYSE N),

as the world’s largest producer of nickel (80% of sales),supplies about a quarter of the worldwide demand forthis metal. The firm also mines and processes copper(8% of sales), cobalt, and precious metals, such as gold,silver, and platinum. It maintains principal miningoperations in Canada and Indonesia and processingoperations in Canada and the United Kingdom; as wellas interests in refineries in Japan, Taiwan, and SouthKorea, and a joint venture in China. North Americaaccounts for about a third of Inco’s total sales, with Asiagenerating more than half of its nickel sales – anddemand for nickel by China is expected to enjoycontinued strong growth.

Inco is a key supplier to the stainless steel and alloysindustries. With an 18% market share, a massive reservebase, and technical leadership in mechanized miningand hydrometallurgy, it is North America’s premier “pureplay” nickel equity. Roughly 45% of sales are in stainless/alloy steel; 20% in plating; 16% in nonferrous alloys and10% in such specialties as nickel foam for batteries andpowder for precision castings.

Nickel prices have climbed 27%, to $3.37 per pound,since the start of 2002. Gains have been driven by anupturn in stainless-steel capacity/production, industrialrestocking, tight inventories, and low availability ofnickel scrap (which competes with the primary, or newlymined, metal).

For Inco, every increase of 10 cents a pound in theprice of nickel translates into a boost of 15 cents pershare in earnings. The company has nearly $1 billionin working capital, $650 million in undrawn creditfacilities, and a total-debt to total-capital ratio of 18.2%.The firm is on the cusp of significant growth as it bringstwo key development projects on-line: Voisey’s Bay,Labrador; and Goro, New Caledonia. The former projectis a high-grade sulfide deposit that Inco acquired for$3.6 billion in 1996, but (owing to government gridlock)is only now coming to fruition. The latter is a massiveproject involving low-grade laterite, which will be treatedvia new hydrometallurgical processes. Goro is slated tostart up in 2004 and Voisey’s Bay in 2006. The twoprojects will boost Inco’s production to 650 millionpounds of nickel per year at a cash cost of $1.15 perpound. There are two plays here. One is the anticipatedupturn in the fortunes of the industry over the next twoyears, and then, perhaps, a leveling off or a reductionin operations. The other rests on the assumption thatas the world’s population and the industry grow, nickelwill continue to experience increasing (albeit cyclical)demand.”

Editor ’s Note: Robert Briechle is Senior VicePresident, AFA Financial, Inc., Brecksville, OH and aregular contributor to The Moneypaper . As asubscriber to The Moneypaper, you may become enrolledin any of approximately 1,000 DRIPs (such as Inco) ata discounted service fee. For complete details of thedirect investment plans of every company that offers aDRIP plan, send $27 for a copy of the Guide to

Direct Investment Plans . Visit the web site atwww.moneypaper.com.

***************

LIBERTY’S OUTLOOK300 Frandor Ave., Lansing, MI 48912.Monthly, 1 year, $79.

Silver at bargain basement pricesGold supplies likely to decline

Patrick Heller: “In 2001, for the twelfth consecutiveyear, there was a huge silver shortage.

Total supplies from mine production, recycling, andgovernment dispositions of 746.4 million ounces fell100.8 million ounces (11.8%) short of covering industrialand coinage demand of 847.2 million ounces.

In 2002, even if the price of silver jumps sharplybefore year-end, another deficit in excess of 125 millionounces is expected!

At the beginning of 1990, there were about 2.7 billionounces of silver inventories available to cover shortages.By the end of 2001, only about 1 billion ounces ofinventories remain.

In the 1970s, a string of shortages did not end untilthe price of silver soared above $50.00 in February 1980.

The shortages in the past twelve years are muchlarger than those of the 1970s.

On that basis, one could conclude that silver is dueto explode in price in the not too distant future.

In fact, after my silver analysis last year I predictedthat silver would reach at least $8.00 no later thanmid-2002. We have now passed the midpoint of 2002without the price of silver rising out of the doldrums.

High For silver?In the past 32 years, silver demand has exceeded new

supplies by 5%. In 2002 dollars, the average silver priceover this time was above $14.50. To me that says thatthe equilibrium price should be higher than that.

However, silver supplies cannot increase quickly inresponse to major price jumps. Therefore, when the priceof silver takes off, it could easily shoot way past theeventual equilibrium point.

There are any number of ways to predict a future priceof silver. You can look at gold and calculate on the basisof the gold/silver ratio. You can take historical levelsand adjust for inflation. You can extrapolate from theamount of known silver reserves in the ground. And soforth.

In truth, predicting how high silver might go isimpossible. I have seen expert forecasts ranging all theway from $8.00 to $220.00 per ounce.

To me, it will be certain that silver is breaking out ofits slump once it exceeds its February 5, 1998 peak of$7.23 in the U.S. (the London market was about $7.60that day). Once it surpasses that resistance level, itwould be off to the races.

Conservatively, I would expect silver to then pass$10.00. it would not be unreasonable for silver to riseto at least $20.00. But, on a long-term equilibrium basis,I expect silver to settle somewhere around $12 –16.00per ounce. I also expect the gold/silver ratio to settlesomewhere in the 30:1 to 40:1 range.

At today’s bargain basement price, I consider silver



to be as close to a “sure thing” as can be found. Thatmay be why mega-billionaires Bill Gates and WarrenBuffett have made huge investments in silver.

For all these reasons, I recommend that silver makeup half of your precious metals bullion holdings.

Gold supplies likely to continue to declineover the next several years

The supply of gold is likely to continue to tighten inthe coming years. Here are some of my reasons:

1. Annual physical gold demand is well over 150million ounces. Although mining production rose duringthe 1990s, it has flattened out at about 83.5 millionounces. The shortages have been covered by recycling,government sales, sales of future production by themines, short-sales by commodity and futures investors,and the leasing of gold primarily from central banks.

The low prices of the past several years havediscouraged exploration and investment in new mines.A study by Beacon & Associates forecasts that gold mineoutput will drop by 25% within 7 years if the price ofgold remains under $300. It will take a price well above$300 to encourage enough new mines to replace thosethat are exhausted.

2. Almost 20 million ounces of gold are recycled annually.Gold is already precious enough that it would require anextreme price increase to boost that level by much.

3. Governments and central banks are currentlyselling gold at much higher levels than ever before –about 17 – 20 million ounces. However, this needs to beoffset by the rising demand for gold from the Chineseand Russian governments. Because of the 1999Washington Agreement and its anticipated successortreaty in 2004, the net sales of about 15 million ounceswill likely stay steady for the next several years.

4. The aggressive programs by gold mines to pre-sellfuture production in the 1980s and 1990s has, on a netbasis, now turned in the opposite direction. Here is anexample of how far some of the mines have acceleratedtheir gold sales:

Years of GoldProduction

Gold Mine Company Pre-soldPlacer Dome 12.0Sons of Gwalia 11.6GRD 9.6Ashanti 8.7Aurion Gold 8.6Hill 50 6.5Normandy NFM 4.1Lihir Gold 4.0Cameco 4.0Cambior 3.1Barrick Gold 3.0TVX Gold 2.2Aurora Gold 1.9Anglo Gold 1.8Mim Holdings 1.4Newmont/Norm. 1.2Resolute 1.1Harmony 1.0

Combined, the gold mines have pre-sold almost 95million ounces, more than one year’s worldwide mineoutput!

In 2002, unlike earlier years, the mines are reducingtheir net total of pre-sold gold production. Instead ofadding 5-15 million ounces to annual gold supplies, thisreduction will likely reduce gold supplies by 5-10 millionounces for the next few years.

5. Gold leasing is also turning a corner. Central banksand governments are willing to confess to leasing a totalof at least 160 million ounces of their gold reserves.Researchers such as Frank Veneroso believe the correcttotal of leased central bank gold to be between 300million and 500 million ounces.

With central banks and international institutions likethe International Monetary Fund holding only about abillion ounces of gold, it is obvious that they cannot keepincreasing their leased gold supplies indefinitely.

And why would they want to risk the loss of theircapital reserves, now that lease rates are barelyreturning 1%? At a meeting of the London BullionMarket Association in June, Jan Lamers, the head ofbullion operations at the De Nederlandsche Bank, theDutch central bank, revealed that his bank hadpreviously leased about 4.5 million ounces of gold.But with current low returns the bank had startedwithdrawing gold from the lending market. He alsostated his belief that other central banks were alsocalling in expired leases rather than renewing them.

Gold leasing operations had added 20-30 millionounces of gold supplies each year recently. That trendis now diminishing and may even reach the point ofreversing the flow of gold.

Obviously, between lower mine production, reducedmine selling of future production, and the decrease, ifnot outright reversal of central bank gold leasing, thegold market is facing some huge shortages in the nextfew years – if gold prices do not jump sharply.

Into the supply/demand equation may come a new factor.At a recent gold mining/dealing conference in westernAustralia, Pierre Lassonde, president of Newmont MiningCorporation (one of the world’s largest gold miningoperations), announced that his company is working withthe World Gold Council (WGC) to produce a newinstrument that would absorb between 16 and 32 millionounces of gold each year. He did not give details, but saidhe is working with Chris Thompson, the non-executivechairman of Gold Fields (which is the world’s largest goldmining operation in terms of market capitalization), whois also the new chairman of the WGC. With these two menteamed up on whatever project they have in the works,one can expect a significant announcement within the nextfew months.

It seems obvious to me that gold is due for a majorprice increase as a result of declining supplies. When?By how much? That I just cannot forecast with anyprecision. Let me just say that we could be looking at aprice explosion rather than a simple increase. And itcould happen almost anytime within the next few years.

And it also could happen without regard to the strengthor weakness of the U.S. dollar or the stock markets.

Even though gold is higher than it was last year, Istill think we are in the early stages of a bull market.Don’t miss it.”



ECONOMIC ADVICE3910 NE 26th Ave., Lighthouse Point, FL 33064.Monthly, 1 year, $99.

A 10 year bull market in goldand gold mining shares

James Rapholz: “The bull market in the U.S. dollaris over and according to George Soros, of the QuantumHedge Fund, and the world’s 2nd richest investor, it hasanother full 35% to fall over the next 18 months to twoyears. George claims that the U.S. is not a special caseany more, compared to other economies. That meansforeigners won’t spend $1.5 million a day in support ofour dollar. This is a long-term structural change, andthe start of a multiyear decline versus Europeancurrencies. U.S. assets are the most overvalued in theworld, and money is flowing out of them because theyno longer promise good returns. What’s happening ingold is what’s on the other side of that great big coin.In an effort to fight the restraining forces in theindustrial world, central banks eventually will createunprecedented amounts of liquidity without creatingmore value in the real economy. This action will lead toa further debasing of currencies, and a structural bullmarket in gold. And, within 5 – 10 years, gold will hitnew highs. Gold and energy stocks are some of the veryfew long-term investment trends that Mr. Soros believesin. He claims that a portfolio of gold mining stocks,particularly those that do not hedge, like Gold Fields,Newmont Mining and Meridian will pay off. George alsopoints out that the next few months might not be a goodentry point because as panic takes over the market, fearwill force investors to sell good stocks right along withthe bad ones. But in closing, he claims that everylong-term investor should be holding a few gold stocks.

My favorite stocks in the metal universe areHarmony Gold, Apex Silver and Pan AmericanSilver . Harmony is run by an old friend of mine, whohappens not to be a crook. And Apex is run by someoneI know quite well who isn’t a crook either.

Our world has developed a mentality that has led toa lot of companies run by dishonest people. Harmonyacquired a lot of companies when gold was depressed,and they are all unhedged. You’d have to be crazy tobuy a mining company that is hedged if you’re tryingto take advantage of the bull market in precious metals.

Yes, it’s true that these three stocks have all goneup by 100% in the last six months, but they still aren’twhat I’d call risky investments. The risk here, is notbeing invested in gold at all. Of course, there are lotsof more speculative issues around the world that havehuge upside potentials, if things work out as I believethey will. As an example, take Zimbabwe Platinum ,which is based in Zimbabwe, but listed in Australia. Ithas a very low valuation. But, if it were based in theU.S., its valuation would be 10 times higher. IfZimbabwe’s President, Robert Mugabe eventually goesyou’ll get a political situation that improves and a miningcompany that experiences a decent revaluation. But, atthis point in time, Zimbabwe Platinum can only beconsidered as a speculation, granted, it’s a very goodspeculation, but still just that and nothing more!

As of July 10th, the HUI (the Amex symbol for the

Gold Bugs Index) has dropped 20% in two weeks, soundslike a lot, but keep in mind that this index has soared2.6 times its lows of November, which was just sevenmonths ago. And, it’s still 50% above its 40 week movingaverage!

A lot of media stories surfaced at the first hint of aweakness in the “gold rush”, claiming that it was over.I seriously doubt it! The gold price is still resolving it’supside breakdown from a huge base dating back from1998.

The Gold shares have played traditional leadingindicator roles in announcing an upward move in themetal itself and gold has followed through on the upside.I’ve reiterated for months that gold must fight its waythrough the $325/$340 range to compete its breakout…a nascent process that’s still underway with a brief Juneprobe above $325. On a London fix basis, a marginalhigher value was made, but for the Comex near month,it hasn’t quite – that’s where the $340 peak of October’99 becomes an upside threshold breaker. A break outabove it will no doubt bring about much greatervolatility. And, when this happens some very seriousmargin related pressures will come down upon the moreheavily hedged mining companies. In fact, there is astrong possibility that several of them would be forcedinto bankruptcy. And this is where the trouble starts,because none of the gold producers want to be forcedout of the game especially when the price of the yellowstuff is on the way up. So – they only have onealternative and that is to keep the price from rising toorapidly. And in order to do this they have no alternativeexcept to dump their freshly mined gold onto the marketto keep its value down and lock gold prices in place foranother two or three months!

It looks more and more like we’re going to be lookingat a 10-year bull market in gold and gold mining shares.As the value of the dollar falls (because of our increasingdeficit and other factors) the trade advantage othernations have had will soon fade away. Any way you turnit – the U.S. has been (for years on end) the dumpingground for every other country in the world. In short,we’ve been buying everything from everyone and mostof these exporters can’t maintain their standard of livingwithout us. So, as our dollar falls and shuts them outof our market, every country on earth will debase theircurrency in order to stay competitive on the internationalmarket. This can only be accomplished by lowering theirinterest rates and printing evermore paper moneywithout increasing the value of what they have to sell.Thus, over the long run, you’ll see nothing but worthlesspaper money floating all over the world, runawayinflation on every corner of the earth and the price ofgold reaching levels neither you nor I ever dreamedpossible. But – please do not hold your breath – becauseit’ll take years to play out and every obstacle that canbe invented to stop it from happening will be thrown inits way because as gold goes up many other things godown! But – you can make book that “gold is in a longand slow bull market!”

I’ve got two little mutual funds that may be of interestto you. The first is the Prudent Bear Fund (BEARX)about $6.50. It shorts the stock market and keeps a longposition of about 15% to 20% in gold mining shares. Theother one is the Prudent Safe Harbor Fund (PSAFX)



about $10. This one shorts the dollar and goes long onhigh quality short-term securities denominated incurrencies other than the dollar.

I’ve got a very interesting little gold play for you thismonth. It goes by the title of Bema Gold (Amex BGO).

Bema is interesting in that it can be played twodifferent ways. First of all, you can buy it, forget aboutit for five to ten years and then, God only knows howmuch taxes you have to pay on your winnings!

Or, if you happen to have a little sporting bloodflowing through your system – you can play it as achanneling stock. For those of you who haven’t read mystory on this subject, I’ll try to make it quick. There area few stocks that catch the fancy of traders and Bemajust happens to be one of them. It is one of the top tenvolume leaders on the Amex, every trading day of theyear. And it has a distinct range that it trades in. Forthe past three weeks it has traded between $1.30 and$1.92. A month or so ago it traded between a buck and$1.35. And, two months back, it was trading between65¢ and dollar. The game is to buy low and sell high.But, it isn’t easy. In fact, you have to have the patienceof a saint! You have to sit by a rat hole, wait for the oldfellow to stick his neck out and then grab him. And, justas his full body falls into your patient hands, you haveto let him go (or sell him) before he can run back intohis hole. If you’re good at the game you win the prize,which in this case is fat pockets and if you’re not goodat it, you just sit and wait until next week or the weekafter that comes around.

The goal of Bema’s management remains to build theCompany into a successful low cost gold producer byfocusing its efforts on high-grade projects, such as theJulietta, that can be financed and developed and beprofitable even at low gold prices. Towards that end, theCompany has acquired subsequent to the end of 2001,the Monument Bay property in Manitoba whichmanagement believes has the potential to host ahigh-grade gold deposit and is actively seeking to acquireadditional properties in Russia. In addition, theCompany remains highly leveraged to the gold pricethrough projects such as Rufugio and Cerro Casle.

Annual production at the Julietta Mine for the firstfour years of operation is projected to be over 100,000ounces of gold and approximately 1.7 million ounces ofsilver, at a cash operating cost of $56 per ounce of gold,net silver credits (based on a silver price of $4.50 perounce), and a total cash cost of $100 per ounce of gold.

Bema is expecting to realize an average price of ap-proximately $347 per gold ounce on a spot price of $340for all of 2002. Beyond the initial 4 years of estimatedmineable reserves, the Julietta Mine has inferredresource that, subject to additional drilling required toupgrade the resource to a mineable reserve, could addan additional four years to the mine life at the Julietta.In addition, the potential exists to further add to existingresources and reserves in that many of the existing veinsremain open along strike and at a depth. Undergrounddrilling to upgrade the existing resource and furtherexplore the veins commenced in late December of 2001and will continue with a view to upgrading the resourcedefining additional reserves and to further explore theveins, while surface exploration drilling is planned tocommence in the summer of 2002.

Residual gold production at Refugio is expected to goon through August 2002 at which time the solutionprocessing plant will be shut down for maintenance.Gold production is budgeted at 7,800 ounces (Bema’sshare 3,900 ounces) during this period. The Companyand Kinross have agreed that if at any time the goldprice rises to $325 pr ounce, then utilizing theparameters set out in the current Life of Mine OperatingPlan, CMM will within 60 days develop a plan torecommence operations which must meet or exceedcertain pre-established criteria. Based on theimprovement in the performance of the mine, theCompany’s management fully expects the Refugio Mineoperations to start-up again with any significantimprovement in the gold price.”

Editor ’s Note: Rapholz believes that Gold will be$500 an ounce within one year. For a sample copy ofEconomic Advice send $5.00 to J.L. Rapholz, 3910 NE26th Ave., Lighthouse Point, FL 33064.

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CONTRA THE HEARD42 Rivercrest Road, Toronto, Ontario M6S 4H3.1 year, 4 issues, US$295. www.contratheheard.com.

Counterattacking with purchaseof Corriente Resources

Benj Gallander: “With the market indexes plumbingnew lows of misery, and the cash from our gold bonanzaburning a hole in our pocket, we finally decided tomake a little counterattack, picking up CorrienteResources (CTQ $0.86).

Given our recent sales of Richmont Mines and thebulk of Claude Resources, this helps to re-establish ourposition in the mineral patch. Teamed with AurResources, we’re hopeful that copper is not going out ofstyle.

Corriente’s focus is the Zamora copper belt in Ecuador,a large area that has so far yielded four solid prospects.It has also attracted the notice of copper goliath BHPBilliton, who put $1 million into Corriente at $1.35 ashare. The scope of the agreement between the twocompanies is far-reaching and represents an importantvote of confidence in the feisty little firm.

With no debt, cash of about $3.7 million and a solidbacker, the company enjoys a bit of a margin for error.And the upside is encouraging: unlike many juniors whoburned the furniture and horribly diluted their shares,Corriente’s outstanding float of 30 million shares isreasonable. Still, any way you cut it, this is a speculativeinvestment.”

Editor ’s Note: Benj Gallander and Ben Stadelmannprovide incisive advice for the independent investor. BenjGallander, M.B.A., has been investing in stocks for overtwo decades. He is the author of the best seller, theCanadian Small Business Survival Guide, and his newbook, The Contrarian Investor ’s 13: How to EarnSuperior Returns in the Stock Market, will be publishedthis fall.

Ben Stadelmann is a software designer with 20 yearsexperience in the accounting, petroleum, transportation,legal and health care industries. He is vice president ofRevtrack Inc.



INTERINVEST REVIEW & OutlookP.O. Box 1585, Boston, MA 02104.Monthly, 1 year, $125.

Gold continues corrective pathDr. Hans Black: “Gold continued its corrective path

of the past ten weeks and has now reached the $300level after trading as high as $330 in May. We believethis correction is important not only in terms of the pricebut in terms of time. It is also significant that manygold stocks have been retreating, as this is illustrativeof a deeper corrective process than would be indicatedsimply by looking at the price of gold. Our overall senseis that this process will take another four to eight weeks– depending obviously on global geopolitical events –prior to setting off toward substantially higher priceseither later this year or early next. Whether the triggerpoint will be another geopolitical scare, i.e., terrorist,or simply an enlargement of U.S. military involvementin the Middle East, remains to be seen.

We would continue to accumulate better quality goldcompanies of which we consider Newmont (NEM) thebest. During periods of weakness we would alsoaccumulate Glamis (GLG), Placer Dome (PDG),Eldorado, and Cambior (CBJ).”

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THE DINES LETTERP.O. Box 22, Belvedere, CA 94920.1 year, 17 issues, $195.

Consolidation continuesJames Dines: “We had been preparing you all year

for golds’ Consolidations this summer, and our InterimWarning Bulletin on 29 July 02 indicated that they hadcome down far enough to be getting ready for “animminent rally.” While nobody forecasting the future cangive guarantees, the chart of ASA shows that the currentgold decline is more likely a Correction than a DownsideBreakout out of a Top Formation. We also indicated that“London gold should hold above the 295 area” becauseif gold bullions and shares drop much below currentlevels, it might mean a bear market for them rather thanmerely a Correction after their extraordinary rises sincewe first began recommending them heavily lastSeptember. We don’t expect this gold rally to get veryhigh, which should occur after the Dow peaks some timein the coming period. Actually, golds have come down abit further than we had expected, but our experiencewith gold has taught us to just buy and hold for a yearor two, provided they are in Major Uptrends, since theyare exceptionally tricky for short-term traders to exploitconsistently. All the golds and silvers are down,especially Barrick and Placer Dome, which wereunusually depressed by having been removed from theS&P 500 because of the new policy of including onlyAmerican companies. But even those two are down totheir Support Areas.

The good news is that the Dines Gold Stock IndicatorConsensus (DIGSIC) is finally back into its Oversold“Buy Zone.”

Long-time TDLr Egan Gost asks about rumorsconcerning governmental manipulation of the price of

gold. Personally, Mass feelings toward gold are so deepthat nothing would surprise us. But the truth is thatwe have no real evidence that the central bankers havebeen dumping the gold reserves of their nations out ofmalice, or as a plot, rather than just plain folly. Eitherway, it doesn’t matter to us, as we need to figure outhow to lead our TDLrs to profit in both cases. We stillfeel that at some point a currency crisis would triggera “flight to safety,” and that would mean into gold.”

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THE YAMAMOTO FORECASTP.O. Box 573, Kahului, HI 96733.Monthly, 1 year, $350.

Fire sale pricesIrwin Yamamoto: “The bullion skyrocketed to the

$315.00 level. In the recent consolidation, it stayed abovethe psychological support mark of $300.00. Manytechnicians feel that if the level doesn’t hold, it’s badnews. We disagree. On the contrary, we suspect profittaking will send the metal below $300.00 an ounce. Nobig deal.

An extremely interesting situation has evolved in theprecious metals securities. In the stock market decline,gold/silver equities rallied. Then they stalled, but athigher levels. Finally, the metals sold off in a majorfashion.

Some of the gold stocks dropped to prices when theactual bullion traded at its low of $252.00 per ounce.In other words, the selling’s not logical. Therefore, thisdisconnect has resulted in fire sale prices. Collect them.And pick up more at lower prices if they follow the metaldown in the continued consolidation.

Although we’re bullish on the bullion, our 52-percentposition in the gold and silver securities is very high. A5 percent stake in the sector would be appropriate forthe conservative person. Generally speaking, the lowerpriced equities tend to be riskier than the higher pricedstocks.

Barrick Gold (NYSE ABX $15.32) is the world’ssecond biggest gold producer. The company hasoperations in North America and South America,Nevada, Australia and Peru.

The awesome size of ABX has been built throughacquisitions. The Goldstrike property was acquired in1987. Lac Minerals – 1994, Arequipa Resources – 1996,Sutton Resources – 1999, Pangea Goldfield – 2000, andHomestake Mining in 2001. The estimated productionfor this year should be a hefty 5.7 million ounces.

Despite the investment expenses for the mines, thefinancial condition of Barrick Gold remains strong. Inthe cash coffers, there’s $733 million in cash. Long-termdebt, only 20 percent of capital. Exploration costs andadministrative expenses should decrease by $50 millionand $30 million respectively, for the current year. Andnet income could rise by 26 percent.

The shares of ABX soared in the recent gold rally.However, the stock fell dramatically in price in the Julymarket sell-off. At today’s level, I consider it a gift.The emotional selling provides investors a specialopportunity to pick up Barrick at a splendid entry point.Buy.”



ADDICTED TO PROFITS119 Grant Blvd., Dundas, ON L9H 4L9.Monthly, 1 year, $100.

Shift to the juniorsDavid Skarica: “We are now increasing our exposure

to juniors. We Like Candente Resources (DNT V),Redlake Resources (RL V) and Rimfire (RFM CDNX).

The first stock we added in this group was CandenteResource Corp .

Candente and Peruvian subsidiary, Compania MineraOro Candente S.A. were started by two geologists,Joanne (Joey) Freeze and Fredy Huanqui in June of1997. Candente Resource Corp. is a tightly held companywith approximately 18 million shares issued to date.Candente has an edge over other junior companiesexploring in Peru as the principals of the company haveextensive experience in Peru and are familiar with mostof the important metal districts in the country.Candente’s strength is in project generation and directstaking but some properties have been acquired throughoptions. Their knowledge of Peru allows them to evaluateproperty submittals rapidly. Contacts and infrastructurein Peru allow the Company to focus energy and fundson exploration activities optimum for discoveries.

The Company currently holds interests in epithermalgold, disseminated copper, copper-gold and volcanogenicmassive sulphide prospects. The Company’s foundershave extensive exploration experience in Peru and werepart of several significant discoveries including thePierina gold deposit. The Yanacocha and Pierina golddeposits are very similar geologically and make up 60%of Peruvian gold production. Peru is the eighth largestgold producer in the world. Yanacocha is one of thelargest heap leachable gold mines in the world withproduction costs of $88 per ounce and reserves in excessof 35 million ounces of gold. The average grade of theYanacocha deposits varies from 0.8 to 2.8 gpt and thecutoff grade is 0.35 gpt. Most of the Company’s goldprospects have similar geological environments to thatof Yanacocha and Pierina.

We will add more juniors in the coming months. Thebest way to play the gold market is too not try and pickthe bottom. Just edge in slowly over the next fewmonths.”

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CRAWFORD PERSPECTIVES, 6890 E. Sunrise Drive,Suite 120–70, Tucson, AZ 85750. Monthly, 1 year,$250.

Tremendous surge in goldby mid-September

Arch Crawford: “We are very excited about theastro-prospects for Gold! We moved into long-termpositions in the April 4, 2001 newsletter. After being the#1 performing stock group last year and #1 most of thisyear, it has suffered a “normal” return to trendlines andmoving averages. August is the “seasonal” low for Goldas European dentists and jewelers go on vacation forthis month. More important… Jupiter, the most“expansive” planet has just entered the sign Leo, which

is said by astrologers to “rule” Gold. Look for atremendous surge in the precious relic by mid-September.”

Editor ’s Note: Arch Crawford, #1 ranked Stock andBond Timer, offers a twice-daily Hotline for $4.30 totalper 2-3 minute call 1-900-73-SOLAR.

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THE SOVEREIGN ADVISOR1237 Hunters Ridge, Lexington, OH 44904.1 year, 17 issues, $175.

Use pull backs to add to positionsDonald Sazdanoff ’s Gold Indicators are Neutral.

“Short-term momentum players have begun to sell bothgold and gold stocks. Long-term players should use thosepull backs to incrementally add to their positions.”

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Tom Anderson’s STRAIGHT TALKP.O. Box 960, Pigeon Forge, TN 37868.1 year, 52 issues, $99.

Values will outTom Anderson: “If there is one rule that fits all

investing, it is this: ultimately, value will out. In otherwords, the true value of every investment will ultimatelybe expressed by the markets. Now consider this: the U.S.Government prints four $100 dollar bills, and the costto Uncle Sam of printing those four bills is 15.6 cents.Then you can take that 15.6 cents worth of linen andcotton and buy an ounce and a quarter of gold. It coststhe U.S. mines, on average, about $280 to produce asingle ounce of gold: in SA, $324.

What the government publishes on its high-speedprinting presses is ‘money.’ That so-called money (it hasabsolutely no intrinsic value) can buy precious metalsat a total cost of only 15.6 cents, less than a lousysilverless quarter. Further, the U.S. Government isrunning a deficit of $5 trillion. The Treasury is coveringat least part of that deficit with printing press, nointrinsic value ‘money.’

“You know that something is wildly wrong. What’swrong is that the world is saying that a few cents worthof paper money is equal in value to an ounce of gold:gold that it takes capital and sweat of men’s brows toget out of the ground. Here’s my conclusion. The U.S.public and the rest of the world are being sold a phonybill of goods when they hold dollars over any considerableperiod of time. Dollars are of no intrinsic value and areonly accepted as a medium of exchange because peoplestill have confidence in the morality and discipline ofthe U.S. Government. “The fact is, gold is far too cheap.If you can buy an ounce of gold for what it costs theU.S. Government less than 15.6 cents to manufacture,then you can count on it – in the end, the value of goldwill out. Gold is real and has intrinsic value. It has a5,000-year history of being accepted as something ofvalue. The dollar, on the other hand, is the currency ofa government that flagrantly mismanages its financialaffairs, a government that has run up the greatestmountain of debt in history. Gold’s time is coming. Valueswill out.”



THE MONEYCHANGERP.O. Box 178, Westpoint, TN 38486.Monthly, 1 year, $95 or $18 in US 90% silver coin,or other gold or silver equivalent.

Separating you from your moneyFranklin Sanders: “From Blanchard in New Orleans I

received a postcard screaming “Protect your wealth withsomething solid!” Beneath that headline was a picture ofan American flag and two St. Gaudens double eagles.

On the back the card asked if I was tired of losingmoney, etc. It offered to solve all my problems by sellingme uncirculated $20 double eagle gold pieces. “Theseheavy, gold-rich coins provide intrinsic value, liquidity,and privacy benefits.” Gold-rich coins? Heavy? These areinvestment criteria? Somebody give the copywriter someimagination pills. And mercy, there’s that old red herring“privacy benefits.” What privacy benefits?

Now Blanchard’s the same company a year or so ago thatsent out a “special report” to all its clients advising them thatthey finally discovered that gold was a terrible investmentthat was never going to recover. They had also discoveredthat you had better (Quick) send them your American Eaglesand Krugerrands so they could swap you into – rare coins!Like these “heavy, gold-rich” double eagles.

That made me want to – go back and check some statistics.Back in July 1999, spot gold was nearly at its bottom at$254.50, while the “heavy, gold-rich” $20s sold for $440 each(MS62 St. Gaudens). Four years later, in July 2002, Gold wastrading at $323.80, up 27.2% from 7/99. Meanwhile St.Gaudens $20 golds were selling for $415, a 5.7% loss.

What’s the lesson? If you want to invest in gold, theninvest in gold, not quasi-rare coins with inflated pricespumped up by companies with boiler-rooms full oftelephone salesmen. Buy what makes sense for you, notwhat makes money for them.”

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INVESTOR’S DIGEST of Canada133 Richmond St., W., Toronto, ON M5H 3M8.1 year, 24 issues, $137.

Eldorado: Back in the blackCambior: Exceptional long term prospects

Michael Popovich: “Mention Eldorado Gold Corp.(TSX ELD $1.38, www.eldoradogold.com) and DavidStein will tell you about the growth potential of its golddeposits in Brazil and Turkey.

But he’ll also tell you about its practice of putting inmine managers who are either Brazilians or Turks – apractice of which he heartily approves.

“A lot of larger companies make the mistake ofshipping in their own people and of trying to bully thingsinto production,” says Mr. Stein, an analyst with SprottSecurities in Toronto.

“Yet, managing your local relationships is a verycrucial aspect of getting a mine into production.”

For Mr. Stein, Eldorado is a best buy.Based in Vancouver, Eldorado is a small-cap gold miner

whose principal Brazilian property, Sao Bento, is thatcountry’s fourth-largest gold mine. Eldorado is also drillingfor gold on the Brumal property, five kilometers away.

In Turkey, two Eldorado projects – Kisladag andEfemcukuru – boast a combined resource base of overeight million ounces. The company hopes to set up minesat the sites in 2004 and 2005.

If it succeeds in doing so, Eldorado stands a goodchance over the next four years of boosting its totalannual output to 540,000 ounces from 107,000 ounces,Mr. Stein says.

In the meantime, the company is back in the black.For the three months ended March 31, Eldorado swungto net earnings of US$384,000, or $0.00 cents a share,from a net loss of $1 million, or $0.01 a share, for thesimilar period in 2001.

But total revenue was lower, falling 25.3 percent to$7.1 million from $9.5 million. Although interest andother income rose nine-and-a-half times to $1.2 millionfrom $122,000, gold sales tumbled 36.6 percent to $7.1million from $9.5 million.

If Eldorado is the West small-cap in Mr. Stein’s goldportfolio, then Cambior Inc. (TSX CBJ $1.62, 450-677-0040, www.cambior.com), based in the Montreal suburbof Longueuil, is the small-cap from the East.Company Has Operations In Guyana, Quebec

The gold producer boasts mines in both NorthernQuebec and Guyana, as well as an advanced-stagedevelopment project in Suriname.

In 2001, Cambior exceeded its production targets,producing 615,000 ounces of gold at US$212 per ounce.

However, according to Mr. Stein, Cambior’s principalattraction comes from it having the cheapest price-to-cash flow ratio of the 15 companies in Sprott’s preciousmetals universe.

At $1.62, Cambior now trades a little over two timesMr. Stein’s 2004 cash flow prediction of $0.78 a share, whereasthe 15 stocks trade at 10 times their cash flow projections for2004. For Mr. Stein, Cambior is also a best buy.

Although Cambior’s shares have almost quadrupledover the past year, it’s a good bet they’d be even higher,if the company hadn’t gone ahead and hedged its sellingprices for 2002 and 2003, Mr. Stein says.

Hedging makes it less likely a company like Cambiorwill be able to benefit immediately from higher goldprices. And gold princes lately have been on the rise –so much so that Sprott recently raised its 2003 – 2004gold estimate to US$400 an ounce from $325 and $350,respectively. Gold now trades at $320 an ounce.

But by 2004, Mr. Stein believes, Cambior’s stockshould be higher, thanks to production at its Surinameproject, as well as a drop in its hedged contracts.

“Cambior may under perform its peers in theshort-term, but we think its longer-term prospects areexceptional,” Mr. Stein says.

For the three months ended March 31, Cambior’s netloss deepened to US$10.4 million, or $0.10 a share, from$900,000, or $0.01 a share, for the similar period in 2001.

The poorer performance reflects an accountingadjustment for hedge positions of $11.9 million. With-out it, Cambior would have reported earnings of $1.5million, or $0.01 a share.

Total revenues, meanwhile, were higher, edging up4.2 percent to $49.5 million from $47.5 million. Earningsbefore interest, tax, depreciation and amortization werealso better, rising 52.3 percent to $9.9 million from $6.5million.”



GOLD NEWSLETTER, 2400 Jefferson Highway,Suite 600, Jefferson, LA 70121. Monthly, 1 year,$198.

No threat from newSouth African mineral law

Brien Lundin: “Contrary to some of the more fretfulreports circulating on the Internet, the new mineralrights legislation passed by the South African parliamenton June 25 does not mean wholesale nationalization orsocialization of the mining industry in that country. Thelaw means only that mining companies must conducttheir exploration and development under governmentlicense.

The legislation is really nothing new, except to South Africa.It simply brings the country’s laws into line with other majormining countries, such as Australia and Canada, whichalready have similar regulations on the books.

You see, South African mining companies had beenable to hold mineral rights on enormous tracts of landfor decades, without doing anything at all to developthe resources. The new law basically says, “Use it orlose it.” The intent is not to nationalize the miningindustry, but rather to stimulate productive activity andencourage increased involvement of black empowermentgroups in the mining industry.

In my opinion, there will be little, if any, impact onmost South African gold stocks, particularly those thatwe have been recommending (Durban Deep (DROOY),Harmony Gold (HGMCY) and Gold Fields (GFI),

because the market has already taken the new law intoaccount. In addition, these companies are alreadydeveloping the properties under their control, so the newlegislation won’t even apply to them.

The law will actually create some exciting newopportunities for resource investors, by unlocking vasttracts for development by new joint ventures. Forexample, the legislation recently prompted mining giantAnglo Platinum to sign over a huge land position in theNorthern Limb of the Bushveld Complex to Canadianjunior Anooraq Resources (TSXV ARQ), a newrecommendation made in last month’s edition.”

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EMERGING GROWTH STOCKS, 2020 ComoxStreet, Vancouver, B.C. V6G 1R9 Canada. 1 year,8 – 10 issues, US$99.

Seasonally strong Sept./Oct around cornerLouis Paquette: “As painful as this correction has

been, gold still remains in its long-term uptrend channelestablished since late 2000. Only if it breaks decidedlybelow $290 will the trend be reversed. And through theseasonally weakest month of the year (August) Iwouldn’t even rule this out if even for a short spell, justto terrify and shake out as many last remaining bullsas possible.

If you’ve waited this long to take profits though, Imight suggest it’s a bit late now considering the carnageto date, and the fact that seasonally strong September/October lies right around the corner.”

Gold MarketContinued from page 1

significantly dwarfs the physicalmarket. Nevertheless, the physicalmarket is the more important of thetwo. In the case of the two goldmarkets, the ‘tail’ truly does wag the‘dog’ - at least some of the time.

In other words, most of thetime the physical gold market justresponds to the paper market. Soif the bidding for, say, futurescontracts is brisk, transactions inphysical metal take place at approxi-mately the same price as futures(which is facilitated by the variousfutures market exchanges by allowingfutures to be exchanged for physicalmetal and vice versa). But in reality,the physical market has the upperhand.

The reason is very simple. Whenpush comes to shove, physical metalis more valuable than any promise topay physical metal. Gold in your handis more valuable than someone’spromise to pay gold to you.

This relative value, however, isgenerally overlooked. Most peopledon’t question the creditworthinessof the gold exchanges and thebig bullion banks. But ‘generally’overlooked does not mean ‘always’overlooked. From time to time,promises to pay gold are called in.Bullion banks and others are askedto make good on their promise to payphysical metal, which requires themto deliver gold. And it is this need topay physical metal from time to timethat is the Achilles Heel of the goldprice manipulators. For this reason,the manipulation of the gold pricecannot go on forever.

In the most recent issue of themagazine published by the LondonBullion Market Association, the

former chairman of the Manage-ment Committee of the LBMA says:“Most bullion banks treat goldsimply as another currency.” Thepoint is, though, that gold is not justanother currency.

Currencies and gold both requiredelivery from time to time. But whilenational currencies can be created ‘outof thin air’ to achieve this delivery (i.e.,

created just by bookkeeping entries),gold requires physical delivery. Goldcannot be created out of thin air bybookkeeping entries.

So any scheme to manipulate thegold price requires a lot of physicalmetal. And there’s the rub. We don’tknow how much physical metal hasalready been dishoarded by centralbanks. As I have noted many timesbefore, central banks report gold inthe vault and gold out on loan as oneasset, defying generally acceptedaccounting principles by doing so.

In summary, absent this dataabout physical metal, watch insteadthe gold price. The market knowsall. And when the gold price movesabove $325, it is likely that themarket is concluding that themanipulators have lost control of thegold price.

Editor ’s Note: James Turk iseditor of the Freemarket Gold &Money Report , and provides acommentary on precious metals andmonetary matters, P.O. Box 5002,North Conway, NH 03860, 1 year, 20issues, $260. Visit the web site atwww.fgmr.com.



An advertising section to keep the financial community up-to-date on corporate developments, interim reports and annual reports

Corporate Update/Interim ReportsBright Star Ventures

Bright Star Identifies New PolymetallicPlatinum-Palladium Discovery

VANCOUVER, B.C., August 6, 2002 - Managementof Bright Star Ventures Ltd. (TSX: BSV) is pleased toannounce positive exploration results on its Tulameenproperty located in south-central BC. Highly anomalousplatinum-palladium and copper mineralizationwas recently identified in bedrock as a result of thisyear’s follow-up sampling program over a recentlyflown helicopter airborne (DIGHEM) magneticanomaly.

The magnetic anomaly (labeled the DP Zone), trendsNNW over a surface area measuring 1.2 km x 500meters in size, in an area that has received verylittle systematic exploration work in the TulameenUltramafic Complex. A contoured EM Magnetitemap over the target area indicates that the centralcore of the DP Zone contains greater than 35%magnetite.

Disseminated and fracture-controlled pyrite-chalcopyrite mineralization with malachite staininghas been sampled over a large area within magnetite-rich hornblende clinopyroxenite. A Pd-Pt-Cu-Aulithogeochemical anomaly measuring 300 m x 200 m insize has been identified at this time, and this anomaly isopen to the north, east and south.

Recent grab samples obtained from the north end of aPt-Pd-Cu lithogeochemistry anomaly returned assays of.435 gram/t of Palladium with .205 gram/t of Platinumand 0.14% copper. Prospector samples taken along thewestern margin of the magnetic anomaly returnedPd-Pt-Cu values including sample DO07503 whichcontained .400 gram/t of Palladium, .185 gram/t ofPlatinum, and 0.26% Cu. This latter sample was taken500 meters southwest from the main lithogeochemistryanomaly.

A closely spaced grid is being completed over the DPZone and will be subjected to detailed soil andlithogeochemistry surveys, IP and ground magneticgeophysical surveys, before drilling this fall. A suite ofpolished thin sections selected from the DP Zonewill assist Bright Star geologists in identifying PGEmineralogy and hydrothermal alteration features overthe mineralized zones.

The new discovery zone is located on the J & L claims,and the BJP1 claim, of which the latter is in a 50%-50%joint venture between Bright Star and Cusac Gold MinesLtd. (TSE: CQC).

Historically, magnetite-rich black sands have beenrecognized as being a favorable indicator mineral forplatinum nuggets recovered from the alluvial gravels inthe Tulameen River. The DP Zone is the single largestmetallic body in the entire Tulameen Complex andrepresents a highly favorable source for platinum

mineralization on Bright Star’s property.For information on Bright Star Ventures call

1-800-884-3864, or visit the website at www.brightstar-ventures.com

The TSX Venture Exchange has not reviewed and doesnot accept responsibility for the adequacy or accuracy ofthis release. This news release may contain forward-looking statements including but not limited to commentsregarding the timing and content of upcoming workprograms, geological interpretations, receipt of propertytitles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditionsand therefore, involve inherent risks and uncertainties.Actual results may differ materially from those currentlyanticipated in such statements.

Silverado Gold Mines Ltd.Silverado Gold Mines Ltd. AnnouncesListing On The Berlin Stock Exchange

VANCOUVER, B.C., August 2, 2002 - Silverado GoldMines Ltd. (OTCBB SLGLF) announces that theCompany has filed its application for a market listing inGermany to introduce Silverado to the Europeaninvestment community. Silverado Gold Mines Ltd. hasmet admission requirements and has been accepted forlisting on the Berlin Stock Exchange.

“By listing on the Berlin exchange we offer Europeaninvestors the opportunity to trade the company’s highlyliquid shares. European investors are trading Americanand Canadian shares much more often, and incontinually larger amounts. With this new listing,Silverado Gold Mines Ltd. is thus opening itself up to allEuropean investors, both institutional and retail. Wetake pride in having passed the exchange’s admissionrequirements, and appreciate the implied confidence inSilverado Gold Mines Ltd.”, states President and CEO,Garry L. Anselmo.

In this context, the Company plans to carry out anintensive European advertising and marketing program.This is largely in response to the ever-present interestin Gold displayed throughout Europe. The Europeansare taking the lead in a market that has shown revivaland a foundation for unprecedented growth and profitsover the next 5-10 years.

The Silverado stock began trading July 26, 2002 onthe Berlin exchange with the ticker symbol “SLG” andthe German security number (WKN) 867737.

For more information on Silverado Gold Mines contactInvestor Relations at 1-800-665-4646 or (604) 689-1535.E-mail: [email protected], visit the web site atwww.Silverado.com.




Corporate Update/Interim ReportsPacific North West Capital Corp.$1.25 Million Exploration and Drilling

Program Underway On Agnew Lake Project –Funded By Anglo Platinum

VANCOUVER, B.C., August 15, 2002 – Pacific NorthWest Capital Corp. (PFN: TSX) is pleased to announcethat diamond drilling will begin within the next coupleof days on its Agnew Lake PGM Property near Sudbury,Ontario. Agnew Lake is currently under option fromPlatinum Group Metals Inc. PFN may earn 50% ofPlatinum Group Metals’ interest in the property.Additional surface mapping and sampling have also beencompleted and assays are pending. Agnew Lake iscurrently under option to Anglo American PlatinumCorporation Limited (Anglo Platinum).

A total of 10,000 metres is scheduled to be drilled atAgnew over the balance of the year, as part of a $1.25million dollar 2002 exploration program being fundedby Anglo Platinum, the largest platinum group metalsproducer in the world. PFN is the Project Operator. Thisis the second phase of exploration at Agnew Lake fundedby Anglo Platinum. The approved budget for Phase 1 was$1.18 million.

The Agnew Lake Intrusion belongs to a PGE-bearingsuite of intrusions in the Sudbury area that includes theRiver Valley Intrusion. To date exploration at AgnewLake has identified several zones of platinum group metalmineralization along the contact of the Agnew LakeIntrusion, which have returned previously reportedgrab sample grades between 1 and 8 g/T combinedplatinum+palladium+gold, within broad intervals oflower grade PGM mineralization.

The 2002 drill program will commence with a 1500metre hole. This hole will target a significant gravityanomaly, which a recently completed detailed gravitysurvey indicates is centered within the upper portion ofthe Agnew Lake Intrusion. This deep hole will not onlyattempt to intersect and define the source of the gravityanomaly but will also provide a detailed stratigraphicsection through the Agnew Lake Intrusion. PotentialPGE targets within the Agnew stratigraphy includereef-style stratiform mineralization, contact breccia stylemineralization similar to that observed to date aroundthe periphery of the intrusion and more massive,sulphide-rich mineralization associated with the baseand feeder zones of the intrusion.

Detailed prospecting and mapping has been ongoingwithin the central part of the Agnew Lake Intrusion forthe last several weeks. To date a total of 1000 grabsamples have been collected and submitted for assay withresults pending. Prospecting activities are focusing onthose portions of the intrusion where previous operatorshave conducted little or no detailed work.

Additional diamond drilling will commence uponcompletion of the deep hole. Drilling will target known

zones of PGE mineralization along the contact of theAgnew Lake Intrusion, geophysical targets not tested todate and any targets generated by the prospectingactivities or the deep hole. The Agnew Lake drill programis expected to be completed by the middle of October withresults available by the end of 2002.

Anglo Platinum may earn a 49.5% interest in theAgnew Lake Property by making $6.0 million inexploration expenditures by December 31st, 2004. AngloPlatinum can increase its interest in the property to 57%by completing a feasibility study and to 60% by arranginga 100% project financing and bringing the project intocommercial production.

The Qualified Person for this release is Scott Jobin-Bevans, P. Geo, Vice-President, Exploration, for PacificNorth West Capital Corp.

About PFNPacific North West Capital Corp. (TSX: PFN, OTCBB:

PAWEF), is an exploration company focused on thediscovery of platinum group metals in North America.At present the Company has two key projects, RiverValley (joint venture with Anglo American PlatinumCorporation Limited, “Anglo Platinum”, the worlds’largest producer of platinum group metals) and AgnewLake, currently under option to Anglo Platinum. An AngloPlatinum funded $2.25 million phase 5 drilling programand additional resource study are currently underwayon River Valley in an effort to significantly increase thecurrent 593,000 ounce combined Pt+Pd+Au resourceestimate (12,700,000 tonnes @ 1.46 g/t Pt+Pd+Au). AngloPlatinum may earn a 65% interest in the River Valleyproject by funding it to production.

PFN is a mineral exploration company focusing on theacquisition and discovery of platinum group metalproperties.

For further information on Pacific North West CapitalCorp contact PFN’s Investor Relations Department atToll Free 1-800-667-1870. E-mail: [email protected] orvisit the web site at www.pfncapital.com.

Eastmain Resources Inc.Chabbie Lake (Abitibi Extension)

Drill ProgramORANGEVILLE, ON, AUGUST 13, 2002 - Eastmain

Resources Inc. (TSE ER) announced that five diamonddrill holes totaling 968 metres were completed on theChabbie Lake claim block, located in northern Ontario.Eastmain is exploring the western extension of theAbitibi Greenstone Belt - one of the richest metal-producing regions in the world, and host to the supergiant 134-million-tonne Kidd Creek copper-zinc-silverdeposit and the prolific Timmins Gold Camp which has




Corporate Update/Interim Reportsproduced in excess of 66-million ounces of gold.

Drilling at Chabbie Lake has intersected multipleexhalative horizons comprised of massive to

semi-massive sulphide (pyrrhotite-pyrite) and chertyiron formations, within rocks similar to those hostinggold and base metal deposits in the Abitibi. In four outof five targets tested conductors were explained by thepresence of these sulphide horizons. The target conductorin hole CL02-04 appears to have been dyked out.Prospective exhalite horizons range from 1 to 15.2 metresin thickness and are geochemically anomalous in baseand precious metals (up to 1620 ppm lead, 1060 ppmzinc and 3.78 g/tonne silver). Eastmain is encouraged bythese preliminary exploration results. Massive sulphide-chert horizons are commonly found in and near largeproducing mines within the Abitibi Greenstone Belt. Theproperty has a geological, geophysical and geochemicalsignature typical of many well-known mining camps.

Several targets remain untested, including a largelozenge-shaped magnetic feature thought to representultramafic to mafic rocks similar to those hosting nickel-platinum group ore deposits. Further work is needed totest the economic potential of this magnetic body andother electromagnetic targets on the property.

All samples were analyzed by ALS Chemex Labs ofMississauga, Ontario. Wayne Corstorphine was theQualified Person in charge of the field program.

Eastmain’s primary objective is the exploration,discovery and development of long-life, low cost profitableore deposits in Canada. The Company has an option toearn 75% interest in Clearwater, one of the most signifi-cant undeveloped gold deposits in Northern Quebec.

For more information on Eastmain Resources Inc. con-tact Donald Robinson, President or Catherine Butella,Exploration Manager at (519) 940-4870, Fax (519) 940-4871 or e-mail [email protected]. Visit the web siteat www.eastmain.com.

RJK Explorations Ltd.GLR Resources Inc.

Continuing Exploration on theStares-Calvert Property , Ontario

TORONTO, ON, August 13, 2002 - During the earlypart of the summer, GLR Resources Inc. (TSX: GRS) andRJK Explorations Ltd. (TSX Venture Exchange: RJX.A)continued with exploration on their jointly owned Stares-Calvert property in the Thunder Bay District ofnorthwestern Ontario. The continuing objective of theprogram is to locate the bedrock source of the numeroushigh-grade zinc float with accompanying significantcopper, lead gold and silver contents. The programmeincluded diamond drilling of nine (9) holes totaling 1,014metres, as well as extensive enzyme leach geochemicalsampling and geological mapping.

Seven of the diamond drill holes were targeted on aseries of coincident induced polarization highs, resistivitylows and magnetic highs in the area between thenorthern limit of the known mineralised float train andthe previous area of intense diamond drilling whichresulted in the discovery of a small body of zincmineralisation beneath shallow overburden. These newholes intersected a semi-continuous body of coarse-grained ultramafic rock to gabbro with significantdisseminated magnetite. This type of rock has potentialto host platinum group metals and or copper-nickelmineralization but no significant sulphides were seenand the assayed samples did not return any anomalousbase or precious metals. The coarse grained ultramaficrock to gabbro was bounded to the north and south bysimilar felsic volcanic units to those encountered inprevious drilling in the area of the previously locatedsub cropping mineralization but did not intersect anysignificant sulphides. Two short reconnaissance holesdrilled further south both intersected granite.

A total of 556 new geochemical samples wereanalyzed by Enzyme LeachSM for a suite of oxidationelements and base metals in order to identify sourcesof mineralisation at depth as indicated by volatilespecies derived from reduced bodies such as sulphidedeposits and trapped on amorphous oxide coatings ofmineral grains in the near-surface soils. The total of1,342 soil samples taken to date now cover in detailedto semi-detailed sampling an area 3,100 metres alongstrike and up to 2,500 metres across strike, with fivelines extending a further 1,500 metres to the north.Approximately 30 significant geochemical anomalieswere outlined in the detailed to semi-detailed coveragein both base metals and coincident oxidation suiteelements. One of these coincides with the previouslylocated bedrock zinc-lead-copper-gold-silver mineral-ization, indicating that there is a high potential fordiscoveries of mineralization associated with some ofthe additional anomalies, almost none of which haveever been drilled. A further eight (8) discrete similaranomalies were located on the five reconnaissancelines to the north and provide targets for furtherexploration. This northern area has recently beenmapped geologically for the first time and resulted inthe identification of extensive areas of previouslyunknown felsic volcanic rocks as well as various faciesof ironstones, both rock types associated with themineralised float. An initial follow-up program oftrenching is to start shortly in order to locate possiblebedrock sources for the various geochemical andassociated geophysical anomalies in this northern area,up-ice of the original float discoveries.

The results of the geochemical program is beingcompiled with a new interpretation of all the existinggeophysical data including airborne electromagnetic and




A continuation of investor interest and a declinein hedging by gold producers is expected to support ahigher gold price despite weak demand, according toGold Survey 2002, published by London-based GoldFields Mineral Services (GFMS).

According to the 34th annual edition of the report,these two factors were the main reasons that gold be-gan a price climb, breaking a lengthy bear market forthe precious metal. “Market participants are, justifiablyin our view, generally upbeat about the future prospectsfor gold,” said Philip Klapwijk, GFMS ManagingDirector. He added, however, that recent interest in goldand a corresponding price rise have been linked toMiddle East tensions, a shaky Japanese banking systemand other factors, which, if mitigated, could reduceinterest in gold as a traditional safe haven.

On the supply side, 2001 mine production reached 2,604tons, slightly higher than in 2000, but there were no signsof an anticipated fall. Output did drop in more maturegold mining countries such as South Africa but rose sharplyin areas such as Indonesia, Mali and Tanzania.

Mining production costs were the lowest in the last 15years, averaging $176 per ounce, $11 lower than in 2000.Some of the decline was due to currency weakness inSouth Africa and Australia but greater use of technologyand the closing of marginal mines also contributed tolower production costs.

Higher Gold PriceDespite Weaker Demand: GFMS

Investor Interest And Hedging Declines Cited As FactorsScrap rose to 706 tons compared to 2000, making it

18 percent of total supply. The increase was due to ahigher price for gold scrap in economically distressedcountries such as Turkey, Egypt and Indonesia.

Sales from central banks rose only 3 percent to 504tons, relatively stable over the past three years. Officiallending dropped for the first time since 1993.

Net disinvestments fell dramatically to 53 tons,largely due to a sharp decline in sales by privateinvestors in Europe and North America.

On the demand side, total fabrication fell to itslowest level in five years, mainly as a result of theslowdown in the global economy. Jewelry fabrication fellby 5 percent compared to 2000, because of weakconsumption in markets in East Asian countries, theUnited States, Europe and the Middle East.

Industrial consumption also fell because of weak econo-mies, about 14 percent with the electronics sectors sufferingthe most. Weak sales of consumer electronics such as com-puters and mobile phones contributed to low consumption.

On the other hand, bar hoarding rose significantly, 7percent to 232 tons, largely attributed to Japanesecitizens buying gold to protect their assets in the wakeof banking instability. Along with a small rise in bullionand coin sales, global investment hit 235 tons.

Producer hedging declined for the second straight year,generating 147 tons of gold.

For further information, visit www.gfms.co.uk

Table 1tonnes

2000 2001Supply

Mine Production 2,584 2,604Official sector sales 489 504Old gold scrap 606 706Net producer hedging – –Implied net disinvestment 290 53

Total Supply 3,970 3,868Demand

Fabrication Jewelry 3,177 3,006 Other 562 484Total Fabrication 3,739 3,490Bar hoarding 217 232Net producer hedging 15 147Implied net investment – –

Total Demand 3,970 3,868Gold Price (London PM, US$/oz)279.11 271.04Totals may not add due to independent rounding.

Net producer hedging figures are exclusive of any

delta hedging of central bank options.

An advertising section to keep the financial community up-to-date oncorporate developments, interim reports and annual reports

Corporate Update/Interim Reports

Continued from previous page

magnetic anomalies, ground magnetic and pulse EMsurveys, and extensive IP surveys in order to identifyand prioritize further targets for follow-up drilling.

The program is being directed by Terence J. Bottrill,P.Eng., as the Qualified Person for GLR Resources. Heis a senior geological consultant with over thirty yearsof experience in both base and precious metalsexploration, and was recently appointed as the VicePresident - Exploration for GLR Resources. Suitablyqualified laboratories employing appropriate qualitycontrol procedures for both the rock and soil geochemicalsamples have undertaken all analyses completed as partof the programme reported herein.

For more information on RJK Explorations Ltd. con-tact Glen C. Kasner, President or Robert J. Kasner,President, GLR Resources Inc., E-mail [email protected],www.kasnergroupco.com. Investor Relations: The WhiteTiger Group, (306) 793-4564, Fax: (306) 793-2902 or visitthe web site at www.thewhitetigergroup.com.

The TSX Venture Exchange has not reviewed and does not acceptthe responsibility for the adequacy or accuracy of this release.



JUNIOR RESOURCE COMPANIES

Bright Star VenturesTulameen Platinum Project

Acquiring Golden-Lode Propertywww.brightstar-ventures.com

Eastmain Resources Inc.World-Class Gold,

Base Metal Propertieswww.eastmain.com

GLR Resources Inc.Massive Discovery Attracting Majors

www.kasnergroupco.com

Golden Goliath Resources Ltd.Mexican Gold Explorationwww.goldengoliath.com

International Wayside Gold MinesCariboo Yielding Impressive Results

www.wayside-gold.com

Mountain Province DiamondsHigh-Quality, Top-Color Canadian Diamonds

www.mountainprovince.com

National Gold Corp.Developing 3.4 Million Oz. Gold Deposit

www.nationalgold.com

Pacific North West Capital Corp.Acquiring, Exploring, DevelopingPlatinum & Palladium Projects

www.pfncapital.com

Silverado Gold Mines Ltd.Alaskan Gold, Alternative Fuels

www.silverado.com

UNICO, Inc.Nearing Production at Historic

Utah Gold & Silver MinesDeer Trail A "Mountain of Gold"

www.silverado.com

WPN Resources Ltd.Oil & Gas Concessions in

Italy and the Mediterraneanwww.wpnresources.com

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