Moydow Mines fka MOY

[wagner]

Nice breakout today

[Ed Monton]

Cornerstone gets 100% interest in True Grit-Golden Grit


2006-03-17 16:23 ET - News Release

Mr. Glen McKay reports

MOYDOW TERMINATES TRUE GRIT-GOLDEN GRIT PROPERTY OPTION, SOUTH CENTRAL NEWFOUNDLAND

Cornerstone Capital Resources Inc. now holds a 100-per-cent interest in the True Grit-Golden Grit gold property in south-central Newfoundland. A prospector retains a 1.5-per-cent net smelter royalty, of which Cornerstone can purchase 0.5 per cent for $1-million.

Moydow Mines International has filed expenditures and work on the property in excess of $870,000 over the past four years, including more than 7,700 metres of diamond drilling in 94 drill holes. Highlights of this work include drill results of 0.6 gram per tonne gold over a core length of 117 metres, including 26 metres averaging 0.83 gram per tonne gold (see Stockwatch, Aug. 27, 2003). These assays are associated with a broad, open-ended, 0.8-kilometre by 2.6-kilometre arsenic and gold-in-soil anomaly known as the True Grit anomaly, which was largely untested by Moydow, which focused on a one-kilometre-long segment of the anomaly, as well as other areas of the property. Previous explorers also encountered narrow high-grade gold showings within the soil anomaly, yielding channel sample assays of up to 15.6 grams per tonne gold over one metre. Another gold showing, the Golden Grit showing, located five kilometres west-southwest of the True Grit soil anomaly, is associated with a gold-in-soil and till anomaly, where limited trenching by previous explorers exposed quartz vein mineralization returning grab sample assays of up to 16.9 grams per tonne gold and channel sample assays of up to 0.98 gram per tonne gold over 0.5 metre.

Cornerstone is awaiting receipt of technical reports completed on the project by Moydow and, after reviewing results in detail, will seek a new joint venture partner to advance the project. Cornerstone believes the True Grit property covers a mineralized system with potential to host a world-class gold deposit similar to other deposits associated with Paleozoic tectonism and intrusive activity, such as the giant Muruntau deposit in Uzbekistan.

In other news, 799,000 stock options were exercised by insiders of Cornerstone, representing net proceeds to Cornerstone's treasury of $262,900.

With seven active joint venture projects in Canada and Ecuador, Cornerstone anticipates a very strong year in terms of joint venture expenditures and drilling activity. Discussions are continuing with potential joint venture partners interested in other projects.

Paul Moore, MSc, PGeo, chief geologist for Cornerstone, is the qualified person, as per National Instrument 43-101, responsible for the information in this news release.

[Ed Monton]

I made a lot of money on this stock once. I haven't followed it since 2003.

[FL]

The header of this board is out-of-date.

[Ed Monton]

MOY

[Ed Monton]

Moydow Mines International Inc.: Drilling Recommences
in Newfoundland

TORONTO, ONTARIO--(CCNMatthews - Nov. 1, 2004) - Brian Kiernan,
President and Chief Executive of Moydow Mines International Inc
announced today that drilling has recommenced at the Company's True Grit
project in south central Newfoundland.

The True Grit project is a joint venture between Moydow and Cornerstone
Capital Resources. Moydow has the option to earn up to an 80% interest
in the project and is the operator.

Previous drilling campaigns have outlined extensive intrusion related
gold mineralisation with features similar to other Late-Paleozoic
intrusion related gold systems worldwide.

During this drilling program, a total of 2000 meters will be drilled in
a series of deep holes (up to 500 meters). The target of this phase of
drilling is the down dip potential of a broad sheath of intensive
low-grade mineralization which was outlined in previous drilling
campaigns.

The new drilling campaign will be conducted by New Valley Drilling of
Springdale, Newfoundland.

The results of this phase of drilling are expected to be received
approximately three weeks after the completion of the drilling.

Moydow Mines is engaged in the exploration, acquisition and development
of precious metals worldwide. Corporate information is available on the
company's website www.moydow.com. Moydow is listed on the Toronto Stock
Exchange under the symbol 'MOY'.


'Signed'

Brian Kiernan

-30-

FOR FURTHER INFORMATION PLEASE CONTACT:
Moydow Mines International Inc.
Michael Power
Vice President, Corporate Development
416-703-3751
www.moydow.com

[Ed Monton]

Moydow Mines International Inc.: Drilling recommences at
True Grit

TORONTO, ONTARIO-(CCNMatthews - Mar 25, 2004) -

Baie d'Espoir property optioned from Altius Minerals

Moydow Mines International Inc ("Moydow") is pleased to announce
that drilling is now underway at its True Grit gold project which
is located in the Baie d'Espoir region of Newfoundland. A total
of 3000 metres is planned to test a number of gold anomalies
which are located north of a broad zone of gold mineralization
identified in the drilling program in the 2003 field season.

The True Grit project is a joint venture between Moydow and
Cornerstone Capital Resources. Moydow has the option to earn up
to an 80% interest in the True Grit project and is the operator
of the property.

Moydow is also please to announce that they have also entered
into an earn-in/joint venture agreement with Altius Minerals
Corporation concerning Altius' Baie d'Espoir gold project which
is located north of the True Grit property.

The newly optioned Baie d'Espoir property consists of 305 claims
(7625 hectares) and is centred on a 15 kilometre long
gold-tungsten-arsenic geochemical anomaly that is spatially
associated with granite and granodiorite bodies that are Late
Paleozoic in age. These intrude metasedimentary rocks including
calc-silicate units and carbonaceous schist and are an integral
part of an under-explored mineralized belt that measures more
than 100 kilometres long.

Moydow has the option to earn up to an 80% interest in the Altius
Baie d'Espoir property by issuing 165,000 common shares of Moydow
over a period of 24 months and by solely funding exploration
expenditures for three years. Thereafter, Altius shall maintain a
10% carried interest and a further 10% contributing interest.
Altius may also elect to convert both interests to a net smelter
return royalty.

Work to date has identified potential for extensive
intrusion-related gold mineralization with features similar to
other Late Paleozoic intrusion-related gold systems worldwide.

Intrusion-related gold systems represent some of the largest gold
resources in the world. For example, the Tien Shan belt in
central Asia is reportedly endowed with 400 million ounces of
gold. The Muruntau deposit accounts for approximately half of
this amount and is currently the world's largest open pit gold
mine.

Moydow is engaged in the acquisition, exploration and development
of precious metals properties worldwide. Exploration continues on
the True Grit project in Newfoundland. Given the strong success
of Moydow in Ghana, Moydow will reactivate exploration at
Kanyankaw and Hwidiem. The Hwidiem property is adjacent to the
Ntotoroso project and is less than 3 kilometres from the E-Zone
deposit.

Corporation information is available on Moydow's website
www.moydow.com. Moydow is listed on the Toronto Stock Exchange
under the symbol "MOY".


/T/

CANADA
Suite 1220 , 20 Toronto Street
Toronto ON M5C 2B8
Tel: [phone]
Fax: [phone]

IRELAND
74 Haddington Road
Dublin 4, Ireland
Tel: [phone]
Fax: [phone]

GHANA
Shankill House
21 5th Circular Road
East Cantonments, Accra, Ghana
Tel: [phone]
Fax: [phone]
www.moydow.com

[rncwatch]

russwinter:

MOY: I sent this note the TF, amarksp and I'm done - you guys were the MOY promoters in a world of darkness. I never posted a note on MOY, but I watched you guys accurately value the assets down to the nickel and it helped me get my position liberated from illiquidity. I feel I owe you.

RNC: I give you RNC as a follow to MOY. Similar story in terms of stage of market development / following when you bought MOY. The RNC basics: 100,000 ounces plus at US$220 cost; mkt cap of US$40M; RTO in Dec. 2003; successor in assets to Greenstone Resources - GR went up so high that when it crashed it took 5 years to unbury the heap. Debt was the problem for GR (US$300M of it) - not the assets (at least at these prices). RNC has limited debt and a hedge for 1 year at US$340. At US$420, it is has a current p/e ratio of 2. Comparables are many, but one might look at Claude Resources(60,000 ounces at double mkt cap); RNG (similar gold, plus nickel play - 9 times mkt cap). We have some early positioning taking place - look at recent trading (and I mean recent!). I predict C$12-15 in 12 months if gold stays at current levels - if it strengthens, this could explode.

[rncwatch]

amarksp:

MOY: I sent this note the TF and will send it to 2 or 3 other MOY faithfuls as well. I never posted a note on MOY, but I watched you guys accurately value the assets down to the nickel and it helped me get my position liberated from illiquidity. I feel I owe you.

RNC: I give you RNC as a follow to MOY. Similar story in terms of stage of market development / following when you bought MOY. The RNC basics: 100,000 ounces plus at US$220 cost; mkt cap of US$40M; RTO in Dec. 2003; successor in assets to Greenstone Resources - GR went up so high that when it crashed it took 5 years to unbury the heap. Debt was the problem for GR (US$300M of it) - not the assets (at least at these prices). RNC has limited debt and a hedge for 1 year at US$340. At US$420, it is has a current p/e ratio of 2. Comparables are many, but one might look at Claude Resources(60,000 ounces at double mkt cap); RNG (similar gold, plus nickel play - 9 times mkt cap). We have some early positioning taking place - look at recent trading (and I mean recent!). I predict C$12-15 in 12 months if gold stays at current levels - if it strengthens, this could explode.

[huesos]

The management information circular has just arrived by mail to the US. If one has not sold their MOY shares up to this point, what do you feel would be the best strategy? Will there be a remaining exploration company worth owning at the conclusion of the distribution?

[mazengah_islander]

I found the fairness opinion report by Strathcona (Appendix E) a useful read ..... many reminders of what to consider when trying to value a property, especially one with a feasibiiity study in place.

[amarksp]

Listing on the Toronto Stock Exchange
Following the Closing, the Corporation may not be able to maintain the listing of the Common Shares on the TSX as the Corporation will no longer have an advanced property for the purposes of the TSX’s listing requirements. In order to maintain the listing of the Common Shares on the TSX, the Corporation will be required to obtain an advanced property. There is no assurance that the Corporation will be able to acquire an advanced property on terms acceptable to it, if at all.

PART VI – FUTURE PLANS FOR THE CORPORATION
As previously stated, the Corporation intends to distribute to its shareholders the net cash proceeds resulting from the disposition of 600,000 Newmont Common Shares. The remaining 200,000 Newmont Common Shares will be available for working capital, after payment of fees and expenses in respect of the Transaction, the payment of outstanding indebtedness of the Corporation to third parties and the setting aside of a reserve to pay any taxes which may be owing as a result of the Transaction or otherwise. See ‘‘Information Concerning the Transaction – Details of the Transaction.’’ It is anticipated that working capital will amount to approximately $9,000,000, assuming the exercise of certain options and warrants, a Newmont Common Share price of US$38.00 and a Canadian dollar exchange rate with the American dollar of 1.37038 being the exchange rate on September 8, 2003. Moydow management is currently reviewing a number of projects with a view to acquisition or investment. The Corporation presently intends to remain focussed on gold mineral projects within the regions of West Africa and North America. In the immediate future, Moydow intends to continue with exploration efforts on the True Grit project in Newfoundland, reactivate its exploration activities at its Kanyankaw East property (Ghana) and commence more aggressive exploration activities at its Hwidiem property (Ghana). The Hwidiem property is adjacent to the Ntotoroso project and less than three kilometres from the E-Zone deposit. The property is largely alluvial covered which does not lend itself to normal early stage exploration activities. Subsequent to the injection of working capital as a result of the Closing of the Transaction, Moydow will have the funds to conduct drilling on the property in order to better assess its mineral potential.

On August 7, 2003, Moydow announced the results of its first phase drilling program at the True Grit project in Newfoundland. This first phase of drilling comprised a 1,251-metre, 22 hole diamond drilling program. All drill holes except TG3 and TG4 were drilled to a depth of approximately 50 m at azimuths ranging 295-300 degrees and inclined at –45 degrees. TG3 and TG4 were drilled vertically to depths of 103 and 121.3 m, respectively. The drilling was designed to test a broad zone of low-grade gold mineralization hosted within a sequence of thinly bedded pelites and lesser phylites and characterized by finely disseminated arsenopyrite-pyrrhotite-pyrite mineralization and numerous narrow quartz veinlets and stringers. Previous drilling in two diamond drillholes (TG1 and TG2) by the property vendor Alex Turpin, a local prospector, had returned 0.48 g/t Au over 42.7 m. The zone occurs within a 2600 m by 800 m coincident gold, arsenic and antimony soil anomaly. High-grade arsenopyrite-bearing quartz veins located approximately 1.2 km to the northwest of this low-grade zone assayed 15.9 g/t Au over 1.0 m and 189.0 g/t Au over 0.5 m from saw-cut channel samples. The 2003 drilling program has confirmed the results obtained in holes TG1 and TG2, and has outlined similar mineralization along two sections located approximately 200 m and 350 m to the north-northwest. The best intersection 27 was obtained in hole TG4, which returned 0.6 g/t Au over 117 m including a 26 m wide section grading 0.83 g/t Au from TG4. Intersections ranging from 16 to 46 m with grades of 0.45 to 0.75 g/t Au were encountered in holes TG3, 11, 12, 22 and 23. Gold grades across the mineralized sections are very consistent with the highest individual assay reported being 15 g/t Au. The true width and attitude of the mineralization has not been determined at this time. A second follow-up diamond drill program of 1,300 metres began on August 26, 2003.

Comparative Transactions
A number of recent transactions involving the sale of gold properties have been reviewed and compared with the sale of the Moydow interest in the Ntotoroso property. The review was focused on transactions that would have as much in common with the Ntotoroso transaction as possible and, therefore, would preferably be transactions involving undeveloped gold properties in Africa, and specifically in Ghana if possible. The common denominator in making a comparison between such transactions is usually the transaction cost per ounce of gold reserves with allowance for the fact that gold reserves do vary in quality.

1. Mampon, Ghana
In April 2003 Golden Star Resources Ltd. acquired the undeveloped Mampon property in Ghana from Ashanti Goldfields Company Limited for $9.5 million. The Mampon property is located about 30 kilometres from the Bogosu mine and processing plant operated by Golden Star, and is reported to have probable mineral
reserves of 1.5 million tonnes grading 5 grams per tonne (g/t) gold for in-situ gold reserves of about 240 000 ounces. After allowing for the ten percent carried interest for the Government of Ghana, the cost per ounce of gold in the transaction was about $44.

2. Tarkwa-Damang, Ghana
In January 2003 IAMGOLD Corporation acquired Repadre Capital Corporation for $218 million. The major gold assets of Repadre were an 18.9 percent interest in each of the Tarkwa and Damang operating gold mines in Ghana. After deduction of the value of the royalty interests and liquid assets held by Repadre, the value placed on the interests in the Tarkwa and Damang mines would be about $120 million. Gold reserves at the two mines for the account of IAMGOLD are approximately 2.0 million ounces resulting in a cost of about $60 per ounce.

3. Yamfo-Sefwi, Ghana
In late 2001 following announcement of an offer by AngloGold to acquire Normandy, an independent detailed evaluation of all of the Normandy assets was carried out on behalf of the Normandy shareholders. Included in those assets were undeveloped properties on the Yamfo-Sefwi belt in Ghana, including the 50 percent Ntotoroso 13 interest, but for which feasibility studies had been completed. The range of values for those properties was $94 to $115 million. The Normandy share of ore reserves for those properties was 50 million tonnes grading 2.3 g/t gold for 3.6 million contained ounces of gold, for an appraised value of $27 to $33 per ounce of gold.

Several other transactions related to gold projects in Africa, and particularly Mali and Tanzania, were also reviewed and compared with the proposed Ntotoroso transction. The range of values of $23.0 to $29.1 million determined in this Fairness Opinion for the consideration being offered by Newmont for the purchase of the 50 percent interest of Moydow in the Ntotoroso property would reflect a value of $50 to $65 per ounce for the Ntotoroso gold reserves attributable to Moydow after allowance for the carried interest of the Ghanaian government. After considering the quality of the gold reserves at Ntotoroso, and the stage of development of the project, relative to other transactions and valuations reviewed for comparison, the Ntotoroso sale transaction is being done under terms that compare reasonably with other recent transactions of a similar nature.

[amarksp]

NEM Circular released...

FWIW, at NEM = $39, now value the distriubtion alone at C$1.55, fully diluted

http://www.moydow.com/circular0903.pdf

[Roundtrip]

Newmont Updates 5-Year Business Plan - 2003 Gold Reserves in Ghana Expected to Reach 10 Million Ounces

http://www.globeinvestor.com/servlet/WireFeedRedirect?cf=GlobeInvestor/config&vg=BigAdVariableGe...

[JDS8]

Russwinter

What is your current opinion on MAN.

If TG goes through, what do you estimate the share price to be
and within what time frame.

How would MAN shares be affected if 1) A JV is introduced or
2) MAN is completely bought out.

Thanks in advance.

JDS8

[Tackler]

My MOY is all gone now. Thanks for the informative posts amrksp.

[amarksp]

sold additional 25% of MOY at US$1.24...
then sold additional 25% of MOY at US$1.27...

covered NEM short at breakeven (loss of commission...), there goes the hedge...

Have 20% of MOY left, will hold this...

At NEM = $39, value of MOY for NEM distribution alone = US$1.15

Will look to purchase MOY again if and when it starts selling to a discount to the NEM distribution...

FWIW, John Embry was not using fully diluted shares when he cited his $1.20 distribution (actually $1.13). Further, at C$1.70 there are more warrant shares that can be exercised at this price, further diluting the distribution...

[amarksp]

Sold 30% at US$1.225, over my $1.22 ask..., thank you John Embry!

Still short NEM which hedges my position in another 25% or so...

[Jackjc]

In post 510 I estimated the tot val at 1.90.

Sold mine at 1.45

A thank you to Russ.

[Roundtrip]

Thanks very much for the links. I enjoyed the interview on robtv.

rt

[Ed Monton]

Hit $1.68. Wow. I sold the last of mine at $1.47 I think. Well its impossible to pick a top isn't it and I think I lost patience with this one a little too soon.

If anyone wants to take over as a moderator for this thread let me know or just set it up through Matt.

[mazengah_islander]

Should show up here eventually:
http://www.robtv.com/channels/hubs/programs_marketcall.html

Not sure, but I'm guessing the show will show up in "past programs" by tonight/tomorrow.

For a play-by-play summary, see the recent posts on:
http://www.investorshub.com/boards/board.asp?board_id=1430

[Roundtrip]

<Of course, today, John Embry labels it one of his top three picks (based on the value of the stub after the upcoming distribution/dividend) and manages to goose it up another notch.>

Do you have a link for Embry's comments?

Thx.

rt

[amarksp]

Sold 30% MOY via NEM short at $39.05

[mazengah_islander]

Finally cut the cord on the last of my Moydow yesterday ....
... I will miss all those news releases cluttering up my inbox.

Of course, today, John Embry labels it one of his top three picks (based on the value of the stub after the upcoming distribution/dividend) and manages to goose it up another notch.

No regrets on the sale .... but perhaps now worth a look on the basis of their Newfoundland stuff?

[Roundtrip]

OT What Cdn gas plays are you looking at?

rt

[longjonsilver]

i sold all of my MOY - 1.50 is good enough for me. its been a good run - .82 cost basis - not quite a 2 banger, but if everything i bot preformed this well...... i got the distribution, the NEM shares in the bank, but i lost the royalty and the future drilling results - i dont bet on drill rigs any more- been hurt too much on that - fool me once shame on you fool me twice, shame on me. debating on whether to put the money on shorts or canadian gas plays.
jon

[huesos]

Russ, seems like another one from the old days is comming back strong. ARQ, shows no sign of backing off a relentless advance. Other than the PGM price rise and rumor of a Freidland IPO in the sector, I can't find the reason for the run up.

[amarksp]

Ghana article...

Reuters reported yesterday that Mines Minister Cecilia Bannerman briefed the media on plans to grant five licenses to companies wanting to extend operations into areas currently off-limits. The beneficiary companies are Newmont [NEM], Ashanti [ASL] & Nevsun [NSU], Birim [BGI] & Golden Star [GSS], and Red Back [RBK].

Ghana mine operators roll their eyes at the “reserve” designations because locals have already plundered them. In that vein, the minister stated that the “Many of these [forest] reserves are reserves only on paper."

That should make exploitation permits a foregone and sensible conclusion, but environmental activists have been mobilizing to oppose the move for months.

MiningWatch Canada, an Ottawa lobbying crew that starts from the premise that miners get their way to easily, too often, published a report on Ghana in early July. Breathlessly titled ‘Canadian Mining Companies Destroy Environment and Community Resources in Ghana’, the report accuses a clutch of companies of human rights abuses, land grabs and contamination – without any evidence in support.

more at:

http://www.mips1.net/mgan.nsf/UNID/TWOD-5R33LM

[Jackjc]

I agree, match the 1099's to the nearest dollar and you
have complied. You might look at the tax subjects in these
big amalgamation proposals to see if you should just sell.

I had about 360 trades last yr and it is a lot of work to
split the calcs on the trades when number of sh can not
always be matched on these thin traders. Lucky not to have
wash sale concerns as about 95% winners past couple yrs.

I suppose a money program does this, I have just been using
usoft works data base, and Turbotax to file.

I have been selling for essentially the first time in a yr
last wk, still too heavy in golds and not really interested
in anything other than energy, if there is a big mkt wipeout.

[amarksp]

Well, I am a CPA, but that does not mean I handled those PAAS and PAAS warrants in exchange for BAY.to correctly... Guess I did not read the fine print, if any, stating this was taxable as a ST gain... But do not present me with any facts in this regard, ignorance is bliss, and I do not want to amend the return...

What I do know is that I covered my PAAS short position with the BAY.to PAAS shares received (recognized this gain) and kept the warrants with under a US$1 basis (using post distribution pricing), and still have them... This remains my only exposure to silver shares and I will likely keep them for another 3 years (1 year before expiration), the IRS will get their gain then...

I also know that my gross proceeds reported agrees to the penny with the IRS 1099 for all my share sells, including PAAS/BAY.to. My experience as a CPA is that if your 1099 proceeds reported exactly match your tax return, you are less likely to get audited on Sched D transactions. If I was audited and if you were correct on the STCG treatment, even then it is nigh impossible the IRS agent would whip out the prospectus on BAY.to showing me this was a STCG (plus it is not a huge $ amount relative to other positions)..., the IRS agent would simply confirm the price that I paid for it and the price I sold it, and determine I reported accurately, IMO. FWIW, I reconcile my total share purchases and sales to the penny each year, and given the 200+ transactions each year I believe the IRS would be favorably impressed with this record keeping...

Just my opinion...

[Jackjc]

Am just following Russ, per the cash.

However don't assume the sh dist would allow holding to
obtain LTG. I am recalling the BAY buyout by PAAS was
deemed taxable at the time of dist, short term for me.
Can recall others similar. May be wrong as these tax
rules can be very complex, but the offering spelled it
all out for both US and CA investors.

[russwinter]

You should clarify it it with the company. Really they should issue a statement.

[amarksp]

Thanks for the info, if cash instead of shares, then I will have to re-evaluate holding...

[russwinter]

I received an private mail to that effect from a MOY shareholder on the SI forum who talked with mgt about the distribution. Mgt indicated that a stock distribution would be too complex. Either way it wouldn't have affected my decision, as I wanted out.
http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=19259450
However, the confusion (from MOY) is fairly typical is it not?

[amarksp]

Jackc & Russ... Am I mis-interpreting this deal or are you?

My un-substantiated belief is I will receive NEM shares and no Canadian cash. What leads you to believe that MOY shareholders will receive cash rather than NEM shares?

If in fact MOY shareholders receive NEM shares, then US investor basis in the NEM shares distributed will be around 70% of the money you have invested in MOY. Exact ratio will be determined by the MOY share price post-distribution.

My MOY purchases have ranged from US$.52 to US$.91 with a US$.63 average. Using 70% as ratio, I own NEM at a $20.76 per share basis and my basis in the post-distribution MOY shares will be US$.19. Have held for under 1 year, so have the chance to wait until 2004 to realize LTCG.

All the above is moot, however, if MOY shareholders receive cash rather than NEM stock. Please advise facts on why you believe MOY shareholders will receive cash rather than NEM stock as the distribution. Thanks!

[Jackjc]

Thanks amarksp:

I estimate tot value at 1.90 for this, but as Russ has
pointed out for US investors who don't want Canadian cash
with tax due, best to take what it brings this mo.

I bought fairly recently on Russ's reco, in 70-90 range
and will accept around here.

Thanks to Russ !!!

[amarksp]

Valuation estimate on 2% NSR=US$8M
or about US$.29 per share

Ntotoroso is the larger of the two (Lassonde said initial work suggested $500 million would be spent on developing two mines, which together would produce 700,000 ounces), so let's say 400,000 ounces per year. Royalty would not begin until 3 years plus 1 year of construction.

To make it easy, $375 gold 400K ounces * 2% NSR = US$3.0M

$3.0M/28.4M shares = US$.105 per share per year starting 2008

Further assuming 3.2M total ounces and 8% discount (5 years royalty received 2008-2012 of $3.0M), the net present value = US$9.3M or US$.33 per share

Assuming 2.8M total ounces and 8% discount (4 years royalty received 2008-2011 of $3.0M), the net present value = US$7.8M or US$.27 per share

Assuming 2.8M total ounces, $425 gold, and 8% discount (4 years royalty received 2008-2011 of $3.4M), the net present value = US$8.2M or US$.29 per share

Assuming 1 year construction delay on above, NPV=$7.5M

FWIW, using an 8% discount on a gold royalty (i.e. realy money) seems high, but market analysts would likely use 8% or more.

Based on above, US$8M seems fully valued. To realize cash today MOY would likely have to sell at a 10% discount, or more...

[Roundtrip]

In an article posted earlier this month it stated:

Although the finer points of the Ghanaian growth strategy would be unveiled at the Denver Gold Show in September, Lassonde said initial work suggested $500 million would be spent on developing two mines, which together would produce 700,000 ounces.

“We’ll unveil it at the Denver Gold Show. We’ll give a clear idea of where we’re going with it,” said Lassonde.

The Denver Gold Show is on September 22-24, 2003.

[russwinter]

Not really, I'm not really focused much on that, as I'm pulling back and distributing into this strength. I still hold MAN (for now), and it may have a catch-up move. Sort of happened today in fact.

[russwinter]

I have a good sized position and a long term capital gain. I didn't want to complicate (for US taxes) the later taking a cash distribution from a Cdn company. Secondly, as I've written (and won't repeat here) at SI, I'm much more cautious on the sector. Big profits in these thinly traded names (or even NEM) can evaporate fast, I'm trying to reduce my rather oversized positions in PM stocks. It's been a great ride on this leg and I'd like to just keep and book a good portion of the gains.

MOY has finally firmed up, and today there were some bids in size that allowed me to exit this situation. Finally, despite the ultimate very nice payoff in this play, I really don't want to continue to be associated with it (for the reasons I stated during the long "black out" period), even if there is some more arbitrage play left. In other words I have no interest in the arbitrage or in the new Moydow.

[huesos]

Russ, if you're over here answering questions, I 've got one I'd like to ask. In the aftermath of your liquidation, is there any ting that you are keeping as a speculation on drill results yet to come? Ok one more, what about MAN.to?

[amarksp]

Russwinter: question for you

Can you explain why you sold MOY today rather than shorting .021 or .028 shares of NEM for every share of MOY you owned? Did you consider this NEM short option to lock in profits? What are the advantages and disadvantages of this strategy?

Each MOY shareholder will receive .021 shares of NEM (75% of 800,000 shares) and MOY will retain .007 or 200,000 shares = .0028 total.

FWIW, this is likely the strategy I will use to lock in MOY profit. Another option would be to sell NEM $30 Dec covered calls for the .21 shares you would receive. The likelihood of this deal not closing appears very remote? Please share your opinion on the cost vs. benefit of a short of NEM (or covered calls) rather than an outright sale of MOY.

Thanks!

[Ed Monton]

There was another 144,200 crossed this afternoon. Also by Loewen and also at 1.41.

Nice close today at the high with the next ask at $1.48.

[amarksp]

Large crosses of 700K shares by Loewen

10:54 1.410 500,000 +0.020 Loewen Loewen
10:40 1.410 200,000 +0.020 Loewen Loewen

[amarksp]

Corner Bay did not follow PAAS
Francisco did not follow GLG

Thus, Moydow will not follow NEM..., IMO.

There will be arbitrage opportunities, up until its very last trading day if Corner Bay is any guide... I will not buy more MOY unless the discount exceeds 20% or so..., and will likely hedge that by shorting NEM.

[Ed Monton]

Its surprising that MOY was higher yesterday though gold and Newmont were up today. Good volume though. I attribute the difference to some big players unloading some stock on the market. Once the selling has abated I think MOY will probably follow NEM a bit more closely.

[amarksp]

MOY arbitrage value @ NEM=$39
fully diluted MOY shares, cash per share only
C$1.61
US$1.15

MOY trading at about a 15% discount to cash per share, fully diluted...
_______________
1st column is value of 75% MOY distribtion to shareholders
2nd column is 100% value NEM distribution, plus MOY cash on hand after warrant exercise.

800,000 total NEM shares to MOY 800,000 800,000
% distribution to MOY shareholders 75% 100%
Share distribution to MOY shareholders 600,000 800,000
26,414,014 MOY shares o/s 26,414,014 26,414,014
Warrant & Option Exercise 1,961,250 1,961,250
Diluted MOY shares o/s 28,375,264 28,375,264
NEM shares per MOY share 0.02114518 0.02819357
NEM share price $39.00 $39.00
Value of NEM Distribution US$ $0.825 $1.100
Value of NEM Distribution C$ $1.158 $1.544
Value of NEM Distribtuion + Exercise C$ $1.616
Value of NEM Distribtuion + Exercise US$ $1.151

______________
Would not be purchasing MOY right now, appears we have distribution from folks without patience to wait until the NEM distribution..., and



the real easy money has been made, but I will likely wait to take profits until the distribution...

[Roundtrip]

deleted

[Ed Monton]

Cornerstone and Moydow Announce
True Grit Phase II Drilling
August 27, 2003

Mount Pearl, Newfoundland & Labrador: Cornerstone Capital Resources Inc. (TSXV - CGP) and joint venture partner Moydow Mines International Inc. (TSE - MOY) are pleased to announce plans for Phase II drilling on the True Grit Gold Project in south-central Newfoundland.

This first phase of drilling comprised a 1,251-meter, 22 hole diamond drilling program. The best intersection was obtained in hole TG4, which returned 0.6 g/t Au over 117 m including a 26 m wide section grading 0.83 g/t Au. Intersections ranging from 16 to 46 m wide with grades of 0.45 to 0.75 g/t Au were encountered in holes TG3, 11, 12, 22 and 23. An area of approximately 700 m by 200 m, occurring within a 2600 m by 800 m coincident gold-arsenic-antimony soil geochemical anomaly, was drill tested to depths of between 120 and 35 m vertically.

The Phase II drilling program will total approximately 1300 m and is designed to test mineralization encountered in Phase I at depth and along strike as well as test other targets occurring within the 2600 m by 800 m coincident gold-arsenic-antimony soil geochemical anomaly. The drilling contract has been awarded to New Valley Drilling of Springdale, Newfoundland and will commence immediately.

The True Grit property, originally comprising 356 claims, has been enlarged to 535 claims covering 134 sq. km. by way of additional claim staking by Cornerstone and Moydow.

The agreement with Moydow Mines on the True Grit Property is one of eight joint venture agreements Cornerstone now has in place, including seven gold projects and one VMS project.

The Company announces a "Shares for Debt" Private Placement in the amount of $18,501.12 whereby 41,576 Common Shares will be issued or reserved for issuance at a price of $0.445 per share. The Corporation has met all the conditions and closing is conditional on the approval by the TSX Venture Exchange.

On Behalf of the Board of Directors
Glen H. McKay
President

Further information is available on the Cornerstone Web site at www.cornerstoneresources.com, via e-mail at [e-mail], or by calling 1-877-277-8377.