Zeev's Turnips Patch-No Politics (ZEEV)

[Bullwinkle]

Hey BD,

As more news comes available and after doing a little more follow up on NXG, I find a couple of things to be of a slight concern. I imagine you have seen there recent quarterly report?

http://biz.yahoo.com/bw/030731/315727_1.html

3. Financial Instruments

At June 30, 2003, Kemess Mines Ltd. had forward sales commitments with major financial institutions to deliver 350,000 ounces of gold at an average accumulated price of $303 per ounce. These forward sales commitments are in the form of short-dated spot deferred contracts. A portion may be brought and settled into income in 2003 and a portion will eventually be rolled into future years as part of the Corporation's commitments under its project loan. The unrealized loss on these spot deferred contracts at June 30, 2003 was approximately $14,970,000.

All in all a nice report, but even though cash flow increased to 66%, this contract got me thinking. At approximately 70k oz. per Qtr, it would take a little over a year to fulfill this contract. Gold could very well be over $400 oz. or more by then, seems like they will be leaving a lot on the table.

The other thing of slight concern is this from your recent article:

Bulldozer trenching in 1987 and 1988 defined a zone of shallow oxide gold mineralization including intervals grading up to 4.8 grams per tonne (g/t) gold over 30m. Percussion drilling in 1990 defined an Inferred, oxidized gold resource in the Main Zone of 3.2 million tonnes grading 1.1 g/t gold (see February 10, 2003 news release). Significant intersections in the Main Zone from historical drill holes include 2.65 g/t gold over 16.7m or a longer interval of 129.7m grading 1.19 g/t gold.

If I undersatnd this correctly it would seem that the more they explore the less they are finding (from 4.8g/t in 1988 to the most recent 1.19-2.65g/t). Am I missing something or am I just spoiled by the 41.7g/t that BGO struck?

These issues may not be worthy of too much concern as the company does seem to be gaining traction and I am fairly new to the Gold game, but I would be very interested in hearing your perspective on these items. TIA