Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

*** Gold related post (WHT) ***


Wheaton River Eyes Bermejal, Rest Of El Limon Property

Wednesday September 24, 7:57 am ET
By Tom Locke, Of DOW JONES NEWSWIRES

DENVER (Dow Jones)--Wheaton River Minerals is eyeing nearby property acquisitions in Mexico to complement the $87 million Los Filos property acquisition that is expected to close next month, Chief Executive Ian Telfer said.

Near Los Filos is the El Limon property, in which Wheaton has a 21% interest. Wheaton hopes to acquire the other 79% interest of El Limon from Teck within a year, Telfer told Dow Jones Newswires after his presentation Tuesday at the Denver Gold Forum 2003 in Denver, sponsored by the Denver Gold Group.

In his presentation, Telfer also said that an upcoming announcement is expected to raise the gold resources level at El Limon to around 3 million ounces, from a current level around 1.6 million ounces. Telfer expects the level to rise to 4 million ounces, to start production in about three years at El Limon, and to produce about 200,000 ounces of gold per year there. "It's going to be a barn-burner for us," he said.

Also in the "Guerrero Gold Belt" area is the Bermejal property, owned jointly by Newmont Mining Corp. and Penoles, a Mexican mining company. Telfer told Dow Jones he would hopes to acquire Bermejal "in the next six months," and get production going there in two years.

He also expects production to start at Los Filos in two years. Los Filos and Bermejal together are expected to produce 225,000 ounces of gold per year, he said.

The combined impact from the three properties of 425,000 ounces per year would be significant for Wheaton, which estimates 2004 gold-equivalent production, including silver, at less than 600,000 ounces.

The El Limon and Bermejal acquisitions are the only ones on the horizon that the company is willing to talk about, said Telfer.

Wheaton thinks the gold price is going higher, and it has been successful in acquiring properties at low prices, he said. That's partly because it has bought properties that have been non-core assets for the sellers - a car parts company, a copper company and a zinc company. Plus, the companies wanted cash in the $100 million to $200 range, and there are very few small companies besides Wheaton that are able to raise those sums of money, he said.

http://biz.yahoo.com/djus/030924/0757000371_2.html