Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

*** Gold related post (BGO) ***

Hi ml,
I find Bema's ownership of 24% of Cerro Casale to be a very positive factor for future growth. Check out the projected annual 'harvests' of Au and Cu from this Placer Dome NR.

Btw, I hope you've rid yourself of some of those bearish copper thoughts.

Placer Dome In Talks About Financing Cerro Casale Project
Thursday October 30, 10:41 am ET


VANCOUVER (Dow Jones)--Gold producer Placer Dome Inc. (NYSE:PDG - News) has started talks with lenders about potential financing for the huge Cerro Casale copper and gold development project in Chile, officials said Thursday on a conference call.

Placer president and chief executive Jay Taylor described the project as " intriguingly large," with a long life and low production costs, but noted that it requires stable commodity prices. Cerro Casale is more attractive at current gold prices of about $390 an ounce, and copper at 91 cents/pound, he said.

A 1999 feasibility study was done at $350/ounce gold and 95 cents/pound copper.

Placer would like to proceed with Cerro Casale if it can get an acceptable long-term rate of return, Taylor said.

Placer owns 51% of Cerro Casale. Arizona Star Resource Corp. owns 25%, and Bema Gold Corp. (AMEX:BGO - News) owns 24%. To maintain its 51% stake, Placer must secure up to US$1.3 billion of financing for mine construction.

Cerro Casale could produce 128,000 metric tons of copper and 900,000 ounces of gold a year, according to the 1999 feasibility study. Placer Dome is reviewing that study with a view to lowering the estimated capital cost, perhaps by using new technology or altering the size of mills, but officials noted the Chilean peso has also appreciated since the study was done, which would push up labor costs.

Cerro Casale is the most advanced of Placer Dome's development projects, as it already has a finished feasibility study, environmental impact statement, and water rights.

But officials didn't provide a timetable for a decision on Cerro Casale, saying the ongoing review of the feasibility study will determine the schedule.

Late Wedneday, Placer Dome reported third quarter net of $21 million or 5 cents a share, versus net of $29 million or 8 cents a share in the same 2002 period.

The company said its latest earnings were reduced by a non-cash non-hedge derivative expense of $25 million after tax. Third-quarter earnings also reflected higher resource development expenses to advance the Donlin Creek project in Alaska, and the Pueblo Viejo project in Dominican Republic, it said.

Placer Dome increased its 2003 full-year gold production guidance to 3.7 million ounces, at cash operating costs of $210-$215/ounce, and at total operating costs of $270-$275/ounce. Its full-year copper-production guidance was unchanged at 400 million pounds.

Gold production in the first nine months of 2003 was 2.8 million ounces, up 49% from a year earlier, due to two acquisitions and higher production from the Golden Sunlight, Porgera and South Deep mines. This was partly offset by decreased production at the Granny Smith and Bald Mountain mines, the company said.

Its exploration work is primarily focused in and around existing mine sites. The company said it's drilling and evaluating new deposits at several properties, and is also evaluating promising new targets in eastern Canada, Nevada, and elsewhere.

In Toronto Thursday, the stock is up 35 Canadian cents to C$20.35 on about 1.17 million shares.

http://biz.yahoo.com/djus/031030/1041001168_2.html