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Message: Cueva Blanca eased from us

When you look at a historic resource estimate of a small portion of the Cueva Blanca (CB) property, which is ~ 200,000 ounces of gold and ~1 million ounces of silver, you come up with a present day value of this portion of the CB resource being worth about $280 million dollars. A buyer will usually pay 10% of insitu value for a deposit of gold, which would equate to around $28 million dollars on a buy out for this part of the CB property. But, if we take what some recent buyouts of gold deposits have shown us, we have seen some companies paying ~ $500-$700 per ounce in the ground. This math would suggest a possible FMV for this small portion of the property of around $120 million. Take this $120 million and split it up between the total outstanding shares we have out, of around 120 million shares, this equates to approximately $1 per share. Take the $28 million mentioned above, this would equate to ~ .24 per share.

The CB was sold for $100,000, the shareholders received no dividend.

There is/was, no justification for this sale. Molson has shown you articles previously where the Peruvian locales wanted SLI there and there was also mention of mining taking place on the CB, as per the understanding of one of the articles. Also, it was rumoured that Shining Path connections were sent into the area offering incentives to the prominent locales there to oppose mining and to stir up relations.It was also intriguing to learn that a dignitary of Peru coincidently is/was a director of our subsidiary in Peru, Minera Santa Elisa. Kashoggi (a Saudi arms dealer) has suspected connections with the Shining Path and also is a friend with Peter Munk, Barricks CEO.Not implying nor incinuating anything, just portraying of how this may be such a small world.

http://en.wikipedia.org/wiki/Adnan_Khashoggi

http://theostrichhead.typepad.com/index/2010/04/sec-brings-a-harsh-judgement-against-arms-dealer-adnan-khashoggi.html

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