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October 5, 2011 Dear Friend,
Please let us know if
you want a seat at our dinner November 29th, as we will have over 50
companies and the absolute seating maximum is 80 people. We
want to call your attention to the formal dinner we will host in Boston in
conjunction with our November 29-30 mining conference in Boston at 7 pm at
the New England Aquarium, 1 Central Wharf Boston, MA 02110 and
We have been training our two new analysts that graduated in May 2011, Matt Van Cleve and Charles Tumazos. They are beginning to generate research reports, and we are taking time to maximize the quality of their work. At some point over the next year we will begin to ask our clients to pay us more, as the size and quality of our organization is much more today than when we started over four years ago. Our team travelled 26 days for research in September in Peru, Alberta, British Columbia, Nevada, Colorado, New York and had companies visit us in New Jersey too. Our team of six professionals with research experience totals 53 years of total research experience. Charles Tumazos visited Quaterra Resources and Entrée Gold in the Yerington, NV copper district on September 27-28, although he did not visit the richer Pumpkin Hollow deposit of Nevada Copper which is the richest of the three. The three companies have documented 22 billion pounds of copper resources in situ. We believe this district will become a significant copper producer by the end of this decade in the U.S. We published a report on Paramount Gold and Resources under the "John Tumazos Advisory and Compensated Research, LLC" title, our second such report, as we represented Paramount Gold and Silver in a June 2010 acquisition and were paid $60,000 for a fairness opinion. We are pleased that PZG has reported two separate 43-101 reports with 4.4 mm oz of gold and 76.6 mm oz of silver resources in 2011, and we estimate it will grow to 6,5-7.0 mm oz of gold and 100-125 mm oz of silver by the end of 2012. We are not establishing a “price target,” full formal coverage and detailed financial models pending more information from the company and its outside experts. We are looking for production schedules, up front capital costs, permit schedules and operating cost profiles for the several production processes likely both in Chihuahua and Nevada. We expect approximately five separate production flows for Paramount Gold and Silver, including the San Francisco open pit disseminated gold prospect in Mexico, two separate 500+ mtpd very high grade underground mines with a common mill, Sleeper heap leaching from multiple pits or zones and a Sleeper bulk tonnage mill in the range of 5,000 to 20,000 mtpd. This report contains Charles Tumazos notes from his September 27th Sleeper mine visit.
Please take note of the photos of the
green malachite rocks taken at Quaterra's copper property and the clean
lakes in the various old mine pits at the copper properties and the
Sleeper gold mine.
We also attached our June 28, 2010 Fairness Opinion delivered to the board of directors of Paramount Gold and Silver. Faithfully,
John C. Tumazos, CFA
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Copyright © 2008 John Tumazos Very Independent Research,
LLC
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