the bull & bear's resource investor … · page 1 the bull & bear's resource...

THE BULL & BEAR'S RESOURCE INVESTOR

Published by The Bull & Bear Financial Report • © October 2002 • www.TheBullandBear.com

GOLD

SILVER

PLATINUM

PALADIUM

BASE METALS

DIAMONDS

OIL & GAS

The

October 2002

Inside...Some Mines Facing Foreclosure Due to BLM Ruling ............................... 4

World’s Most Mysterious Gold Coin Fetches $7.59 Million ....................... 5

UNICO: Producing Gold & Silver From Historic Utah Mines ..................... 6Deer Trail Mine literally a “mountain of metals”

The Bull & Bear’s Resource Investor Advisory.......................................... 8

Crystallex: Moving Fast To Major Gold Production ................................ 11Selected to Operate Venezuela’s Las Cristinas –One of World’s Largest Undeveloped Gold Mines

Corporate Update/Interim Reports .......................................................... 14

Mountain Province Diamonds .............................................................. 17Discovers High-Quality, Top-Color Diamonds in CanadaDiamond Giant De Beers Funding All Exploration & Development

Web Sites for Investors ........................................................................... 23

Bull & Bear's

Gold MarketManipulation 101By James Turk, editorFreemarket Gold & Money Report

How do governments manipulatethe gold price?

I am asked this question all thetime. And it would probably requirewriting a book to do justice to thetrading techniques that can be used.But there is one basic principle thatcan be reviewed in order to explainsome basics - so here is a briefprimer, a sort of Gold MarketManipulation 101 if you will.

There are not one, but two goldmarkets. One deals in physicalmetal. The other deals in paper -namely, the promise to pay physicalmetal. This paper market consistsof various trading vehicles such asfutures contracts, forwards, puts,calls and other derivatives.

In terms of relative size, themarket of paper promises ‘to pay gold’

Continued on page 5

Expect Much Higher Silver Prices…

Huge Gains PossibleFor Patient Silver Bulls

“Expect much higher silver pricesin the not too distant future,”predicts Brien Lundin, editor GoldNewsletter. Lundin says the recentdip in the silver price presents anexceptional buying opportunity forthe following companies: Pan-American Silver Corp. (NasdaqPAAS; PAA.T; $6.47), SilverStandard Resources Inc. (TSVXSSO; Nasdaq SSRI C$7.50), WesternCopper Holdings Ltd. (TSE WTCC$2.35) and Wheaton RiverMinerals (TSE WRM C$1.15.)

In the upcoming silver bullmarket Pan America has thepotential to deliver enormouspayoffs to patient silver bulls. PanAmerican’s second quarter resultsprovided some important updateson this leading silver play.

The company produced 1.94million ounces of silver in the Junequarter, 12% more than a yearago. A net loss of $1.25 millionfor the quarter was less thanhalf of the year-ago loss, and the

Continued on page 2

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The Bull & BearFinancial ReportP.O. Box 917179Longwood, FL 32791Phone: 1-800-336-2855Fax: (407) 682-6170Editor: David J. Robinson

© Copyright 2002The Bull & Bear'sResource Investor E-Letter. Reproduction in wholeor in part is strictly prohibited.

Huge Gains Possible For Patient Silver BullsContinued from page 1

prospects are good for a turn-around, even before the silverprice moves higher.

The Huaron Mine in Peruproduced 1.15 million ounces at atotal cash cost of $3.64, but theother Peruvian mine – Quiruvilca– and the La Colorado in Mexicoboth turned in disappointingperformances. Alternatives arebeing examined to reduce costs atQuiruvilca, but that may be difficultwith the narrow veins now beingmined. The weak base metal pricesare hurting by-product credits at allof the operations.

Pan American has begunconstruction of a four-foldexpansionof the La Colorado mine.The project is expected to produce3.2 million ounces annually afterstart-up of the expansion a yearfrom now. The higher throughputlevel will have a favorable impacton the unit operating cost.

A bankable feasibility study wascompleted last month on the AlamoDorado silver project in Mexico,and detailed engineering work iscontinuing as Corner Bay and PanAmerican await shareholderapproval to complete their merger.Shareholders will vote on themerger proposal at extraordinarygeneral meetings to be held onSeptember 4 and 5, respectively.

Especially with the mergerabout to be consummated, PanAmerican is the clear choice as theleading silver producer in today’smarket. The merged companywill have 739 million ounces ofsilver reserves and resources, withproduction projected to reach 20million ounces annually as theMexican expansion comes on, andas Alamo Dorado reaches produc-tion in another couple of years.Even at the current silver price,Pan American has the potential todeliver substantial profits from itssilver mining operations. With ahigher silver price and more favor-able base metal credits, PanAmerican should spin out someimpressive cash flow.

The action in Pan American’sshare price during the past two-and-a-half months clearly demonstratesthe enormous leverage to the silverprice that this company presents.Stop-Loss: $5.50. Shares Outstanding:41.5 million. Market Cap: $268.5million. Shares Outstanding FullyDiluted: 45.0 million. Market CapFully Diluted: C$291.2 million. Visitthe web site for latest updateswww.panamericansilver.com.

If Pan American Silver is the topsilver producer, Silver StandardResources Inc. is easily theleading silver resource holdingcompany you can buy today.

The difference is that SilverStandard prefers to spend its moneyamassing resources that will soar invalue as the silver price escalates,with the intent of selling thoseresources at a considerable multipleof what was paid for them. Thecompany doesn’t particularly wantto sell silver at current prices, whenthose ounces will be worth a lotmore in the future. Pan American,on the other hand, would like to bein production when the silver pricefinally takes off.

Both strategies will pay off ina very big way in the upcomingsilver bull market, and bothcompanies have enjoyed powerfulgains in the exciting metalsmarket of this year.

Last month, Silver Standard’sshare price took a hit when the priceof silver fell in tandem with gold.But the share price posted a quickrecovery on the announcement ofsome very encouraging drill results.

A 17-hole program at therecently optioned Challacollasilver project in Chile revealedthick sections of silver below andperipheral to the previous workings,outlining a zone in the Lolonvein that extends for 600 meters.Intersections included 10.2 ouncesper ton over 49 feet, 9.1 ounces over52 feet, and 6.4 ounces over 62feet. In addition, the San Franciscovein yielded 16.4 ounces over 6.6feet, suggesting the potential fora narrow, high-grade vein.

Silver Standard optioned the

property in the belief that therewas substantially more silverpresent than indicated by aprevious resource calculation.That study determined an indi-cated resource of 10.2 millionounces, and an additional 37 mil-lion ounces of inferred resource.These latest assays confirm thepotential for a considerably largerresource, and the company willincorporate the results into anupgraded resource calculation.

Silver Standard now hasC$18.3 million of cash, putting itin an excellent position to continueto advance its various silverprojects in Australia, Argentina,Chile, Mexico and the U.S. Thecompany plans at least two furtherdrilling programs this year and iscontinuing to seek additionalacquisition prospects.

In fact, this company’s aggressivemoves this year are a prime reasonwhy its shareholders have enjoyedsome remarkable gains. If youremember, we predicted as much inour November 2001 letter, and theshare price subsequently quadrupled.

With their stockpile of cash, andhighly capable CEO Bob Quartermainat the helm, I think it’s safe to saythat the company has some moreimportant acquisitions in its sights.While Silver Standard’s massivesilver holdings provide enormousleverage to a rising silver price, its

Continued on next page



Continued from previous page

growth profile is yet another reasonto own this stock now. Stop-Loss:C$5.65. Shares Outstanding: 32.1million. Market Cap: C$240.8million. Shares Outstanding FullyDiluted: 44.0 million. Market CapFully Diluted: C$330 million.Visit the web site at www.silver-standard.com.

Western Copper HoldingsLtd. recently announced results fromthe last eight holes of the recentlycompleted 15-hole program at itsPenasquito silver project in Zacatecas,Mexico. These results further confirmthat the Chile Colorado zone iscontinuously mineralized over an areaextending for 350 meters by 500meters. That zone remains open toexpansion in two directions.

In addition, two holes thatstepped out a considerable dis-tance also encountered significantsilver values that suggestthe potential for substantiallyexpanding the tonnage. Drilling isexpected to be underway again bythe time you read this.

The Chile Colorado zone, aspresently defined, encompasses inthe order of 100 million tonnes ofmaterial. The drill results suggestthe potential for a grade in the orderof three ounces of silver per tonne,with significant by-product creditsof gold and zinc.

Hole 24 intersection similarmineralization 800 metersnortheast of the Chile Coloradozone, and a hole drilled byKennecott also encounteredmineralization 400 meters furthernorthwest. Those holes create thepossibility that the mineralizedzone could be several times largerthan what is presently defined.

In this respect, it’s important tonote that there are several enormoussilver deposits in this region thatare geologically similar to Penasquito,and are important contributors toMexico’s status as the world’slargest silver-producing nation.

Drilling over the coming weekswill continue to in-fill the presentlydefined zone, and will also probe theprospective areas. Previouslycompleted geophysical data is nowbeing reprocessed, using the drill

hole results to aid in theinterpretation. That informationshould be very helpful in designingthe upcoming drill program.

A major engineering firm is nowin the process of integrating therecent drill results with workcompleted by previous operators tocalculate a geological resource.

The bottom line, as we’ve beenreporting, is that Western Copperis quickly emerging as a leadingsilver exploration/developmentcompany. The recent dip in theshare price in reaction to a declinein the silver price presents an ex-ceptional buying opportunity.Stop-Loss: C$1.95. Shares Out-standing: 27.3 million. Market Cap:C$64.2 million. Shares OutstandingFully Diluted: 33.7 million. MarketCap Fully Diluted: C$79.2 million.For recent updates visit the web siteat www.westerncopper.com.

With the acquisition of Luismin,Wheaton River Minerals nowranks as Mexico’s second largestgold producer and the third largestsilver producer.

As we’ve reported, Wheatonassembled a “dream team” ofmining finance professionals tohelp carry out its plans to build asubstantial mid-tier gold miner.The initial news of the Luisminacquisition last May pushed theshare price as high as C$2.10, butthe stock has since settled back as

the market awaits the next movefrom the company. Nervousinvestors have a short attentionspan in a market like this.

The current weakness in thegold price may be frustrating tosome, but it is a powerful ally ofcompanies like Wheaton that areintent on acquiring additional goldassets. I advise you to use this dipin Wheaton’s share price to buildor re-establish a position in acompany that is now well on itsway to becoming a substantialgold producer. Stop-Loss: C$1.00.Shares Outstanding: 56.6 million.Market Cap: C$65.1 million.Shares Outstanding Fully Diluted:258.5 million. Market Cap FullyDiluted: C$297.3 million. Forrecent updates visit the web siteat www.wheatonriver.com.

Editor ’s Note: Brien Lundin iseditor of Gold Newsletter , 2400Jefferson Highway, Suite 600,Jefferson, LA 70121, 1 year, 12issues, $198. Mr. Lundin also servesas president of Jefferson Financial,sponsors of the annual New OrleansInvestment Conference. This year’sconference will be held November6-10th in New Orleans and willfeature some of the world’sleading precious metals and miningshare experts. For more informationon this star-studded conferencecall 1-800-648-8411 or visitwww.neworleansconference.com.

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By David Morgan, editorSilver Investor Newsletter

In the United States and most foreign countries,regulatory agencies and jurisdictions in which minesare located require surety bonds that guarantee landsaffected by the mining will be cleaned up and thatthe water supplies will not be polluted. For thosebonds, mining companies have relied on commercialinsurers. However, following the massive hit to theinsurance industry after 9/11, as well as recordbankruptcies, some insurers are refusing to issue“reclamation bonds” required of mining companies.

Compounding the problem in the US, state andfederal agencies have been increasing miningcompanies’ bonding requirements, forcing somecompanies to ante up more than 100 times as muchas previously required. The result: a “perfect storm”scenario of converging forces on hard rock miners,threatening some mines with closure.

Montana has ordered Asarco Inc. to increase itsreclamation bond for its Black Pine silver mine to $8million from $70,000. New Mexico recently insistedthat Phelps Dodge (PD) increase its reclamationguarantee to about $900 million from $115 millionfor three mines PD operates in the southwestern partof the state. PD is asking if it can post cash, lettersof credit or other guarantees, instead of reclamationbonds. Some of the impetus in making miningcompanies put up more money came after Montanaofficials learned that the cleanup costs, following thebankruptcy of Pegasus Gold Inc., could run $34million to $72 million more than the posted suretybonds provide.

Instead of bonds, mining companies have put upassets as collateral, or used assets to get letters ofcredit. This practice, however, hampers companies’abilities to borrow against those assets for operations

purposes. And, a new Bureau of Land Managementrule bars companies from using some assets ascollateral for mines on BLM land. In severalincidents, such guarantees were impossible to collectafter mining companies closed their doors or declaredbankruptcy.

The mining industry has petitioned the InteriorDepartment to shelve the new rule. Yet, the prospectof such a turnabout alarms industry critics whobelieve the guarantees should be a third party thatclearly has the capability of financing any necessaryreclamation.

The new BLM rule barring corporate guaranteeshas hit Newmont Mining particularly hard. As a re-sult of the rule, the company has to raise nearly $40million of new guarantees for three of its Nevadamines. Making matters worse for Newmont, three ofthe company’s four bonding carriers have asked thecompany to find replacement insurers for any newbonds, as the insurers seek to exit the reclamationbusiness and the fourth is considering following suit.

This development is guaranteed to increase thecost of mining. Worse, though, in some instances,mines will not open, and others will close. Especiallyhurt will be the small companies, which will find itmore difficult, if not impossible, to post thereclamation bonds.

Mining has always been a high-risk business. Now,the stakes have been raised again, possibly shuttingsome companies out. Although a huge negative formining companies, this development is positive forinvestors who own physical gold and silver. The costof getting gold and silver out of the ground is goingup, which will mean higher prices for the metals.

Editor ’s Note: David Morgan is editor of theSilver -Investor .com newsletter, 21307 BuckeyeLake Ln., Colbert, WA 99005. Monthly, 1 year, $88 print,E-mail: $78.

Some Mines FacingForeclosure Due to BLM Ruling

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Gold Mkt ManipulationContinued from page 1

significantly dwarfs the physical market. Neverthe-less, the physical market is the more important ofthe two. In the case of the two gold markets, the ‘tail’truly does wag the ‘dog’ - at least some of the time.

In other words, most of the time the physical goldmarket just responds to the paper market. So if thebidding for, say, futures contracts is brisk, transactionsin physical metal take place at approximately the sameprice as futures (which is facilitated by the variousfutures market exchanges by allowing futures to beexchanged for physical metal and vice versa). But inreality, the physical market has the upper hand.

The reason is very simple. When push comes to shove,physical metal is more valuable than any promise to payphysical metal. Gold in your hand is more valuable thansomeone’s promise to pay gold to you.

This relative value, however, is generally overlooked.Most people don’t question the creditworthiness of thegold exchanges and the big bullion banks. But‘generally’ overlooked does not mean ‘always’overlooked. From time to time, promises to pay gold arecalled in. Bullion banks and others are asked to makegood on their promise to pay physical metal, which requiresthem to deliver gold. And it is this need to pay physicalmetal from time to time that is the Achilles Heel of thegold price manipulators. For this reason, the

manipulation of the gold price cannot go on forever.In the most recent issue of the magazine published

by the London Bullion Market Association, theformer chairman of the Management Committee

of the LBMA says: “Most bullion banks treat goldsimply as another currency.” The point is, though,that gold is not just another currency.

Currencies and gold both require delivery from timeto time. But while national currencies can be created‘out of thin air’ to achieve this delivery (i.e., createdjust by bookkeeping entries), gold requires physicaldelivery. Gold cannot be created out of thin air bybookkeeping entries.

So any scheme to manipulate the gold pricerequires a lot of physical metal. And there’s the rub.We don’t know how much physical metal has alreadybeen dishoarded by central banks. As I have notedmany times before, central banks report gold in thevault and gold out on loan as one asset, defyinggenerally accepted accounting principles by doing so.

In summary, absent this data about physicalmetal, watch instead the gold price. The marketknows all. And when the gold price moves above $325,it is likely that the market is concluding that themanipulators have lost control of the gold price.

Editor ’s Note: James Turk is editor of theFreemarket Gold & Money Report , andprovides a commentary on precious metals and mon-etary matters, P.O. Box 5002, North Conway, NH03860, 1 year, 20 issues, $260. Visit the web site atwww.fgmr.com.

On July 30, an anonymous bidder bought the1933 Double Eagle twenty dollar – the world’smost mysterious and elusive gold coin – for $7.59million. It was auctioned at Sotheby’s and Stack’son behalf of the United States Government. Theprevious record for a precious coin was an 1804United States silver dollar which sold for $4.14million in 1999.

The buyer, believed to be an individual collectorwho lives in the United States, won the coin duringan intense nine-minute auction. Eight bidders werepresent at the Manhattan auction house, joined by500 coin collectors. An additional 534 people followedthe action on eBay.

The proceeds were split between the UnitedStates Mint and London coin dealer Stephen Fenton.Coin collectors believed the coin was held in theprivate collection of King Farouk of Egypt, whoselegation inadvertently received an export license forthe coin by the Treasury Department. In 1954, thecoin apparently surfaced at a Cairo auction as partof a nine-day 8,500 gold coin auction from Farouk’s

collection, but it was withdrawn from the sale aftera request by the U.S. government. It has remainedout of sight for almost 50 years until 1996 whenFenton was arrested by Secret Service agents in1996 for trying to sell agents the coin in a sting op-eration. Legal proceedings lasted five years and ledto a settlement which allows this particular DoubleEagle to be the only 1933 Double Eagle permittedto be privately owned.

The successful bidder will receive an official Cer-tificate of Transfer that makes the coin legal tenderafter paying fee of $20 for the face value of the coinplus the auction price.

The coin was struck in 1933 just before PresidentRoosevelt took the country off the gold standard andordered all of the coins destroyed. Ten were knownto have survived in private collections but since theywere never officially “issued,” they could not be le-gally owned. This is the only known coin of its typestill in existence.

Source: Gold News, a publication of The GoldInstitute.

World’s Most Mysterious Gold CoinFetches $7.59 Million



UNICO: Producing Gold &Silver From Historic Utah Mines

Deer Trail Mine literally a “mountain of metals”UNICO, Inc. (OTC BB:

UNCN) spent 10 yearsrefitting and developing theresource potential of itshistoric Deer Trail Mine, hasfired up its new processingmill and is ready to produceand ship gold and silverconcentrates.

Once the mill fully rampsup and can ship its 20-ton ca-pacity, the company will earn$44,000 daily – potentiallyadding up to more than $10-million annually.

“Shipments of our concen-trates and revenues areimminent,” says UNICOCEO Ray Brown. “Thepotential of the Deer TrailMine is much larger thanmost people think. It’s aremarkable resource – amountain of metals”

And the Deer Trail is notUNICO’s only precious metalsasset. The company eitherowns or leases (with optionsto buy) a number of otherhistoric Utah mines that holdreal promise for developmentof existing resources and fur-ther exploration.

ValuableMining Properties

UNICO’s Utah preciousand base metals propertieshost an enormous resourcepotential based on bothhistoric and recently updatedestimates of gold, silver, copper, zinc and lead values.The company plans to concentrate its initialdevelopment efforts at the Deer Trail Mine to create asolid revenue stream to finance development of its otherproperties.

Historically, UNICO’s Utah mining propertieswere significant precious metals producers. Idled formany years, the mines are far from played out.

This past spring, twenty-five geologists and

mining professionals attending a Utah meeting ofthe Geological Society of America, visited the DeerTrail and took samples for study. The group concludedthat many rich silver, gold, lead, copper and zincmanto deposits remain to be exploited.

The GSA team was excited by the possibility that amuch larger feeder system may lie beneath Deer TrailMountain and could be the source of many of the richgold/silver and alunite mines in the historic Marysvale

It doesn’t matter which of UNICO’s three Utah mines you choose, each is filled with therich and adventurous history of the early west, its explorers and its intrepid gold miners.

Gold was discovered at the Deer Trail Mine in 1878. During its mining history,approximately 200,000 ounces of gold ranging from 2 to 7 oz./ton and 1.5 millionounces of silver – valued at more than $30 million in today’s dollars – were processed.Exploration programs conducted by Phelps Dodge, Noranda and Goldfields andgeologist reports in 1997 and 2002 indicate high levels of ore still remain. UNICOobtained a lease-option in 1992 (renewed in 2001).

The Silver Bell Mine, located in the Wasatch Mountains, was discovered in 1871and produced more than 100 tons of ore graded at more than 100 oz/ton by 1881. A$250,000 feasibility study by Watts, Griffis, and McQuat commissioned in 1996concluded the Silver Bell has “great potential”. UNICO acquired 100 percent ownershipof the Silver Bell in 2000.

UNICO’s Bromide Basin Mines in the fabled Henry Mountains includes four majormines and a prospector’s lore of a Lost Spanish Gold Mine with legendary rich deposits.The Bromide vein was discovered in 1889 or 1890, and produced about 7,500 ouncesof gold in 1892. Breccia pipes assay as high as 26 oz/ton and average 7 oz/ton. UNICOleased the 400-acre mining properties in 2001 and has extracted a 2,500 ton bulksample that will be processed and tested at the Deer Trail Mill.

UNICO Mines Steeped in Utah Mining History



District. The Deer Trail mineralization system was likenedto the deep copper/gold deposits at El Indio in Chile.

The alunite cap over the Deer Trail deposit isamong the purest in the world, according to UNICO,and could indicate a major copper-porphyry systemsimilar to the Tintic District, Kennecott’s BinghamCanyon and the Ruth deposit near Ely, Nevada.

• The Deer T rail Mine :Estimated resource*: 287,420 oz. gold, 27.8 million

oz. silver, 65,220 tons lead, and 131,610 tons zinc.The underground mine is in a halo of gold bearing

and base and precious metal manto deposits. Quartzveins contain gold, silver, and minor base metals.Particularly high grades, averaging 0.18 oz/ton gold and20 oz/ton silver, in the 3400 area of the PTH tunnel arefavorable for near-term, cost-effective production. Thecontained mineralized resource includes a 30,000 tonproven and probable drill-indicated block confirmed bytwo major mining companies in the 1980s, a projected120,000 ton block and an inferredblock of more than 1 million tons.

The 8600 area of the Deer Trailhas an inferred block of 496,000tons of massive sulfides. UNICO’schief geologist Dan Proctor saysother known fissures will substan-tially increase the mine’s potential.

Resources within the originalmine workings include lowergrade gold and silver mineraliza-tion. Old tailings contain 186,000tons of recoverable ore averaging0.04 oz/ton gold, 3.6 oz/ton silverand some lead. Old dumps containabout 120,000 tons of gold, silverand lead ores that can beupgraded by screening.

• The Silver Bell Mine :Estimated resource*: 8,100 oz. gold, 15.7 million

oz. silver, 22,500 tons lead, 54,000 tons zinc and15,350 tons copper.

The Silver Bell’s potential as a high-grade silvermine was hampered historically by its high eleva-tion. Recent exploratory work has uncovered silver-bearing ore assaying as high as 120 oz/ton. Every facein the underground mine has mineable ore. The re-source is estimated to contain over 450,000 tons basedon strike and dip projections, confirmed by twoindependent engineering firms.

“The mine is in good shape and very mineral rich,maybe the only silver mine left in the Park City dis-trict that has never been drilled or adequately ex-plored ,” says Proctor.

• The Bromide Basin Mines :Estimated resource*: 372,000 oz. gold.The Bromide Basin includes at least four mines; the

Kimble and Turner, Crescent Creek, Henrietta and theBromide Mine – an underground mine withnortheasterly striking veins with breccia pipes averag-ing 7 oz/ton gold. The vein structure averages 2 feet inwidth and can be traced on surface for more than 1,800

feet with several visible, gold-enriched outcroppings.Samples from the main Bromide vein show an

average grade of 2.73 oz/ton gold, 7.86 oz/ton silver,and 21.7 percent copper. UNICO is currently miningthe vein and plans to process the ore into gold concen-trates at the Deer Trail Mill.

“This vein ore is very rich, approximately $1,100 aton and will need very little prep work,” says Proctor.

Proctor discovered a new high-grade gold vein atthe Bromide Mine this spring. Initial assays rate thevein at 1.236 oz/ton gold and 0.75 oz/ton silver. Thecompany is planning a drill program to establish proventonnage prior to developing a full mining plan.

The Crescent Creek mine is adjacent to theBromide and contains mostly oxide ore averagingover 0.25 oz/ton gold with minor copper inclusions.The underground workings are close to surface.

The Kimble and Turner Mine’s undergroundworkings are along a northeasterly striking vein with

associated breccia pipes. A 4-footwide vein extends 400+ feet andaverages 2.0 oz/ton gold withsome copper.

The Henrietta Mine is a miner-alized exposure on surface assay-ing as high as 3 oz/ton gold. Al-though overall ore averages arelower, company officials sayrecoverable tonnages will be high.

*These resource estimates are notproven or probable reserves. They arebased on data generated by past produc-ers, independent exploration data and drillintercepts, geological conditions of the area,projections of known mineralized horizonsand structures and in house sampling. Re-serves will be announced when they havebeen proven up by the standards of themining industry.

Production Mill On StreamProctor says UNICO focused this summer’s work at

the Deer Trail Mill on fine-tuning the reagents schemesto produce cleaner, higher-grade concentrates. The fi-nal touches on the mill will be completed in Septem-ber with the installation of sophisticated fluid and vol-ume metering systems. Deer Trail ore is concentratedthrough both gravity and flotation circuits producinga high grade Pb/Ag concentrate with appreciable goldand a clean marketable zinc concentrate. The gold oresfrom the Bromide Basin will produce a free milling goldproduct as well as a gold concentrate that will be sentto a smelting facility.

The company has arranged terms with metalsbrokers and smelters for the purchase of both lead/silver and gold/silver concentrates. Similar terms forzinc concentrates are pending assay results.

UNICO initially plans to deliver 20 tons of lead/silver concentrate from its Deer Trail Mine, eventu-ally ramping up to 70+ tons a week, including 5 to10 tons from the Bromide Basin Mines.

“Our unwavering goal has always been the profitableproduction of gold, silver, lead, copper and zinc concentrates

Continued on page 10

UNICO, INC.OTC BB: UNCN

Contact: Ray Brown, CEOP.O. Box 777, Magalia, CA 95954

Phone: 530-873-4394Web: www.uncn.net

To receive News Releases via e-mailType “subscribe” and send to

[email protected] Outstanding: 70 million

Public Float: 40 million52-Wk: Hi: $0.205 • Low:$0.056



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CRAWFORD PERSPECTIVES, 6890 E.Sunrise Dr., #120-70, Tucson, AZ 85750.Monthly, 1 year, $250.

Intensity of astronomic energies willlead to large moves in Gold and SilverArch Crawford: “We believe that the multiple

aspects to the Jupiter/Neptune opposition will leadto large moves in Inflation Hedge commodities, andGold and Silver, Metals Complex, the XAUIndex, CRB and Oil in particular! It is our opinionthat bankruptcies on the world stage will leave somefiat currencies (backed only with the promise to pay)in doubt about whether they will ever be paid off innegotiable paper of any sort! This is not a short-terminfluence, as the opposition repeats on 19 Jan. and30 April of 2003. Gold stock group was the BestPerformer in 2001 and Second Best so far this year!Expect continuation at least until the Jupiter/Neptune alignment breaks up next May.

Although the fundamentals for Silver show clearlythat use has overtaken production, price action hasremained worse than suspect, it’s downrightintolerable! Our pockets are not as deep as those ofWarren Buffett and Bill Gates, so we try to keepcloser control of our positions with technical analysisand trading strategies. When the trend breaks, weget out and await better probability distributions.Expecting the Silver and Platinum to get a play thismonth with the Gold.”

***************

THE LYNCH INTERNATIONAL INVESTMENTSURVEY, 431 – 136th Street, Belle Harbor, NY11694. 1 year, 52 issues, $175.

Quality gold shares continueto look attractive

Walter Lynch: “The weakening of the dollar andthe increasing Iraqi war rhetoric gave strength togold through midweek as the yellow metal movedup to the $315 - $317 per oz. range. Siler appearedto remain sluggish at the $4.50 per oz. level as itwas influenced by the slackening of its industrialdemand rather than by its investor or hedgingdemand. Right now, gold looks ready to move upagain toward the $330 level and probably higher.War, or even war talk, pushes investors toward “safehavens.”

Quality gold shares continue to look very

attractive. If you are still light on a gold share hedge,we do not hesitate to recommend Newmont, BarrickAgnico-Eagle or Meridian. As we said, in earlyAugust, Placer Dome (PDG) has run into a numberof problems, not all of its own making. They haveput pressure on PDG’s share price. First was themove by S&P to make the S&P 500 Index a strictlyUS Index. Among those removed were Placer Domeand Barrick. This automatically put downwardpressure on the price.

At the same time, there was a tightening ofcontrol over South African mining assets by thatgovernment. A new law returned all mineral rightsto the state. In addition, it gave the Mining andEnergy Ministry “extraordinary” powers to use thelaw for “social upliftment.” Concerns, then, arose inthe mining industry and among investors from theleaking of details of a “black empowerment charter”which said that those, who were discriminatedagainst under the apartheid regime, should control51% of all mining assets within 10 years. Theimmediate backlash forced the government to saythis was only a working paper, not official policy.

In the case of PDG, note that it has a 50% interestin the PDG-Western Areas Joint Venture. This, inturn, holds the South Deep mine, considered to bethe outstanding developing mining property in thatcountry. PDG’s share of reserves have been estimatedat 107 million metric tons averaging about 0.27 oz.per ton. This is a very large portion of PDG’s reservesbut the location is not a plus for the long run. Werate PDG a Hold.

In addition, PDG’s bid to become one of the“consolidators” in the industry seems to have fallenshort. It has only been able to secure 31% of AurionGold’s shares in its final takeover offer. Aurion wouldhave added 7.7 million oz. of reserves, today a mostimportant factor. With gold firmly over $300, reservesnow cost a lot more.

Consolidation has also affected the second andthird line producers. Kinross Gold (ASE KGC$2.20) is in the process of acquiring Echo BayMines (ASE ECO $1.09) and TVX Gold, Inc.



(NYSE TVX $13.55). Note that TVX recently had a1-for-10 reverse split. These bring together a numberof mines that could maintain production at the 2million oz. rate. Combined proven and probable reservestotal about 17.8 million oz. of gold and 52.6 million oz.of silver. Resources are estimated to be an additional19 million oz. of gold and 60 million oz. of silver.

The new company will be held 40% by Kinrossshareholders, 31% by TVX shareholders, 14% by EchoBay shareholders and the balance by Newmont throughNEM’s position in Echo Bay. Each company contributeswell thought of gold properties. However, we believe itwill be some time before the hoped for synergies willwork through.”

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GOLD STOCK ANALYSTBox 7440 Ft. Lauderdale, FL 33338.Monthly, 1 year, $350.

Gold to do well over the next few yearsJohn Doody: “I expect gold to do very well the next

couple of years. As of August 27, my Top 10 Stockswere up 21% in 2001 and another 74% in 2002.

These results are not directly due to the weak U.S.Markets, but due to the U.S. Dollar and our hugecurrent account deficit. We’re set up for an exactrepeat of 1985 – 1987. Then the Dollar had beenstrong due to the high U.S. “real” interest rates ofthe early 80s. The world wanted to own U.S. bondsand foreign money flooded in, driving the Dollar toan overvalued level.

Remember 11 Francs to the Dollar in the mid-80s?The U.S. Stock Market was a similar lure in the late1990s and money flooded in to buy stocks. The bloomis off that rose and foreign money doesn’t come inlike before… but we still send them Dollars throughour Trade Deficit. The Dollar is already down 10%vs. the Euro, but there’s more to go. Now near $1.00= 1.0 Euro, the Dollar will likely fall to its value atEuro’s start 1/1/99; then it took $1.17 to buy 1 Euro.And, since markets always overshoot, I expect theDollar to fall further.

This scenario will probably not prevail forever.But as long as we keep sending $450 billion/yearoverseas to buy stuff, foreigners have to be willingto recycle the Dollars and “buy U.S.”… stocks andbonds, entire companies, Miami condos… for theDollar to hold its value. Lately, foreigners havebeen selling Dollars to invest elsewhere. As theDollar falls I remember 4.7 Francs/$1 in the early1990s. We stop importing as much and a new equi-librium level is reached. From Feb 85 – Dec 87,the Dollar Index fell 46% and gold almost doubled,from $284 to $500. I expect a repeat.”

Editor ’s Note: The Gold Stock Analyst findsUndervalued investment opportunities throughfundamental analysis and rankings of the largestNorth American-Traded precious metals miningstocks. With a one-year $350 subscription, Bull &

Bear readers will receive the Top 10 Stocks (up 74%to date) and the 32-page Gold Stock Analyst UserGuide. Visit the web site at www.goldstockanalyst.com.

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FREEMARKET GOLD & MONEY REPORTP.O. Box 5002, North Conway, NH 03860.1 year, 20 issues, $260. www.fgmr.com.

Market leaders for the next bull moveJames Turk: “Of the four new gold mining stocks

that I recently recommended for purchase, only onetraded through the price at which I recommended tobuy it. That was Anglogold (AU), which tradedthrough at $20.50 on August 5th.

The other three did not reach my buy level, eventhough I raised my recommended price at whichto buy. One stock is Toronto listed: IAMGOLD(IMG). The other two companies are NYSE listed:Glamis Gold (GLG) and Agnico-Eagle (AEM).All three of these stocks have been very strong,which is a good thing. In other words, It’s a reasonto buy these stocks; it’s not a reason to avoid them.The strength of these stocks suggests that they willbe among the market leaders in the next bull movethat will begin when gold finally breaks above$325. Hopefully the others in my recommendedportfolio of gold stocks will also be up there asleaders in the advance.

In any case, if these three stocks look expensivenow compared to where they were a few weeks ago,don’t worry and don’t be diverted from the importantpoint. These are quality companies, and moreimportantly, the current price will look cheap whengold trades at $350.

It is still possible that these three stocks will tradethrough my recommended purchase price. But nowthat gold looks ready to sail higher, we shouldn’t wait.Therefore, start adding them now to your portfolios.Buy IAMGOLD, Glamis Gold and Agnico-Eagle.

Also, continue accumulating my other recommendedgold mining stocks. These are (in no particular order)Newmont (NEM), Freeport Gold & Copper(FCX), Gold Fields (GFI), Harmony (HGMCY),Goldcorp (GG), Meridian (MDG), Rio Narcea(RNG.T), and Durban Deep (DROOY).

My view has been that the mining stocks were ina corrective phase and that they would be makingan important low. I have stated in my newsletter thatI expect this low will in time prove to be as impor-tant as the low made in October 2000.

I have been expecting that this low would be madeat the end of August or early September. But, itbecame clear that the low had already been made atthe beginning of August.

There is, of course, always the possibility that I’mcompletely wrong and the low in gold and the miningstocks is nowhere in sight. I don’t think so, but whenit comes to markets, remember that anything ispossible.” 9/9/02



THE INTERNATIONAL FORECASTER, P.O.Box 510518, Punta Gorda, FL 33951. 1 year,24 issues, or 3-4 issues a month by e-mail,$99.95.

The goons are on the runRobert Chapman: “Our pressure on the gold

hedgers is paying off big. You can thank Bill Murphyand GATA; they made it all possible. The goons areon the run. They lightened their hedge books by 365tons, or 11.7 million ounces in the first half of theyear. That’s 500 tons that were unhedged for the yearor 16.1 million ounces. That leaves 2,500 tons to go.Low interest rates have been a factor, but the realfactor is Barrick, AngloGold, Placer and theAustralians know the jig is up. Now these wormsare buyers and we love it. These producers have hurtgold investors so badly for years they’ll never buytheir shares. Their securities will continue tounder-perform. Now either the gold cartel bankerseither cover or they are going under. If they go un-der they’ll take the financial system with thembecause they are writing most of the derivatives andwho knows how naked they are. JPM states theyreduced hedges 13% on the year, which meanssomeone else is replacing the shorts. If they werenot, gold would be a lot higher. Placer has to have

the stupidest management in the world. They aretoast. It’s only a question of time when they will betaken over. Barrick is the likely predator.

For the period ended August 28, 2002, among stockfunds, the Prudent Bear Fund was rated number sixup, 55.86% year-to-date. How’s that for performance?We own the fund and we are sure happy with suchspectacular results in such a dreadful investingenvironment.

It’s time to watch the corrections closely because it’sstarting to look like they may be over. And if they are,the corrections to date will have been unimpressive.That is, the major uptrends for gold, gold shares andthe currencies, as well as the major downtrends forstocks and the Dollar are strongly in place.Interestingly, the short-term indicators are at extremes,yet the medium-term indicators are far from it.

If gold stays above $302, and especially above$308, the weakness is over. Gold is now oversold anda renewed rise would begin above $316. Silver isstable above $4.40 and a renewed rise would occurabove $4.60. Platinum is strong above $540 and itmay be leading the others. Oil is taking a breather,but it’s strong above $26.80.

The XAU had a mini break out. It’s solid above 62and a clear renewed rise would be underway above71. MDG continues to be the strongest and it’s break-ing out. AEM, GG, GLG and NEM are following andalso appear to be leading the way up. We now alsorecommend buying Silverado Gold Mines Ltd.(SLGLF.OB), which also looks great.”

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Interinvest REVIEW & OUTLOOKP.O. Box 1585, Boston, MA 02104.Monthly, 1 year, $125.

Gold headinghigher, much higher

Dr. Hans Black: “After correcting for the past fewmonths, gold is once again challenging the upper pricelevels near $325 per ounce, last seen in May. In largepart due to concerns over impending hostilities in theMiddle East, the price of bullion has been firming.However, this has not been confirmed by the price actionof many precious metal stocks, which unfortunatelyseem to be destined for a lengthier correction. Givenwhat we have seen in gold markets over the past tenyears, we believe the stocks have it right for now, i.e.,the price of bullion itself is likely to come down onceagain to trade in the price band between $290 and $300per ounce. Ultimately, we believe we are headed higher,much higher, but for the moment a further period ofcorrection is due.

We would continue to accumulate better qualitygold companies on any price weakness. We wouldconcentrate our buying in Newmont Mining(NEM), Placer Dome (PDG), Glamis Gold (GLG),Eldorado (ELD) and Cambior (CBJ).”


UNICO: Producing Gold & SilverFrom Historic Utah MinesContinued from page 7

in our new mill. And now we’re there!” says Brown.Investment Considerations

With its milling operation running; minersblasting in the mountain; substantial amounts of orestockpiled; concentrates bagged pending shipment;and other promising properties poised for develop-ment, UNICO is well positioned to take advantageof a price increase in either precious or base metals.

High-level assays of current known resources are afact. Future drilling and exploration to expandresources and prove up reserves at all UNICO minesare expected to substantially increase the company’svalue -- and revenues.

UNICO recently secured $550,000 in privatefinancing through a loan from a long-term “bullish”investor. The funds will be used to supplement oreproduction income and accelerate ongoingdevelopment and production of its three miningproperties.

“We believe we have a rare mining opportunity.We are very excited about the immediate and futureprospects for all three of our mines to resumeproduction, enhance proven reserves and explore neweconomic ore-bearing zones,” says Brown.



Crystallex: Moving Fast ToMajor Gold Production

Selected to Operate Venezuela’s Las Cristinas – One of World’sLargest Undeveloped Gold Mines, With Potential Cash Flow in the Millions

Crystallex International Corpo-ration (AMEX/TSX: KRY), nowdeveloping multiple world-classgold properties in Venezuela, isasset-rich and poised to break outof the junior ranks to become asignificant intermediate goldproducer.

• The company is a longtimeplayer in the South American goldsector and over the years hasgarnered valuable contacts andinfluence.

• Crystallex owns or controlsproperties in three major Venezu-elan gold camps, and has beennamed to take over production –for a possible 70 percent cut – ofone of Latin America’s and theworld’s richest undeveloped golddeposits, the Las Cristinas GoldMine.

• The company’s gold produc-tion totaled 281,000 ouncesduring the past three years, willreach 115,000 ounces this year,grow to more than 170,000ounces annually by 2003, andreach 500,000+ ounces in outyears.

Producing and near-producingproperties owned or controlled byCrystallex surround the company’scentral mill facility. This deliber-ate “hub and spoke” strategysignificantly increases opera-tional efficiency.

“We are leapfrogging over ourpeers,” says A. Richard Marshall,VP of Corporate Development.

Crystallex to OperateLas Cristinas

Gold MineAll of these factors and their

title were probably helpful forCrystallex in winning a favorableresponse to its proposal to spend

up to $400 million to bring theLas Cristinas Gold Mine tofull production. In September,Crystallex was selected by thestate-controlled industrialholding company,CorporacionVenezolana de Guayana (CVG) asthe official Las Cristinas opera-tor.

This decision may spell the endof a long legal dispute betweenCVG and Canadian VannessaVentures Ltd., which also claimsthe right to develop the deposit.Vannessa purchased a controllingstake in the mine from its originalowner, Placer Dome, last year.CVG says the sale was invalid. Todate, this position has beenupheld by the VenezuelanSupreme Court.

“We don’t fear any claim beforethe Venezuelan courts becausethese can’t affect the (miningrights) titles to the deposit,” saysLuis Felip Cottin, president ofCrystallex de Venezuela.

The Las Cristinas is a richprize. Media reports suggest thehe mine has proven and probablyreserves of more than 11.8 millionounces of gold. When fullyoperational, the mine is expectedto produce 40,000 tonnes of ore aday, or about 500,000 ounces peryear.

CVG chose Crystallex becauseof the company’s longtimeexperience in the country and itsability to rapidly develop themine. The decision appears tosolidify Crystallex claims to LasCristinas development rightsacquired from Inversora Mael, theoriginal titleholder.

Crystallex proposes to developlocal infrastructure by buildinghouses and roads and improving

Realizing the Potential

CRYSTALLEX INTERNATIONALCORPORATION

AMEX: KRY; TSX: KRYCompany Contact:A. Richard Marshall

V.P. Corporate Development700 West Pender Street, Suite 902

Vancouver, BC V6C 1G8Canada – Phone: 800-738-1577

Fax: 604-688-3128New Jersey – Phone: 201-541-6650

Fax: 201-541-7814Web: www.crystallex.com

Email: [email protected] Outstanding (fully diluted):

85.6 millionPublic Float: 80.6 million

52-Wk : Hi: $2.47 • Low:$0.81



local health and water services, as well as building aproduction plant. Mine development will be done inphases. Gold production is slated to increase in eachphase and lead to significant long-term results. Severalbanks and investment companies– including Deutsche Bank,Standard Bank of London,Endeavour Financial Ltd. of Britainand Yorkton Securities – are inter-ested in financing the $400-millionproject.

A formal operating agreementbetween CVG and Crystallex willbe signed shortly, says Marshall.

South AmericanGold MiningProperties

Crystallex has been active inSouth America, and particularly inVenezuela since the early 1990s, investing more than$120 million in properties and infrastructure. Forthe past few years, the company has focused ontaking advantage of a depressed mining industry toacquire potentially valuable mining assets.

These mining concessions are situated along a150-kilometer line running through the country’sthree richest gold producing regions, the El Callao,El Dorado and Kilometre 88.

In 2000, Crystallex acquired allof the Venezuelan assets ofBolivar Goldfields, including theTomi Mine, the Revemin Mill and44,438 hectares of additionalexploration lands.

The Tomi Gold Mine hasreserves in three contiguous pits,the McKenzie, Charlie Richardsand Milagrito. A drill programconfirmed the potential of a high-grade mineralization along thedown plunge extension of theCharlie Richards deposit. Basedon the results of that program,Mine Development Associates ofReno, Nevada, estimates theproject could produce 171,000ounces of open pit material grad-ing 6.20 oz/t gold at a 1.74 g/tcutoff and 129,787 tonnes of un-derground ore averaging 15.36 g/t gold at a 56.0 g/t cutoff. Averageproduction costs are estimatedbelow $150 per ounce.

Last year, the company acquired control of the LoIncreible Project , a gold property adjacent to theRevemin Mill. A pre-feasibility study by Bemaindicates a geological resource of 24.1 milliontonnes grading 3.3 g/t gold and containing 2.6 millionoz/Au at a 1.0 g/t cutoff. A trial pit at the La Victoriayielded 14,021 ounces of gold with an average

recovery of 87.3%. A 2001 drill program expandedreserves by 54%.

The Albino 1 Mine produced gold for Crystallexfrom 1994 to 1998. Production was halted to completea resource and reserve estimate (MDA). Measured

and indicated resources are nowset at 3.2 million tonnes grading4.02 oz/Au at a 0.5 g/t cutoff. TheAlbino’s estimated mining cost is$129/oz. An underground mine isexpected to be in production in2003. MDA described the Albino asa “small but good quality project”.

The Revemin Mill is strate-gically located within truckingdistance of all the Venezuelanmining properties. A planned$5.5 million plant expansion in2002 and 2003, funded out of cashflow and debt, is expected to

increase production next year to about 150,000ounces/year.

Crystallex entered the Uruguayan mining sectorin 1998 when it acquired the Minera SanGregorio . Since that time, gold production hasaveraged about 65,000 ounces each year and isexpected to maintain that level throughout 2004.The 6.52 million tonne mineral reserve averages1.59 g/t Au (333,700 ounces). An exploration

program is planned to extend themine’s life.

Forward-ThinkingMine Management

Crystallex is a modern miningcompany in every sense of theword. The company sets a highpriority on not only protecting theenvironment, but attempting torepair any damage caused by itsmining activities.

In 1998 the San Gregorio Minewon the OLAMI award for bestenvironmental practices in LatinAmerica. The company environ-mental efforts include plantingthousands of trees at Albino I andrehabilitating a tailings pond intoa soccer field.

Fundacion Imataca, an environ-mental foundation started byCrystallex, is dedicated to preserv-ing and improving Venezuelan

forests. The organization is led by Crystallex BoardMember Dr. Enrique Tejera Paris. He is alsopresident of the Foundation of Ecology and isdirector of two leading conservation societies inVenezuela.

Worker safety is also a high priority. TheCrystallex Safety Program includes planned inspec-tions, safety training and incident investigations.

Revemin Mill Strategically Located

Bolivar StateVenezuela

RiveraSan JoseUruguay



InvestmentConsiderations

Crystallex spent the pastfive years building itsproduction profile and gold pro-duction to establish a solidfoundation for growth. Duringthis period, the company real-ized significant compoundannual growth rates – 87percent in revenues, 89 percentin gold production and 30 per-cent in shareholder equity.

The company has C$144 inequity, C$198 million in assets,a relatively low debt to capitalratio, a positive cash flow, anexpert management team, andsupport of institutional share-holders (Standard Bank ofLondon, State Street Bank,OMERS, Van Eck Associates,Oppenheimer Funds, Inc. andPrudent Bear Fund).

2002 is a consolidation yearas the company expands itsproduction facilities and min-eral inventories. Next yearCrystallex will be on its way to becoming a significantgold producer.

Crystallex produced 77,000 ounces of gold in 1999,95,000 ounces in 2000, 109,000 ounces in 2001, andforecasts 115,000 for 2002 and 170,000 ounces in2003. As the company ramps up production, costs areexpected to decline to under $200 per ounce.

Just prior to the CVG announcement, the GoldStock Analyst reviewed Crystallex, noting its three-year record of profitability and “sound” hub and spokestrategy to acquire properties around its ReveminMill. GSA Editor John Doody listed Crystallex in itsGSA Top 10” with a “Buy” rating, saying the company

Minera San Gregorio, Uruguay

should trade higher, based on production growth inthe pipeline – even without the Las Cristinas deal.

After the announcement, Yorkton Securities, Inc.rated Crystallex as a “Speculative Buy” and raisedtheir 12-month target price to $5.00 up from $2.10.“Our models suggest an $800 million value for 70%of the project (the estimated Crystallex operationalshare),” stated Yorkton.

“The company’s growth has been impressive,” saysMarc J. Oppenheimer, Crystallex President and CEO.“The acquisitions made over the past few years andnow incorporated into our operations will make agreat impact on revenues and cash flow.” �

For additional informationand the latest developments on

Crystallex International Corporation,Visit The Bull & Bear's

Resource Investor Onlinewww.TheBullAndBear.com



An advertising section to keep the financial community up-to-date on corporate developments, interim reports and annual reports

Corporate Update/Interim Reports

Bright Star V entures Ltd.Bright Star Adds Additional Claims T o

Golden Lode Properties And Reports HighGrade Gold & Silver Assay Results

VANCOUVER, B.C., September 10, 2002 –Management of Bright Star Ventures Ltd. (TSX:BSV) is pleased to announce positive explorationresults on the Golden Lode Property whoseacquisition was initially announced on June 21, 2002.

The claims are in a well-mineralized area with thepast-producing Brenda Mine (Cu-Mo) to theNortheast and the Elk Mine, a high-grade gold-quartz vein deposit, to the Northwest. Past samplingin the subject claims has produced significant gold(up to 1.6 oz/t), silver (up to 4.38 oz/t) and copper (upto 1.69%) values from the magnetite-hematitemineralization with local chalcopyrite. The propertylies within the Intermontane Belt in an areadominated by several large granitic intrusions fromTriassic to Eocene age and Nicola Group (Triassic)volcanic and sedimentary country rocks.

The current high-grade assay results of prospectorgrab samples over an extensive area are as follows:

Sample # Au Au Ag Ag Cu(g/t) (oz/t) (g/t) (oz/t) (%)

2251 1.26 0.37 - - -2252 4.88 0.142 - - -2253 5.12 0.149 33.8 0.986 -2254 0.54 0.016 44.4 1.295 -2255 0.06 0.002 - - -2256 0.03 0.001 - - -2257 43.80 1.277 166.0 4.841 4.382258 0.59 0.017 - - -2259 10.45 0.305 - - -2260 25.60 0.747 - - -2261 7.10 0.207 - - -2262 1.24 0.036 - - -2263 3.31 0.097 - - -

A geological report by Ronald C. Wells, P. Geo.FGAC Consulting Geologist indicates a goodcorrelation between the gold and silver values withinmagnetite zones. His reviews of an existing magnetitehigh-grade stockpile have indicated high metalvalues in the magnetite/hematite. Bright Star’sresults have now confirmed the existence ofhigh-grade gold, silver and copper occurrences. TheCompany is planning an exploration program to

commence shortly.Due to the rich nature of this property, Bright Star has

now acquired an additional 49 units covering the entireprospected area. The additional claims staked are theStar-A, Star-B, MAG-5-17, and the Lode-45-48.

For information on the company call 1-800-884-3864,or visit our website at www.brightstar-ventures.com

The TSX Venture Exchange has not reviewed and does notaccept responsibility for the adequacy or accuracy of this release.This news release may contain forward-looking statementsincluding but not limited to comments regarding the timing andcontent of upcoming work programs, geological interpretations,receipt of property titles, potential mineral recovery processes,etc. Forward-looking statements address future events andconditions and therefore, involve inherent risks and uncertain-ties. Actual results may differ materially from those currentlyanticipated in such statements.

Golden Goliath ResourcesUruachic Camp Drilling Update

VANCOUVER, B.C., September 9, 2002 – GoldenGoliath (TSX-V: GNG): Management is pleased withthe progress of the company’s Uruachic campexploration project throughout the current rainyseason.. The Uruachic camp is a very large area, withnumerous drill target areas separated by up to 15kilometres. Road building and exploration drillingtake time, especially during the wet season. Thecompany has been using a diamond drill on theOteros property, located in the southeastern partof the Uruachic camp. Oteros has two drill targetareas, the River zone and the Red Mountain zone. Atotal of 14 drill holes have now been completed atthe River zone. This core had to be logged, split, sampledand then shipped to the Acme Analytical preparationlab in Guadalajara, a trip that requires several days.In Guadalajara the samples are dried and pulverizedand then sent to Vancouver for analysis. The companyhopes to have the complete results from these holeswithin approximately 10 days.

Work is continuing on the access and water lineroute to the Red Mountain area of the Oteros propertyand drilling will commence there as soon as possible.The Red Mountain area is at least 800 metres longby 400 metres wide and, like the other target areas,has never been drilled before. Recent surfacesampling at the Red Mountain zone has returnedassay values of 1.31, 1.37 and 4.62 grams gold/tonne,as well as one grab sample with 1.72 ounces gold/tonne. Sampling completed last year in this areareturned values of 5.76 grams gold/tonne with 109.3grams silver/tonne and 7.48 grams gold/tonne with



40.1 grams silver/tonne. This zone is quite extensive,with mineralization occurring on either side of alarge, highly oxidized hill (the Red Mountain) and iscoincident with an IP and magnetic anomaly.

In other areas of the Uruachic camp explorationdrilling is being conducted using a reverse circulationdrill. At the La Reforma property, located 10kilometres north of Oteros in the northern part ofthe camp, a total of six RC holes have now beencompleted. This program was delayed due to a soggyroad collapsing under the weight of the drill rig.Fortunately no serious damage occurred to the drill,but it had to be demobilized and replaced with alighter weight machine and the road had to berepaired. Assays are not yet complete for these holesbut are expected within two weeks.

At the Corona property, located 15 kilometressouthwest of La Reforma, reverse circulation drillingis continuing. Corona hosts five different drill targetareas with holes planned or completed for all of them.Results from 22 holes in the area of the Northeastzone, released on July 30, included values of overeight grams gold/tonne in several holes and outlinedthe zone as being 200 long by 150 metres wide andopen in three directions. Five more holes have nowbeen completed in this zone with the aim of extendingit toward the La Mula target area located about 1.5kilometres to the northwest. Surface samplingresults at La Mula differ from those at Corona North-east in that La Mula has high silver along with goldvalues, while Corona Northeast has low silver. Thisimplies two different mineralizing systems. Four RCholes have now been completed at La Mula and moreare planned as soon as proper drill pads are built.

The Southwest Corona and Cerro de la Cruz zoneshave four and two holes completed respectively.Sampling on the Southwest has returned chip samplevalues of 5.36 grams gold/tonne (0.16 ounce/ton) overfive metres, 1.6 grams gold/tonne (0.05 ounce/ton)over five metres and 3.1 grams gold/tonne (0.09ounce/ton) over 10 metres, grab samples of float fromthe base of a cliff returned 21 grams gold/tonne (0.61ounce/ton) and 7.35 grams gold/tonne (0.21 ounce/ton). These values and others combined withfavourable geology over an area of 400 metres by 600metres make this an attractive target on its own.The RC drill is currently completing the second holeat the South zone (also referred to as Alcaparra),located in the southernmost part of the Coronaproperty, about three kilometers south of La Mula.

The South zone covers a large area with intensesilicification hosting gold, silver and coppermineralization. Mineralization occurs on both sides

of a small valley, with old workings on the east sidenear the creek that runs down the gully. Old workingsin this area also provide evidence of high-grademineralization, making another exciting target.Mineralization occurs over a vertical interval of atleast 150 metres and the zone may be an extensionof the Southwest zone. The assays results from theCorona holes will be received in batches over the nextseveral weeks. The company plans to release themin meaningful groups as soon as possible.

The company believes the Uruachic camp hasexcellent potential for hosting gold and silvermineralization in numerous areas and is pursuingan aggressive drilling campaign designed to test thatpotential. These areas differ in geological nature, butare all situated in the highly favourable lowervolcanic sequence of the Sierra Madre Occidental.The company’s goal is to outline a precious metalresource, large enough to be of interest to majormining companies, from several areas within theUruachic camp. This cumulative resource could beprocessed in one central operation.

The company’s properties are fully paid for. Thiscombined with the positive exploration results to datehave attracted the attention of major miningcompanies. Management expects to meet withvarious executives over the coming weeks.

For more information contact J. Paul Sorbara,President, Golden Goliath Resources Ltd. (604) 682-2950,Fax (604) 685-3764. E-mail: [email protected] or visitthe web site at www.goldengoliath.com.

No securities regulatory authority or stock exchange has re-viewed or accepts responsibility for the adequacy or accuracy ofthe information contained in this press release.

Houston Lake Mining Inc.Houston Lake Expands Land Position

To Cover High Grade Gold Zones, Jesse(North) Gold Property Option Earned In

SUDBURY, Ontario, September 10, 2002 –Houston Lake Mining Inc. (TSX.V: HLM, “HoustonLake”) is pleased to report that the Company hasstaked additional ground to cover strike extensionsof high grade gold-bearing shear zones sampled thissummer on the Company’s McLennan/Jesse (North)gold project in the Kenora Mining District of Ontario.Houston Lake has also completed all therequirements of its 100 percent option of the Jesse(North) gold property.

Houston Lake has staked an additional 20 claimContinued on page 16





Continued from page 15

units (320 hectares or 790.4 acres) which arecontiguous with the Company’s McLennan and Jesse(North) gold properties in the Kenora Mining Districtof Ontario. The Company now owns or has underoption a total of 603.6 hectares (1490.9 acres) in theDogpaw Lake area. The land package now covers a2.6 km. (1.56 mile) strike of the rocks hosting thehigh grade gold-bearing shear zones described below.

Historic work on the McLennan gold property hadfocused on the McLennan Shear Zone (“MSZ”) at thenortherly-striking contact of mafic volcanics with alarge gabbro body. “Drilling carried out by NorandaMines in 1944-45 encountered significant gold-bearing intersections over a strike length of 280m.(918 ft.). Typical intersections along the shear zoneand off shoot shears are: 0.20 oz/t Au over 1.2 ft.,0.53 oz/t Au over 18.0 ft., 0.25 oz/t Au over 3.0 ft.,0.55 oz/t Au over 1.5 ft., 1.35 oz/t Au over 3.5 ft.” (Dr.K. Germundsen, P. Geo., Internal Company Report,2002 ). In 1997 a new 10 to 20 metre wide shear zonewas identified internal to the gabbro and had a strikelength in excess of 800 metres (2,624 feet).

Trenching and stripping was carried out earlierthis summer over the new gold-bearing shear zone(“NSZ”). Over 100 metres (328 feet) of the NSZ wasexposed along strike and the NSZ remains open inboth directions. Channel sampling tested a 70 metrestrike length of the newly exposed zone andconfirmed earlier high grade gold results obtainedin 1997 on the McLennan/Jesse (North) gold project.Sixty channel samples were taken in the vicinity ofthe NSZ and returned results that varied from traceto 47.1 g/t Au (1.374 oz/t Au) and averaged 1.88 g/tAu (0.055 oz/t Au). Three complete channels weretaken perpendicular to the north-south strike of theNSZ from north to south over the stripped area:Channel 1 at 5m. (16.4 ft.), Channel 2 at 17.5m. (57.4ft.), and Channel 3 at 75m. (246.0 ft.). Channel 1returned 9.11 g/t Au over 5.8m. (0.266 oz/t Au over19.0 ft.) including 18.76 g/t Au over 2.5 m. (0.547 oz/t over 8.2 ft.). Channel 2 returned 5.39 g/t Au over3.95m. (0.157 oz/t Au over 13.0 ft.) including 9.26 g/tAu over 2.0m. (0.270 oz/t Au over 6.28 ft.). Channel 3assayed 5.71 g/t Au over 5.0m. (0.167 oz/t over 16.4ft.) including 9.19 g/t Au over 3.0m. (0.268 oz/t Auover 9.8 ft.). However, preliminary evaluationindicates that the NSZ may contain pods or lenses ofgold mineralization as 16 samples scattered betweenChannels 2 at 17.5m. and Channel 3 at 75m. returnedanomalous gold values only. A $300,000 explorationprogram involving line-cutting, geophysics, mapping,

and diamond drilling is recommended for the project.Houston Lake has met all requirements of the

Jesse (North) option agreement by issuing 75,000common shares and completing $18,000 inexploration expenditures. Upon filing of anassessment report the Company will have completedthe 100 percent earn in of the 144 hectare (355.7 acre)Jesse (North) Gold Property subject to a 2.5 percentNet Smelter Royalty (“NSR”). The Company hasissued 75,000 common shares and expended $20,000of the $200,000 in exploration required under theMcLennan option agreement. The Company cur-rently holds a 45 percent ownership interest and hasfive years to commit a further $180,000 in explora-tion expenditures to complete the earn in on theremaining 55 percent of the 139.6 (345 acre)McLennan Gold Property. The 100 percent interestis subject to a 2.25 percent NSR. Both the Jesse(North) and the McLennan Gold property options arenon-arms length agreements.

Houston Lake is actively exploring for Gold, RareMetals, and Platinum Group Metals with a strategicfocus on northwestern Ontario. Houston Lake MiningInc. has a total of 15,425,695 common shares issuedand outstanding. The common shares of HoustonLake Mining Inc. trade through the facilities of theTSX Venture Exchange under the symbol HLM. Forfurther information on all of the Company’s projects,contact E. Grayme Anthony, (705) 897-7622, Fax:(705) 897-7618. E-mail: [email protected] or visitthe web site at www.houstonlakemining.com.

The TSX Venture Exchange has neither approved nordisapproved of the information contained herein.

National Gold Corp.Report on Fieldwork On The Zinger PropertyIn The Purcell Basin Of British Columbia

VANCOUVER, B.C., September 9, 2002 – NationalGold Corporation (TSX-V: NGT) is pleased to reportthat the results of the fieldwork year to date from theZinger gold trend are positive, and that National Goldis encouraged with the advancement of the propertywith each additional program. The Zinger gold trendis part of a package of properties being acquired byNational Gold (news release dated August 12th, 2002)located in the Purcell Basin of southeastern B.C.

Though at an early stage of exploration, the extentof the known gold mineralization in bedrock on theZinger property currently extends over anapproximately 10km mineralized trend. As this






Mountain Province Diamonds Inc. (OTC BB:MPVI; Toronto: MPV) is sitting on a potential world-class gem-quality diamond deposit in Canada’sNorthwest Territories.

The in-situ diamond value – now estimated atnearly $3 billion – has attracted a partner with verydeep pockets: South African diamond giant De BeersConsolidated Mines Limited. De Beers already hasspent more than $30 million to develop the MPVIproperty and shows no signs of quitting.

A significant number of large diamonds wererecovered from a recent bulk sampling of the 5034diamond pipe: 1,215 carats with the three largestdiamonds weighing 7.0, 6.6, and 5.9 carats. Modeledvalues are expected later this year and an updateddesktop study in early 2003. De Beers will thendecide whether to go to a feasibility study or not.When in production MPVI is assured of a 36%production share of a major new diamond mine.

De Beers wants to know whether the discovery ofa 9.9 carat high quality, top color “super” diamondvalued at $60,000 last year is indicative of a

Mountain Province Diamonds Inc.Discovers High-Quality, Top-Color Diamonds in Canada

Global Diamond Giant De Beers Funding All Exploration & Development

Summary:Mountain Province Diamonds Inc. (OTC BB: MPVI; Toronto:MPV) is actively involved in exploring and developingdiamond deposits in Canada's Northwest Territories througha joint venture agreement with De Beers CanadaExploration Inc., a wholly owned subsidiary of De BeersConsolidated Mines. MPV and De Beers have alreadydiscovered seven diamondiferous pipes (three large and

four small). De Beers has completed major bulk sampling of the Hearne, Tuzo and 5034 pipes and has discovereda high quality, top color 9.9 carat diamond valued at $60,000, raising the possibility these valuable, high qualitystones could occur regularly during production. Results of additionalbulk sampling are expected by fall 2002. The joint venture agreementcalls for De Beers to pay for all exploration and development expenses.Mountain Province retains a 36 percent interest in the quarter-million-acre property, located 115 km southeast of Canada's first diamondmine, the Ekati mine which produces 6 percent of the world's gemdiamonds.

Company Contact:Jan W. Vandersande, President & CEO

3633 E. Inland Empire Blvd. #465, Ontario, CA 91764

Phone: 909-466-1411 • Fax: 909-466-1409

Email: [email protected]: www.mountainprovince.com

Shares Outstanding: 50 million • Public Float: 25 million52-Week Range: Hi: $1.08 • Low:$0.27



two most promising pipes – the Hearne and 5034– turned up a 9.9 carat high quality, top color gemdiamond valued at $60,000 from the 5034 pipe. Thisdiamond is one of a population of high quality gemdiamonds recovered from the last two bulk samples.

“This is a really top diamond,” says MPVIVandersande. “The recovery of a significantly

greater number of diamonds larger than halfa carat, compared to the two previous

bulk samples, increases the probabilitythat more top diamonds have been

recovered.”Recovery of additional largehigh-quality, top-color diamonds

could increase the values percarat sufficiently so that the

threshold required for theproject to move to the

next stage of develop-ment (feasibility) is

achieved. “We are

very pleased withthe results,” says

Vandersande, addingthat new modeled values

are expected to be completedby DeBeers by the end of the year.

Continued Exploration Activities

De Beers will decide whether toconduct additional sill surface sampling this

summer based on the results of a 10-hole drillprogram to define the size and thickness of the

MZ Lake diamondiferous sill deposit (locatedapproximately 20 km northwest of Kennady Lake,which contains the three large pipes). This sill systemhas the potential to add to the resource base.

Experienced ManagementMountain Province Diamonds President and CEO

Jan W. Vandersande Ph.D. has an extensivebackground and expertise in diamond mining andthe diamond market. He holds a M.Sc in Physics fromCornell University and a Ph.D. in Solid State Physics

population of such high-quality gem stones. “Thenumber of diamonds available, especially the largerdiamonds, for valuation has as a result increased andshould lead to more confidence in the value per caratmodeling,” says Jan W. Vandersande, Ph.D.,Mountain Province President. “These high quality,top color diamonds have a significant impact onrevenue per tonne.”

Northwest T erritoriesA Major Diamond

ProducerDiamonds were first discovered

in Canada’s Northwest Territo-ries in 1991, producing adiamond “rush” to stakepromising ground.Today, the Ekati Mine,located about 70miles NW ofMPVI’s property,produces about6 percent of theworld's annual supplyof gem quality diamonds.

MPVI began its explora-tion efforts in 1992 andquickly secured mining claimsto properties totalling aboutone-quarter million acres. Thediscovery of the 5034 diamondpipe in 1995 attracted the attention ofDe Beers.

In 1997, the two companies entered ajoint venture agreement calling for De Beers tofinance all exploration and development costs,including an estimated $400 million to build themine provided a benchmark internal rate of returnis achieved. Over the course of several drillingprograms, bulk samplinganalysis has proven out thevalue of the property, nowstanding at $2.8 billion inin-situ diamonds in thethree large diamond pipes.

Large Gem-Quality Diamonds

Confirmed inBulk Sampling

Analysisby De Beers

Mountain Province hasdiscovered seven diamon-diferous kimberlite pipes(three large and four small)and several diamondifer-ous sills, all bearingdiamonds. Bulk samplinganalysis last year on the

“Mountain Province and its

TheDiamondAnalysts

Kennady Lake project strike me asthe most obvious way to profit from a

diamond play during the next three months.” –John Kaiser ,Bottom-Fish Tracker

“De Beers clearly wants to see diamondproduction in Canada and this project

represents one of the company’sbest shots at early production.” –

Lawrence RoulstonResource

Opportunities



from the University of theWitwatersrand in SouthAfrica. He has researchedthe conductivity of rocks andminerals, including dia-monds. He is the author ofover 30 published articlesand book contributions onthe properties of naturaldiamonds. While in SouthAfrica he worked closelywith the De Beers DiamondResearch Laboratory. Dr.Vandersande also served asa financial and scientificconsultant and mining ana-lyst, and has advised brokerage firms, moneymanagers and private clients on natural resourcecompanies and commodities.

Paul Shatzko M.D., the company founder andchairman, is also closely involved in the miningindustry. He served as corporate secretary anddirector for Valpar Resources Inc., and was presidentof Trans-Asian Resources Inc. and a director ofExcellon Resources Inc., Gee Ten Ventures Inc.,Quattro Resources Ltd., and Camphor Ventures Inc.

David N. Siegel, a company director, is currentlypresident and CEO of U.S. Airways, and formerlywas president and COO of the Budget Group Inc.and president of Continental Express Inc.

Strong Financial BackingMountain Province Diamonds enjoys the solid

financial backing of De Beers Canada Exploration Inc.,a subsidiary of De Beers. Under the terms of the jointventure agreement, De Beers is paying for allexploration, evaluation and production costs to earn a60 percent interest in the property. De Beers has spentabout $30 million on the AK property since 1997 andhas just spent about $8-10 million in the current bulk

sampling program.“They wouldn't be spend-

ing this kind of money onmore bulk sampling if theydidn’t believe there was avery good possibility offinding additional largegood quality diamonds,”says Vandersande.

InvestmentConsiderationsDe Beers is focused on de-

veloping diamond depositsoutside of Southern Africa.

“De Beers is a companywith a global reach,” De Beers chairman NickyOppenheimer said recently. “Exploration is particu-larly intense in Canada. We are committed to movingthese discoveries there through to production.”

Mountain Province’s AK property project is oneof the four largest in De Beers’ current Canadianexploration/development portfolio. Last summer, DeBeers allocated more than half (C$47 million) of itsannual global exploration budget to diamondexploration in Canada.

Analysts with Gilford Securities, New York, aremaintaining a “Buy” rating on Mountain Province.

Noted analyst John Kaiser, editor Bottom-FishTracker, believes “the recently rising interest inMountain Province had little to do with anticipationof spectacular results and was more a sign that themarket was starting to realize De Beers was seriousabout developing Kennady Lake and that such adevelopment would be worth at least $500 millionand possibly $1 billion in net present value terms.In view of Mountain Province's 36% net carriedinterest and 55,029,048 fully diluted capitalization,such a valuation range would translate into a pricetarget range of C$3.25 to C$6.50.” �

Advertorial Disclaimer-The companies featured in each advertorial contained in this advertiser-supported publicationpay for the advertorials and for the promotional services provided by The Bull & Bear Financial Report. CrystallexInternational Corporation, Mountain Province Diamonds Inc. and UNICO, Inc. have paid a fee to The Bull & BearFinancial Report of up to $29,000. The directors, employees and contributing editors of The Bull & Bear FinancialReport do not own any stock of the securities referred to in The Bull & Bear Financial Reporter section.

Special Note Regarding Forward-Looking Statements-Certain statements in this document constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-lookingstatements involve known and unknown risks, uncertainties and other factors, which may cause the actual results,performance or achievements of the Company, or industry results, to be materially different from any future results,performance, or achievements expressed or implied by such forward-looking statements. Such factors include, amongothers, the following: risks inherent in restrictions of foreign ownership; uncertainties relating to carrying on business inforeign countries; the Company's history of operating losses and uncertainty of future profitability, uncertainty of accessto additional capital environmental liability claims and insurance; and dependence on joint venture partners. Certainforward-looking statements will be identified by a cross-reference to the Special Note. Forward-looking statements aretypically identified by the words: believe, expect, anticipate, intend, estimate and similar expressions, or which by theirnature refer to future events. The Company cautions investors that any forward-looking statements made by the companyare not guarantees of future performance, and that the actual results may differ materially from those in the forward-looking statements as a result of various factors, including but not limited to, the Company's ability to be able to continueits substantial projected growth, or be able to fully implement its business strategies, or that management will be able tosuccessfully integrate the operations of its various acquisitions.




occurs at the headwaters of a substantial placer goldproducing area, the Company views this assignificant. This has led management to believe thatthe property has the potential to host disseminatedbulk tonnage gold deposits and possibly smaller high-grade type lode gold deposits.

Geologic mapping and further sampling are underway to better understand the controls on goldmineralization to assist in developing drill targetson this property. This year’s program of prospectingand mapping is a follow up to the work primarilyconducted in the 1999/2000 exploration season. The1999/2000 work program results gave the initialindications that the property hosts a large goldmineralizing system. This is reflected by the numberof anomalous gold analyses from grab samples andsoil samples. The gold mineralization in bedrock wasfound in silicified and sericitized Proterozoicsediments with quartz veinlet stockworkdevelopment which formed zones of weak to strongalteration in bedrock exposures over an area of 1.5kmby 3.5 km in extent.

Gold was found to occur within these altered rocksin amounts that varied from insignificant to in excessof 31.9 grams per tonne (fire assay and InducedCoupled Plasma [ICP] analysis). All samples weregrab samples and analysis was conducted by AcmeLaboratories. Soil sampling of areas with poorbedrock exposure indicated that the goldmineralization may extend in an east-west directionfor an additional 1.5 km, as defined by a 20 ppb (partsper billion) gold contour.

In this year’s program gold mineralization hasbeen found in bedrock in numerous new occurrenceswhich extend up to 6.0 km to the north of thepreviously known area of mineralization on theZinger property. The alteration associated with themineralization appears to be continuous and thusthe gold occurrences are possibly part of a singlemineralized trend. An historic gold occurrence occursa further 5.5 km to the north along the strike of themineralized trend. More work is planned todetermine if this historic showing is an extension ofthe mineralized trend identified to date.

A total of 226 rock samples have been analyzed1

during 2002 to date. A total of 103 of these 226 samplesreturned results of greater than 100 ppb gold, including39 containing greater than 1000 ppb gold (1000 ppbequals 1 gram per tonne). Of these 39 samples, 18 con-tained more than 3000 ppb gold. Four samples rangedgreater than 10,000 ppb gold with the highest being

above the upper detection limit of 99,999 ppb for ICPanalysis. Metallic fire assays will be conducted on allsamples above 1000 ppb to determine accuracy andpotential for nugget effect.

These new occurrences are in the same sericitizedand silicified sediments as the existing/previouslyreported occurrences. In addition to occurring withinthe sediments, gold was also found within a quartzmonzonite stock containing thin siliceous veinlets inan unaltered appearing rock. Limonite, pyrite,galena, sphalerite and chalcopyrite are variablyfound with the gold mineralization in both thesedimentary and quartz monzonitic host rocks.

The limits of the mineralized system have not yetbeen defined. The current program, which includesmapping, chip sampling and heavy mineral sampling,is designed to establish the limits and to advancethe property toward developing drill targets. Resultsof the program are expected by late October.

For more information contact Albert Matter,President & CEO, National Gold Corp. at (604) 408-4647, Fax (604) 687-1327. E-mail: [email protected] visit the web site at www.nationalgold.com

TSX Venture Exchange has not reviewed and does nottake responsibility for the adequacy or accuracy of thisrelease.

1 All rock samples were grab samples and were analyzedfor gold by Acme Analytical Laboratories of Vancouver, B.C.using Mass Spectrometry ICP on a 10 gram pulp sample.The 2002 work program is being supervised by PeterKlewchuk a Professional Geoscientist with over 25 yearsof exploration experience. Mr. Klewchuk is resident inKimberely, B.C.




THE DINES LETTERP.O. Box 22, Belvedere, CA 94920.1 year, 17 issues, $195. www.dinesletter.com.

Start accumulatingprecious metals shares

James Dines: “Septembers are very favorable for theGold Shares in DIGSA (the Dines Gold Stock Average).Since 1968 there have been 20 up, 13 down, and oneneutral. Silver shares in DISSA (the Dines Silver StockAverage) have also been bullish in the last 21 years,with 12 up and 9 down. The fourth quarter is often agood time to start accumulating precious-metals sharesin anticipation of the positive Seasonalities of the firstquarter, when gold and silver shares usually rise, byDinesism #9: the Dines Rule of Gold Seasonality.”

Continued on next page



Continued from previous page

ADDICTED TO PROFITS119 Grant Blvd., Dundas, ON, Canada L9H 4L9.Monthly, 1 year, $100.

Gold stocks – Getting readyfor the Next move Up?

Dave Skarica: “Gold stocks are starting to formsome very promising chart patterns. It is our opinionthat gold stocks are in the early stages of their nextmove up. This should mean a move in gold abovethe June highs of $330 an ounce and then to above$350.

Many of the smaller exploration stocks we followwill not begin to move up until gold trades higher.Juniors are really not that interesting until gold getsover $350 an ounce. So there is time to purchasethe National Gold’ s (NGT V), Candente’ s (DNTV), Rimfire’ s (RFM V) and Redlake’ s (RL V) ofthis world. Redlake especially has been lagging asof late and looks very juicy at 0.20 a share.”

***************

PRECIOUS METALS ADVISORY, CPM Group30 Broad St., 37th floor, New York, NY 10004.Monthly, 1 year, $2,400.

Gold: Investment demand risingSilver market relatively tightly suppliedJeff Christian: “It is clear that investment demand

for gold will be higher this year than it was last year.Earlier estimates were that net investment demandwould be largely flat. That will not be the case.

Much of the buying continues to be in futures,forwards, and options, at least in North America,Japan, and Europe. Asian demand has been morephysically oriented. There has been strong demandin Japan for physical gold as well. In the unitedStates demand for U.S. Gold Eagle coins throughAugust was up 38% from the same period in 2001,but are still a low levels in terms of the numbers ofounces being sold. Through August a total of 161,500ounces of gold have been sold in Eagles. DuringAugust alone sales totaled 42,000 ounces, which wasdown from 48,000 in July, but far higher than the6,500 ounces sold in August 2001. In total, it is truethat investment demand is rising; the increases aresomewhat muted, but they have been significantenough to help push prices higher.

Demand for gold in India and Middle East hasfollowed the price higher and lower. Demand fellsharply on higher prices in June, and remainedweak in July. When prices fell late in July and intoearly August, demand soared. Some dealers inIndia, which had moved to lower inventories in theface of low demand, could not meet the renewedstrong buying interest. As prices rose later in themonth, demand backed off somewhat. Indian gold

imports meanwhile are off sharply from earlieryears. This reflects a number of factors, includinglarger inventories in the Indian market earlier in2002, and some selling by investors or holders ofmetal domestically.

The Indian Finance Minister meanwhile hasmade public comments negative toward gold,saying that investment demand for gold distractsfunds from other investments. This has raisedsome concern about the potential that the Indiangovernment, concerned about its foreign exchangereserve levels, might seek to re-impose restrictionson gold imports. That may not happen, however.Meanwhile, reports from Pakistan are that goldimports have been further liberalized, with a 1.5%duty. If this is the case, imports in Pakistan mayrise sharply, along with smuggling from Pakistaninto India.

There were rumors, begun in Russia but spread toIndia, that the State Bank of Russia had lent gold tothe Reserve Bank of India. Both banks and governmentshave denied such a gold swap, and there are noindications that such a transaction occurred. Therumors have persisted in the Indian market, however.

Silver prices had been pushed higher, to around$5.20, in the second quarter, by speculative buying.Much of the speculative pressure has left the marketsince then, and silver prices have dropped back tolevels seen in the first four months of this year.

Additionally, silver prices have been limited byweak demand. Demand is weak from photographicmanufacturers, and electronics companies. Italso has been weak in the jewelry sector, in many countries.

Indian demand for silver for jewelry and silverobjects has been low. Additionally, there was a strongflow of silver scrap into the Indian market centersearlier this year, which reduced the need for importedmetal. For these and other reasons, silver importsinto India have been quite low this year overall. Thereare sporadic periods of strength, however. Forexample, when silver prices dropped from $5.15 inearly July to around $4.57 in late July, Indian de-mand surged. One bank alone was reported to haveimported 25 metric tonnes (803,768 ounces) in twodays in order to meet demand. (This compares tomore typical average monthly import levels of about2.6 million ounces.)

Currently, silver has a strong base around $4.40.Prices are expected to rise back to higher levelsand consolidate between $4.60 and $4.80 duringSeptember. The move back up to this range may occurover the next few weeks. It is clear that the silvermarket remains relatively tightly supplied, and fewmarket participants are willing to be short silver. It isexpected that an increase in fabrication demand couldbegin to emerge in the next several months, and thatprices could move sharply higher as a result. In thisenvironment, prices are finding relatively good supportaround $4.40. At some point a move above $4.80, back to$5.10 or higher, is expected. Such a move seems unlikelyin September, but it could occur by the end of the year.”



FINANCIAL INSIGHTSP.O. Box 793-Z, Oakhurst, NJ 07755.Monthly, 1 year, $153.

Gold & Silver trendsto reverse to the upside

Dr. Richard Appel: “The forced sales of BarrickGold and Placer Dome that I discussed in last month’sletter, created a cascading effect throughout theentire gold mining and exploration sectors. Themillions of shares of both Barrick and Placer thathad to be sold by numerous S & P tracking funds,precipitated a rout across the entire gold miningshare market. This came at a time when gold equitieshad already entered a correction. The shares of fewcompanies were spared.

Many of the junior exploration companies did notstop their declines before they had retraced 40% to60% from their recently posted highs. The goldproducers fared better, as would be expected, yetlosses from the June peaks typically ranged from 20%to 40%. It is difficult for an objective observer tobelieve that the removal of Placer and Barrick fromthe S & P 500, after their many years of tenure inthe index, was not timed to generate just such a pricecollapse to the gold shares.

As frightening as the declines were, I believethat they only generated an important buyingopportunity. The gold price stubbornly held supportat the $300 level. Further, the long term chart ofgold was unaffected by this temporary price break.As gold consolidates and eventually trends higher,I believe that shares of the companies that arefollowed by Financial Insights will generatesuperior results.

***************

SILVER-INVESTOR.COM21307 Buckeye Lake Ln., Colbert, WA 99005.Monthly, 1 year, $88 print, E-mail: $78.

Western Copper developinga major silver project in Mexico

David Morgan: “Western Copper HoldingsLtd. (TSE WTC) announced on August 14th thatdrilling continued at its 100% owned Penasquitosilver-gold-lead-zinc property in Zacatecas State,Mexico. The 7,000-meter program will begin with onedrill; a second rig will be added in approximately 10days. Work will begin in the area between holesWC-23 and WC-24 northeast of Chile Colorado.

Comment: This deposit can be worked as an openpit operation which reduces costs dramatically ascompared with an underground operation. Secondly,processing can employ dense media separation onmuch, if not all, of the ore which is also a major costreducer. At present metals values the Penasquito canbe operated profitably. The general rule of thumb forestimating present value of a deposit is 10% of the

“reserves”. This is tricky, but using data from thelatest press release. We are possibly looking at 200million tons, which comes to $US 6.05 billion. Usingthe ten percent present value of the Penasquito comesto $605 million (US). With 36 million shares, fullydiluted, the per share value comes to over US $16.This is potential, and still a speculation, however, itis definitely worth your consideration.”

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Roger Conrad’s UTILITY FORECASTER,1750 Old Meadow Road, Suite 301, McLean,VA 22012. Monthly, 1 year, $129.

Low-risk gasRoger Conrad: “By 2020, natural gas demand will rise

50 percent in America. And given the inability of producersto boost output by more than 5 percent in 2000-01, in theface of a fivefold rise in prices, much of the new supply isgoing to have to come from overseas. That spells volatilityand an uptrend in prices for years to come.

There’s a multitude of ways to bet on a rising price fornatural gas, ranging from conservative super oils like BPPlc and ChevronTexeco to aggressive drillers like NaborsIndustries. My three preferred plays for total return aretwo portfolio utilities – Energen and MDU Resources –and as a pure producer, Devon Energy.

The case for Energen and MDU is simple:Regulated utility operations provide stable cashflows for investment in energy production. Energenholds proven and producing properties, primarily inthe Southwest.

By increasing output and locking in price byhedging sales, the company has grown earnings evenin tough times, including a 12 percent jump in second-quarter net. And by leaving a significant amountunhedged, it’s a play on rising prices as well. BuyEnergen, which recently boosted its dividend nearly3 percent, up to 30.

With an asset portfolio ranging from production ofnatural gas and construction aggregates to low-costpower and gas utilities, MDU is a diversified resourcecompany. Earnings are more impacted by commodityprice volatility than are Energen’s. But conservative fi-nancing has kept the credit rating at A, giving it thestrength to weather downturns.

Utility operations, though less than half earnings,cover the dividend. I expect an initial move back to themid-30s as energy prices turn up. Buy MDU Resourcesup to 30.

Devon Energy features some of the world’s mostprolific natural gas reserves. It’s leveraging thatstrength by paying off debt and cutting costs, as wellas selling non-core assets like its Argentine oilreserves. Devon is a great direct play on rising gasprices up to 50.

Previous recommendation EOG Resources is alsoa buy to 38. But the stock could be stalled by thesale of Enron’s 10 percent stake in the comingmonths.”



JUNIOR RESOURCE COMPANIES

Bright Star VenturesTulameen Platinum Project

Acquiring Golden-Lode Propertywww.brightstar-ventures.com

Crystallex International Corp.Las Cristinas, One of World’s Largest

Undeveloped Gold Mineswww.crystallex.com

Eastmain Resources Inc.World-Class Gold,

Base Metal Propertieswww.eastmain.com

GLR Resources Inc.Massive Discovery Attracting Majors

www.kasnergroupco.com

Golden Goliath Resources Ltd.Mexican Gold Explorationwww.goldengoliath.com

Houston Lake Mining Inc.High Grade Gold Properties

www.houstonlakemining.com

Mountain Province DiamondsHigh-Quality, Top-Color Canadian Diamonds

www.mountainprovince.com

National Gold Corp.Developing 3.4 Million Oz. Gold Deposit

www.nationalgold.com

Pacific North West Capital Corp.Acquiring, Exploring, DevelopingPlatinum & Palladium Projects

www.pfncapital.com

Silverado Gold Mines Ltd.Alaskan Gold, Alternative Fuels

www.silverado.com

Silver Standard Resources Inc.Silver Development & Exploration

www.silver-standard.com

UNICO Inc.Producing Gold & Silver

From Historic Utah Mineswww.uncn.net

Bull & Bear’s

Web Sites for InvestorsThe Bull & Bear Resource Investor • P.O. Box 917179, Longwood, FL 32791 • 1-800-336-BULL

WPN Resources Ltd.Oil & Gas Concessions in

Italy and the Mediterraneanwww.wpnresources.com

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The Dines LetterCycle Analysis, Precious Metals

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INCREASE TRAFFICTO YOUR WEB SITE!!The Bull & Bear FinancialReport offers you a highlyeffective, low cost opportunity tobuild your Web site traffic now.� Advertise your Web site in The

Bull & Bear’s Web WatchDirectory which appears inevery print version of The Bull& Bear Financial Reportand open your site to highlymotivated, active investors,stock brokers, and investmentadvisors.

� With your paid listing, receivea link to your Web site for oneyear on the Hot Links Pageon the Bull & Bear’s Web sitewww.TheBullAndBear.com

You’ve spent a lot of time and moneyon your Web site why not invest alittle more so investors can find it?Increase traffic to your Web site nowfor one low yearly rate.

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Reach Active Global Investors Through...

Bull & BearT

he

INVESTOR RELATIONS PROGRAM

TARGET MILLIONS OF INVESTORSWouldn’t you like to tell your story to an

audience of millions of active investors representingbillions in investment assets and the nationalinvestment media? Wouldn’t you like to increase yourtrading volume and build a stronger shareholder baseand higher stock price valuations? The Bull & BearInvestor Relations Program can do just that throughour “Media Network.”

The Bull & Bear Financial Report draws uponits 27 years of financial publishing and marketingexpertise in creating an effective, powerful presencefor your company within the investment world.

We will create a compelling story, expertlypackaged, that targets active, high-net-worthindividual investors and stockbrokers, professionalmoney managers, analysts, and market makers.

The Bull & Bear Financial Report hasdeveloped several cost-effective Investor Relationsprograms for publicly traded companies. Ourinnovative, high-impact print and online strategiccampaign includes:

� Print Exposure:Your company’s story and corporate profile will receivesix months coverage in the Bull & Bear FinancialReport. With its unique and comprehensive editorialcontent, the Bull & Bear is an exclusive resource forprofessional investors as well as individual investorswith above average incomes and substantial investmentportfolios. The Bull & Bear circulates by mail to paidsubscribers, sells on newsstands, and exhibits atinvestment conferences.

� Internet Strategy:Your company’s story will be featured on the Bull & Bear'shighly informative Web site, www.TheBullandBear.com,for six months. Your Bull & Bear Internet presenceincludes Hot Links to your company Web site andposting of significant company developments – allenhanced by a high-impact design utilizing your companylogo and colorful graphics. To ensure a truly globalpresence, your company’s story is translated into tenlanguages: English, French, German, Spanish, Italian,Portuguese, Russian, Japanese, Korean, and Chinese.

� Targeted Email Strategy:A summarized version of your story will be e-mailedto Bull & Bear Hotline subscribers, stock brokers,analysts, market makers, key financial journalists,and to editors of investment advisory newslettersfocusing on your industry.

� Key Newswire Services:The Bull & Bear Financial Report distributes yourcompany’s unique story to thousands of onlineservices, Web sites, portals, search engines, tradingsites, and news and media sites, including DowJones, Bloomberg, Reuters, CBS MarketWatch,Motley Fool, The Wall Street Journal, and The NewYork Times. Your story will reach targeted activeindividual investors, stock brokers, analysts andportfolio managers reaching an audience of millions.Stories on public companies will be distributed tovirtually every financial database – reaching inexcess of one million investment terminals worldwide.

� Shareholder Strategy:The individual shareholder still tends to be the mostimportant and valuable asset to a company. The Bull& Bear Financial Report will mail a copy of the Bull& Bear in which your story appears to yourshareholders, key market makers and stock analysts.

� Custom Stockbroker Mailings:We customize individual mailings of your company’sstory to The Bull & Bear Financial Report’sextensive national database of stockbrokers.

The prime purpose of the Bull & Bear’s InvestorRelations Program is to build, directly through ourwell-planned and coordinated print and onlinepromotion, a greater awareness and understanding ofyour company and its potential throughout theinternational investment community.

For more information on how the Bull & Bear’sInvestor Relations Program will benefit your company,call Valerie Waters at...

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