From: rolfer@leonardo.src.honeywell.com (Tom Rolfer)
Newsgroups: misc.invest
Subject: Brush Creek Mining and Development
Date: 12 Oct 92 15:36:08 GMT
Article-I.D.: src.1992Oct12.153608.9316
Reply-To: rolfer@leonardo.src.honeywell.com
Organization: Honeywell Systems and Research Center

I'm reposting this because several people have responded and said 
that it didn`t post well because the lines were too long.  
It also may have cut out some of the info.  So here it goes again.


> In misc.invest, nfs@hart (Norbert Schlenker) writes:
> 
> > You must be reinvesting your huge profits from your gold investments
> > earlier this year. ;-)
> 
> American Gold Mines did quite well this year, and mutual funds investing in 
> them were among the top performers.  South African gold did very poorly though.
> 
> > Norbert
> > nfs@cs.princeton.edu


Speaking of gold mining companies, has anyone heard of 
Brush Creek Mining and Development (BCMD).  

This is a company based out of Grass Valley California.  
Earlier this Summer they signed an exclusive rare metals, 
gem deposits, and industrial minerals agreement with the 
Research Institute of Geology of Foreign countries ("VZG")
of Russia.  Over the summer they have been also working on 
a joint venture agreement with Morrison Knudsen, one of the 
largest construction and engineering companies in the world.

On August 24, 1992 Morrison Knudsen and Brush Creek 
signed a letter of intent to form an international mining 
company.  The first project that they are scheduled to work 
on is the mining of five gold mineralized properties with 
proven and probable reserves in excess of 20 million ounces.  
Several additional properties are also under review.  
The new company will split the profits 50-50 between 
themselves and are rumored to split 60-40 with Russia,
with Russia getting 40%.  Apparently Russia doesn't have
the resources to mine the gold themselves that is why they 
have been receptive to western world help, and they could 
really use the money (40% of something is better that 100% of nothing).

Also Brush Creek owns 11 former lode gold (hard rock) producing 
mines in the California Alleghany-Downieville discrict.  The have 
started production on some of the mines in California earlier this 
spring.  Estimates of reserves in California are in excess of 10 
million ounces.

What does all this mean?  Well a gold company is typically valued 
on the amount of "reserves" it has, proven reserves are the best 
"type" to have and probable the next best etc.  After Brush Creek and 
Morrison Knudsen sign their joint venture agreement and sign all the 
agreements with Russia and can turn the estimated reserves in California 
into proven or probable the company will have in excess of  16 million 
ounces of gold in reserves. It has also been estimated that it will 
cost somewhere around $170/oz to get the gold out of the ground and 
that includes administration costs etc.  That leaves about $180 dollars 
profit per oz. 

Brush Creek has about 50 million shares outstanding.  
If you just use the Russian gold to put a value on the company,
(6 million oz. X $180/oz.)/ 50 million shares = $21/share.  
Not bad for a company thats trading around  $0.65/share (today).  

Keep in mind that the above calculations don't include the 
California gold or any of the rare metals or industrial minerals 
that are in abundance in Russia.

This is not a solicitation to buy Brush Creek stock or any 
thing of the sorts,  I'm just passing along some information to 
people that may have an interest.

Also if your interested, the people involved in the Brush Creek 
and Morrison Knudsen deal are all in Russia and are due back in 
the States towards the end of the month.

If nothing else keep an eye on this stock.


These opinions are mine and do not reflect those of my employer.
Newsgroups: misc.invest