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"From the prospector comes the salt of the earth." -- WJ

Is it possible that a walkout by the International Operating
Engineers Local Union #3 now in Negotiations with Newmont Mining could
shut down 1/3 of North America's Gold Production Indefinitely?

James Sinclair, Feb 3/03

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Has this union recognized the potential impact of run-away gold prices on
the financial affairs of Newmont Mining?

Does this Union understand the implications of Newmont's gold derivative
hedge position that it inherited from the acquisition of Normandy?

Is this negotiation the reason that Newmont, when acquiring new auditors,
appears to have taken the accounting option that is properly utilized from
accounting standards where hedging is declared to be day-to-day business?

Under the new accounting standards, when that option is adopted, a company
is relieved from the need to do quarterly mark to markets on their
derivative position and make that public. (Mark to market is a means of
valuation required if a gold hedging public company adopts accounting
regulations specified for a company whose day-to-day business is gold
mining and not gold derivative hedging.)

Right now we have more questions than answers but tomorrow we will speak to
the Union organizers in Elko Nevada and find out what occurred at their
rally and, if possible, get a feel for where things are going. Until then,
keep tuned to this situation.

Thanks to a member of the gold community we will call "Kimosabi," our
attention has been riveted on this issue. A shutdown of significant
production of any commodity means only one thing --- higher prices. I
wonder if the short sellers of gold and gold shares have looked at this
situation. Some how I doubt it!

Please check out the following links for news reports on this important
story from The Elko Daily Free Press.

http://www.elkodaily.com/archives/index.inn?loc=detail&doc=/2003/January/2
6-388-news2.txt

http://www.elkodaily.com/archives/index.inn?loc=detail&doc=/2003/January/2
9-1098-news3.txt

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