Barrick''s call purchase probably means to cap gold

8:45p EST Sunday, February 13, 2000

Dear Friend of GATA and Gold:

Since so much has been posted today about Ashanti
Goldfields and its brewing trouble with the government
of Ghana, you might be interested in this exchange
between GATA Chairman Bill Murphy, proprietor of
www.LeMetropoleCafe.com, and one of his subscribers
about another mining company with property in Ghana,
Golden Star Resources. You may remember that Golden
Star is Murphy's favorite mining stock.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Bill:

Is Golden Star Resources (GSR) involved in Ghana, or is
it only Guinea/Guyana South America?

On that subject, what is GSR's leverage? Massive
unexplored areas or undeveloped reserves, or do they
have mines in process of development or some properties
already producing, or what?

I hold shares of Oroperu, a junior that is producing
modest quantities with reportedly a fair amount of
recently discovered reserves, but the company can't
attract reasonably priced capital with today's gold
price. It's been a miracle that they've hung on.

Jim

---

Dear Jim:

According to Frank Veneroso, Golden Star Resources has
found as many potential gold mines as any gold
exploration company in history. Because the gold price
has been held down and not allowed to rise for so many
years, much of GSR's success has been put on the back
burner. Most exploration companies are barely surviving
these days.

To solve that problem, Golden Star became a producer
because their new CEO, Peter Bradford, has outstanding
expertise in that area. The company picked up a mining
property in Ghana that is a cash cow even at today's
prices.

That is why GSR is now cash-flow-positive for the first
time in their 17-year history.

The gold properites in GSR's inventory are in Ghana,
French Guyana, Surinam, and Brazil. No one can say what
kind of tonnage or ounces these properties have, but a
few have quot;elephantquot; potential, according to respected
analysts. That is part of the reason why GSR share
price went to 21 three to four years ago.

Friday GSR closed at a ridiculous 1 5/8.

GSR also has a diamond project called Dachine in French
Guyana. Its joint-venture partner is Rio Tinto, the
mega-miner. Rio Tinto is bulk-sampling away at this
diamondiferous project. If it hits, and we should know
by July, KABOOM. It also could be a dud. But early
reports suggest that Rio Tinto is very encouraged.

About the possible renationalization of Ashanti
Goldfields by the government of Ghana....

There's no reason for shareholders of other companies
in Ghana to be alarmed. Actually, if Ashanti is
renationalized, it would be VERY BULLISH for GSR's
property there.

The reason:

If the Ghanian government seizes Ashanti, it will be
because the quot;Hannibal Cannibalquot; bullion dealers
perpetuated a fraud on the company and that country,
which owns a large share of the company.
Renationalization probably would not effect on GSR, as
the government would want the world to know that the
Ashanti situation is unique. And it IS unique.

Why do I say quot;fraudquot;?

First, the Financial Times has already written about
the conflict of interest that Goldman Sachs had in
advising Ashanti to get involved so heavily with gold
derivatives. Goldman is known to members of LeMetropole
Cafe as quot;Hannibal Lecter.quot; How appropriate in Ashanti's
case!

There is one other tidbit that will come out in time,
and Frank Veneroso will eventually be the quot;go-to guyquot;
to prove this. The bullion dealers that advised Ashanti
knew that worldwide gold loans were much larger than
what was being reported by the bullion apologists, Gold
Fields Mineral Service et al., which the establishment
quotes all the time.

Thus the bullion dealers knew that when they were
selling these exotic derivative hedges to Ashanti, it
was with great peril. That is what the Ghanaian
government knows, and that would be the only reason why
the government would take the company over.

This makes sense. Why should a poor African country let
the big bullion houses of the world work it over? When
the world knows what these bullion dealers have been up
to, the Ghanian government will be applauded if it puts
these crooks in their place.

The Ghanian government knows of what I say. I can't
tell you why, but I can assure you that it has the
goods on the bad guys.

I hope this helps.

All the best,

Bill