TORA! TORA! TORA!

GATA'S RIGHT FLANK LAUNCHES SURPRISE OFFENSIVE AGAINST THE HANNIBAL CANNIBALS

Sunday, October 17, 1999

At 7:50 a.m. Central Daylight Time today the Gold Anti- Trust Action Committee launched a surprise strike against the Hannibal Cannibal gold bullion dealers and their closet allies. We intend to catch them flatfooted in a Pearl Harbor-type assault.

The focus of GATA's attack is the Denver Gold Group Gold Conference convening today at the Westin Hotel in Denver, Colorado. Among those in attendance will be the bullion dealers that colluded to drive the price of gold down to an unnaturally low price, as well as their primary accomplices, the extremely hedged gold producers. The conference continues through Wednesday.

Participants in the conference begin arriving today in Denver and will not be ready to counterattack.

But for this surprise strike to work, GATA requires a little help from every gold stock shareholder in the world. Now is the time to stand up for your investment and for the gold cause.

This conference is a prestigious one. Its managing director, Michelle Stell, has done a marvelous job organizing it since she came up with her idea 10 years ago. Most big gold producers and many smaller ones will be there, along with bullion dealers, gold fund managers, and gold analysts. The conference will be a "Who's Who" of the world gold industry.

When the Gold Anti-Trust Action Committee was formed, we came up with a battle plan to take on Hannibal Lecter and the other Hannibal Cannibal bullion dealers. Our plan was patterned after the tactics of the ferocious South African Zulu chieftain, Shaka. To defeat his foes, Shaka positioned his troops in a diamond formation. The point made a thrust in the middle of the enemy position, and then the diamond's left and right flanks would suddenly flare out and attack from the sides. The resulting formation became known as "the enveloping horn."

The "point" of GATA's attack was our retaining the law firm of Berger & Montague of Philadelphia, the premier anti-trust law firm in the United States. Our lead attorney at Berger & Montague, Merrill G. Davidoff, has extensive knowledge of the gold market. The firm is assisting our investigation of the manipulation of the gold market, and the bullion dealers know that with Berger & Montague, we are a force to be reckoned with.

The forces of GATA's left flank have been letting the Internet, the news media, and the U.S. Congress know about the manipulation of the gold market. GATA officials have gone to Washington and conferred with three committees with jurisdiction over economic matters. We remain in regular contact with them. Further, GATA's associates in Europe were instrumental in getting the price manipulation issue raised in the House of Commons when the Bank of England began to sell gold to bail out the reckless but influential gold shorts.

The forces of GATA's right flank have been working to mobilize gold producers against the manipulators and to get the producers to cover their forward sale hedges. Meanwhile we have been encouraging gold company shareholders to invest in good producers that are only modestly hedged or have no forward sale positions at all. This part of our plan does far more than suit our own purposes. For only by changing their stock allocations from heavily hedged to lightly hedged and unhedged producers will investors participate fully in the coming bull market in gold.

Ashanti Gold and Cambior were virtually destroyed this month because the bullion dealers had sold them extensive "structured deal" hedge programs that failed to take into account a quick and substantial rise in the gold price. Other gold producers that have made such hedging deals with the Hannibal Cannibals may blow up in the next quick rise in the gold price. Do gold investors want to take that chance by owning shares in heavily hedged producers?

Chris Thompson, the chairman of the world's second largest gold producer, Gold Fields Ltd., had the following to say last Thursday after his company bought back the bulk of its hedged position:

"Having looked at the fundamentals of the current gold market and the implications of the Ashanti situation, it seems inevitable to us that higher, if not much higher, gold prices are inevitable. Accordingly it seemed prudent to retrieve our hedge positions."

A few months ago Thompson was the first major gold company executive to speak out about the nefarious activities of the Hannibals. On April 16, denying persistent rumors that that Gold Fields had recently sold a large amount of its gold production forward, Thompson said:

"These rumors appear to be emanating from New York- based bullion dealers."

Gold Fields was also the producer that bought gold at the second Bank of England gold action, thereby alerting the world that producers had begun to buy back their hedges and sparking the recent rally in the gold price.

Thompson will be attending the conference in Denver. So will the top brass of the heavily hedged Barrick Gold, whose chief executive officer recently had this to say:

"London, Sept. 17 ( Reuters ) -- Barrick Gold President and CEO Randall Oliphant today told gold miners to stop criticizing central bank gold sales and concentrate on how to survive in the current low gold price environment. Oliphant said that while he would prefer that the Bank of England did not sell its gold, he did not think that moaning was the right answer.

"Oliphant said, 'The Bank of England tried to do what we asked them, which was to be transparent in what they did.'

"Barrick runs the largest hedge book in the industry, with its entire planned production sold through to the end of 2001, some 13.3 million ounces as of July 22, committed at secured prices averaging $385/ounce."

In a recent conference call, Barrick gave no indication that it was planning to cover its hedges, and then alerted its shareholders that in addition to its forward sales, it had written 4 million ounces of calls. I spoke to two major shareholders in Barrick prior to this conference call, and they said they knew nothing about these calls.

Do you see what is happening here?

One leading gold producer is taking action that supports the price of gold and thereby stands to benefit all gold investors.

And another leading gold producer talks down the market and the whole gold industry, and refuses to take action that will benefit even its own shareholders in the long run.

Barrick Gold will be represented at the Denver conference too.

So I urge gold investors around the world to proclaim their support for the position taken by Gold Fields and to give notice to Barrick and its accomplices that if they continue to hinder an advance in the gold price and do not start covering their hedges: 1 ) Gold investors may boycott their stock, and 2 ) Their managements may be held personally accountable as a matter of law if the gold price rallies sharply before they have taken the prudent action that is their fiduciary duty to their stockholders.

What fundamentals of the gold market does Gold Fields understand that Barrick does not?

One must ask why Barrick and the other heavily hedged producers are listening to the bullion dealers who are advising them to remain short.

These are same bullion dealers that failed to alert the heavily hedged producers to cover before the recent surge in the gold price.

In the weeks before the announcement of the European central banks that they would cease cooperating in the gold carry trade, www.LeMetropoleCafe.com disclosed that government-to-government negotiations were under way and that their result could be very supportive of the gold price for a change, instead of harmful to it. Why were the bullion dealers seemingly so uninformed and unprotective of the producers they had induced to hedge so much, producers like Ashanti and Cambior? Or were the bullion dealers really so uninformed?

The Denver conference will be crucial to the direction of the gold industry, and this is how I see it.

There will be two camps. The modestly hedged and unhedged producers will be one camp, and the heavily hedged producers and the Hannibal Cannibals that got them into the current mess will be in the other.

The Hannibal camp will seek to assure the mining companies that governments and central banks will intervene in the gold market again to push the price down, so the mining companies should not worry about covering their forward sales. The Hannibals will say that they have the cooperation of Eddie George at the Bank of England and he and others in government authority are intervening in the gold market at the moment.

Indeed, certain "official sectors" are still trying to hold the price of gold down; I have reported as much over the past few days now.

It is obvious. On Friday the U.S. Producer Price Index was up a whopping 1.1 percent for the month, far greater than any estimate. The dollar and the U.S. stock market fell hard, but gold was held to a $2 gain.

All week gold rose on markets around the world only to sell off in New York as Peter Fisher and Co. at the New York Fed and others moved against it. They have long experience at this and are pretty good at it -- in the short run.

Yes, the Hannibals will talk gold down to all who will listen. Why?

Derivativesville! The bullion dealers and many of their clients have massive option exposure on gold. If gold rises above $325-$330 area, it will cause them terrible problems, as many owners of the calls the Hannibals have sold could ask for the actual gold. This could cause massive buying and drive the price sharply higher.

The Hannibals are a frightened lot now. Having long denied that the price of gold was being manipulated down, their apologists now are bleating that the world financial system will be engulfed in chaos if gold rallies further and governments don't move to suppress the price again. The Hannibals want government to bail them out again. Meanwhile these same bullion dealers are putting the heat on Ashanti CEO Sam Jonah, whose company they have helped to ruin. These people are hypocrites of the first order.

Yes, the Hannibals will be at the Denver conference talking gold down -- just long enough so they can cover their short positions to protect against a bull market. They don't want anyone to know this. ( Quietly, some are forming gold vulture funds to take advantage of the infant bull market in gold ) .

This is exactly why hedged producers should be buying back their forward sales.

Yes, some central banks are putting liquidity into the market now, if only to prevent it from seizing up. That is good. Gold producers can buy back their forward positions without running up the gold price too much. But these same producers may not have another solid opportunity. Everyone knows that the short position and supply deficit of gold are so huge that there is significant exposure to the upside. How can a prudent chief financial officer of a gold producer keep his company heavily short at this time and still be fulfilling his fiduciary duty to his company's shareholders?

So, gold share investors, man your battle stations.

In an accompanying mailing GATA provides you with contact information for the gold companies participating in the Denver Gold Group conference. We ask you to contact them to support the Chris Thompsons of the gold world.

With enough urging from shareholders, other gold companies will close out their hedges too and the gold price should rally sharply.

The fax number at the Westin Hotel is 303-572-7288. Of course callers outside the United States will have to add the appropriate prefaces for international calls.

The Westin's fax number is connected to backup fax machines to avoid logjams.

If you can't send a fax, you might leave a message for the representative of your favorite ( or least favorite ) gold company. Just call the main phone number at the Westin: 303-572-9100.

The chief executive officers of the gold producers are the ones who usually attend this conference. The people on the list we are sending you are just our best guesses as to who will be there. If you want to know exactly who is representing a particular company at the conference, you can always call the company directly or check with the hotel.

GATA urges all gold company shareholders to send faxes to two gold companies at the Westin, or to send email or regular mail to 10 companies at their headquarters.

When you are finished, please contact two other gold shareholders and ask them to do just what you have done. Them ask them if they would find two other gold shareholders to join us in this effort, and so forth. We can reach hundreds of thousands of gold investors if everyone does just a little bit here and the chain holds.

In your faxes and letters, you might urge the gold companies:

1 ) To ask Chris Thompson of Gold Fields why he believes the gold market's fundmentals are so bullish.

2 ) To ask the bullion dealers why any producer should stay short when there is such upside potential because of the enormous short positions that have not been covered yet.

3 ) To ask if there is even one bullion dealer at the conference advising producers to cover.

Of course ask you might like to add your own questions as well. Just remember to be courteous in everything you do.

The manipulation of the gold market by the bullion dealers is the great financial scandal of our time. It has inflicted devastation on many countries and millions of people -- gold miners and their dependents and gold company shareholders, and, really, everyone who was not part of the scheme to deny the world the benefits of gold's traditional monetary function as the truth teller about paper currencies and as a competitive form of money in itself.

Gold investors now must fight back.

These next few days are the time to act and Denver is the place.

YOU can make a difference. If the producers at this conference start covering their hedges, the gold price will go up, probably way up. Isn't that what we all want? Isn't that what THEY are SUPPOSED to want too?

"Carpe diem" -- "Vox populi, vox Dei" -- "So be it."

Go get 'em.

BILL MURPHY, Chairman Gold Anti-Trust Action Committee

-- flierdude (nospam@none.none), October 17, 1999

Answers

Below is a list of gold mining companies and their executives who are expected to attend the Denver Gold Group conference convening today at the Westin Hotel in Denver.

If you need further information about these companies, including links to their Internet sites, there's a good directory of gold companies at:

click here

Please contact some of these people today in Denver or at their company headquarters.

Acacia Resources -- Level 11, 60 City Road Southbank Victoria 3006 Australia. Tel: 613-9684-4999. Fax: 613- 9696-9977. inf-@acacia.com.au

Agnico-Eagle Mines -- CEO Sean Boyd. 401 Bay Street, Suite 2302, Box 102 Toronto M5H 2Y4, Canada. Tel: ( 416 ) 947-1212 Fax: ( 416 ) 367-4681

Anglogold -- CEO Bobby Godsell. 11 Diagonal Street Johannesburg 2001, South Africa. Tel: ( 917 ) 368-8075 Fax: ( 917 ) 368-8077.

Apex Silver Mines Corp. -- CEO Thomas S. Kaplan. 1700 Lincoln Street. Suite 3050 Denver, Colorado 80203. Toll-free 1-888-696-2739 Fax 303-839-5907 informatio-@apexsilver.com

Barrick Gold Corp. -- CEO Randall Oliphant. Royal Bank Plaza, South Tower 200 Bay Street, Suite 2700 Box 119 Toronto, Canada M5J 2J3 Tel: 416-861-9911 Fax: 416- 861-2492 Toll-free in Canada and United States: 1-800- 720-7415. investo-@barrick.com

Battle Mountain Gold -- Ian D. Bayer. 333 Clay Street, Suite 4200 Houston, TX 77002-4103. Tel: 713-650-6400 Fax: 713-650-3636 lvandyk-@bmgold.com

Bema Gold Corp. -- CEO Clive T. Johnson. 595 Burrard St. Box 49113 Vancouver, British Columbia, V7X 1G4, Canada. Tel: 604-681-8371 Fax: 604-681-6209 i-@bemagold.com

Buenaventura -- CEO Carlos Villaran. 790 Santa Catalina Lima 13, Peru. Phone: ( 212 ) 688-6840 Fax: ( 212 ) 838- 3393

Cambior -- CEO Louis Gignac. 800 Blvd. Rene-Levesque Ouest Bureau 850 Montreal, Canada. Phone: 514-878-3166 Fax: 514- 878-3324

Canyon Resources -- Chairman and president: Richard H. DeVoto. 14142 Denver West Parkway, Suite 250, Golden, CO 80401 USA Tel: 303-278-8464 Fax: 303-279-3772

Crown Resources -- President: Christopher E. Herald. 1675 Broadway Denver, Colorado 80202 USA Tel: 303-534- 1030 Fax: 303-534-1809 dwmin-@compassnet.com

Dayton Mining --- Chairman: William Myckatin. 3 Bentall Centre, Suite 2393 595 Burrard Street Vancouver BC V7X 1K8, Canada. Phone: 604-662-8383 Fax: 604-684-1329.

Durban Roodeport Deep -- Deputy Chairman: Brett Kebble eloff-@drd.co.za

Echo Bay Mines -- Chairman: Robert L. LeClerc. 6400 S. Fiddlers Green Circle, Suite 1000 Englewood, Colorado 80111-4957 USA, toll-free in U.S. and Canada 800 395- 4143, 303-714-8800 Fax: 303-714-8994

Franco-Nevada -- President and CEO: Pierre Lessonde. 20 Eglinton Avenue West, Suite 1900, Box 2005 Toronto, CANADA M4R 1K8. Tel: 416-480-6480 Fax: 416-488-6598

Freeport-McMoran Copper and Gold -- Chairman: James R. Moffett. 1615 Poydras Street New Orleans, LA 70112 Phone: 504-582-4000 Fax: 504-582-3265

Geomaque Explorations Ltd. -- President and CEO: John H. Patterson. 181 University Avenue, Suite 1210 Toronto, Ontario, Canada, M5H 3M7 Tel: 416-956-7470 Fax: 416-956-7471 sstoke-@geomaque.com

Glamis Gold -- President and CEO: C.K. MacArthur. 310 - 5190 Neil Road Reno, Nevada, 89502. Tel: 775-827-4600 ( local 103 ) Fax: 775-827-5044 inf-@glamis.com

Goldcorp -- CEO Rolando C. Francisco. 2700 - 145 King St., West Toronto, Ont. M5H 1J8 Canada Tel: 416-865- 0326 Fax: 416-361-5741 www.goldcorp.com

Gold Fields -- CEO: Chris Thompson. Postnet Suite 252, Private Bag X30500, Houghton 2041, Gauteng, South Africa. Tel: +27-11-644-2400 Fax: +27-11-484-0639.

Golden Star Resources -- CEO: Jim Askew. 1660 Lincoln Street, Suite 3000 Denver, CO 80264 Tel.: 303-830-9000 Fax: 303-830-9094.

Harmony Gold -- CEO: Z.B. Swanepoel. zbswanepoe-@harmcorp.co.za

Hecla Mining -- Executive Vice President: Roger Kauffman. 6500 Mineral Drive, Coeur d'Alene, Idaho 83815-8788. Tel.: 208-769-4100 Fax: 208-769-4107

Homestake Miming -- Chairman: Jack E. Thompson. 650 California Street, San Francisco, CA 94108 USA Tel: 415-981-8150 Fax: 415-397-5038

Iamgold Corp. -- Vice President: Larry E. Phillips. 2820 14th Avenue, Markham, Ontario L3R 0S9 Canada. Tel: 905-477-4420 Fax: 905-477-9741. Toll-free in U.S. and Canada: 1-888-IMG-9999 email: inf-@iamgold.com

JCI Limited -- Deputy Chairman, Brett Kebble. Box 61719 Marshalltown 2107 South Africa, Tel: +27 11-373-3056 Fax: +27 11 373 3020

Kinross Gold -- Chairman and CEO: Robert M. Buchan. 40 King Street, West Scotia Plaza, 57th Floor, Ontario M5H 3Y2, Canada. Tel: 416-365-5123 Fax: 416-363-6622 inf-@kinross.com

Lihir Gold -- Chairman: Ross Gamaul. 7th Floor, Pacific Place Center, Champion Parade, Port Moresby, Papua New Guinea Tel: 675-321-7711 Fax: 675-321-4705

Meridian Gold -- President and CEO: Brian J. Kennedy. 9670 Gateway Drive, 2nd Floor, Reno, NV 89511 USA Tel: 775-850-3777 Fax: 775-850-3733 investorrelation-@meridiangold.com.

Metallica Resources -- President: Louis A. Lepry Jr. 3979 E. Araphoe Road, Suite 100, Littleton, CO 80122 USA Tel: ( 303 ) 796-0229.

Newcrest Mining -- CEO: Gordon T. Galt. Level 9, 600 St Kilda Road, Melbourne, Victoria 3004, Australia Tel: 61-3-9522-5333 Fax: 61-3-9525-2996 bird-@newcrest.com.au

Newmont Mining -- Chairman and CEO: Ronald C. Cambre. 1700 Lincoln St., Denver, CO 80203 USA Tel: 303-863- 7414. Fax: 303-837-5837 corprelation-@corp.newmont.com

Normandy Mining Ltd. Chairman: Robert Champion de Crespigny. 100 Hutt Street, Adelaide 5000, Australia Tel: 61-8-8303-1700.

Pan American Silver -- Chairman and CEO: Ross J. Beaty. 1500 - 625 Howe St., Vancouver, British Columbia, Canada. Tel: 604-684-1175 Fax: 604-684-0147

Placer Dome Gold -- Senior Vice President: Ian G. Austin. 1600 - 1055 Dunsmuir Street, Box 49330, Bentall Postal Station, Vancouver, BC Canada V7X 1P1. Tel: 604- 682-7082 Fax: 604-682-7092 Toll-Free in U.S. and Canada 1-800-565-5815

Randgold -- Chairman: Brett Kebble. 5 Press Avenue, Selby 2025, Johannesburg, South Africa Tel: 2711-837 0706 Fax: 2711-837-2396

Repadre Capital -- President and CEO: Joseph F. Conway. 40 King Street, West Scotia Plaza, 57th Floor, Toronto, Ont., M5H 3Y2, Canada Tel: Toll-free in U.S. and Canada 888-972-5511, 416-365-8090 Fax: 416-365-8065 inf-@repadre.com

Resolute Ltd. -- Chairman: Robert J. Pett. Box 7232, Cloisters Square Perth, Western Australia 6850 Tel: 08- 9261-6100 Fax: 08-9322-7541

Royald Gold -- Chairman: Stanley Dempsey. 1660 Wynkoop Street, Suite 1000 Denver, Colorado 80202 USA 303-573- 1660 Fax: 303-595-9385 inf-@royalgold.com

Sons of Gwalia Ltd. -- Executive Chairman and Managing Director: P.K. Lalor. 16 Parliament Place, West Perth, Western Australia 6005, Australia Tel: 08-9263-5555 Fax: 08-9481-1271 gwali-@sog.com.au

Stillwater Mining -- Chairman and CEO: William E. Nettles. 1 Tabor Center, 1200 17th St., Suite 900, Denver, CO 80202 USA Tel: 303-352-2060 Fax: 303-352- 0000

Teck Corp. -- President and CEO: Norman B. Keevil. Suite 600, 200 Burrard Street Vancouver, British Columbia V6C 3L9, Canada Tel: 604-687-1117 Fax 604-687- 6100 inf-@teck.com

Viceroy Resources -- President and CEO: Clyton R. Nauman. Suite 2200, Oceanic Plaza, 1066 West Hastings St., Vancouver, B.C., V6E 3X2, Canada Tel: 604-688-9780 Fax: 604-682-3941 inf-@viceroyresources.com

Vista Gold Corp. -- Chairman: David R. Sinclair. Suite 3000, 370 17th Street, Denver, CO 80202 USA Tel: toll- free in U.S. and Canada 1-888-629-2450, 303-629-2450 Fax: 303-629-2499

-- flierdude (nospam@none.none), October 17, 1999.

So what's the difference between "modestly hedged" and "heavily hedged", 20%? 50%? And which companies are in which catagories? I'm in Drooy and Placerdome.How heavily hedged are they?

-- WorkinStiff (here@everywhere.com), October 17, 1999.

Can someone tell me *what* that rambling, fevered diatribe was supposed to convey?

I stopped reading when my head started hurting. *Man*, that guy needs an editor! The constant build-up -- repeated ad nauseum -- and the "hannibal cannibal" crap (give it a *rest* already, *sheesh*!), are the diametric opposite to the gravitas that I *suspect* the guy is shooting for.

I've read better literature in cigar catalog ad copy. At least *those* writers know how to make a point, and how to cut to the chase. This guy just drones on and on like someone who's trying to resolve a chemical imbalance by applying a caffeine overdose.

-- Ron Schwarz (rs@clubvb.com.delete.this), October 17, 1999.

So I guess this means that all that stuff about an OPEC cartel driving the price of gold up was just a wet dream. I'm not seeing any feedback from Andy and I'm guessing he's probably pretty bummed. Hang in there guy, the FEDS are going down all by themselves even without any pressure from the gold industry.

-- @ (@@@.@), October 17, 1999.

@@@@

Yes I am pretty bummed to say the least... I've been asleep all day (will post from the night shift tonight) -

I agree with Ron - not enough gravitas for sure, and a tremendous opportunity missed, from teir tone a few days ago they led us to believe that at least a class action suit was in the works, or at least something major...

What the hey, as you said, it will resolve itself very soon anyway :)

Later,

-- Andy (No6InTheVillage@webtv.com), October 17, 1999.