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Gold/Mining/Energy : Maxam Gold Corp. OBB:MXAM

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To: Richard Mazzarella who wrote (8771)7/12/1999 1:10:00 PM
From: Tim Hall  Read Replies (2) of 11603
 
Richard, I finally received a response about the trenching.

Tim

Mr. Hall,

Thank you for your e-mail of 6/24/99. Please excuse
the delay--no good excuses except to much to do.

Your question--why not use trenching in the COC
Program.

We have used trenching many times for exploration,
but we chose not to in this COC Project because:
1. Our goal was 2 fold.
a. Have the results COC.
b. Assuming the assays were
positive we would have a
nominal amount of
blocked out tonnage to
25 ft. depth. While
trenching is only good to
12 ft. with the equipment
that is available in this
area.
2. Problems
a. Trenching produces about 5 to
10 tons of ore which is a
real challenge if you want
a representative sample.
b. You can take a sample by
channeling one side of the
trench, but this is time
consuming and again does
not produce a good
representative sample.
c. Trenching and the sampling
challenge actually would
cost more than the drilling.

Your concept of trenching is great for collecting
larger bulk samples, which is what we now are
considering. We will announce this in the near future
as soon as the details are lined up and we are ready to
move ahead.

Thanks for your interest in Maxam. We really
appreciate your questions and suggestions.

Dale L. Runyon
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