9/16/99 - Submits First Report and Findings Regarding Current Standing CKS
CONSOLIDATED SILVER TUSK MINES LTD. ("CKS-V") - Submits First Report
and Findings Regarding Current Standing CKS
The new Board of Directors (Board) of Consolidated Silver Tusk Mines, Ltd. (CKS) is pleased to submit its first report and its findings regarding the current standing CKS (Company).
After being elected as a result of the Annual General Meeting (AGM) held in June 1999, the new Board immediately restructured the obligations of the elected members and refocused the activities of the Company to enhance shareholder value. The new Chairman and President, Robert Needham C. Eng. (see announcement dated March 19th, 1998) a well respected member of the mining community and former Managing Director and CEO of Placer Pacific Ltd., assembled, a mining team to immediately begin production at the Company's Karya Bukit Utama (KBU) mine site.
The team, individually and collectively, has extensive mining experience, and is supervised by Mr. Timothy Marlow (see announcement dated August 24th, 1999). Mr. Marlow has over 30 years experience in the metalliferous mining industry. Other team members are Mr. David Alton, a mill and mine equipment specialist; Mr. Glen Greisbach B.Sc., a respected geologist formerly with Barrick Gold Corporation; and Mr. Darwin Carstens, responsible for on-site Security and Administration. The team has been in place at the KBU site since July 1999.
Mr. William Van der Merwe, Vice President of Finance and administration and Mr. Dennis Hawley, both with extensive experience in Corporate Affairs and Management Operations, will oversee the financial status of the Company. Mr. Van der Merwe acts as Chief Executive Officer of an international investment company and is Managing Director of an international project development firm. Mr. Hawley, President of The Hawley Group has successfully developed industrial, commercial and residential projects across Ontario, Canada. Mr. Hawley and Mr. Van der Merwe are responsible for implementing programs to meet the immediate and long-term Company requirements relating to finance, administration and marketing.
The collective findings of the Board under the above-mentioned program are as follows:
1. Mining Operations and Site Status.
Under the direction of Mr. Marlow the on-site management team has commenced work on further delineating the north/south trending mineralisation across the property, exposed during previous exploration. In specific areas where trenching has returned
values of up to 7.33 g/t Au and 201.5 g/t Ag over 20 meters, an I.P. geophysical survey will begin immediately. An R.C. drilling
program will follow the survey.
The processing plant is also being upgraded to allow increases in gold/silver ore recoveries. Capital expenditures have recently
been made to purchase a new cone crusher and replace the existing ball mill. Additionally, the flotation testing on mine material is
currently underway at Process Research Associates Ltd. in Vancouver, BC. and has proved promising, demonstrating significant
increases in recovery of both gold and silver.
An application for open pit extraction at the KBU mine site has been submitted to the Indonesian Department of Mines and Energy for approval. Upon approval of the application, a license for open pit mining will be issued to the Company, allowing full production at the mine site.
2. Financial and Administrative Report.
Current Financial Status:
The Board filed the most current quarterly report on August 31st, 1999 indicating the current financial status of the Company. Mr.
Van der Merwe has implemented cost reduction programs eliminating unnecessary administrative expenses and ensuring that capital expenditures are focused on mining operations. Further, the Company has terminated the services of the former President and several compensated but non-contracted consultants, reducing corporate overheads by 40%.
Property Status.
The Board, in association with PT Metro Astatama, has entered into negotiations directly with the representative of the KBU family, who ore the mineral rights owners of the KBU property, to restructure the existing property contracts and take advantage of favorable changes in Indonesian Law. The new contracts will save the Company US$1.9 million (CDN$2.8 million) in property payments and terminate the existing 5% running Net Profit interest currently held by the KBU mineral rights owners. Until the new contracts have been executed, the Company will continue to operate under the existing agreement (see announcement dated June 4th, 1998).
3. Company Acquisitions.
The Board has appointed Mr. Van der Merwe and Mr. Hawley to the newly formed Acquisition Committee to investigate potential mergers and amalgamations with qualified and recognized mineral companies holding verifiable assets in countries other than Indonesia. The Board seeks to increase shareholder value through the amalgamation of a larger and less confined international asset base.
4. Corporate Affairs.
The Board will be engaging a Vancouver based Forensic Accounting Specialist to review the activities of previous management and former Board of Directors activities. Although the Company does not wish to disclose specific information at this time, evidence exists of serious regulatory improprieties and financial misconduct perpetrated by former Directors, Officers and non-contracted consultants of the Company.
These irregularities do not, and will not adversely affect the current operation and/or standing of the Company. The Board is
however, fulfilling its fiduciary responsibility to protect shareholder value and to recover any damages that may have been
sustained by the Company. TEL: (561) 883-5728 William J. Van der Merwe, Vice President
Finance & Administration TEL: (604) 602-1088 CONSOLIDATED SILVER TUSK MINES LTD.
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