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Gold/Mining/Energy : International Precious Metals (IPMCF)
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To: Claude Cormier who wrote (6573)4/21/1997 9:59:00 PM
From: Randy Giese   of 35569
 
Claude, your weekly comment update on IPM raised a very important question mark which I raised with the company a couple of months ago. I was concerned that IPM's process might be very delicate and require precise control thus making it difficult to work or impractical at production size. Here were my questions followed by IPM's response:

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1) Assuming the bulk tests go as planned, what technical challenges
remain in going from a pilot plant to the design and construction of a
full production recovery plant?

Specifically, what I am asking is:

a) Is the pilot plant an accurate representation at miniature scale or is
it significantly simplified in comparison to what will be required for a
minimum 1000 tons/day production plant?

b) Mr. Furlong stated that he anticipated that the pilot recovery test
program would establish the necessary operating parameters for the
production plant. Will the issue of scalability from pilot scale to
production size be addressed in a feasibility study done by
Behre-Dolbear? I'm concerned as to how it will be proved to lending
institutions that no significant degradation in recovery grades at full
scale can be guaranteed

A. Yes, the plant at the research lab could well be considered a
miniature scale. And from the data produced BD can begin their
actual engineering work.

B. BD will produce all such work, that is their strength. Through
traditional engineering data scale-up is usually accomplished without
much hassle. In IPM's case it is this would hold true since we would
probably begin plant operations with a first module - a pilot facility.
Thereafter, modules would be added. This allows recovery to
continue, even if one particular module is off-line.

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