I thought it would be appropriate to bring the shareholders up to date on what the Company has been doing for the last couple of months, what it is currently doing,
and, our plans for the future.
(((((((((((Press Release - February 25, 1999))))))))))))
I would like to share my perspective on the future plans for your company. Over the past few years the company has concentrated its efforts on the Hassayampa ore
pile. The Fischer Report for INCO encourages development of the Oro Grande mine as well as Weaver Creek. In order to provide a more balanced approach,
testing and evaluations have been extended to include the Weaver Creek and Oro Grande ores. The methods of production previously used were also reviewed in
order to ascertain what changes might effect an improvement in recoveries.
This report will cover the following:
1. History
2. Resin In Pulp
3. Arizona Department of Environmental Quality
4. Evaluation of Concentrator
5. Present Situation
6. Future Plans
HISTORY
In December 1998, the plant began full-time production as we had completed the evaluation of our leach and precipitation methods. At that time we proceeded to
validate the efficiency of the furnace practice and the use of resin columns as the final collector for our precious metals.
In the press release dated November 8, 1998, I indicated a concern that the leach and precipitation methods being used might interfere with our process
downstream. After a number of heats we came to the realization that these ingredients were severely restricting our ability to convert the precious metals found in the
precipitate into a form that was soluble in our copper collector. It was also observed that these same ingredients were present in the copper collector and interfered
with the function of the resin columns. Over a period of time we saw premature migration of some of the precious metals from the first resin column to the second.
Several methods were investigated to pre-treat the precipitate with a view to removing the harmful constituents. These methods did not provide sufficient relief.
After due consideration, I was of the opinion that in the long term we could not live with the precipitate as it was currently constituted. R& D was advised to
concentrate their efforts on developing a leach and precipitation method that was supportive of the subsequent process steps. It was decided at that time to curtail
production while R & D developed alternate methods. Subsequently, we shipped the resins containing precious metals to Sabin Metals Inc.
RESIN IN PULP
Although we had no current experience with resin in pulp, our laboratory tests indicated that recovery was possible and relatively easy to effect.
The economics of resin in pulp requires a detailed evaluation. It was decided to test a total of 10 different ores. Different techniques were used to attempt to
determine how they affected recovery. It was not appreciated at the time that we did not have all of the appropriate equipment required to allow for effective and
efficient analyses of resins.
We recovered precious metals from all of the ores. The recovery ranged from .01oz/ton to over 4oz/ton. Multiple assays were performed on each batch of resin. The
results of our analyses showed significant variation between the assays. This is highly uncommon with resin in pulp. These variations are probably caused due to the
use of makeshift analytical equipment.
When resin is ashed at too high a temperature the precious metals are lost in the fume. Generally speaking, we consider the higher numbers a truer indicator of the
precious metal content.
Although the results of our analyses indicated very high variability in the rate of recovery, it did provide guidance as to which ores showed the greatest promise and
confirmed our chemical and fire assay results.
In view of our limited experience/knowledge of resin in pulp, we will be relying on the guidance of a scientist with a Ph. D. in chemistry. He is currently researching
published literature and contacting those who have hands-on experience. We will resume our evaluation of resin in pulp once we have a proposal from our advisor.
This scientist is not a hired consultant of GPGI, he is volunteering his time and it is most appreciated.
ARIZONA DEPARTMENT OF ENVIRONMENTAL QUALITY
In order to apply for a discharge permit from ADEQ, we must provide them with a flow chart of our process as well as an analysis of each liquid to be discharged.
As soon as our process is finalized we will complete our application to ADEQ. At this time we continue to operate on a no discharge basis.
EVALUATION OF CONCENTRATOR
A total of 8 different ores were sent to a third party for concentration. The methods used are standard for placer ores. Complete results should be available by the
end of March.
PRESENT SITUATION
As part of the review mentioned earlier, we investigated past R & D/production methods to determine how they might be improved upon for our current use.
Through experimentation we have found that pre-treatment of the ores enhances recovery.
The ores in the following chart were pre-treated, fired in a furnace with fluxes and a collector and subsequently electrowinned. The yields shown are the recovered
metals calculated back to a ton of screened head ore.
Comment: I will not be discussing the details of our process with those who are not employees or consultants of GPGI.
For those of you who revel in the technical side of this world, I apologize but I am sure you can appreciate that it is not in the best interests of GPGI shareholders to
give away the knowledge that has been gained through R & D.
Please realize that the following results are preliminary.
ALL FIGURES ARE OZ. RECOVERED PER TON OF SCREENED HEAD ORE
TEST #
PLATINUM
GOLD
RHODIUM
PALLADIUM
1
9.57
2.13
4.18
2.92
2
7.55
4.50
3.23
2.67
3
8.47
10.26
8.07
7.23
4
3.99
4.29
2.89
1.83
5
2.44
4.84
1.92
1.20
6
5.64
5.90
2.51
1.73
7
3.52
2.91
2.10
2.48
8
4.99
5.42
2.49
2.65
9
3.68
2.87
1.93
1.35
10
4.87
2.60
3.25
5.19
11
3.56
2.96
2.67
3.66
12
4.72
3.20
4.17
6.12
Average
5.25
4.32
3.28
3.25
Range
2.44 - 9.57
2.13 - 10.26
1.92 - 4.18
1.20 - 7.23
The results listed above are from various ores, ore pre-treatments and furnace practices. A further set of tests are currently in the process. Actual yields realized
when at full production may be lower.
FUTURE PLANS
1. Ship samples to Sabin Metals Inc. by March 5, 1999.
2. Conduct an additional 16 tests by March 10, 1999.
3. Continue to work on a new leach and precipitation method - probably including ore pre-treating.
4. Determine which ore(s) we should concentrate on - decision by March 16, 1999.
5. Provide shareholders with an update by March 16, 1999.
6. Commence regular shipments to Sabin Metals Inc. by March 31, 1999.
Mike McKay
Facilities Manager
February 25, 1999.
This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such
statements. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding future production, are
forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in such statements. |
