<<is well positioned to take advantage of the newest methods of mining copper and gold on its properties in Utah>>
What specifically are these "newest methods"?
<<... properties which consist of 4,200 acres, have well known copper, gold and tungsten deposits>>
What is the status of the land/claims. BLM or private? Leased? % of ownership?
<<The Yellow Hammer part of the Property, consisting of three zones have been estimated to have 3,590,000 pounds of copper and 4,305 ounces of gold. This estimate was as of April of 1995 and made by Sierra Nevada Mining & Engineering Co., a highly regarded firm.>>
1. First, okay why is Sierra Nevada regarded... how bout some background on the company.
2. What does estimated mean? Are these proven, probable, or indicated reserves? Is this signed off on? Have any 3rd party chain-of-custody samples been signed off on?
3. What are likely recovery methods/costs. This doesn't seem like much metal to afford building a mine for? Also what is the nature/minaralization of the Au and what medium is it found in?
<<However, recent drilling has proven this estimate to be at a minimum.>>
Who did the drill program, and where can one see the "results"?
How many holes? To what depth? Aguer or reverse circulation or other? Split cores?
<<Copper values as high 17.00%>>
17 percent of of what?
<< and gold values as high as 1.42% ounces per ton>>
1.42 percent of what? Do you mean 17 opt Cu and 1.42 opt Au? And that's fine, but it really is meaningless unless put in context. And at an average dropping to 3.25 ( % of what?!) that would tell me there is a small hotspot w/17 and a bulk of really low grade stuff that might not be economical to mine.
<< have been reported with average value of 3.25% of copper>>
Aren't you confusing pounds and ounces? At a buck a pound refined can copper be economical a 3.25 oz/ton?
<<and .111 ozs of gold>>
Whoah... Again, what kinda gold? Free or complex? Second .111 can be fantastic depending on context... Are you saying this deposit appears mostly homogenous?
<< Potential copper reserves have been estimated by outside
consultants to be as high 100 million pounds>>
Estimated by who? What is the size of the area, the number of drill holes in it, the total tonnage represented in that area, and the assay values per ton being reported by what labs/consultants?
<<The Keiwit Zone, revealed highly disseminated gold of .03 and .04 ounces per ton in several drill holes only 5' to 10' from surface and again high values of gold were in the range of .102 ozs/ton.>>
What do you mean by highly disseminated? Alluvial? Microfine? What is the mineralization? Salts, silicates, iron? What kind of assay is it showing up on?
<<Estimated reserves from past drilling have revealed that the potential for 100,000 ounces of gold on this portion of the property.>>
Estimated _reserves_ are just that, are bankable and very, very hard and expensive to proove up... Has this been done? It seems a conflict to link "estimated reserves" and "potential for 100,000 oz" in the same sentance. What _is_ in reserve status if anything? It's fine if nothing is... this stock is a baby, but please present a clear case. Are there just a few dozen exploratory holes, spread out over enough land mass to hint that _if_ the current values hold up over extensive further drilling, there is the possibility of 100K oz?
<<This is not all though, on going drilling will increase this estimate.>>
Who's estimate? Look at Delagratia, the company should not be giving out "estimates" in any fashion. Only the consultants should do this. The company should just put out size of land/tonnage/holes/avg.grades and leave the estimates to us exhuberant speculative investors.
<<The company is highly excited and truly optimistic... >>
That part is good...
<<...that a potential reserve of 300,000 to 500,000 ounces will be
proved up in the coming year. The upside is 1 million ounces and more.>>
..but this could be a sticky wickett I am told...
<< The Keiwit and Yellow Hammer zones are only 1 « miles apart>>
Are they claiming one is source rock? So yellow hammer is "free gold"???
<< As of December 1993 the company owned 67% of Clifton Mining Company. Clifton has recently become a public company trading on the Alberta Exchange under the symbol CFB.>>
How bout some reasurances this is a symbiotic relationship?
<< As of December 1995 ACMG still owned approximately
600,000 shares of CFB.>>
Why'd they sell the rest? How much did they get? Wha'd they spend it on?
<< This is a significant asset to ACMG as CFB is selling for close to $1.00 US.>>
Well, it'll pay for a small drill program maybe, and that's better than a poke in the eye with sharp stick. But if all previous exploration has been paid for by the previous sales of Clifton -- than it appears the company will pretty soon need to be able to generate some capital w/ pp's or such. And yes, getting the word out is a good idea.
<< Clifton has a bright future>>
I love bright futures... and blue sky... tell me more!
<< with Bill Moeller the President running the operation. Bill is also the President of ACMG>>
Ahah! Tell me much more! How bout Bill's resume and bio? Mining background? Past sucesses?
<<Clifton's property which is adjacent to ACMG's have a silver resource of what has been estimated to be a minimum of 50mm ounces at the minimum.>>
Estimated by who? To what status?
<<Overall, a value of 10 ozs per ton would be welcome>>
What the heck does this mean?
<<with gold and lead credits>>
Credits?
<<total values of $145 per ton>>
Net? That would be huge and it ain't comin from lead! Net, assuming a $150 recovery cost you are saying almost 1 oz au. per ton. If you are talking pre-recovery, you are still indicating ~.5 opt. Unless we are talking super cheap heap leaching; but on what head grades? And as far as I've seen, the most sensible way to estimate is "en situ" ... $5/oz for resource, $25/oz for probably reserve, $50-80 for proven reserve. If we are using these common models you are talking about 2+ opt! Are you? Or is lead more valuable than I realise?
<<...have been estimated.>>
By _who_ ???
<<CFB is presently ramping up production...>>
That's fine, but lets get back to ACMD...
<<Why is this so important? Because ACMG has a 2.5% net smelter return royalty on>>
Okay, maybe we can't. Fine, so is there an conflict of interest with the incestuous relationship -- or just a nice symbiosis? What is the % of shares of both companies held by insiders? What are the floats?
<< So all in all ACMG's story is not only exciting but almost ubelievable>>
Well, the way you are presenting it, yes...
<<ACMG has hired the prestigious consulting firm of Behre Dolbear to guide them on their quest>>
When? Who's in charge of the account? What exactly will they be doing?
<<Results on sever drill house of the>>
What? Several holes? Why so few? Or are they deep?
<<Keiwit Zone are pending, but the results are awaited with great optimism as they will be the spring board for 1997 and beyond>>
Again how big is the drill program etc, etc...
<<At this point in time the valuation of ACMB is ridiculous>>
Okay, I'm game... who else thinks so? Any "endorsements"??? Newsleters?
<<and what about the gold and copper. Say they have only 300m ozs and produce 30m ozs per year and net $125 per oz, this is $3,750,000>>
Woah... _If_ proven to "probable"... a more acurate model is en situ, and you are looking at 1/25 of an oz per share: $1 share price -- with trading maybe up to $2 on "hope" of more. Upon "proven" perhaps double this... _But_ that is a lotta drilling and a sign-off down the line is it not?
<<or more than $.05 per share in earnings>>
I don't think it will play out this way... And your projecting a model with only a 10 year life.
<<To correlate this value take a $50 per oz in the in ground value for their gold and copper at an equivalent 500m ozs or $25mm which equals $.35 per share>>
No this does _not_ correlate!
This may be a great company, but if so, it should get a bit more careful posts so it can be presented in it's most favorable _and_ acurate light. If it is a good company, _acuracy_ will be an asset.
Lew Green |
