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Gold/Mining/Energy : Zappa Resources

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To: Alan Whirlwind who wrote (76)	5/23/1997 8:59:00 PM
From: Bo Bob Brain	of 174

The most logical situation would be for Cambior to buy outright Zappa and Ecuadorian minerals Gaby project. If Zappa drops to resistance at C.40- 45 accumulate as much as you can. Have spoken to Al Gerry, I have no animosity towards him. Sometimes the events appear so ridiculous you have to joke about them. If this company ever gets any decent exposure, the stock would probably rise quickly in a short amount of time. We must be patient with this one. The price of Gold is another negative. We are in a do or die situation with gold now. If we close below resistance between $339.50 - $340.50 next week, we may see a significant decline. Otherwise we'll see only a brief rally. One of these days, gold will surprise us and surge for no apparent reason. Expect another private placement .Zappa will need the cash to fund their portion of property payments, operating expenses, start up costs, etc. Unfortunately, issuing more stock appears to be the only solution. Should Zappa reach $4 -7 , I also would consume 10 beers. Peace, Bo Bob Brain

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