Subject: J Taylor's Weekly Hotline Message
Following is a summary of the J Taylor's Gold & Gold Stocks Telephone
Hotline message for the week ending July 12, 1997.
Gold plunged still further this week as it closed at $319.50 which
represents a 13.53% decline since January first. Thus far this year,
our stock portfolio has declined by 17.27%. Although this is wretched
performance compared to the general stock market, I am still hopeful
that even if gold does not turn around this year, several of our special
situation stocks like the desert sands stocks and Thermo Tech
Technologies will all us yet to post positive gains for the year.
This week, a new recommendation in the oil and gas industry was
recommended. I like this stock so much that I have selected it as one of
my favorite seven stocks that have the potential to approach our 10,000%
gain we achieved when we sold BRE-X. Be sure to subscribe to learn
more about this unique company involved in a wide variety of oil and gas
activities.
Altair International announced that independent tests carried out at
Southern Illinois University confirmed the company's belief that its
centrifugal jig is efficient in coal cleaning. The company's
centrifugal jig outperformed all floatation technologies and all
commercially available enhanced gravity technologies over the 100 to 325
mesh size fraction.
Allegheny Mines announced some very encouraging drill results from its
East Vanguard property with an average grade of 0.035 oz./ton gold,
1.39% copper, 3.6% zinc, 0.033% cobalt and 0.75 oz./ton silver over
approximately 20,000 tons. For additional information call the company
at (416) 322-3477.
Canarc Resources announced they had hit a 112.2 ft. intersection on its
Polaris Taku property that graded 0.42 oz. gold/ton. This intersection
took place during drilling which is part of current feasibility program
that is underway on the property. For additional information, call the
company at (604) 685-9700.
Columbia Gold Mines announced results from two widely spaced holes that
tend to indicate the Fyre Lake copper/gold/cobalt property may continue
to grow in size. For additional information call Columbia at (604)
687-4951.
Formation Capital announced that it has completed a private placement
that will net it at least C$1.5 million. Proceeds of this financing will
be used to drill the northern and southern strike extensions of the East
Sunshine Lode and Ram zone during 1997 exploration. For additional
information call the company at (604) 682-6229.
GMD Resource Corp announced that it has discontinued using the services
of CF Mineral Research with respect to assaying its Royce claims because
this firm has been unable to process GMD's samples in a timely manner
which is hurting its summer work program. As a result, Charles Fipke
tendered his resignation as a consultant to the company. In its place,
the company has hired Overburden Drilling Management of Ontario. For
additional information call the company at (604) 662-3350.
International Butec announced that its 1997 drilling program on its Hawk
Ridge copper/nickel property is now underway.
International PBX Ventures announced assays from the first five holes on
the Jacqueline Zone on its Tierre de Oro Gold-Copper property. Results
indicate that the mineralized zone, which is tabular and on average 10
meters thick, could contain 15 million pounds of copper and 250,000
ounces of silver from the 400 x 200 meter area drilled so far. However,
the zone is open along strike and down dip where it extends below
shallow surface gravels. The telephone number for International PBX is
(604) 681- 7748.
Itronics Inc. announced that its has completed development of Gold'n
Gro Manganese fertilizer which contains 5% sulfur, 0.5% iron, 3%
magnesium and 0.5% zinc. This represents the company's third photowaste
byproduct. Gold'n Grow Manganese is to be used for direct application or
as a supplement with nitrogen fertilizer solutions for spray or
fertigation application on all types of plants. This product is expected
to be especially useful in areas of alkaline soils and in areas where
hard water is used for irrigation. Alkaline soils occur widely in
Nevada, California, Arizona, New Mexico and Texas. Test marketing is
being initiated in Nevada and California.
I spoke this past week to President & CEO John Whitney who told me that
Western Farm is getting positive results from testing of Itronics first
product. I also understand that one store in a law and garden store is
in the process of testing one of the company's products for turf
grasses. If testing is positive as expected, this could result in more
than 100 stores in the lawn and garden store chain selling a large
quantity of Itronics fertilizer. On the supply side, John told me there
also has been some good news too including the fact that one San
Franscisco institution may sign on to deliver waste and that would
double the current waste intake. John also noted they were making some
cost cutting changes that along with more volume should enable cash flow
for this company to improve considerably. Although this stock remains a
high risk/reward proposition, I remain very optimistic about its chances
and I am planning to visit this company at the end of this month at
which time I should have more to tell you. Call (702) 689-7696 for more
information.
I am disclosing this week that I have signed an agreement to provide
consulting services for L.S. Capital Corporation beginning next Tuesday
July 15th, for a one year period of time. As a result of my decision to
work for L.S. Capital, I will be leaving the major international bank as
of August 16th, 1997. Separately, last week, L.S. announced that it has
retained OTC Financial Network of Needham Massachusetts to direct its
investor relations program. For additional information call the company
either in Houston at (281) 398-5588 or toll free at (800) 263-1880.
Laramide Resources announced that additional drilling has confirmed that
the La Sorpresa zone on the La Colorado property in Mexico has the
potential to contain a sizable bearing deposit.
One of the companies I will feature in my July issue is Lithos
Corporation which in addition to having some exciting gold and copper
properties, is also involved in developing a low cost process for
producing lithium metal to be used in lithium batteries. A junior
mining company would not be likely to succeed in such an endeavor on its
own, but Lithos has joint venture arrangements with Hydro Quebec,
Mitsubishi and a leading inventor. This week, the company received
another shot in the arm when Societe General de Financement du Quebec
signed a memorandum of understanding whereby this arm of the Quebec
government will provide financial support for the development of the
company's cost cutting technology. This is an exciting company that may
have a great future no matter what the price of gold does. For
additional information call Lithos at (514) 667-0098.
Pangea Gold announced additional positive drill results from its
ongoing first phase drilling program on its Victoria project in Peru
where three major gold-bearing structures have been identified to date.
Contact the company in Toronto at (416) 863-2101 for additional
information.
Sharpe Resources Corp. announced that the results on its Matagorda Texas
project have returned test results better than anticipated. The flow
test results indicate that the first three (3) of six (6) wells are
expected to initially produce approximately 8.5 to 9 million cubic feet
of gas per day. Call Sharpe at (804) 225-0190.
Silver Eagle Resources has been among our most frustrating
recommendations, because production was expected long before now.
Unfortunately, the company was not able to raise money to get into
production. To improve its chances in the future, the company has
appointed Dr. David B. Hackman as President & CEO. In addition to Dr.
Hackman, Silver Eagle recently bolstered its management team when it
acquired Liximin, Inc. who has a team of management personnel that has
experience in permitting, developing starting up and operating mining
projects. The previous management's strength was mostly on the
exploration side. Hopefully, with experienced operators now heading up
this company, financing may be easier to obtain. Dr. Hackman said last
week that management intends to quickly finance our two small, high rate
of return projects because they will rapidly develop the positive cash
flows base for financing future growth into the larger projects he
believes can be found and acquired in the future. I am hopeful the new
management team can make a difference here although with gold prices
where they are, it will not necessarily be easy. Call Silver Eagle in
Arizona at (520) 798-1744.
Among the north American gold exploration companies, Virginia Gold
remains one of my favorites. Last week the company announced that
Kennecott Explorations signed an option with Virginia Gold on property
located near the Sept Isles copper/nickel/cobalt discovery made last
year. Virginia Gold's phone number is (418) 694-9832 or you might try
their toll free number which is (800) 476-1853. |
