Answers to most of your questions.
Question: How much cash is left?
Answer: About $100,000. We have the ability to raise more money if needed.
Question: Have you considered splitting Eastfield?
Answer: We have no plans to consolidate (roll back) Eastfield at this time. When a stock is trading at less than the minimum private placement price of $0.15, a roll back is always a thought. Considerations are:
ú It's expensive ($30,000 - $50,000). Money which could be used to acquire a new property.
ú A name change is usually required.
ú The benefits to existing shareholders are questionable. Small shareholders sometimes get left with odd lots (100 shares) which are expensive to sell. Shareholders will only benefit from a consolidation if total market capitalization increases afterwards (10 million Shares @ $0.10 is the same as 2 million shares @ $0.50). Many times after a consolidation share prices will drift lower. Sometimes stocks will drift lower in anticipation of a roll back.
ú The markets put a higher premium on liquidity now than they did 10 years ago. If after a consolidation Eastfield is left with 2 million shares outstanding liquidity becomes a concern. Evan now with 10 million shares out the stock trades poorly.
ú New investors benefit the most from roll backs. Sometimes it's necessary to consolidate to attract new investors. If a financing is necessary, a roll back may be the only alternative.
We do not consider consolidating as a method of last resort. It can and should be used at anytime if existing shareholders will benefit by it.
Question: Why not send out a shareholder ballot and see how the other shareholders feel?
Answer: Interesting idea but a shareholder ballot would be costly and time consuming. We can obtain shareholder sentiment by other less costly methods. Remember, the management group and a few others own a majority of the stock.
Question: Why the drift (why are there more sellers than buyers)?
Answer: In my opinion
ú Weakness in the price of gold.
ú The 1997 drill program at Tonopah did not add tonnage to the existing deposit (However, it did intersect a 10 foot section of high grade gold and silver which will change the focus of future exploration).
ú The June 97 reorganization left Eastfield heavily exposed to gold.
ú Our inability to locate another project for Eastfield (The reorganization resulted in an international focus for Eastfield and a Canadian focus for Wildrose. Canadian properties have been easier to identify).
Question: How were the drill results?
Answer: As mentioned above, the 1997 drill program at Tonopah did not add tonnage to the existing deposit. However, it did intersect a 10 foot section of high grade gold and silver which will change the focus of future exploration. For more information please see the news release at
corp.direct.ca
Question: How does this property relate to the Carlin Trend?
Answer: The Tonopah project is situated in the Walker Lane district which runs Southeast down from Reno towards Las Vegas. The Carlin and Battle Mountain/Eureka trends run parallel to the Walker Lane but further northeast (about 200 miles). Round Mountain (about 30 miles from Tonopah) and Rawhide (about 80 miles from Tonopah) appear to be on the edges of the Walker Lane. I've located a map which we are attempting to put up on our website.
Question: How deep do deposits in this area go?
Answer: Most of our exploration has been on the surface. However the greatest potential lies in the deeper targets. If you look at the news release, corp.direct.ca ,it
discusses the deeper high grade vein targets.
Question: How big in square miles or acres is the property?
Answer: 4,000 acres
Question: What is the future of the Tonopah Project?
Answer: After the 97 drill program, the immediate future lies in our ability to test the deeper targets. Prism still has to spend $900,000 on the project before they earn a full 50% interest. As long as Prism is willing to maintain their option, Eastfield has no financial concerns. To date, Prism has given every indication that they are willing to continue. However, testing the deeper targets will require taking on additional risk. Risk that Prism may not want to shoulder alone.
Question: What made Placer Dome interested?
Answer: Placer participated in a private placement (600,000 shares) several years ago because of the Indata Lake property in British Columbia. The reorganization in June 97 transferred this property to Wildrose. (Placer is also a large shareholder of Wildrose). Drilling of this property is scheduled to begin again this winter.
The future of Eastfield.
I can understand your concerns about the future of Eastfield. However, things are not as bleak as they may appear. Would we like more money in the treasury? Of course. Are we willing to issue millions of shares at this level to raise more money? Probably not. Can we use the money we have to generate some excitement? I believe we can. Remember, Eastfield still has two very important assets; the ability to locate good projects and the ability to finance them. |
