Fairmile Gold management responds to accusations
Fairmile's management (Mr. J. Kizis - VP, Exploration) has provided
this response to certain accusations towards the company:
Regarding recent accusations that Fairmile is a "SCAM", I would like
to invite individuals to visit Fairmile's web site (www.fairmile.com)
and examine the technical data that we provide there. In addition to
Humboldt Mining Services' latest Mineral Inventory for Buffalo Valley
(corroborated independently by Echo Bay), there is a report describing
the geologic setting and ore controls at Buffalo Valley (published in
the Society of Economic Geologist's Newsletter in July 1997). There
are also additional maps and photos that may be of more general
interest.
The quality of Fairmile's work is extremely high, as demonstrated by
the relatively low finding cost at Buffalo Valley (approximately
$10/resource ounce of gold). It is Fairmile's policy to conduct the
highest quality work because we believe that is how we will maximize
the value of our properties.
The goals outlined for Buffalo Valley at the beginning of the
Strategic Alliance with Echo Bay Mines were to confirm the previously
defined resource and to discover new mineralized areas, and both goals
were attained. The A/B/O resource was confirmed and was even expanded
modestly, and new mineralization was discovered (but not drilled out)
beneath gravel cover to the west of the A/B/O Complex and on Target F.
Other Target areas show promise, but will require additional work.
Fairmile regrets that Echo Bay elected not to proceed with the
program; however, we recognize that their corporate goals have changed
with the marked decrease in gold prices. Numerous other majors have
expressed interest in examining our Buffalo Valley program, and
Fairmile will pursue discussions with suitable groups.
Fairmile's newest project, the Highland Prospect, is a high-quality
property that was identified during a limited exploration program in
1997, which Fairmile implemented using a small portion of the
investment in Fairmile by Echo Bay. Initial surface work has been
completed and is encouraging.
The price of gold, as well as most other commodities, is cyclical. In
preparation of anticipated low-price periods, Fairmile has kept
corporate overhead costs low. Fairmile has no debt, and relatively
low holding costs for its projects. Fairmile views these periods of
low gold prices as opportunities to acquire gold assets at favorable
prices. Accordingly, Fairmile is investigating other opportunities
and ways to finance them.
Fairmile is not a "SCAM". Fairmile has positioned itself to survive
the current downturn in the market, and to prosper when the market
improves. |
