Tom, Thanks for the Indonesian News regarding the stepping down of Suharto. IPJ sent me the following informational notes from their April 20th presentation at the Toronto Mining show:
IPJ Meeting Toronto April 20th 98 Mining Conference
From series of Overheads
(Pg 1) STRATEGY
* Maintain strong financial base
* Aggressive land acquisition of prospective geologic terrains in selective
countries
* Build exploration and administrative teams on a country by country basis
* Develop prospects to the discovery stage and then consider exit strategy
(2) Pro-Forma Capitalization table and internal valuation
*Cash and securities C$15 million
* Shares o/s 29.7 million
* Cash and securities per share C$.51
* Internal valuation of Philippines project C$107 million (note 1)
* Total assets C$122 million
* Total assets per share C$4.11
Note 1: Management negotiated this transaction on the basis that
Pursuit would have a 50/50 joint venture with Minoro, which Pursuit would
reduce to 40% by selling 10% to Minoro for US$15 million. This would place
a value on the balance of Pursuit's interest at US$60 million for a total
of US$75 million. While there is no assurance that this transaction will
close, management is hopeful that it will be completed prior to
mid-year.
(3) Pursuit - Minoro production deal
* Minoro to buy 10% from Pursuit for US$15 million
* Minoro to earn an additional 50% interest by contributing all equipment,
including a 42,000 tpd mill and all mining equipment
* Minoro to arrange US$100 million project financing
* Production planned for mid - 2000
* Annual revenue to Pursuit approx. US$40 million (years 1 to 5)
(4-5-6) Maps of the Hinoba-an Philippines CU project
(7) Hinoba-An project highlights
* 3 billion pounds CU (indicated and inferred)
* Current mineable resource - 312 million tonnes @ 0.414% CU
* High recovery (90 - 92%)
* Low strip ratio (approx 1:1)
* Infastructure in place
* Proximal to smelters and markets
* Further exploration potential
* By-product credits approx. $.19/lb CU
* Cash cost:
Approx $.40/lb CU over years 1 to 4
Average $.48/lb CU over 20 year mine life
Approx. $.56/lb CU, including capital repayment
(8-9-10) Maps of SE Asia and Kalimantan
(11) Indonesian Contracts of work system (CoW)
*CoW system in place since 1967
* Stable working system with 30 years guaranteed tenure/taxation
* Possibly the world's best "cradle to grave" mining tenure system
* Generation Vll CoW signed in February 1998 RE note: for E and W
Mahakams
(12) Map of Current IPJ land holdings in Kalimantan, Indonesia
RE note: Shows holdings to be:
CoW applications:
Sebuhuh Hill
L-N prospect
N Mahakam
Signed 7th Generation Cow's:
E Mahakam
W Mahakam
(13) Mahakam regional exploration coverage
* Mahakam East: 217,500 ha - 70% complete
* Mahakam West: 179,100 ha - 40% complete
* Mahakam North: 269100 ha - 5% complete
(14) Mahakam area targets
* Manto: Cu, Mo
* Tebihi: Cu, Mo
* Luso: Au
* Tasan: Au, Cu
* Tekori: Au, Cu
* Danum Biang: Au
* Piyangi: Au, Cu
* Livuq: Au
* Usan-Tepai: Au
* Metinang: Au
* Danum Buak: Au
* Seleheh: Cu, Au
(15-16-17-18-19) Various maps of E & W Mahakam
RE: Located on these maps are appox 18 poryphry targets. The Manto and
Tebihi prospects are located in the middle to slightly SE of E Mahakam and
are part of what they call the Mahakam Porphyry Cluster. If you look to
the last EnerSource Kalimantan map, there is a "Bresea-Diadem-Tandem" CoW
directly to the east of the Mahakam Porphyry Cluster.
(20) Manto Prospect - CU, Mo Porphyry
Core Area (preliminary)
*1400 m x 400 m Copper mineralization
* Approx. .70% CU; 0.006 Mo (0.25% Cu cut-off)
* Remains open to the N, E and SE
* 1800 m x 600 m Copper mineralization
* Approx. 0.26% Cu; 0.022% Mo (0.10% Cu cut-off)
(21) Tebihi Prospect - Cu, Mo Porphyry
* Potassically altered quartz diorite intrustion
* Mineralized sheeted vein/porphyry zone 300 m wide x 600 m long (open to
the southwest)
* Zone partially capped by older rocks
* Potential for additional zones
(22)Luso Prospect - porphyry gold
* Several outcrop samples (399 - 1000 ppb AU)
* Arsenic values to 5380 ppm
* Leakage into Hornfelsed sediments directly above porphyry (skarn +-bulk
tonnage potential)
(23) Tasan Prospect porphyry assiciated gold
* Gold values in outcrop to 1.38 g/t Au
* Gold values in float to 8.291 g/t Au
* Arsenic values to 2.15%
* Extensive quarty pyrite alteration with altered porphyry adjactne (+Cu?)
RE: Tasan located N Central E Mahakam
(23) Tekori prospect - porphyry associated gold mineralization
* Gold values in float to 27.13 g/t Au
* Porphyry Association
High Bismuth (up to 58 ppm Bi)
High Copper (up to 1120 ppm Cu)
* Quartz pyrite altered porphyry breccias
* Potential for Sed-Hosted +- skarn (Au, Cu)
(24) Mahakam Summary
* Situated in a highly mineralized environment
* Area known for "World Class Deposits"
* Generation Vll Contracts - signed
* Numerous targets identified - more to be found
* Detailed surveys underway - drilling planned
(25) Mahakam area infrastructure
* Base camp at Data Dawai (2,000 ft paved runway)
* Ocean going barges travel the Mahakam river to Samarinda to Long Long
Bagun
* Logging roads
70 km from Datah Dawai to Long Bagun
45 km from Manto Prospect to Long Bagun
* Additional logging roads added every year
Forestry plan filed to 2016
RE: as the crow flies, Mahakam Cluster is 10 to 20 kilometers from Datah
Dawai.
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