Chuca: IMO, I'm getting sick of re-reading news releases, because the more I read, the more my head shakes:
<<Maxam Gold Corporation announces its intent to conduct a detailed Grade-Control program designed to provide "Higher-Grade ore" to the mill in the initial production stage of mining to maximize the initial cash flow of mining operations.>>
What mining operations? The company doesn't even have an operational pilot plant to demonstrate recovery and it's already talking mining operations, cash flow and production? With the company out of cash, what will do the most good? Finding higher grade ore or finding a way to get the gold out of ore to begin with?
<<1. Additional geophysical surveys by hydroGEOPHYSICS, Tucson, Arizona to delineate additional favorable paleochannels, from magnetic surveys, and from electro-magnetic surveys.>>
Again, no point in finding additional favorable paleochannels if you can't demonstrate recovery from any existing favorable paleochannels.
<<2. Shallow "Large-Diameter" drill-holes by Boyles Brothers Drilling to obtain bulk-samples for Screen Analysis/Assay; Geochemistry; mobil metal Ion analysis.>>
Drilling costs beaucoup d'argent. The company has already done some drilling, and the stock price is at 10 cents now, therefore one can conclude that mere drilling isn't what enhances shareholder value at this point.
<<3. Follow-up "Chain-of-Custody" drilling and bulk-sampling to determine the initial production proven ore reserves.>>
While COC drilling and determining proven ore reserves is nice, if you cannot demonstrate recovery, no one will care, for all you've done is prove you cannot recover gold from proven ore reserves. Note that Hewlett came up with five million oz in mineable reserves, quite a useless exercise because the company hasn't demonstrate a way of mining/recovering such reserves. Also note that IPM started to drill to prove out a resource but didn't have an economic recovery method. The company is now bankrupt. Naxos Resources started to drill to prove out a resource but didn't have a recovery method proved out. Shareholders made enough fuss that the company suspended the drilling campaign. Like, do all the desert dirt companies have to make the same mistake?
<<When hydroGEOPHYSICS completes their work, the "Mine Reserve Audit Company" will conduct the independent verification of ore reserves in that area.>>
Here we go, another IPM and Naxos, going for the resource statement without a means of recovering the resource.
Come on, Maxam, drop the drilling/resource/paleochannel/geophysical/magnetic/grade control/metal ion/large hole/mobil/screen survey/analysis crap and get the damn pilot plant to work. No demonstration of recovery means FAILURE, END OF STORY, BANKRUPTCY, IT WAS BLM'S FAULT, IT WAS ALL THE NEGATIVE POSTS ON SI, IF ONLY PEOPLE HAD FAITH, IT WAS COGGINS FAULT, THEY DIDN'T DELIVER THE PERMITS ON TIME, IT WAS THE BAD COC ORE THAT DID IT, THE AUGER DRILL CAUSED POOR DRILL RESULTS, THE CONCENTRATOR DIDN'T WORK, THE PLATINUM CARTEL HAD IT IN FOR US, IF ONLY IPM HAD PAID FOR BLACK ROCK, THE PILOT PLANT WASN'T UPGRADED TO CONTINUOUS OPERATION, THE RARE EARTHS CAUSED ALL THE TROUBLE, WE RAN OUT OF ORE, THE THREE LEADS DIDN'T PAN OUT, WE DIDN'T HAVE AN AA MACHINE, BLM WOULDN'T LET US MINE, BAD COC SAMPLE, WHATEVER.
At least GPGI kept their eye on the ball and spent the money on what counts.
IMO,
Rand
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