Tim, the Craters that MGAU and DuPont got are all, ...west of Springerville...the black dot on the road map at the stair shape of the Cocinco Forrest boundryline is Merril Crater ( AKA- Singuara Cinder Cone)( SCC )RE:
ile is:
homepages.infoseek.com
Chuca
P.S.- Where is this project, exactly...
202.112.29.88
asahi-net.or.jp
What assets does Phoenix Metals have?
"What are the estimated reserves of PMTU and how were they estimated?"
[Per the 6/30/98 year-end Company balance sheet, Real property, plant and equipment, is valued at $3.5 million (property
subject to mortgage agreement). Other major assets include precious metals bearing volcanic cinder ore mines assigned to the
Company by the principals located near Show Low, AZ. The First Knoll deposit was sampled and surface mapped in 1992
above grade to contain 13.8 million tons, and by assigned reserves Cooley Knoll (AKA Duke's Peak) was sampled and
surface mapped above grade to contain 2.8 million tons. Discounted, these two deposits combined have an assigned a book
value of $2.975 billion and are estimated to provide over 20 years of reserves to the Company. Unpatented mining claims
assigned to PMTU are valued at $10.8 million, earlier assayed and inventoried dore' bars at $114 million (market value by
assay). A major asset to the Company is its technology in the form of R&D and engineering with an assigned book value of
$20. million and the non-exclusive use of the founders patented technology valued at $5 million. Liabilities of the Company
include no long-term debt, advances from shareholders of $2.46 million, and deferred taxes of $1.235 billion. Phoenix Metals
has under contract additional ore reserves to provide the Company for as long as it is commercially viable.]
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What are some of the primary uses of each of the top 3 or 4 precious metals?
[Gold and the platinum group metals (PGMs) have broad industrial and strategic uses as well as ornamental. Recent estimates
indicate platinum group metals are directly or indirectly involved in the manufacture of 20% of all consumer products.
Gold has been revered for centuries by ancient and modern civilizations alike and has served as a standard of monetary
exchange and measure of wealth by most nations. It is widely used to back currencies and as an inflation hedge. Gold was
used historically for crafting artifacts and as jewelry in pure form or alloyed with silver and/or copper to give different
characteristics
such as hardness and color. In the glass making industry for many centuries, gold imparted a red color in small quantities due to
the refraction of light. Jewelry continues to account for the primary use for gold today. As an excellent and stable electrical
conductor, gold has many industrial applications including medical devices, and in the electronic, semiconductor and computer
chip industries. Newer applications also exist. For comparison, the approximate annual production of silver is globally about
15,000 tons, gold about 1,800 tons, and platinum about 120 tons.
Platinum is mined and refined largely in South Africa and several Russian states with approximately 90% of the world
production, a supply that is considered increasingly unstable. The only significant North American producer of Platinum is
currently Stillwater Mining in Montana (SWC-Amex). Primary uses of platinum include pollution control devices (catalytic
converters) pioneered by Engelhard in 1970s, and industrial stack scrubbers, the jewelry industry, as a catalyst in the
manufacture of acids, explosives, fertilizers, and in the manufacture of jet fuel and unleaded gasoline to name a few. In the
petrochemical industry, platinum is used in the manufacture of plastics and polyester and colored paints. In the pharmaceutical
industry, it is important in the manufacture of a variety of drugs including anti-cancer remedies. The fastest growing application
area is in the communications, computer and chip industries where lifetime and component reliability has increased significantly
compared to silicon. By 1994 alone, it is estimated the use of platinum in computer-based applications increased 1000%. A
promising new application area is in the manufacture of fuel cells.
Palladium is associated with platinum in nature and is a key byproduct in the refining of platinum. It is often alloyed with nickel
and other platinum group metals to improve performance characteristics. World supply and price is volatile recently with
uncertain inventories and delayed shipments reported from the Russian states. A catalyst often used alloyed with platinum,
palladium is used extensively in the automotive, oil and gas refining and petrochemical industries. In metallurgical applications, it
is alloyed with other metals to provide desirable characteristics. Palladium is used extensively in the dental industry as an
amalgam for crowns. Like platinum, palladium use and demand is expected to increase dramatically with new application areas
such as fuel cell and toxic waste cleanup.
Rhodium is considered the rarest and therefore one of the costliest platinum group metals which tends to limit broader
application. It exhibits exceptional heat, hardening and corrosion resistant characteristics in alloys finding use in aircraft jet and
rocket engines, medical devices such as catheters, endoscopes and pacemakers, and in the fabrication of highly sensitive
scientific equipment due to its stable electrical conductivity. Rhodium is also as a key catalyst in the manufacture of certain
drugs including Tylenol. It is used in part of the coating process for high-density computer data storage devices, and is
indispensable in the manufacture of LCD (liquid crystal displays) found in laptop computers and other small electronic display
devices.]
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How many employees does the company have, and are any well known in the mining industry?
[Phoenix Metals presently has about 20 full-time employees including management, and 5 full time consultants who devote
greater that 50% of there time to the organization. Several of the Company consultants are well known locally in their
specialties including electrowinning, smelting, metallurgy and land management previously for the BLM. The Company will be
hiring about 10 additional personnel adding to management and refinery staff commencing three shifts of refinery operation near
the end of the 1998. The existing officers and directors, although working full-time on behalf of the Company, have performed
their duties without salary to date.]
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What are the anticipated revenues for this year (1998)? For 1999?
[With limited production for this year and three shifts production anticipated for the first half of calendar 1999, the company
anticipate first sales of precious metals next year. It is the Company's policy not to speculate on sales projections early in its
production cycle, but rather disclose actual results. Due to variables including but not limited to, early accumulation and
recycling of collector metal(s), the inventory and financing and/or sale of dore' metal vs. sales of bullion, the Company will
begin to shift more to industry sales in fiscal 1999 compared to fiscal 1998. The current reorganization of Phoenix Metals as a
Nevada corporation, and other management decisions will have future impact on the Company balance sheet and revenue
picture. The Company expects to show profitability in 1999.]
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How does the extraction of precious metals affect the environment?
[Serious industry violations in the mining industry involving waste disposal, ground water contamination, poisoning of rivers,
streams and aquifers due to non-containment of toxic runoff, venting, and the permanent scarring of valuable landscape are
ongoing as well as legendary. Phoenix Metals is distinguished among companies for designing containment systems to exceed
all regulations, and as a practice, uses only biodegradable materials which might contact the environment. All systems handling
solids, liquids or gasses of a toxic nature have been confined in closed recycling systems, and are cooled, scrubbed and/or
otherwise neutralized to specification before discharge. Operating in part on federal lands, the Company has been
complimented as ‘a model for the industry' by several regulatory agencies. Of this we are proud.]
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Why has it taken so long to recognize the existence of platinum group metals in North America
with all the gold and silver that's been recovered, and what is the industry doing about it?
[A study of the distribution of mineral resources will show that all naturally occurring elements are detectable globally through
trace metal analysis. Global exploitation of the platinum group metals in particular, were largely due to the early detection of
free forms of these metals through fire assay and as byproducts and residues from the production of silver and gold. The
detection and occurrence of platinum group metals in refractory volcanic ores in the Southwestern United States has been
known qualitatively for over forty years, however early industry efforts to quantify and extract them met with commercial failure
due to the complex and resistant microcrystalline forms in which they occur. With a controlled and developed industry based
on existing technologies in the hands of influential refining companies largely centered in Europe, Russia and South Africa,
world demand for these metals was largely met with a more limited application of PGMs over the last fifty years. A growing
demand driven by new applications through emerging industrial and strategic uses for platinum group metals of this century and
beyond exists. Finite foreign reserves, older paradigms and vested interests of industry and government agencies are
challenged by a few younger focused and talented companies with an incentive and new technologies, providing a gateway of
opportunity.]
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GLOSSARY OF FREQUENTLY USED TERMS
(Vocabulary commonly used in the mining and refining industry)
Agency – Refers to the various county, state and federal jurisdictions over the mining and refining industry requiring
application, permitting, inspection and approval of specific mining and refinery operations.
Anode Mud – The residue formed at the anode during the electrowinning process containing precious metals. Anode mud can
be sold or further refined to isolate precious metals.
Assay – Accepted industry and often standardized procedures of a chemical or instrumental nature used to determine the
specific elemental and qua |
