Discussion with IPJ's Bill Burton today:
WEBSITE AND E-MAIL
When will the website and e-mail be operative?
BB: 3 weeks from now, Mid April.
REPURCHASE OF IPJ SHARES
In 1996 TSE approved IPJ application to repurchase of shares
Any shares repurchased? How many?
BB: Their plan is to repurchase at $4.50 or less. Yes, they have
repurchased some, he didn't know how many. IPJ reasoning is that the
shares are seriously undervalued and they simply figure that IPJ
benefits greatly at <=$4.50
SHARE VALUES ARE LANGUISHING, WHY?
BB: Bre-X fallout. Bre-X was a special case as they did not follow the
rules set out by the Indonesian Ministry of Mines. Since Pursuit
companies have such a large position in Indonesia, the market is
probably assessing risk or is disinterested in the Indonesian picture. He
expects this will lighten up soon with the conclusion of the Freeport/Bre-x
jv and the signing of the CoW's.
COW's.....Contracts Of Work
When are these expected to be signed? Sixth and Seventh Generation?
BB: Bill didn't know when these are to be released.
RON E: I have seen numerous posts to indicate that an Indo signing
ceremony is to take place before the end of March. This is apparently
for 6th generation CoW's. The seventh generation CoW's are expected
by May or even into the Summer
Could delays be related to Indos trying to get a bigger share of discoveries?
BB: No. IPJ has been told by Sudjana that they couldn't be confident in
signing the Bre-X CoW's until Freeport has finished their DD on Bre-X.
There are no seventh generation CoW's approved from the current;ly
(over 300) applications to BB's knowledge. IPJ has 24 seventh generation
CoW's initialled and waiting for the Indonesian Parliament to approve and
sign them.
IPJ APPROACH TO INDONESIAN LANDS IN FUTURE
Will IPJ direct fewer resources to Indonesia?
BB: No. Thrust into Indonesia will still be strong. Current year's budget is
$4.5 million.
Is more diversification planned, ie Mongolia, Phillipines?
BB: Mongolia offers an exceptional opportunity. There are little to no
political problems. IPJ sponsored a Mongolian delegation to the just
concluded Toronto mining show. Mongolia is a single ethnic country. The geology is virtually unexplored and is "Great Geology". Faster drill results can be expected. Several sites are defined for drilling NOW. A number of these sites have up to 500,000 ounces AU already defined on the surface.
Ron E: Bill Burton was quite enthusiastic when talking about the
Mongolia prospectivity.
Armand Beudoin
Does Armand continue to work exclusively for IPJ?
BB: Yes. IPJ group of companies has a right of first refusal on all of his
work.
NEWS RELEASES
When is next comprehensive release for details of prospecting?... for:
- Jurassic - Bahau River - Barrick JVs - Mahaken E and W - Sibau - Putisi - West Kalimantan - Bau River
BB: In approximately one month. Could be longer as BB has a trip
planned to Indonesia and Mongolia. There are currently 6 teams working in
Kalimantan. Previously there were 8, two teams have been combined for
each of Sibau and Jurassic. Sibau and Jurassic are seen as IPJ's
most prospective CoW's IPJ is most interested in lands from Sebuluh
through to Mahaken and sees these as potentially the most prospective.
When will we see Drilling results?..... for:
- Dayak Sebuluh, & L-N Prospects?
BB: Sebuluh results in approx 3 weeks. Have drilled 5 holes, planned 6th
hole but will wait for results of other five before proceeding. The five holes
are very scattered over the prospect. Hole #2 where visible gold was seen
in two sections is being rechecked.
Is Sebuluh Hill still considered Highly Prospective?
BB: Yes, it is a large area.
Sebuluh fault is approx 25 km long and IPJ/DAYK has control of 20 KM.
- Is there a plan to acquire the additional 5 km?
- Is the prospectivity of Sebuluh Fault increasing?
BB: IPJ continues to work on acquiring the additional 5 km of the fault line.
It is required that the mines branch approve any new acquisitions. As for
comments on prospectivity, IPJ is holding off doing more drilling until the
CoW's are signed.
ANY PROBLEMS RELEASING INFORMATION BEFORE COW's SIGNED?
BB: No, as long as they stay within the guidelines set out by the Mines
ministry, there is no problem. They are staying within the guidelines. The
Indonesian Mines ministry want to contain the political visibility created by
work which is not covered by Contracts Of Work. Mines Ministry tried to
contain Bre-X but couldn't.
Ron E: IMO this summarizes why Bre-X got into trouble. They
embarassed the Indo Government and the Bre-X issues escalated.
AEROMAGNETIC SURVEY OF CENTRAL ZONE
Is the survey continuing? When can we expect to see published results?
BB: The survey has been delayed 6 weeks. One week by weather and 5
weeks by civil unrest at Ramadan when there were shootings, unruly
drinking, and so on which cut off their fuel supplies. The work will start to
produce analysis for the company by the end of May and they will receive
further information every month thereafter for a number of months. Results
may not be released if they do not show something significant or relevant.
DAYAK/PURSUIT MERGER
Is paperwork to be circulated? When?
BB: Yes, in about 2 weeks, every shareholder will receive and vote.
Any opposition to the merger from shareholders?
BB: No.
Is IPJ strategy to extinguish DAYAK 20% carried interest in IPJ Kalimantan
lands?
BB: This merger gives DAYK shareholders 100% exposure to IPJ. It does
extinguish DAYK's 20% carried interest in any IPJ find on Kalimantan
CoW's. Provides more liquidity which is beneficial to both sets of
shareholders.
As a DAYK shareholder what would induce me to vote yes, I am giving up
20% carried interest in IPJ Kalimantan lands. Is my prospectivity with the
merger enhanced?
BB: Yes it is, and you are getting exposure to 100% of IPJ interests including Hinoba-an .
HINOBA-AN
What is the tonnage proved to date?
BB: 250,000,000 tons of approx .47% CU
What is your estimate of future tonnage?
BB: Right now I would estimate 350,000,000 tons. We have discovered
another rich area called Mau-Lupo which is richer than the Don Jose and
A-1 deposits.
When can we expect a news release on Honoba-An?
BB: Possibly in 3 to 4 weeks, however, I am away until 14April as I am
doing a tour of the Kalimantan and Mongolian properties, thus the release
could be delayed.
Does IPJ intend to Vend this property?
BB: Yes, it is expected to raise between US$50 to $60 million.
Is it true that values such as exist at Hinoba-An would usually be valued at
US 3 cents per pound of CU in the ground?
BB: Yes, but, other factors can reduce the pricing, for instance, Sovereign
risk.
There was mentioned some time back that IPJ had an opportunity to
purchase a copper processing mill for US$5 million.
BB: That has long since been forgotten.
ARE ANY MAJORS INTERESTED IN JV's WITH IPJ AT THIS TIME?
BB: Yes, we have had 3 or 4 majors show interest. We are not interested in a jv at this time.
ALL: Would you please examine the information contained here and
make your comment back to the thread. Bill Burton was very accomodating
and took over twenty minutes for the discussion. He is very encouraged by
the Mongolian chapter about to open. IMO the stock is very under valued
when all factors are considered. Hopefully, when the CoW's are signed
and the good news is released this stock will find it's place, over $10. or more.
Best Regards,
Ron E. |
