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Gold/Mining/Energy : Geodex Resources - GXM.V (was Agate Bay ABE) -- Ignore unavailable to you. Want to Upgrade?

To: Baywall who wrote (180)	9/2/1999 11:16:00 AM
From: Baywall	Respond to of 210

This private placement will be used primarily for Phase 1 geological and geochemical testing, which will involve mapping, prospecting, silt and soil sampling. To date, on the Teck/Geodex properties, only grab samples from outcrops and mining dumps have been obtained. Reconnaissance-style work has been carried out earlier by Teck., both on land and from air photographs. All properties are at the very early stage exploration, thus speculative risk is high until further work is completed. Stage 2 will focus on the most promising areas determined in the first stage. Advanced geophysics and ultimately diamond drilling will occur in stage 2. The Company proposes to follow the present private placement with a brokered one. Could debate the merits of the properties, but the findings are outlined in previous news releases. For example: The Papigochi copper prospect, which is surrounded by Kennecott claims, lies within a belt of porphyry copper deposits which extend into Mexico from the US and includes the large copper mines of Arizona. Located 10km from world class Cananea mine which also is a porphyry copper deposit with 2.2 billion tonnes of .62%Cu., Papigochi exhibits a large gossanous sulphide system as viewed from air photographs. A small interior claim has waste dumps with malachite staining. Good chance that can use solvent extraction/electrowinning recovery processes on this deposit thus make copper mining extremely competitive. The other three properties involve gold. All veins-like in nature except Virimoa in which the gold occurs in silicified volcanics. Further south an area of intensely brecciated and pyritized volcanics exist. A wide bulk-tonnage gold zone is expected. The agreement with Teck is good. The time schedule for future work has not been determined. The current mining climate has management concerned also. The private placement of 1.8 million units came short of the 2.5 million expected. In a stronger mining climate, a fully subscribed PP may have been possible. Insiders have participated in the current private placement, with both Marr and Maris taking down 200,000 units each. Other insiders also took part in varying amounts. I also took part in the PP as a speculative play at this early stage. This stage is risky as most information revolves around grab samples and outcrop rock chips. Cautious people will probably wait until more detailed exploration occurs. Low metal prices are a concern especially when it will come time to enter Stage 2. Money for Stage 2 will depend both on results from Stage 1 and on the mining climate in the future. A long way to go. I have not seen a news release saying the company has been designated as "active". In today's newspaper, still listed as inactive. On Stockhouse website, I noticed a news release regarding the private placement. LVL