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Gold/Mining/Energy : Houston Lake Mining [HLM-ASE] -- Ignore unavailable to you. Want to Upgrade?

To: Sugiyama Kazuo who wrote (236)	10/27/1999 2:13:00 PM
From: DRT	Respond to of 364

I have believed that for 2 years - based on the market outlook (strong demand, limited supply) and vertical integration in the industry (end users have a vested interest in getting involved on the supply side as evidenced by Cabot Corp's purchase of TANCO (produces Li on a spot basis for Corning, Ta from tailings for use in tantalum capacitors and Cs as a drilling fluid for offshore deepwater wells) and it's private placement investment in the development of Sons of Gwalia's Wodgina Ta mine. The only problem is tantalum and cesium are rare - there have been no significant discoveries in North America other than TANCO. Enter Houston's Pakeagama Lake... let's hope the next chapter is ours! DRT

To: Sugiyama Kazuo who wrote (236)	10/28/1999 12:46:00 PM
From: DRT	Read Replies (1) \| Respond to of 364

What puts Pakeagama Lake in the same category as the Tanco mine, Sons of Gwalia's Greenbushes mine and the Bikita mine in Zimbabwe is the fact that the property is zoned. It has Li in the form of spodumene (characteristic of Tanco, Bikita and Greenbushes) and pollucite (both Tanco and Bikita contain subzones of pollucite). Its also well known that tantalum "...tends to occur in discrete zones tens of metres wide - bonanza zones". If you want to gauge interest in Ta/Ce, these are some benchmarks: 1. Cabot Corp has recently invested $20 million in a cesium formate plant (Tanco) and $30 million in SOG through a private placement (7% interest). 2. In 1998, SOG signed 5 year contracts with Cabot Corp. and H.C. Starck (Germany-based competitor of Cabot Corp re. Ta capacitors) worth US $350 million. 3. Analysts comments on the potential of these rare metals: - Research Capital ($5 target/April 98): "... the potential to optimize the project through identification of higher grade Ta zones as sweet spots for accelerated payback is very real". - Taurus Capital ($5 target/March 98): "The importance of these dykes lies in the enriched Ta and Ce values, suggesting a characteristic zonation common with this kind of deposit" - Brenark Research ($3-5 target/Jan 98): "...tantalum concentrates are sold for about US $40 per lb of contained Ta - or an amazing $25,000 per tonne. Pollucite concentrate (24% cesium oxide) sells for about US $1000 per tonne placing the gross value of the Tanco reserves at over US $300 million". Comment: Those analysts comments and valuations were made in reference to another company - but they are noteworthy as they may apply to Pakeagama Lake! DRT