TO Querty & All,
I finally figured out how to paste this email. I was asked to
post this as the person is a shareholder but not a member to SI
yet. This is the reply he recieved from Mr. Doppler on up dates
for Adamas.
Date: October 30, 1997 8:20 PM
Subject: Reply to your E-mail
Dear Kevin,
I'll try and take your questions in order; sorry for the delay - since
returning from Chicago, there has been much going on.
(1) Most recent news...
First, we have brought Marie Antoinette Shields on board Adamas Resources
as our new Vice President of Public Affairs; she has signed a one year
employment contract with AMS. I would encourage you to call her; we have a
new toll-free phone number: 1 - 888 - 4 - ADAMAS (423- 2627). As part of
bringing Ms. Shields on board, we have also re-located our Vancouver
office, and are now subletting space from BMR Gold Corp.
The Chicago Natural Resources Conference was an excellent show, and we have
seen a moderate amount of buying this week as a result of it.
Marie and I were a bit apprehensive while setting up the booth last Friday
night, given the prior day's trading in Hong Kong and horrible news out of
Switzerland. To make matters worse, Saturday was forecast to be a cold,
rainy and windy day in Chicago. Suffice it to say that the first attendee
arrived at 6:10 am, and when the doors opened at 7 am, there was quite a
crowd waiting to get in. We had a good flow of people all day long. The
attendees, many of whom are clients of Richard Radez (a true gold bug!),
hold significant portfolios of junior gold and oil stocks. Attendance was
excellent - Rich says that it topped last years record. Overall, the show
was an excellent value for Adamas, and one that we will do again next year.
Our next show? Marie and I will be attending the San Francisco gold Show
on November 30th and December 1st.
No, I was unable to catch any sports games while in the Windy City; I spent
Sunday in meetings with shareholders living in the Chicago area, and Monday
working at the Admiral's Club, waiting to get a seat on a flight back to
Denver.
(2) Re: GLS Global Assets / Rumors of 1MM oz Au
GLS has been a bit more aggressive in their promotions than we are, and I
feel that they have inadvertently fallen victim to people close to the
company (but most certainly not officers or directors) leaking hints of
future news into the markets.
This afternoon, AMS and GLS received a very preliminary draft report of the
due diligence program being carried out for GLS by David Shaddrick, M.Sc.
of Reno, Nevada Dave is an expert in epithermal gold deposits, and, during
the course of his career, has discovered three major gold mines: Gold Bar
(Nevada); Foley Ridge (South Dakota) and Grassy Mountain (Oregon). We have
also received preliminary assay reports for channel sampling undertaken on
the property this month.
AMS and GLS intend to make a news release concerning interim results at
Hydra-Hercules sometime next week once we have reviewed the data with Mr.
Shaddrick (the exact date will depend on when we can get together for
conference calls; I'm traveling over the weekend, and GLS is attending the
Blanchard Gold Show in New Orleans).
Greg Crowe (Director of GLS), Dave Shaddrick and myself will be meeting in
Reno next Friday to review the Shaddrick report, and plan our next moves.
I have been on the property many times, and, given the size (two 9,000 foot
long mineralized trends with significant vertical extent) and strength of
the epithermal gold system defined to date, firmly believe that there is >
1 MM oz Au at Hydra-Hercules. Prior work by Asamera, St. Joe Minerals,
Phelps Dodge and others has absolutely established that there is a huge
epithermal gold/silver system on the Hydra-Hercules property. Personally,
I believe that no one has yet found the core of the deposit, and the
exploration program we are formulating with GLS will be designed to find
the balance of the deposit.
(3) Re: Earnings from Hydra-Hercules JV
As to receiving earnings from the AMS - GLS joint venture, we have at least
two years of exploration work ahead of us to fully-define the deposit, and
complete enough drilling in order to be ready to begin a feasibility study.
Beyond that, figure another year or two for mine development.
Cash flow (and dividends) from Hydra-Hercules is, quite honestly, several
years away.
In the interim, all that we can offer shareholders is the potential for
significant capital appreciation in their share holdings. From current
levels, adding 500,000 (or more) ounces to our accounts at Hydra-Hercules
is going to have quite an impact on our share price; when gold prices turn
upwards, the returns should be enhanced.
Since joining Adamas last year, I have been diligently searching for a
feasibility / development stage gold project that we could acquire and
develop. With the collapse in gold prices et. al. since Bre-X, there have
been some very promising deals which have come across my desk. I'll be in
Nova Scotia and New Brunswick next week, looking at two properties which
are ready for bankable feasibility studies to begin. I believe that we can
structure a reasonable deal for one of these deposits - provided that they
stand up to the claims the sellers have made. With such an asset, we could
be looking at production as early as mid-1999.
(4) IBK Financing / Other Money Sources
We have been advised by IBK that several North American and European gold
funds (and at least one major mining company) are in the midst of due
diligence evaluations of our property data packages.
We remain very bullish about IBK eventually closing the full US$1 million
PP for us; the equity and bullion markets have, quite honestly, been lousy
over the last few weeks, but Adamas has a tremendous portfolio, and patient
investors / shareholders will be well-rewarded.
When the money arrives from IBK we will be very happy - in the meantime, we
are putting together another interim PP (an initial financing on the order
of $150,000 or so, with a possible second PP of $150 - $250,000), to allow
us to get work programs underway on our various properties. Watch for news
in the next week to ten days.
(5) Closing Comments
The events of the past several months have created tremendous opportunities
for acquisitions and joint ventures, particularly in the western US and
Guyana Shield region of South America. I am reviewing some very promising
opportunities with an eye towards possibly replacing one (or two) of the
higher-cost properties in our portfolio with projects of greater potential
and far lower holding costs / earn-in requirements. When we find the right
deal, we'll sign and announce it.
I would ask that you be patient and bear with us; I have put together a
tremendous team to support and finance Adamas (Marie Shields can fill you
in on this - please call her for the details), and there is much going on
behind the scenes that you just have to trust us on, and patient / loyal
shareholders will reap the rewards. With the financing and some news from
the properties, AMS shares will perform very, very well.
With the most-recent private placement, my wife, children and myself hold
nearly 700,000 shares and warrants in Adamas - all bought at higher levels.
I've staked my professional reputation (and much of my savings) on this
deal, and fully intend to succeed.
I hope that you'll continue to hold our shares - Adamas Resources' best
days are yet to come.
Sincerely yours,
Steve Doppler
Cheers Jim |
