To: Alan Whirlwind who wrote (133 ) 11/25/1997 7:48:00 PM From: dean poets Respond to of 3198
Third quarter financial highlightsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Zappa Resources Ltdÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ ZPA Shares issued 17,053,790ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Nov 24 close $0.23 Tue 25 Nov 97ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ News Release Mr Albert Gerry reports, In the third quarter, Zappa Resources Ltd (the company) continued toÿ focus onÿ itsÿ Ecuadorian properties, La Plata and Papa Grande and Mollopongo. On the La Plata property, seven additional diamond drill holes wereÿ completed andÿ reportedÿ inÿ our September 11 1997 news release (see Stockwatch dated September 12 1997). Properties La Plata The results of theÿ drillÿ programÿ toÿ dateÿ indicateÿ additionalÿ massive sulphideÿÿ mineralization.ÿ Holesÿ 12,ÿ 16,ÿ andÿ 17ÿ emphasizedÿ thatÿ the mineralization is rich in gold, silver, copper and zinc. Holeÿ 17ÿ returned values of 4.2 meters of 18.9 g/t gold, 119 g/t silver, 0.4% copper and 4.2% zinc. Cambior Inc, the optionee, is stillÿ drillingÿ onÿ theÿ siteÿ andÿ we expect to report 3 to 4 additional holes prior to the year end. The program did not move along as quickly as we anticipated becauseÿ marketÿ conditions ofÿÿ metalÿÿ pricesÿ causedÿ contemplationÿ ofÿ explorationÿ directionÿ and expenditures. Guadalupe Ecuadorian Minerals Corp (EMC) is presently earning a 51% interestÿ inÿ our Guadalupeÿÿ propertyÿÿ byÿÿ spendingÿÿ $3.0ÿÿ millionÿ byÿ Septemberÿ 1998. Approximately $1.5 million in exploration is required to beÿ spentÿ byÿ the deadline. We look forward to reviewing EMC's proposed program for 1998. Papa Grande and Mollopongo Duringÿ theÿ thirdÿ quarter,ÿ Zappaÿ andÿ Cambiorÿ discussedÿ theÿ economic variablesÿ andÿ parameters of the proposed gold mining project. The studies meant rerunning the numbers in our conceptualÿ prefeasibilityÿ studyÿ using variousÿ goldÿ valuesÿ andÿ projectedÿ costs.ÿ Byÿ refiningÿ theÿ project's financing numbers, we anticipate what increased tonnage and grade is needed toÿ justify additional drilling. With the gold price dropping almost daily, the study clarifies our risk-reward ratio for the project.ÿ Theÿ reviewÿ is stillÿ underÿ way and as of today, no decision has been made on the size of an exploration program for next year. Zappa's management considers the present cycle in theÿ goldÿ marketÿ asÿ an opportunity to look for new openings and ventures. ÿÿÿÿÿÿÿÿÿ FINANCIAL HIGHLIGHTS ÿÿÿÿ Nine months ended September 30 ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 1997ÿÿÿÿÿÿÿ 1996 Current assetsÿÿÿÿÿ $315,433ÿ $1,047,630 Total assetsÿÿÿÿÿ $8,979,439ÿ $7,293,895 Total liabilitiesÿÿÿ $73,138ÿÿÿÿ $17,893 Share capitalÿÿÿ $13,311,633 $10,523,287 Revenueÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $Nilÿÿÿÿÿÿÿ $Nil Loss for the periodÿÿÿÿÿÿÿÿÿÿÿÿÿ $305,139ÿÿÿ $207,586 Exploration expendituresÿÿÿÿÿ $2,448,099ÿ $1,056,332 The company requests that any shareholder wanting a completeÿ copyÿ ofÿ the formÿ 61ÿ quarterlyÿ report,ÿ contactÿ theÿ companyÿ byÿ telephone at (604) 669-5650 or by fax at (604) 685-6341. (c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com