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Gold/Mining/Energy : JAB International (JABI) -- Ignore unavailable to you. Want to Upgrade?

To: Jeffery E. Forrest who wrote (1164)	11/12/1997 9:18:00 PM
From: Mr. Miller	Read Replies (4) \| Respond to of 4571

You guys would not have liked what I really wanted to say, so I'll stick to what's important. What do people think about this stock and what is BCMD really doing? All else is useless. For those who care: Spoke with a broker in Colorado who has been in the BCMD camp since 1991. It was a very interesting talk altogether, but here are the relevant highlights for BCMD right now: 1. JV: BCMD had been talking about getting connected with a JV for a long time. He knew that would be difficult with no up-to-date information that there was definitive gold in the mines or how much, accessible at reasonable cost. He also felt that BCMD needed to be in production. BCMD was close to connecting already, but Bre-X scandal scared off at least two contenders and one pretender since all BCMD had were old numbers and no production. Moves to secure cash became very high priority in order to get production going. Hence, early X-mas presents to aforementioned preferred stockholders. Activity from JV went away for a while(couple months) till BCMD could show productivity. Ears(from the same two contenders) came into range again around July/August when production was announced to begin in September AND knowledge spread about at least one new contender and two pretenders came onto the scene. He feels that BCMD had changed the dynamics of negotiations by getting their butts going, finally, on getting gold production underway(at least announcing). He sensed an air of confidence about management that probably cost signing JV in September. Management felt they were holding more cards this goaround and were willing to hold out for "better deal" while still being on edge of bankruptcy. Candidates were not that impressed and so talks were broken off, but ears were still in range. The day of Oct.14th was perhaps a marquis day in the history to be written for BCMD. The phones rang off the hook at this broker's office and he could not get through to investment banker. He later said that JV's came out of woodwork-old and new. BCMD had gambled, and it appeared as though it was going to pay off. He accumulated a sizeable position and also made off with nice profits for the day. He felt liberated in sorts after all the years of patience. Stance today. JV's have been somewhat competing for BCMD, but BCMD wants(ed) the best deal. There are many companies looking for additional reserves right now, and BCMD would be a nice catch in his eyes. BCMD has decent offers on the table, but he believes that BCMD is "willing to put forth a full quarter of production" in order to snare a better, bigger fish. He feels that Chapin is a savy, but nice guy who has waited this long and want the best deal-no rushing. He feels the deal could be very close if the big fish are able to legally find out how BCMD is doing in production. He says seeing gold in the rocks is important, but they need to be able to demonstrate that they could get it up and that there was more to be had. Is unsure when a deal would come through, but feels one would be DONE by fourth quarter if there are good production numbers. BCMD is in no rush to sign this deal. He is hearing the same rumors about closeness to end of deal. Feels that it would take weeks to months for lawyers to straighten out fine print once a deal is struck. He really thinks JV will wait for production numbers, which is why the closure could be pushed back to fourth quarter for official announcement. He would be surprised if a JV is announced anytime this quarter. "It would demonstrate to me one of three things: the JV is willing to roll the dice before losing BCMD to another bidder, that BCMD has really incredible findings for this point in production, or BCMD has less than expected gold production and signs with a little fish." Most compelling statement. 2. PR. Lionel is new and has been "instructed" to not hype the company's potential or current production. State the facts as they are he said. He really likes Lionel-tough to slip one past him. I asked about how he could then tell some of us that a deal was very close. He said that it would be uncharacteristic, and that it was probably a misunderstanding, but anything's possible. Jim wants no part of a hyped stock-has worked too hard and is a man of integrity. 3. Gold. Thought the announcement of high grade ore was wonderful. Did not expect the huge volume or the move. He thinks that new investors, not knowing what BCMD was, simply bought a phenomenon. He personally thinks there is alot of gold in the mines as he always has, but the total was unknown. He admits this is an obvious point, but the new JV would work to establish the degree of reserve much more definitively than the keewatin engineering group did. Has seen the gold mine and has seen the gold in the rocks, as pointed out to him. 4. Cost to produce. The figure of 150/oz. is to be applied to the production when BCMD is operating more efficiently. He thinks that right now BCMD won't do that kind of work, but will be able to demonstrate why they had not in reports to come(either Q1 or Q2). Shareholders not knowledgeable would sell on this he said, but the JV is in the know, which is why nailing a JV would do loads for the company. It adds tremendous credibility he said. 5. Stock price. Little comment, but did say we were up 2000% for year thus far still as of today. "I'm not worried about the day to day BS, unless we drop significantly." I asked if that was possible. He commented,"Sure, it's possible, it's a penny stock. I don't think it will." That's about all for now. I'm tired, and I think I remembered all pertinent facts to today's picture. If I remember anymore, I'll pass it on. I thought he sounded pretty credible, but sorry to say this and blow some of your confidence or skepticism, but I have no real way to justify this scenario. I will try to get ahold of other brokers to see if this is remotely true. Anyway, hope it was useful. Oh, I didn't bother to spellcheck. Sorry if it is bad. M