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Gold/Mining/Energy : International Precious Metals (IPMCF) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Jagow who wrote (26648)	11/16/1997 5:00:00 AM
From: Tritone_ch	Read Replies (4) \| Respond to of 35569

Comment from Ron Struthers RSA Update IPM Volume 3 # 10.9 Nov 16 1997 Int Precious Metals IPMCF on Nasdaq I am much more positive about the recent news after an opportunity to look at it more closely, discuss it with IPM and other contacts I have. I am now more bullish on this stock then I ever have been because of the near term short squeeze THERE IS NO NEED TO PANIC !! I have repeated this once again because after diving into this deeper I don't think it is wise to make any kind of decision on the gold grades at BRX from what was in the news release. These are just samples from two areas. Two areas selected at random by Bateman and I believe that quite likely these are below average areas. The important point I am trying to make is we cannot judge what grades are at BRX from just two sample areas. This news release is about verification of gold and platinum and a fire assay, not about grades for gold reserves. Now that IPM has a verified fire assay they can assay the 121 holes again as well as the 30 plus in the last drill program. Once some of these results come in we will have a better idea of grades. Another very important point is how these samples were collected. If you look at the assays in the table, the two highest were from the trenches. All the auger samples are low. It is possible that a some of the gold can be lost in auger samples on this material because of the fine material you are drilling and the centrifugal force of the auger can cause gold lost down the outside of the auger. The reverse circulation drilling is far better with this material. This is what IPM used to drill all their holes and is what we will see the assays come out on later. I discussed this matter with Dale Runyon of Maxam. He verified this and confirmed that Maxam's gold grades doubled when they sampled the same area by RC drilling compared to auger. Whether this is a factor or not, I cannot be certain, but the big difference in the trench assays vs the auger assays in the IPM press release support this theory. Lee Furlong of IPM did not seem to think this was the case here but had more to do with the variable grades that can be found at different locations. I discussed with Lee about these variances and with more recent data IPM has collected this year, they believe the area was mineralized from two separate areas and events. There is more gold in the SE from Volcanics and appears there is more Platinum in the northern area of the property. Also a there is an underground river bed through the middle of the property that has washed out the mineralization in the bed. It is likely this area referred to as the 1st square km and where the tests were done is not the richest area on the property. Like any mining project, more drilling will be needed to confirm grades and location. Another thing to keep in mind is the fire assay never shows all the gold that can usually be recovered in this complex ore. We won't have that question answered to Bateman gets to bulk sampling for metallurgy testing and feasibility study I have visited all the desert properties and checked them out thoroughly and know of many other individuals who have taken their own samples. These grades in these few samples are no concern to me and I am no longer disappointed in this regard. Like I said in the last update, a few samples do not make a mine but only prove the existence of gold and platinum. I believe as the drill samples come in we will see an average gold grade by fire assay between 0.10 and 0.15 opt Even if you take a pessimistic outlook and average the grades in the news release of gold to 0.036 and silver to 1.48. The samples were in the first grid and I still see no problem applying this across the 50 million tons outlined by the 121 holes in this grid. Furthermore platinum has always proven grades as good as gold or much higher in all previous testing. If we add in 0.036 opt platinum and just forget about palladium to be more conservative we still have a gold equivalent (using Fridays prices of gold silver and PT) of 5.3 million ounces of precious metals in the 1st grid. This resource will soon be calculated and confirmed by Bateman once the assays are completed in the 1st grid. Is it economic? Bateman seems to think so. They have several recovery processes to try and cost could be as low as $10/ton or less. The confirmation by Bateman that there is gold and platinum at BRX proves the scam callers are dead wrong. The AZDOM is dead wrong. Another nail in the AZDOM coffin in the legal dispute. The naysayers and scam callers in the press, on SI and the internet have been proven WRONG!!. Because of this it is my opinion that anything they say cannot be trusted. IPM stock is in play by the shorts and Institutions. You can expect a big attach by the shorts and a lot B.S on the internet over the weekend. They will try and shake confidence to drive the stock price down on Monday to make the recent press release appear as negative. They will attach me and anyone who speaks in favor of the company. This only proves that what I am saying is true. The Institutions are heavily into the stock. There support will be key next week. The news release on Friday has cleared the air for me to fill you in on much more than I could prior. There was no mention of BD. Even though my previous updates always mentioned BD/Bateman. This is no surprise to me and shareholders should be pleased. I have mentioned numerous times that Bateman is the best thing that ever happened with IPM. Investors have always complained about the slow progress of 'The BD Report'. Bateman has achieved more in three months than BD did in three years. The acceleration in events will now be a pleasant surprise. For whatever reason BD did not want to address the presence of platinum at BRX. IPM needed someone to confirm this and Bateman's experience here is the best one could find. BD was also in possession of these COC samples so we could still see a report from them at a later date also. Bateman will become more heavily involved and BD to a lesser extent Auric and Friendship have been a great help but are no longer needed. The fire assay that Auric developed worked well. The problem was they wanted a lot of money from IPM to use it. Just look what Naxos has recently agreed to pay for use of the Johnson/Lett technology, $5 million plus 10 million shares. I have nothing against Johnson/Lett, nor am I insinuating their process does not work, but as a shareholder of IPM and if I were an Institutional investor, I would feel way more comfortable with the reputation of Bateman working on the project compared to a little known Auric or Johnson/Lett. It caused considerable delay but I think IPM made the right decision by going with Bateman for what would be considered a more customary fee. Auric like many others are trying to get a piece of the pie and make some money but I think what they wanted was excessive. A gold fire assay is key, this has never been accomplished before (confirmed by 3rd party) on BRX ore. Bateman has confirmed Platinum at BRX, again the naysayers etc are full of B.S. Again I want to stress a very crucial part in this news release about financing. Look around you, the whole mining sector is devastated, gold is hitting 12 year lows, mines are closing, junior gold explorers are trading for pennies. The mining giants Placer and Barrick are hitting lows they have not seen in 6 years or more. U.S. Institutions have agreed to fund IPM with a convertible note for a up to $10M with a 25% premium over the stock price. Why in gods name would institutions do this in todays market. This is the most bullish sign you will ever discover in a junior gold explorer. It is very obvious to me that these Institutions know a lot more than what was in todays news release. Don't kid yourself, they have met with Bateman and know exactly where IPM is headed. I have learned some more detail on the financing agreement. Basically it is a convertible bond with interest of 5.25%. The bond can be converted to stock within a 5 year time period. The conversion price is 125% of the stocks, market price on the day of conversion. IPM can also buy back the bond within the first year. This is very good. It gives IPM the money at a reasonable cost and does not dilute the stock. The possibility of dilution is there but any conversion would be announced. This does not help the shorts situation at all. There will be a press release on financing soon I did confirm on the weekend that these Institutions are quite happy with the news and have no problems. Also our big friend Guardian Capital and another fund sees no problem. I will be talking with others on Monday. Investing successfully is about risk and reward. A huge risk for some was removed on Friday and that is IPM is no scam and has gold and platinum. This is from my Short Squeeze Update on Nov 11th On November 14th 1997, the shorts have just realized fatal error #1 & #6 "1- They have counted on BD/Bateman to prove IPM a scam. They are wrong. This is their biggest mistake" "6 - They may have anticipated a private placement or dilution in the stock to help them cover lower. They are wrong. I can't divulge yet how this will work but IPM will get financed and there won't be the shares or dilution come to the market as they expected to help cover." The shorts have acted on leaked and incorrect information about 6 months old . They were counting on IPM going to Zero. They will now be in panic mode. Expect a big attach on the SI internet thread and elsewhere The shorts now know that they are going to have to cover and buy stock. They will want to be covered before all the drill assay results start coming out. I have heard there will be Institutional buying come Monday, and expect we could see the beginning of the squeeze. The financing with the Institutions, should close very soon, probably next week or no later than the following week. It is quite common of them to go in and buy a trading position to manage their risk. This could create some hefty buying in the next two weeks. The short position was last reported at around 800,000 but could be as high as 1 million or more. The most shocking thing I have confirmed is a huge short position overseas. The actual total short position is closer to 2 million shares!!!!! and the float around 4 million. These shorts did not short a $5 stock to make a couple $ on a trade. They fully expected IPM was a scam and it would go to zero. They now know they are in a bad position, I think their goose may be cooked before the U.S. Thanksgiving. This is an explosive situation and this alone puts a floor under the stock price. Anytime the stock drops, the shorts will be buying to try and get out of their position I believe it would be foolish to sell on this news. There is no need to panic the stock is pretty well into the hands of the Institutions now. I am still bullish and would watch for a buying opportunity. The stock could be very volatile for the next couple weeks, possibly on both the up and down side. If I were to buy, I would try bids below market to try and pick any dips. You can check with your broker or those on the SI thread can watch the bid on Monday. If you see a lot of stock being bid for then we are probably headed for a good up day. If there is not a lot of bids we could go down but I would then expect a lot of buying from Institutional support and the shorts trying to get out of their positions. I can guarantee you I am not very popular with the shorts for exposing their problem and expect I will be under lots of attach and criticism. This will not sway me, I will continue to dig up all the information I can. The shorts are very desperate and you can expect the attacks and the bullshit to be flying on the Internet and perhaps in the press. They will try anything to shake investor confidence. There should be a few press releases from IPM coming up about the financing and further work by Bateman. IPM has also a lot of questions from shareholders and is compiling a Q&A that should be up on the web site on Sunday. I am not going to answer all the individual emails. I hope I addressed most of your questions. Read IPMs Q&A on Sunday also. If you have further questions I don't know if I will be able to answer your email but am always available on my business phone through the week. I KNOW I AM PROVIDING YOU VERY ACCURATE INFORMATION ON THE SHORT SQUEEZE. THE SHORTS ARE NOW FLAMING MY EMAIL BOX SENDING LARGE FILES ETC TRYING TO CRASH MY SYSTEM. I AM THEREFORE HAVING MY ISP DELETE MY IN MAIL ON A REGULAR BASIS SO THEREFORE I WILL LIKELY NOT GET YOUR EMAIL MESSAGES I would also like to answer some questions about whether I have sold stock. The only stock I have sold was an odd lot of 80 shares a couple of months ago. This odd lot was from the 10 to 1 consolidation a few years back. I have traded the stock once, also, a couple months back. I sold 1000 shares and bought them back at 1/4 point cheaper, not very profitable<g> I am not bullish on the stock because I own a pile of it. Even if it went to zero I have made more money on DRZ, WTC and Net 1 in the last two months then I could loose on IPM. I still expect a short squeeze can create an extrodinary opportunity here. Once this is out of the way the stock should be driven up by steady barrage of drill hole releases and other exploration results and reports and sign offs from Bateman and BD. I hate to see you get scared out of the stock by what the shorts are doing, They made their mistake, they should just face up and take the loss like any of us has to do from time to time. There just might be Gorillas all over this stock on Monday Feel free to post this to SI and email to other shareholders. I will try and make some posts to SI on Sunday to answer any questions I can. The information contained herein is based on sources and data which we believe reliable, but is not guaranteed by us. This firm and/or their employees, officers or members of their families and investment portfolios managed by such organizations may have a position in the securities and/or options relating thereto and may make purchases and/or sales of these securities or options relating thereto from time to time in the open market or otherwise. Furthermore, this information is furnished for information purposes and is not intended to be construed as an offer to buy or sell securities.