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

To: HungryLion who wrote (26835)	11/16/1997 7:45:00 PM
From: go4it	Respond to of 35569

I never paid any attention to Key west before and doubt I will now. Are they going to re-iterate a sell recommendation when they can't get enough shares to cover?

To: HungryLion who wrote (26835)	11/16/1997 7:47:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 35569

IPM Q&As IPM hopes that the following FAQ will be informative to shareholders and parties interested in the company and its projects. As needed, IPM will try to provide additional responses to those important or frequently asked questions that are presented through e-mail or by writing the company. Q1. Were the chain of custody samples used for the fire assay taken from the same two samples located by Bateman throwing darts for the verification test? Yes, the "chain of custody" sample (181T) seen in the "Range of Results" table was a split of the same samples that Bateman used in their recovery testing. The sample locations chosen by Bateman were random (basically throwing darts) and are located « kilometer (over 1600 feet) from each other. Other samples were evaluated and more than 2,100 remaining will also be tested as we confirm values for the determination of resources within the one square kilometer area Q2. Are the fire assay results in the press release similar to what you found when you did your preliminary assays at those two locations? Yes, they are similar but slightly lower than the average analyses reported by IPM in the past on samples taken from the same general locations from within the 1-square kilometer grid. However, these November results potentially represent economic head grades. For comparison, the values quantified in the leach assays and reported by the company in March of 1996 are: Hole - Depth 143-005 143-010 143-015 143-020 143-025 Au (opt) 0.047 0.064 0.092 0.045 0.028 Hole - Depth 181-005 181-010 181-015 181-020 181-025 Au (opt) 0.053 0.051 0.039 0.043 0.048 Average 25 feet=0.055 Average 25 feet=0.047 collection of composite 181T on 9/97 (0.04-0.08 opt Au) 5-25 foot depth Hole - Depth 143-030 143-035 143-040 143-045 143-050 Au (opt) 0.056 0.036 0.049 0.029 0.040 Hole - Depth 181-030 181-035 181-040 181-045 181-050 Au (opt) 0.013 0.052 0.047 0.062 0.049 Average 25 feet=0.047 Average 25 feet=0.045 collection of composite 181B on 8/97 (0.02-0.024 opt Au) 25-50 foot depth The November 13, 1997 results were composite samples and were collected near the earlier test locations. The above table shows the 1996 results by five-foot increments at the same general hole locations. The samples tested by modified fire assay were composites from approximately 20 feet of either a trench sample (5 feet to a depth of 25 feet -- "T" samples), or from a drill auger hole ("A" samples representing 3-25 feet, and "B" samples representing 25-50 feet). As we discussed in Question 1 above, there are observed variations seen in the geologic and chemical make up of the samples as well as in values seen within or between assay methodologies. Those reported in March 1996 are values per a chloride leach method; those reported on November 14, 1997 are via a modified fire assay routine. Q3. The Press Release said that Bateman had confirmed the presence of gold and platinum using the recovery process; but did not mention any amounts. Was Bateman able to recover something similar to what the fire assay predicted? Recovery test objectives were to utilize a specific method to determine if that method was able to recover metals - and to provide IPM's Board of Directors substantiation of the presence of precious metals as the basis for future business decisions. Bateman has reported that gold and platinum were recovered by the method. Ultimately, the efficiency of any recovery method is measured against the reported head grade of the sample. But since the recovery method is considered by Bateman to be non-commercial, they believed the amounts were not relevant. Q4. Wasn't Behre Dolbear involved with the Black Rock Project verification program? If so, why weren't they mentioned in the release? Yes, Behre Dolbear is still providing an auditor role on the Black Rock Project. Both Bateman and Behre Dolbear are in receipt of identical assay results from the same laboratory nominated by the consultants. For the purpose of review prior to the press release, IPM was able to contact senior management from Bateman on Thursday, November 13. However, we could not make the similar contact with the Behre Dolbear principal. IPM decided to proceed with the release of the results in order to keep shareholders informed with the information at hand. Q5. Are we no longer involved with BD? Or, has Bateman replaced BD? The independent roles are changing on the Black Rock project as it advances. Behre Dolbear's role in IPM's programs has been limited to witnessing tests, and reporting thereon. The Black Rock project has progressed to the next stage where, by contrast, Bateman, an engineering and design organization, will continue to provide experienced qualified professional personnel for hands-on work with IPM. Bateman will utilize their expertise in the development of gold and platinum recovery procedures and methodologies in all aspects of our project; including but not limited to analytical data evaluation, recovery testing, mine design, plant design, etc. all the way to project feasibility and plant construction and management. Q6. Do you still feel that an economical recovery process can be developed? Yes, IPM believes that there are economic recovery processes availability. Management knows of many recovery techniques that have yet to be tested on this material. Different process technologies will have varying degrees of success in the recovery of precious metals. The association with Bateman Engineering should assure shareholders of a thorough evaluation of all available technologies from North America and abroad to help determine the most efficient and economic methodology that can be applied to Black Rock. Q7. Why are the values of gold different than those announced at the AGM in June? IPM is not disappointed in the most recent results. As outlined above, there is a natural and inherent variability in mineralization, particularly from an area of at least 1 square kilometer in size. Because we are testing limited areas at this time, the variability of values in June and November are expected. This is no different than any other mineral occurrence that has horizontal and vertical variability. Q8. IPM had announced an assay procedure was identified in June. What happened? Yes we did; however, the assay procedure announced in June did not withstand the rigors of third party review. Q9. Do these results mean the assay controversy will be diminished? Yes, these recent results confirm the presence of gold at Black Rock; and conform with much of the previous data contained in independent reports of gravity tests in both 1994 and 1995. Likewise the results of the IPM completed leach tests, completed in March of 1996 and comprised of more than 2700 assays and check assays, which resulted in an average grade of 0.046 oz per ton gold. Q10. Is there Platinum on the Black Rock property? Yes, IPM has previously reported values of Platinum from assays of the Black Rock material These were also included in the March, 1996 announcement. Platinum has been seen in completed assay tests from as early as 1994 to the present. However, IPM and the Arizona laboratory have insufficient repeated tests to confirm an assay methodology at this time. But, previous work indicates a consistent gold to platinum relationship exist at Black Rock. Q11. What are the details of the US $10 million funding? The company will issue redeemable convertible notes to several institutional investors to raise up to US $10 million. The notes will be converted at some time in the future at the option of the holders or at 5 years, and will appear as equity on IPM's balance sheet. The notes will also have a strike price that takes advantage of any upward moving share price. This allows for smaller dilution of capital as the price increases.