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

To: GlobalMarine who wrote (26951)	11/17/1997 2:03:00 AM
From: GlobalMarine	Respond to of 35569

Who's the "leader" of the desert dirt pack? is it IPMCF, NAXOF, MXAM, CHIP, GPGI or MGAU? I'm going to stick my neck out here and state that everyone should be watching Maxam Gold closely. Why? The credibility of DD mining for the coming year may depend on it: 1) Maxam Gold has drilled and assayed some of their properties and has proven and probable reserves on Peoria 7 and Peroria South. None of the other desert dirts has proven and probable reserves, period. 2) Maxam has a recovery procedure that they believe and have quantified (on paper) to be economic, using a third-party consulting firm, and have released numbers to the public. No one else has disclosed the same. Naxos has a promising recovery method but we don't know yet if it's economic. MG Gold has only tested out some recovery methods. Likewise for CHIP. IPM has to test out new recovery methods because their existing one has been determined not to be economic. GPGI claims to have a economic recovery method but we need disclosure of numbers. 3) Maxam is going into production in April, 1998 (assuming no further delays) so we will know at that time if Maxam's recovery method is truly economic. GPGI is also going into production and we also don't know yet if they're making money. None of the others are going into production any time soon. 4) Given 1) to 3) above, which DD mining company has done things in a way that the public at large can readily understand and evaluate? The answer: Maxam Gold. They have drilled, fire-assayed and have proven and probable reserves, just like hard-rock mining companies. They're setting up a mine, and in five months, mining will commence (again, assuming no further delays). If they succeed, people will be confronted with proof that you can profitably mine precious metals from desert dirt ore. AND the company will have done things the way hard rock mining companies have traditionally done them so Wall St. will understand: you drill, fire assay, calculate proven and probable reserves, and then you build a mine, run it, and earn a profit. And if Wall Street can understand it, Wall Street will eventually place a valuation on the company similar or equal to that of hard rock mining companies (market value per oz. of proven and probable reserves, P/E, etc.). BTW, I have a position in virtually all the DD companies so I'm not trying to hype Maxam and flame the rest. I'm just calling it the way I see it right now, and I hope they all succeed. Rand