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Gold/Mining/Energy : Zappa Resources ZPA vancouver -- Ignore unavailable to you. Want to Upgrade?

To: Goldfinger who wrote (238)	2/5/1998 7:25:00 PM
From: dean poets	Read Replies (2) \| Respond to of 3198

Here's the latest reccomendation From Robert Mcallister of "Investors First": ZAPPA RESOURCES (ZPA) On Vancouver. Recommended April 1996 at $ .70 Interim high $ 1.25 current price $ .29 Rating ( BUY ) Do not pay more than $.40 per share. Zappa has four main properties. The 49% La Plata, 50% Papa Grande, 100% Mollopongo and 49% Guadalupe concession. On January 21 the results for the southern drilling on the La Plata property were released. Hole 20 tested the southern extension on this lense and intersected 16m of 11g Au, 79g Ag, 7.7% Cu, 2.9% Zn. The other three holes were drilled to test other targets above the high grade lense. To date a solid resource of one million tons has been outlined with a NSR of over $140 U.S. per ton. Recent exploration along strike to the south has found outcrops with the same host rock grading 15g Au three km south of the latest drilling. Cambior and Zappa have staked 13km of land to the south. Lenses form in clusters and it appears that another high grade lense could be south of the current lense. Information on the next phase of work will be out shortly. On the Papa Grande and Mollopongo properties a resource of 1.6 million oz gold at a grade of 1.1g has been delineated to date. This is based on over fifty holes being drilled to date. The potential to increase reserves is excellent. The down side to this deposit is that it is a sulfide deposit so capital costs look to be at least $150 million. Also the price of gold needs to be above $360 U.S. per oz to have a suitable ROI. When Ecuadorian's Gaby deposit and the shared Guadalupe concession with Zappa are put in as one property this whole area becomes a viable low grade open pit mine with a yearly production in excess of 250,000 oz gold per year for over 20 years. However the market will not place a value on this property until the price of gold is moving above its 200 day moving average instead of below it. Zappa has 24.1 million shares outstanding, and 27.7 million fully diluted. No debt and $220,000 cash. Cambior has 6.4 million shares of Zappa and warrants for 1.8 million more at $ .78 per share. These are included in the shares out standing and fully diluted. Unless the shares rise dramatically over the next two weeks, 2.7 million wts will expire and the companies shares fully diluted will drop to 24.1 million. For more information contact Mr. Albert Gerry President. At 1 - 800 - 888 - 7184