Good for them to be gutsy in these trying times, no that is very true, and should affect us to the better. I just checked Canada - Stcockwatch and it is not on, so the CN news services might not be carrying it today, the last one took a couple days to show there!
TEXT:
INTERNATIONAL PRECIOUS METALS CORPORATION
April 24, 1998
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CDN: IPMC
STATEMENT TO SHAREHOLDERS
Phoenix, Arizona - April 24, 1998 -- Further to the Press Release of April 17, 1998, the Board of Directors would like to explain the situation that has lead to International Precious Metals Corporation (IPM) being de-listed from the NASDAQ SmallCap Market (Nasdaq).
The existence of mineralization on the Black Rock property has been the subject of some controversy, since the mineralization was not previously capable of being measured using the industry accepted 'standard fire assay'. IPM is now aware that it has discovered a new type of precious metals deposit being comprised of precious metals that occur together with other mineral compounds. This type of precious metal occurrence can be associated with clays, black/heavy mineral sands, iron oxides, and with complex matrix chemistry, such as salts, organics and carbonates. IPM is now able to measure the amount of mineralization in a given sample taken from the Black Rock property through a Modified Fire Assay (MFA) method.
The de-listing proceeding was commenced because the Nasdaq staff raised questions regarding the adequacy of certain press releases by IPM during an approximately 1 1/2 year period ending November 14, 1997. The Board of Directors vigorously contested the Nasdaq allegations on the basis that there was a clear lack of understanding by the Nasdaq staff, not only of the stages of mineral exploration and research and development, but also specifically that IPM has discovered a new type of precious metals deposit.
In preparation for the hearing, IPM implemented a number of changes, including the appointment of a new CEO and the re-structuring of the management and reporting lines within IPM. Finally, IPM also appointed a Nasdaq compliance officer for the purpose of reviewing its press releases. Given the significance of these changes, the Board of Directors was confident that the independent panel would allow IPM to continue to trade on the Nasdaq SmallCap Market. After a second full technical and corporate presentation on March 19, 1998, which included independent consultants relating their interpretations on the respective technical and corporate matters, IPM was nevertheless de-listed. The company has appealed the decision, but pending the determination of the appeal IPM will not trade on the Nasdaq SmallCap Market. IPM is unable to predict the outcome of the appeal at this point in time.
Status of Scientific Development of the Black Rock Property
During the past two months IPM has continued to expand and develop the assay program announced on November 14, 1997. The thrust of this effort has been to continue the assaying of existing samples using the MFA method and the collection of additional information utilizing IPM staff, a State of Arizona Registered Laboratory and Bateman Engineering Inc. (the Team). The Team has been working on increasing the efficiency of the MFA method in order to more accurately quantify the amount of precious metals in a given sample. They have also confirmed the presence of other minerals using direct instrument readings and qualitative values derived from a Scanning Electron Microscope (SEM).
As previously presented, IPM is developing a "resource statement" which will quantify the amount of minerals on the first 1-sq.kilometer. drilled grid of the Black Rock property. Completion of assaying of up to 400 5-foot intervals using the MFA method will allow the preparation of a statistical evaluation on the existing data base, which includes the 1996 assay data of 2,251 samples as previously announced in April, 1996.
Additionally, the Team has also been conducting detailed qualitative tests using the SEM to measure other precious metals (silver, platinum and palladium). The SEM is a non-destructive qualitative method for determining the presence of precious metals i.e. the metal bead is retained at the end of the process thus allowing for additional research to be carried out on it. IPM has been working to develop a procedure to quantify these precious metals, in the same manner that the MFA method was able to quantify the amount of gold in a given sample taken from the Black Rock property.
In addition to the assay work, Black Rock geological data has been input to a computer program that provides the ability to create cross sections (vertical) and lithologic slice maps (horizontal). Processing of data in this manner has confirmed the high degree of variability, both vertically and horizontally in the host material at the Black Rock property. Future studies will focus on this variability, incorporating assessments of clay mineralogy, and an evaluation of the species of precious minerals present and their contribution to hosting of mineral potential on the Black Rock property.
Where To From Here?
Technical advances have continued, albeit at a reduced rate due in part to the lack of funds available as a result of the expenses incurred and the management time required in relation to the Nasdaq inquiry. As stated above IPM is working to develop a geologic resource statement on the first 1-sq. kilometer drilled grid. The company is currently reviewing its options with respect to funding the next stage of the development of the Black Rock property, including equity, debt and joint venture proposals. IPM will choose the course of action that offers the greatest opportunity of maximizing shareholder value and intends to maintain an active corporate profile. The company anticipates trading only on the Canadian Dealing Network (CDN) for the coming months while the Black Rock property is taken to the next stage of development,being a geologic resource.
IPM is again in difficult times as are many other small resource companies around the world. However, unlike other junior mining companies, IPM's difficulties are magnified by the fact that it has for the past four years been exploring a new type of precious metals deposit. This is not just IPM's view, but also the view of the independent and industry recognized professionals that the company is presently working with in the development of the Black Rock property. When IPM began exploring Black Rock, it was not aware that the property represented a new form of precious metals deposit. Despite the fact that no precious metal values were shown using the 'standard fire assay", all of the other testing convinced IPM of the existence of mineralization on Black Rock. As a result, the company forged ahead. Many new discoveries require years of effort and perseverance. IPM's Board of Directors and management are fully committed to make the Black Rock property a success and will continue earnestly with this effort.
On Behalf of the Board of Directors
Alan Doyle
Chairman |
