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Gold/Mining/Energy : Global Platinum & Gold (GPGI) -- Ignore unavailable to you. Want to Upgrade?

To: JACK R. SMITH JR. who wrote (6376)	6/25/1998 12:07:00 PM
From: Bob Walsh	Respond to of 14226

Jack, all: The News release was posted this morning and is slightly different than the one Ed posted yesterday (mostly in the area of costs and being able to do 15 tons per day now). Thursday June 25, 9:01 am Eastern Time Company Press Release SOURCE: Global Platinum + Gold, Inc. Global Platinum + Gold's Pilot Production Run Produces $1,000 in Precious Metals Per Ton SALT LAKE CITY, June 24 /PRNewswire/ -- Global Platinum + Gold, Inc. (OTC Bulletin Board: GPGI - news). Nine tons of screened ore from Global's Hassayampa head ore stockpile were leached, and precipitated. This precipitate was then smelted using the Company's standard process which involves the use of a catalyst and inquarts. The resultant granulated copper containing the precious metals was then dissolved and processed through two resin columns. The procedure was monitored at all times and a portion of the impregnated resin was taken and the precious metals were extracted partially by elutriation and partially by ashing. A sample of the impregnated resin was sent to Sabin Metal Corporation for processing. Global has the option of improving its elutriating and ashing procedures or it may be more efficient, when in continuous production to send the impregnated resin directly to the Sabin, which has an elaborate ashing facility where losses in processing (which GPGI presently suffers) are eliminated. The material recovered below will be sent to Sabin for the final refining process. July 15th is the target date when continuous operation is expected to be instituted. Equipment is presently in place at the mill capable of processing 15 tons of ore per day. Calculating the results from the procedure above and extrapolating back to head ore after subtracting the added inquarts, the following figures are considered to be fairly accurate. The cost of chemicals and materials was $232 per ton of screened ore. These chemical costs are expected to be reduced as full production is achieved. 1 ton of screened ore produced: Platinum 28.79 grams @ $355 = $340.58 Gold 6 grams @ 295 = 58.98 Rhodium 24.79 grams @ 640 = 528.77 Palladium 8.26 @grams @ 297 = 81.77 Total metal prices = $1,010.10 Less chemical cost per ton <$232> Gross profit per ton (less refining costs) $ 778.10 Production Costs; Fixed mill costs are estimated at $2,000 per day or $10,000 per five-day week at a production level of ten-tons per day. The incremental cost to increase production to fifteen-tons per day is estimated at $400 per day or $2,000 per week. (10 -tons / day (15-tons / day = 216 ton / month) = 324 ton / month) Metal value $218,181 $327,272 Chemical cost <50,112> <75,168> Fixed overhead <43,000> <64,500> Profit before refining fees $125,069 $187,604 This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding future production, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. SOURCE: Global Platinum + Gold, Inc.