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Gold/Mining/Energy : Caussa Capital (formerly Antares) T.CAU -- Ignore unavailable to you. Want to Upgrade?

To: Gabe Heti who wrote (3752)	7/9/1998 10:53:00 AM
From: Donald F. DeKold	Read Replies (1) \| Respond to of 4718

Thanks Gabe...I'll take you up on your offer. Please try to pin down the time as best as possible for the beginning of production in Indonesia and Kazakhstan. Don

To: Gabe Heti who wrote (3752)	7/9/1998 9:08:00 PM
From: Gabe Heti	Read Replies (5) \| Respond to of 4718

Mike, Donald, Bob and others This is a rather lengthy summary of the AGM held in Toronto on July 9, 1998. About 40 people attended, perhaps half shareholders, the rest company personnel or related firms and individuals. First the mondane, then the good news. Business matters took up the first half hour. 1. The right to issue up to 3 million options was approved by 75% of shareholders.. Some clarification on the matter of options. Of the 3 million newly approved options, 600,000 will now be issued to company personnel on the basis of earlier Board approval. The exercise price is based on the price of the shares at the time of Board approval and averages over 50 cents. Bob Yeoman and Dennis Gray indicated that they have not sold shares and have in fact exercised the right to purchase shares at higher than the then current share price over the years. Today's decision does not set the price of the options at today's closing price. The exercise price will be established when the options are actually issued by the Board some time in the future. The options will be issued to reward and motivate staff but also to attract new people Antares may wish to bring on board. Antares is looking to hire a President who will eventually also take on the title of CEO, with Dennis Grey retaining the position of Chairman. 2. The resolution to move the required quorum at annual meetings to 5% from 50% was approved by 91% of shareholders. At today's meeting 33% of shares were represented, so a change from 50% seems reasonable. Apparently 5% is closer to the levels commonly required by larger companies. 3. Antares has no debt and cash in the bank of $1.8 million after payment of $2 million for Steppe shares. In addition $2.1 million is cash (less drop in the value of the rand) will be available shortly as well as the share value of Rappa shares of $1.3 million. This works out to $5.2 million, more or less. Lady Lena may also be sold if appropriate. 4. Next year's anticipated budget includes $1 million for overhead, $300,000 for Toodoggone, $1,300,000 for Ojolali (you'll soon see why) and $500,000 for the industrial minerals project. This leaves enough left over for possible other ventures or the Rappa shares can be held. Dennis Gray's remarks on the 4 main thrusts of Antares. I will cover business issues here, with technical matters to follow. (Keep the best for last) 1. Indonesia - Things may appear bleak from this end, but the local environment is safe and settled and conducive to proceeding full speed with Ojolali. Relations are good with local population, government officials, military and mining officials. Wages are $10 per week and diesel fuel is 3 cents per litre. 2. Kazakstan - The Steppe property has proven reserves, good local partners who are well connected, and a base metal property to diversify from a pure gold play. Production of 80,000 per year is expected to commence in 1999. Antares can increase its holdings to 28% of Steppe giving Antares and 59% return on investment. 3. Toodoggone - Antares has taken a contrarian view on this property which is proving to be right. With the Kemess mine offering a low cost production facility, even low grade bulk tonnage will prove profitable. B.C. government is very supportive and good relations exist with the native community. Negotiations with the local native bands will continue, but with clear common interests and good relations this should not be a problem. 4. Industrial Minerals, Canada - There is a deal in the works to produce and sell through a "take and pay contract" with a U.S. firm some "strategic" metal. Now completing due diligence, but expecting positive conclusion and steady 28% return. The project can be self-financing but funds are also available from financial sources and investment will generate positive cash flow. No further details were provided. Technical Stuff. 1. Toodoggone - first seven holes this year tried to replicate last year's Creek Zone result by drilling close to hole 97-8 (3 holes I believe) and four holes to the southern extension but close by. The results as we know were disappointing since they did not duplicate 97-8, but were positive in that a number of high grade intersections were encountered. It is thought that these results are reflective of a halo effect from the main body nearby. IP, geophysical work, and air mag surveys etc. (hope I got this right) have provided strong indication that main body is to the south and east and open to the north and south. Further study is required to determine where to go from here. To conserve cash, drilling will not recommence until a better understanding of the main body is obtained. 2. Zimbabwe - Antares has the opportunity to get into a Uranium property. No decision has been made. 3. Ojolali - BIG NEWS a. The Indonesian government has given approval in principle (in writing) to the awarding of a COW. This may take up to six months, however it now gives Antares uncontested right to move to full scale exploration. b. Antares will be in a position to confirm a proven reserve for the Jambi zone within six to eight weeks. Following column leach testing, a production decision can be reached in a couple of months with production starting in six months. The following is from discussions held with Antares' Indonesian consultant, and was not detailed during the main presentation. The current gold resource is 160,000 ounces which will translate into something like 100,000 ounces (gold) of proven reserve. It is expected that this can be extracted over a two year period. Assuming a margin of $100 per ounce, this will yield $10 million over two years. SUMMARY - It appears to me that Antares is making prudent and positive moves to become self sustaining through exploration and acquisition. A rise in the price of gold would obviously help, but steps are being taken to diversify and take advantage of the distressed state of junior mining by picking up undervalued properties with big upside potential (Steppe) and divesting properties with a limited up side (Rappa, Lady Lena) There is clearly weakness in getting the message out, but eventually, perhaps in six months to a year, it will be difficult to miss Antares once cash from Ojolali and Kazakstan starts to roll in. Antares has good people, a strategic plan and the determination to pull it off. I came away much more positive then when I went in. I am sure that I missed a lot. Hope this helps and that it answers most of your questions. If you have any questions I will try to answer them, (as far as what was said at the meeting.) Oh yes, there was some mention (after the meeting) that there wan an individual with around three million shares who has been selling and probably has run out just about now. Gabe