To: James E Lynch who wrote (10693 ) 7/22/1998 10:45:00 PM From: Geita Read Replies (2) | Respond to
I understand your frustrations, Jim, but this trial member has been a shareholder since last October and continues to believe MINE is a winner. I'm not a geologist so I follow the money, and it hasn't budged. 65MM restricted shares and only 1MM filed. The spike to .55 didn't bring anyone out, not the spike to $1.75. 64MM shares are holding on for something more. None of the prominent members of the advisory board have jumped ship in the face of accusations from the SEC.The following statements gleaned from company PRs and geology reports lead me to believe there's an awful lot of gold down there.
PressRelease: Oct. 27, 1997
Osampling of 16 Ordovician (Paleozoic) bedrock sites confirmed substantial amounts of gold in the bedrock.O
Othe exploration work is showing the edges of the conglomerate also have strong gold depositsO Terry Turner
PressRelease: May 22, 1998
OParavicini used between 30% and 40% of the indicated cubic meterage as indicated by topographical data to ensure conservative calculations.O
OThe lowest of the assays obtained was always used instead of the average.O
from SUMMARY GEOLOGICAL REPORT ON THE GOLD DEPOSITS AT CANGALLI, BOLIVIA
Othe United Nations survey team later verified that a lens was encountered on the Ordovicic bedrock of 1.2 square meters with gold content of 112 kilograms of gold per cubic meter.O
Otraditional mining methodshave also ruined most of the worked deposits, removing the high-grade and leaving lower-grade, but still feasibly recoverable material on-site.O
Owe extensively sampled underground at the Cangalli Shaft.O
OThese values were calculated in the usual way-from pan concentrate grades and their weights-together with the weights of the field samples.O
OThis grade is certainly good enough for massive types of mining, an open-pit techniques are highly recommended.O
Othe batea (conical pan) fine tailings (the under-sized fraction) assayed with an average gold grade of 27.068 g/m3, meaning that this is by far the richest fraction in the Cangalli deposits. Obviously, from ancient times through to the present mining operations, this fraction has always been ignored and discarded. A similar phenomenon happens with the rock samples (the over-sized fraction) - with an average assay of 5.657 grams per cubic meter - of course also traditionally being discarded.O
Oresults run from an approximate low of 10 g/m3 to a high of 19 g/m3 with an average of 14.049 g/m3, which is very high for these types of gold deposits.O
OThe qualitative and quantitative knowledge regarding the Cangalli gold deposits is sufficient to satisfy the standards and requirements of the worldwide mining industry relative to definitions of Resources and Reserves.O
Oand the overwhelming evidence of geologic continuity, it is my opinion that the portion of the Cangalli claims that I studied, which would have been in any event less than half of the claims under contract, contain an Indicated Resource of 60,771,704 troy ounces of gold and an Inferred Resource of 111,414,800 troy ounces of gold.O
OWhile I understand that such numbers are staggering, I cannot change the sampling results; my observations in the field; the huge body of literature and studies which have been produced about this area which support my observations; and the centuries of gold-producing history in the Tipuani Mining District. It becomes apparent that if these resources can be confirmed as reserves, which I believe is just a matter of carrying out a more detailed sampling program and applying currently-used cyanide leaching technology in testing the recoveries, the claims under the control of the Company's subsidiary may produce an exceptional world-class gold deposit.O
Bill Leahy
