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Gold/Mining/Energy : Maxam Gold Corp. OBB:MXAM -- Ignore unavailable to you. Want to Upgrade?

To: Randall E. Brubaker who wrote (5316)	8/17/1998 2:49:00 PM
From: GlobalMarine	Respond to of 11603

Randall: The press release appears to be worse than I thought: <<When hydroGEOPHYSICS completes their work, the ''Mine Reserve Audit Company'' will conduct the independent verification of ore reserves in that area. >> So the company will pinpoint high-grade areas for independent verification only. What about the lower grade areas? 0.05 oz/ton is supposed to be economic too. Skipping the 0.05 suggests trouble mining those areas. <<The Bureau of Land Management has agreed, upon our request, to assist Maxam and its independent Mine Reserve Audit company in preparing an exploration program acceptable to the BLM for use in their review requirements under 43CFR3715.3-2. >>The BLM will not grant mining permits to Maxam until the company proves that there is gold in the ground. Perhaps BLM doesn't believe that there is gold in the dirt and wants to ensure Maxam isn't a scam. <<The initial results from the Chain-of-Custody news announcement dated May 15, 1998 have been reviewed in depth by Maxam management and deemed not representative of the ore body for the Peoria Seven and Peoria South claims. Therefore Chain-of-Custody ores previously sampled are being abandoned and a new area selected. Leach tests at the pilot plant at Cimetta Engineering and Construction Co. has been temporarily delayed until ore is available from a new COC area. >> It takes three months to review the initial COC results from May 15? The 750 gram tests showed gold and PGMs in good grades. So why toss the COC ore out, unless the ore isn't working on the pilot plant so the company has to get new dirt and try it again. Runyon had said that leach results were in hand, so one can conclude that the results are not favorable, otherwise he would have released them. So, it appears the press release is WORSE than I thought. The recent leach test results weren't released, so they are probably poor. The 750 gram leach tests from three months ago showed nice grades, so if they now have to toss this COC ore, it means the pilot plant isn't working on the COC ore and they have to try again with new ore. It appears that they will pick high grade COC ore to help them get something out of the pilot plant. The BLM won't grant mining permits unless Maxam proves there's gold in the ground. Rand