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

To: Richard Mazzarella who wrote (5380)	8/19/1998 8:16:00 PM
From: d:oug	Respond to of 11603

Richard, with the following clips from your posts today, seems like Mr. Runyon has made costly mistakes in the recent past. Are you aware of any program or method started by the Maxam Company that will safeguard the current shareholders value, or do the shareholders on this thread simply let Mr. Runyon do anything his wants with no concern for shareholder value. Seems that even tho he holds a majority in numbers of shares, my impression is that he is more concerned with doing what he wants to do, as if he owns the company and its his money only. Seems that even tho he owns a great number of mxam shares, that as someone posted awhile back ".. he has done very well in providing for his family...", which means that he has more than enough money in the "bank" such that if he lost out on mxam, he's ok money wise. Which means he is willing to gamble with other shareholders money, and if lost, no problem to his money worries, and as for shareholders money problems, he is not connected to this angle. Many have said Mr. Runyon is a very nice man, but to who, hmself, family and friends. How about to those that he has control of their money. << ..I was concerned about Maxam's loss of focus when they began all the custom milling and other sidetracks and said so on this thread... ...has demonstrated to Maxam the hazard of drifting off its primary path, that's good....>> <<...economic extraction technology will start the proper speculation soon I'm sure. We just need a few checks on a consistent basis to get things moving...>> In my option and the stock price, "need a few checks" is not enought. I am sure that many of those on this thread are in a job position that you directly or indirectly superviser other persons. Persons, that if performed as Mr. Runyon has, would be put into a probation program inside your company. Like on their performance review, they would obtain a score of "needs improvement". Ever been on one of these ? I'am sure you have not. Even see a person on one ? from my ipmcf post www2.techstocks.com Doug

To: Richard Mazzarella who wrote (5380)	8/19/1998 8:43:00 PM
From: GlobalMarine	Read Replies (1) \| Respond to of 11603

Richard: A quick re-read of the CHairman's message makes me cringe, IMO: <<Maxam Gold Corporation arranged for a 600-pound test of Chain-of-Custody ore to be run at Cimetta Engineering and Construction Co., Inc., Tucson, Arizona. Thereafter it became our understanding that new Pima County regulations did not permit use of the Maxam proprietary process, without the air quality permit. In order to continue the testing, the Maxam proprietary process was modified with negative results occurring.>> Why on earth would the company change the recovery process just to be expedient? <<Subsequently it has been determined that in Pima County the Maxam proprietary process may be used in a "batch" processing environment but not in the "continuous" processing mode required for the 10-ton per day Maxam pilot production facility.>> This is a real headshaker. The plant IS a batch plant to begin with. You dump in ore and chemicals and out comes whatever at the other end. Then you dump in a new batch of ore and chemicals. Continuous means processing one batch after another continuously. You don't have to operate the plant continuously to determine whether gold comes out the other end. If the plant works, just process one batch and report the result. The company did do this, as noted above and got bad results. It's as if the company is blaming part of its problems with the pilot plant on not being able to process batches continuously when in fact it can process continuously. Yet the failed 600 pound test shows that all the company has to do to determine whether the plant produces metal is process one batch. << Maxam decided not to allocate funds to upgrade the existing batch process facility in Pima County and Cimetta did not follow through for the permit application. >> Huh? It's a batch plant to begin with. If the plant works, run it in its designed batch mode. Get new COC ore and run it, and report the results, just like the failed 600 pound test noted above. It's as if the company is blaming its problems now on not having upgraded the plant. But the plant is already built and completed. <<Instead, Maxam management has elected to proceed with plans utilizing the proposed MCM Mill site and facility on a private property location in Maricopa County. Meanwhile further processing at the pilot batch plant located at Cimetta Engineering and Construction Co., Inc., Tucson, Arizona has been delayed.>> So the company won't run the pilot plant because it's a batch plant and the company doesn't want to upgrade it to continuous yet the plant can run continuously if desired. The plant is being put on the backburner now because it wants to go with the MCM milling plant, whcih hasn't even been buolt yet and funds to build it haven't been fully raised yet. So instead of running the already built 10 ton plant, the company wants to put that plant asaide and spend several million dollars to build the MCM plant <<Different areas for other Chain-of-Custody samples are under consideration and when positive results are obtained the process will be resumed. Meanwhile, Maxam Gold Corporation is presently conducting 20-pound Leach tests at the Maxam Laboratory to provide guidance to the proper location and to analyze and determine recoverability with activated charcoal and resins. >> I thought the pilot plant was supposed to be used to determine recoverability? Now it's just 20 pound leach tests. All in all, it's a mess of a message, and it's because the fundamentals are a mess. The company desperately needs help, as it appears the company is close to the end.

To: Richard Mazzarella who wrote (5380)	8/19/1998 11:00:00 PM
From: GlobalMarine	Read Replies (1) \| Respond to of 11603

Might as well look again at the rest of the Chairman's message: <<We are informed that there are foreign financial resources available for good mining projects. A financial consultant with whom we have spoken has provided three references where financial funding has been achieved within the past eighteen months for mining projects.>> Wow, it must be an incredibly hot lead to find three references for financial funding. <<Banking companies and other financial sources require a "Mine Reserve Audit" and a "Bankable Feasibility Study". These documents will require a commitment of approximately $ 500,000 and nine months to complete. The total funding request will be in the range of $ 20 million to $ 30 million, as determined by the ore body audit and the feasibility study.>> No one will entrust a OTC-BB upstart mining company with $20 to $30 million, unless it's given to a mine engineering firm (Kilborn?) to both build and operate the plant. How will the company get the $500,000 without demonstrating recovery? A few successful leach tests will not be enough. Only a successful pilot plant domonstration may raise some interest, and such demo must be COC with COC ore. <<Maxam management, after months of analyzing positive and negative effects to the company, has made the decision to consider opportunities of entering into discussions with financially viable companies who may have interest and expertise in areas of mining and milling that would benefit Maxam and its quest for full and profitable production. Maxam would retain rights to manage and control the leaching phase of operations. Although too early to determine levels of interest any company(s) may have, this decision provides Maxam management the ability to negotiate with interested companies. >> It tooks months to decide whether to consider going the JV route? Must have been an agonishing decision. I guess it took that long to figure out the company is floundering on its own and needs outside help. And no JV partner is going to put up with Maxam managing the leaching phase or any other phase of the operation. The only way a JV partner will go for the deal is if the JV partner runs the show. I can't believe that after all the errors that have been committed and with the dire financial position the company faces, it stills whines on and on about maintaining control. Manage this, control that, all this emphasis on power and control when the company is facing The End if it doesn't get its act together. Maintaining voting control is one of the reasons why the company is in trouble, for if you're unwilling to raise funds for proper R & D because you're afraid of losing voting control, how can you progress forward? << These processes have been expensive and as mentioned earlier additional financing is required to accomplish required steps to achieve production on the schedule we had previously announced. Financing and funding opportunities are available, but require ore reserve verification and feasibility study validation. Once financing for accomplishment of these requirements is committed, Maxam will again post a schedule for completion of all processes leading to production.>> Yes, the company has posted a schedule again and again. All in all, I'm distressed that the company is on the ropes. We have so much potential here but committing the biggest error of all - failing to manage cash flow - means the company hasn't the funds to proceed forward. $500K is a lot to raise when you've little to show for it. I cannot think of a reason why someone should buy $500K worth of stock right now. 20 lb leach tests won't do it, only COC pilot plant results with COC ore may help. Rand