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

To: Larry Brubaker who wrote (5653)	9/14/1998 10:42:00 PM
From: Paunch	Read Replies (1) \| Respond to of 11603

Larry, I just spoke to Mr. Runyon tonight and he said that they had done all of the paper work to satisfy the blm and are now waiting for the permit from them to start the ten hole drilling program. Paunch

To: Larry Brubaker who wrote (5653)	9/14/1998 11:03:00 PM
From: Richard Mazzarella	Read Replies (1) \| Respond to of 11603

Larry, Maxam has been looking for a high OPT area of their property where they can minimize the drilling required (cost) to prove a bankable audited resource for both the BLM and funding. The resource must show enough metals to provide a mining resource with a minimum lifetime of 9 years. The results reported by Maxam today had many objectives. The first and most important objective was to correlate the mobile ion and magnetic mapping of the paleo-channels to actual metal recovered (prove the mapping technology). That mapping technology will then be used to lay out the 10 hole drill program which will be COC. A secondary purpose of the leach tests was testing actual recovery of metals on both resin as a collector and carbon as a collector. Another objective was to determine the probable extraction costs. Notice that the cost was only determined for Au and Ag. Additional metals will be scrubbed from the pregnant leach in the actual system for little additional cost IMO. The 20lb limitation is because of lab experimental constraints. While I look forward to 500 and 2000lb test at some point, the 80 -100lb tests in 20lbs lumps is still much larger than the small samples reported before. That is helping my concerns about scalability. <<where they stand concerning larger batch tests, what with their decision to not "allocate funds to upgrade the pilot plant>> That will take funding to complete those projects. Current work is to prove the resource for that funding.

To: Larry Brubaker who wrote (5653)	9/14/1998 11:05:00 PM
From: GlobalMarine	Read Replies (3) \| Respond to of 11603

Larry: I share your concern. Where's the follow-through to these leach tests? OK, so gold showed up on these non-COC tests, now what? The press release suggests that the follow-through is not more leaching and proving out of a recovery process but now drilling? The previous press releases and Richard Mazz's own comments also suggest the same. If this is true, what the heck was the point of having done nine 20 -pound leach tests in the first place and then abandoning further leach tests in favor of poking holes in the ground? Again, more and more drilling only enhances shareholder value IF a recovery process has been demonstrated to work. Note that there has already been quite a lot of drilling and yet the stock price is at $0.06. Naxos did a lot of COC drilling and while its 1997 results are still valid, its stock price is down because they haven't demonstrated a recovery process. I'd much rather Maxam spend the money allocated to this 10 hole program on demonstrating a viable recovery method. Drilling and fire assaying doesn't matter unless you have a way of recovering the gold found by drilling and fire assaying.