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Gold/Mining/Energy : L S Capital / Griffin Gold (OTC:BB CHIP) -- Ignore unavailable to you. Want to Upgrade?

To: Char who wrote (3024)	10/3/1998 8:34:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 3594

If you look at the financial statements, you'll see they have no money to pay the 6 employees they currently have, let alone 25-30. And Montle's $180+K salary seems a tad on the rich side regardless of their statement to the contrary. At current prices, they would have to sell over 2 million shares just to pay Montle's salary.

To: Char who wrote (3024)	10/3/1998 10:19:00 PM
From: Alan Vennix	Read Replies (1) \| Respond to of 3594

David, Some additional paragraphs of interest from their report: "Construction of DMI's pilot plant commenced in the summer of 1997 and was completed in September, 1997. The pilot plant is currently testing ore at a rate of one to three tons per day ("TPD"). Thus far, the pilot plant has been able to produce gold in a small-scale laboratory setting. The ultimate goal of the pilot plant is to produce gold on a larger scale at a commercially feasible cost. DMI has been conducting on-going tests to determine whether the pilot plant will be able to produce gold on this scale and at this cost level. While such tests have heretofore been encouraging, such tests have not yet determined that the pilot plant will be able or unable to produce gold on a larger scale at a commercially feasible cost." . . . . "If production and operations at the pilot plant satisfy the expectations of management, the Company will then attempt to proceed with the construction of a larger processing plant at a site to be selected in the future. Management currently expects that the larger plant would be capable of processing ore at a minimum rate of 1,000 TPD, and that this larger plant (if undertaken) will be finished in 2000 at a cost of between $2.5 and $5.0 million dollars. Griffin is expected bear all of the costs of the construction and operation of this plant. The construction of the larger plant will be contingent on procuring necessary financing. This financing is expected to be procured partly through the exercise of certain warrants to be issued by Griffin to purchase Griffin common stock. Management believes the exercises of these warrants will occur if the Company's technologies appear promising enough to undertake the larger plant. The remainder of the financing is expected to be provided through the possible private placement of the Company's equity securities or joint venture arrangements (including project financing). There can be no assurance that the aforementioned Griffin warrants will be exercised (or even issued for that matter) or that any other form of suitable financing will be obtained. Currently the Company has not entered into any agreement in principle, much less any definitive agreement, with respect to the necessary financing for the larger plant." . . . . "One of the Technologies that the Company proposes to use (the "Hewlett Technology") involves two non-toxic leaching systems developed by Richard F. Hewlett ("Hewlett") specifically for the Company based on technology Hewlett had already developed. One of the systems was customized for the Tecopa/Shoshone/Barstow California areas, while the other system was customized for the Cochise/Graham counties Arizona area. For his work in developing these systems, Hewlett received a flat fee of $100,000 from the Company. Because Hewlett developed these systems on a "for hire" basis, the Company has outright ownership to the Hewlett Technology" Report also mentions other technologies developed by Schmitt and currently being developed by Christopher, with no indication of which technology is currently tested in the pilot plant. Interesting report - of course, there is info that is less encouraging, including the financials that Larry alluded to. Alan