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Gold/Mining/Energy : Global Platinum & Gold (GPGI) -- Ignore unavailable to you. Want to Upgrade?

To: Scott Wheeler who wrote (8081)	10/23/1998 1:12:00 PM
From: Ed Fishbaine	Read Replies (1) \| Respond to of 14226

Scott Your wasting your time asking Dennis for information. As for the absence of inquart recovery I have no further information. What I vaguely heard is that at some point in the preparation for introduction of material into the resin columns there was a failure to adequately homogenize the material, i.e., it wasn't mixed properly. Whether or not this is true or relevant I do not know. But the fact of non recovery of the inquart means that whatever the error was it results in necessarily discounting the entire batch. It would be disasterous if the inquart came back and very little additional metal was returned. This would mean the batch was devoid or seriously limited in the amount of metal. With the absence of inquart we have no way of knowing what was the metal content of the batch. Look. The bottom line is that adequate mill operation has been lacking. In part this is due to the pressure in August to make weekly shipments no matter what. Further, this is due to Jensen's repeatedly premature promises of production. So, under pressure from stockholders to live up to his promises Jensen demanded weekly shipments when the operation was a long way from being ready. The failure to be ready was partly legitimate and largely a result of Jensen's failure to have proper supervision of the mill operation. Nobody was watching the store. And the guys at the store did not know what they were doing. What you had is a mess based on inadequate management. Now we have McKay, a serious professional who has a track record of success in the metalurgical industry and now runs a successful insurance business because. for the sake of his family, he gave up the running around the world which his metallurgical work required. McKay as a manager is the polar opposite of Jensen. I have no doubt that the mangerial deficiencies, including defective IR and PR communication will be corrected by him. What remains to be determined, and is not assured, is whether or not the economic recovery of metals will evolve under his direction. My personal hunch is that it will. This is based on the outstanding richness in metals at the Oro Grande, the results of the repeated sampling done on the Weaver Creek and Hassayampa and the very high laboratory recoveries. Ramping up from lab to production is always fraught with problems but if the material is there, as demonstrated in the lab, some percentage will be recoverable on a production level. Even a modest percentage recovery in this case would push the production level into profitability. And, in time, with proper management and proper mill procedures, a modest recovery is likely to be improved step by step. Ed P.S. Actually the 1 ounce recovery in shipments 3 and 4 was also a fluke. We really do not know if it was a high or low return for the material sent. It is not a reliable number.