Metals, since the research report can't be directly referenced with a url, I will post the whole report:
Wall Street Concepts Group Inc. Presents:
An Incredible Opportunity to Purchase Gold for Less Than 70 Cents per Ounce!!
MAXAM GOLD CORPORATION ("MXAM" - OTC BB) OFFERS INVESTORS UNPRECEDENTED INVESTMENT OPPORTUNITY
MAXAM GOLD CORPORATION
528 Fon du Lac Drive
East Peoria, Illinois 61611
Phone: (309) 699 - 8725 Fax: (309) 699 - 1275
website: maxamgold.com
Maxam Gold's 6+ million ounces of gold equivalent resource is currently valued by the markets at less than 70 cents per ounce!!
CORPORATE BACKGROUND
Maxam Gold Corporation was formed on August 7, 1974. In 1987, the present management team acquired the company, and in 1995, the name was changed to Maxam Gold Corp.
Management owns 11% of the outstanding stock. A further 34% is owned by Phoenix International Mining, Inc., a private entity controlled by a Maxam
officer.
Maxam has set aside 56 of its unpatented mining claims for 10 mine sites targeted for production by December 2006. All Maxam claims (8,960 acres) are on lands administered by the United States Bureau of Land Management in southwest Arizona.
Maxam's core assets, the Peoria 7 and Peoria South elluvial gold projects, host a gold-equivalent resource of over six million ounces. The ore reserves have been calculated by traditional industry practices, and are based on thousands of fire assays (performed by registered labs, including: Activation Labs, Skyline, XRAL, Jacobs Assay Office and Ledoux & Company) from extensive drilling, trenching and bulk sampling of the deposits.
Maxam Gold is in the final design and engineering stages for this project, and anticipates initial production from Peoria 7 within 18 months, pending funding
CORPORATE FINANCIALS
Shares Authorized: 100,000,000 52-week high: US$0.80
Shares Issued: Approximately 53,000,000 52-week low: US$0.065
Public Float: Approximately 20,000,000 Current bid/ask: US$0.065 -
US$0.09
A TEAM OF WORLD-CLASS CONSULTANTS
Maxam Gold has contracted with a number of expert consultants who provide regular and consistent data that is designed to move the exploration and production phases along in an orderly and progressive manner. The Maxam Team includes: Richard F. Hewlett (Principal, Hewlett Mineral Management, Inc.): serves as Maxam Gold's principal advisor on geological, mineralogical, metallurgy and chemical procedures, as well as providing independent ore reserve estimates and capital / operating cost information. Max Cooley (retired analytical chemist and research metallurgist formerly with Barrick Gold): advises Maxam Gold in planning / supervising chemical and metallurgical tests and establishing Maxam's on-site metallurgical / assaying lab (purchased from Barrick Gold's Mercur, Utah gold mine).
THE PEORIA 7 PROPERTY
Maxam Gold's core asset is a 640-acre desert elluvial gold property located south of Gila Bend, Arizona. Prior exploration has defined a gold and silver anomaly 1,000 feet wide and 12,000 feet long. Sufficient drilling, sampling and assay work has been completed to delineate a trial open pit ore reserve of 55,827,206 ST grading 0.102 oz Au/ST containing 5,694,377 ounces of gold equivalent. Peoria 7 is potentially one of the largest undeveloped gold deposits in North America!
Maxam Gold has sufficient mining and processing equipment on-site (earthmoving machinery, milling equipment, assay lab, etc.) to operate Peoria 7 at the rate of 1,000 ST/day. The company plans to begin production at a modest rate of 1,000 ST/day, scaling up to 2,500 ST/day during the first year of operations, and expanding to 10,000 ST/day within two years. The upside potential at Peoria 7 is tremendous!
Maxam Gold's consultants, Hewlett Mineral Management, has stated that with Maxam's recently-developed geophysical techniques of evaluating ancient paleo-channels by using magnentic and electromagnetic surveys, coupled with geo-chemical analysis of the mobile metal ions, followed up by Becker drill sampling, Maxam could at least double its gold-equivalent resource.
Support for this estimate comes from the fact that the property has not been fully-explored, drilling to date has not gone below the 100 foot level, the deposit dips to the west and grades are increasing with depth, and that there are significant, high-grade paleo-erosion channels which have not been fully-explored (one drill hole averaged 0.70 oz Au/ST in the top 20 feet).
PEORIA SOUTH
This 640 acre property is located directly south and southeast of Peoria 7, has similar geology, but much higher gold grades. To date, only 100 acres have been explored, and the bulk of the drilling has not gone below the 30-foot level. Discovery of the deposit was made through an auger drilling program, with bulk samples taken on 10-foot vertical intervals, and fire assays run by Skyline Labs (Tucson); Jacobs Assays (Tucson) & XRAL Labs (Toronto).
Based on drilling and assaying results, in December 1996 Hewlett Mineral Management reported proven ore reserves of 6,666,666 ST grading 0.053 oz Au/ST and containing 353,333 ounces of gold. These reserves were based on a gold price of US$375/oz; cash operating costs were estimated at approximately US$142/oz. Subsequent reverse circulation drilling encountered extremely high grade gold intercepts: one hole intercepted 1.20 oz Au/ST from 0 to 20 feet and an average of 0.51 oz Au/ST between surface and 99 feet.
PROCESSING THE ORES (The Maxam Recovery System) Maxam Gold has developed a proprietary, environmentally-safe, chlorine / bromine leach process to recover gold and silver from the Peoria 7 andPeoria South ores. In pilot-scale and bulk test, ores are ground in a two-stage process to -200 mesh before entering a closed-loop, multi-stage leaching system. The pregnant solutions are then sent to an ion exchange circuit for metal recovery.
The mill tailings are then washed / neutralized and then returned to the pit (the leach solution is filtered, reclaimed and recycled through the closed-loop process). The inert tailings will be used to back-fill the open pits, allowing Maxam Gold to truly minimize the environmental impacts of its mining operations. The net result of the Maxam Recovery System is faster material handling, greater gold and silver recoveries, and a more environmentally-friendlyprocessing method than is the case with traditional cyanide or other extraction methods.
Investors should note that the leached tailings from the Maxam Recovery Process meet the minimum Arizona Department of Environmental Quality Water Standards. As such, Maxam's processing operations will not require any permits to dispose of the leached tails. Hewlett Mineral Management has demonstrated the up-scaling feasibility of the processing technology on several types of ores. These accomplishments provide Maxam with a high confidence level, particularly in light of over 140 bench leach tests and small bulk tests preformed to date on the Peoria7 & Peoria South ore.
Maxam Gold has spent much of the past year on fine-tuning its processing technology. Recently, the company has found that significant increases in gold and silver recoveries can be achieved by increasing the grinding time to liberate the gold, which is extremely fine and is found in clumps / clusters within the host rock grains.
INDEPENDENT ORE RESERVE AUDIT (July 1998)
In July 1998, Maxam Gold announced that the Board of Directors had authorized budgeting funds for an independent Audit of the Peoria 7 & Peoria South ore reserves. An internationally-recognized mining engineering consulting firm, with a particular expertise in world-class, multi-million ounce gold deposits, will conduct the mine reserve audit.
Although Maxam has previously published ore reserve determinations as conducted by Maxam's consultant, Hewlett Mineral Management, this action was deemed a necessary step prior to contracting for the Bankable Feasibility Study. Both the reserve audit and feasibility study are required by the European merchant banks with whom discussions are in progress for financing development of the Peoria 7 project.
In preparation for the reserve audit, Maxam Gold recently commissioned additional geophysical surveys and drilling work. hydroGEOPHYSICS (Tucson, AZ) will be conducting a chain-of-custody drilling program to obtain bulk samples for further assaying; upon completion of this work, the mine reserve audit company will begin their independent verification of the
Peoria 7 / Peoria South ore reserves.
OPERATING & CAPITAL COSTS (Peoria 7 / Peoria South)
Both the Peoria 7 and Peoria South operations will be very low cost gold producers.
Hewlett Mineral Management estimates that Maxam Gold can produce gold for US$123 per troy ounce (net of byproduct credits) at the Peoria 7 project. This figure includes all mining and processing charges for a 1,000 ST/day operation, and is based on operating costs at other, similar-sized placer mining operations.
For the Peoria 7 operation, at 10,000 ST/day and assuming a 0.15 oz /ST gold-equivalent recovered grade and a US$285/oz gold price, Hewlett Mineral Management projects gross revenues of US$197,000,000 and a net operating margin of US$84 million (US$1.58 per share based on the current 53 million shares outstanding).
Total capital costs for a 2,500 ST/day operation is estimated at US$9 million. Hewlett Mineral management also reports that operations could be increased to 10,000 ST/day with an additional US$11 million investment.
49% INCREASE IN TRIAL OPEN PIT MINEABLE GOLD RESERVES On June 4th, Maxam Gold announced a report from Hewlett Mineral Management (Ridgecrest, CA) reporting mineable ore reserves for the Peoria 7 deposit of 55,827,206 ST grading 0.102 oz Au/ST containing a resource of 5,694,377 ounces of gold-equivalent.
The mineable reserves (to a depth of 99 feet) were calculated by Hewlett Mineral Management using polygonal methods and incorporating drill hole data plus trenching and bulk sampling results. Hewlett assumed a 45 degree pit slope and a waste-to-ore ratio of 0.49 : 1. All gold intercepts used in the mineable reserves are based on fire assays provided by independent
registered laboratories.
Hewlett Mineral Management assumed a long term gold price of US$285/oz in estimation of the Peoria 7 ore reserves. This conservatism is typical of how Maxam Gold does business.
This new ore reserve represented a 49% increase over the previous geologic ore reserves of 73,337,443 ST grading 0.052 oz and containing a resource of 3,822,427 ounces of gold-equivalent.
Maxam Gold reports that the major increase in reserve ounces are the result of: (1) higher-grade gold and silver mineralization discovered by recent reverse circulation drilling at Peoria South & Peoria 7; (2) higher-grade precious metals mineralization discovered by geophysical surveys conducted by hydroGEOPHYSICS; and, (3)recent bulk sampling, trenching and leach test results.
POISON PILL ADOPTION
Maxam Gold's Board of Directors has recently recommended and the company's shareholders ratified the adoption of a poison pill amendment to its incorporation documents.
Given the magnitude of its current ore reserves (over six million ounces) and the upside potential of the Peoria 7 and Peoria South deposits (over 20 million ounces), management believed that this action was necessary to avoid any hostile efforts to take over the company, and to provide
shareholders protection from any market actions that might not be in the best financial interest of the company and its shareholders.
KILBORN RETAINED FOR EPCM SERVICES
Maxam has entered into an agreement with Kilborn International, Inc. to provide Engineering, Procurement and Construction Management Services ("EPCM"), including an optional provision for a mine operating contract. Kilborn has a world-class reputation for feasibility and design work, process engineering and construction of large mines, and will be considered
for Maxam Gold's feasibility study.
COMPETITION & RISK FACTORS
Investors should be cautioned that purchasing shares of Maxam Gold involves a high degree of risk based on numerous factors including but not limited to:
1) Significant competition with existing and emerging firms currently engaged in the resource sector for capital to develop new mining ventures;
2) Uncertainty of future financial results;
3) Low price level and limited liquidity of MAXM shares;
4) Quantity of mineral reserves subject to independent audit and verification;
5) Potential of technological failure in processing operations;
6) Potential changes in Federal Mining Laws for unpatented mining claims;
7) Depressed equity markets for gold mining companies; and,
8) Current depressed gold bullion prices.
Outside of these factors, Maxam Gold's management feels the potential for capital gains appear favorable. However, investors are cautioned that this is a speculative investment and is appropriate only for those who can apply high risk capital to the purchase of Maxam Gold shares.
TECHNICAL ANALYSIS
Our interpretation of the technical position of Maxam Gold ("MXAM") indicates that their stock price is highly undervalued. The 52-week high for MXAM is USA$0.80 and the 52-week low is $0.065. The stock currently trades at about $0.07.
The chart history (http://www.pennystockpicks.com/chip-chart.gif) shows that the stock price has been declining since early 1998. This decline is a reflection shared by many mining companies in the resource sector. The stock price appears stable and drifting above a level of support at about$0.06. We believe there is minimum risk to the downside at the current level.
OPPORTUNITY FOR INVESTORS
Trading at a fraction of its fair market value, Maxam Gold offers investors an unparalleled investment opportunity in the current market environment, and a chance to accumulate a significant position in a stock that can be expected to rally strongly as work gets underway at the Peoria 7 & Peoria South projects in the coming months.
With just 53 million shares outstanding (20 million float) and a current share price of US$0.065, the equity markets are valuing the Peoria 7 / Peoria South gold projects at less than 704 per ounce of gold. By comparison, peer companies, with similar projects and capital structures,
are being valued by the equity markets at the equivalent of US$5 - US$20 per ounce of reserves.
While some might characterize a gold stock such as Maxam Gold as a speculative buy, we believe that the company offers strong (potentially explosive) upside potential with very, very little risk. For long-term value investors, a core holding in Maxam Gold is a must; this is the type of investment opportunity that Warren Buffet built Berkshire Hathaway upon!
For more information, please contact:
Dale Runyon (CEO & Chairman): (309) 699 - 8725
Al Hubbard (President): (972) 625 - 6430
For additional information on Wall Street Concepts Group Inc., please
contact WSCG at:
100 E. Linton Boulevard Phone: (561) 272-0073
Delray Beach, Florida 33484 Fax: (561) 272-3070
thesubway.com
DISCLAIMER
This is not an offer to sell any securities of Maxam Gold Corp. The securities may only be offered by registered broker-dealers which may have agreed to market Maxam Gold Corp. securities. Wall Street Concepts Group, Inc. is not such a registered broker-dealer. The information contained herein has been provided by Maxam Gold Corp. to Wall Street Concepts Group, Inc. and should not be construed as investment advise. In addition, the information contained in this report is not intended to be a complete discussion of information regarding some of the current and/or intended business activities. Wall Street Concepts Group, Inc. has not conducted any due diligence into the company or into any of the representations contained in this report. Wall Street Concepts Group, Inc. has received 150,000 shares of Maxam Gold Corp. common stock and 50,000 shares of restricted common stock as consideration for the preparation and advertisement of this report. In addition, Wall Street Concepts Group, Inc. has a written agreement with Maxam Gold Corp. to provide consulting services, pursuant to which Wall Street Concepts Group, Inc. is entitled to receive 75,000 free-trading common shares and 75,000 shares of restricted common shares of Maxam Gold Corp. each month on a month-to-month basis for up to 11 months as compensation for its services (Maxam retains the right to cancel the agreement at any time with a three day notice).
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