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Technology Stocks : Xenolix Technologies (XTCI) 'Ecstasy'(Formerly MGAU) -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (2962)	2/22/1999 10:50:00 AM
From: Richard Mazzarella	Respond to of 5143

Claude, I can only speculate, but I think that funding to continue resource development on the crater failed, Golden Wonder mine if I recall correctly because of grade degradation and poor POG. I also don't think that the assays are COC industry accepted, nobody will fund. The potential for the size of this reserve also scares many after all the other recent large resource failures. MGAU is no doubt a very speculative investment here, a bet at most. My current concern is the J/L recovery economics, but I guess that will become clearer when the pilot plant begins operation. We certainly don't have answers, but then the stock price reflects that caution, especially compared to the potential IMO.

To: Claude Cormier who wrote (2962)	2/22/1999 5:22:00 PM
From: Karl Zetmeir	Read Replies (2) \| Respond to of 5143

1.) I don't know ... but I have a difficult time imagining that processing 60 lbs of material at a time through an outside consultants would be either very insightful or profitable. Hmmmmmm Let me see .... .46 opt at 60 lbs a batch ... not sure that works too good. >>A pilot testing plant has been contracted which can process up to 60 pounds of cinder cone material per day. The contract pilot plant will be operated by a consultant knowledgeable in precious metal extraction from scoria, (a rusty red to black, highly vesicular, mafic volcanic glass), and will begin within the next 10 days. The resulting concentrate product will be sent to a refinery for assay and recovery.<< 2.) During the '97 '98 time frame (and to this day IMO) ... the company was more closely aligned with IPM. When you take "millions" there are heavy strings attached. Who knows ... perhaps the strings were unacceptable. You're asking a "what if" question ... the Company can only answer questions regarding what did happen not what didn't happen. 3.) Again ... this is a question to ask Barrick or Newmont. As far as that goes ... ask Campbell Soup and Microsoft the same question. 4.) My guess is at that time, MGAU was dependent upon IPM for technical capabilities and expertise. Beginning sometime in '98, MGAU exited from the shadow of IPM, worked with labs having previous experience with cinder type projects, fostered a relationship with J/L who's current system appears to work just fine with cinder materials as well as desert materials. As far as "precious time on other projects" ... I guess MGAU could have gone the Vancouver way ... and floated tens of millions of shares of stock to fund their cash flow needs. Personally, I like the fact MGAU didn't take this route. What we wind up with is an aggressive company with great properties, successful technology and not a lot of shares out. Good combination to me! All of the above is of my own supposition and is not meant to be a response for the Company.