Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ed Devlin who wrote (8411)	5/17/1999 8:42:00 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 11603

<< Claude Cormier seeing some utility to Maxam-type mapping >> Don't read too much in my comment Ed... I still think that MXAM has no reserves. I doubt you will see production from there any time soon.

To: Ed Devlin who wrote (8411)	5/17/1999 10:06:00 PM
From: Char	Read Replies (2) \| Respond to of 11603

Well here is the long drawn out version of the AGM that everyone has been waiting for. >VBG< Dale opened the meeting by introducing the President, Al Hubbard. Al started his presentation by reading the obligatory Forward Statement to keep the SEC happy. Al then did an introduction of the other officers and people who would be presenting. The first was Richard Steves, Corporate Secretary and Director and his wife Criss. Next was Deloris Swatta, Corporate Information Officer(I apologize if any names are misspelled but it was hard to pick some of them off the tape), Frank Barton and Bob Ford, (Peoria 7 employees) and consultants, Jack Reid, Max Cooley, Dr. Jim Fink, and Dick Hewlett, and lastly Carol Runyon, Registrar of the Corporation. The Business Meeting followed and all issues presented in the proxy were accepted. Al then presented a Statement of the Company where he put up a Balance Sheet Summary for fiscal year 1998. This showed the current cash position at $44,840 and Total Assets of $1,186,070. It should be pointed out here that all the mining properties are shown on the books at actual cash invested rather than being based on any gold reserves. Total financial outlays for 1998 including operations acquisitions, administration and consulting fees were $560,000. Total shares outstanding are 53,613,253 Al then proceeded to discuss financing. He started by explaining how financing with a major shareholder announced last AGM had fallen through when the shareholder could not provide the funds a needed. He did state the company was successful through the year in raising cash time to time sufficient to continue normal operations. Al then mentioned the recent $30M funding but did not provide any additional details. Dale then provided the progress the company has made since the last AGM. He referenced the Chairman's Message to Shareholders for 1998 which was provided to attendees. I expect this will be put on the web site soon so I won't bother rewriting it. He then went into a discussion on the difficulties on doing a COC on desert alluvial's. Actually he said that it is almost impossible and if anyone can figure out how to do it they will become a wealthy man. Next he went in a little discussion on Hydro Geophysics and Dr Jim Fink and how his work should be able to show the best place to start mining. Even though the COC results have been lower than expected due to loss of some of the fines, Dr. Finks work still correlates with higher concentrations occurring where his charts say they should be by a 2-1 ratio. Next he gave a little explanation on why the corporation is moving to Nevada. The main reason is Nevada is a more mining friendly state and the second reason is that there seemed to be no way the company could provide the spinn-off shares while domiciled in Utah. This was followed with a talk on what problems were encountered with the current COC. Dale explained that the presence on rocks in the soil requires the use of high pressure to get the rock to come up out of the hole. This causes a mini dust storm and blows the fines all over the desert. Since the bulk of the PM's are contained in the fines, the samples recovered are not representative of the actual ore body. The company doing the drilling has a process where they sink a plastic sleeve into the ground and then can close off the end to bring the samples out of the ground. There is no air or water involved in this process. The company claims this drilling process should work on the Peoria 7 ore and will not charge if it doesn't. The only drawback is it costs 10 times as much as regular drilling. I think the plan is to try one hole and if it works they will do a 10 hole drill program. Al Hubbard then talked about the SB-2 registration. The registration is expected to be filed within the next 30 days. He also said the company would be filing to become a fully reporting company by next February. This will also make additional funding opportunities available to the corporation. Dr. Fink of Hydro Geophysics followed with a presentation on his work with Magnetic and Electro-Magnetic surveys. These are the survey that make all the pretty pictures that Chuca likes to show. This work is still ongoing. Dick Hewlett followed with a presentation on the USGS data that Dr. Fink discovered within the past year and its relevance to the Peoria 7 property. This data was originally done for the Super-Collider project with the area was being considered as a possible location for the project. The information is all on the web site so I won't repeat any of it here. He also talked about some of the difficulties in getting a representative ore sample when dealing with micro-fine gold in a desert environment. He had a box that would hold one ton of the Peoria ore. He then had a sample vial holding .1 oz of gold and explained if it was distributed in the ton of ore how difficult it would be to get a representative sample when you take a standard assay sample of around 30 grams. Max Cooley then gave a short presentation on some of the difficulties encountered when assaying difficult ores. One interesting thing he mentioned is that most assayers won't spend the time to do a difficult assay when they are only getting $15/assay. They will usually just do a SFA and report nill or zero PM's. Max explained some of the processes he would go beyond the standard fire assay. He stated that with enough time a good analyst can always assay the PM's if they are there but it can be extremely complicated and the assays will probably cost $35-40 just for the chemicals to do the assay. That's why most labs won't fool with them. Max also stated that before he will give Dale any number to report, he insists on having a minimum of three assays using four different procedures. The four procedures are Aquaregia Digestion with AA analysis, Chiti extraction of a bleach system, Fire assay with both Gravimetric and instrument finish. These samples must all corroborate one another or they don't get reported. He also said that Dale is in full agreement with him to always be conservative in his reporting. Dale ended the meeting with a short forecast for 1999 and beyond. He stated the funding arranged for so far will help MXAM do the following: Put Peoria 7 into 10,000 TPD production which will take two years at least, provide initial funding for Maxam Custom Milling which will provide a pilot production plant so MXAM can start processing some tonage from private lands for income, provide engineering on Peoria South and one other property, and initial exploration on 7 other properties. He said that the first mine will be in production in June 2001 and then one additional mine every 6 months until there are 10 mines total. He added that initial production at Peoria 7 will be 1000 TPD and will occur by Dec, 2000. Additional funding will be required to accomplish all this and he said it will probably be done by selling the metals at a discount similar to the $30M funding or through some joint venture with another company. A cocktail reception followed the meeting and then Dale invited all the attendees to join him for dinner. Char