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

To: Char who wrote (8421)	5/18/1999 9:06:00 AM
From: Richard Mazzarella	Read Replies (4) \| Respond to of 11603

Char, <<don't believe any of Richard Hewlett's resource calculations>> I wouldn't expect him to, he only understands drilling, drilling, drilling. Also, last year the change in BLM rules and their interpretation of Hewlett's work screwed things up. I truly believe that if Maxam had the cash last year, the BLM would have found itself in court with Maxam winning easily. Hewlett is a leading authority on resource determination, read his resume. That local BLM office leaves a lot to be desired. I'm not sure that COC is even an issue anymore for Maxam, I'm reading that into your reported comments on what Runyon told the meeting.

To: Char who wrote (8421)	5/18/1999 10:06:00 AM
From: Claude Cormier	Read Replies (1) \| Respond to of 11603

<<Claude, Are you saying that you don't believe any of Richard Hewlett's resource calculations? >> No, I did'n say that... given the work perform to date... a geological resource of that size is possible.... But there is a big difference between a resource and a reserve. Most geological resources are never mined. You see Char, you cannot go to a bank with a resource in hand, you need an orebody (which is a proven reserve that is mineable and economic at current metal prices). In order to reach that stage, you must spend enough exploration dollars to reach a very high degree of certainty that the metals are there. You must also complete a feasibility study that says "yes...you can mine this at a profit and you should proceed as follows.". Banks and other groups specialized in mine financing will usually not finance the development of a mine without these two elements in place. OTOH, investors will finance exploration work to prove up an orebody by taking shares in the mining companies.