Complex ore’s the problem, says Furlong — State assays

The Arizona Department of Mines and Mineral Resources has determined through a state-registered assayer that samples the department had taken from International Platinum Corp.’s (TSE) Arizona property returned less than trace gold values (0.003 oz. per ton) and less than a tenth of an ounce of silver per ton.

The values reported by the state agency conflict markedly with International Platinum’s own numbers. Samples assayed by the company’s consultants and recently made public revealed precious metals values of 0.247 oz. gold, 1.086 oz. silver, 0.351 oz. platinum and 0.123 oz. palladium per ton.

A regional sampling program conducted by International Platinum returned values ranging from 0.159 to 0.229 oz. gold per ton, 0.179 to 0.230 oz. platinum and 0.053 to 0.084 oz. palladium.

With regard to precious metals other than gold and silver, the state agency said the registered assayer “saw absolutely no indication of platinum group metals (PGMs).”

Said Arizona Mines Director Mason Coggin: “Our assayer said there was no reason to look for it (PGMs) because the button (the bead or button remaining after a fire assay is conducted) didn’t indicate he should look for it.” According to Coggin, PGMs have a telltale appearance in an assay button. When contacted by The Northern Miner and told of the results from the state’s assayer, International Platinum President Lee Furlong said the results “certainly were not unexpected.”

He said his company’s deposit consists of a complex ore that requires roasting and pre-treatment before a fire assay (the method used by the state’s assayer) can reveal the true gold, silver and platinum values. “The ore is identified with a specific telluride of gold. In this particular form, which is a silver-gold telluride, if the gold is tied up with a telluride molecule, then you have to oxidize the telluride,” Lee said. International Platinum’s shares were halted from trading on the TSE and NASDAQ more than a week ago after the TSE requested “independent verification” of the company’s published assay results. (The TSE’s investigation is still under way.)

Since Jan. 14, about 132 million International Platinum shares have changed hands on the TSE, for an average of about 12 million shares a week. The stock price moved from 10 cents to a high of $1.20 before the TSE halted trading. (As of April, 1993, there were 32 million shares outstanding.) Nyal Niemuth of the Arizona Department of Mines and Mineral Resources visited the company’s property March 30, following the TSE’s decision to halt trading. Neimuth took five samples that were subsequently assayed by the department’s

assayer.

At the request of International Platinum, the government assayer was also asked to review the procedures used by Iseman Consulting (of Henderson, Nev.), one of two labs International Platinum hired to conduct its initial Arizona project. Rogers Research and Analysis Co. of Utah was the other International Platinum lab.

International Platinum’s property is in La Paz Cty. The precise location has been kept secret so that, the company said, more ground could be acquired.