Does it have to do with ECPN ? ;D
April 18, 2005 06:00 AM US Central Timezone
Chuck Mottley, President of El Capitan Precious Metals, Inc., Sends Out Annual Shareholders' Letter
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--April 18, 2005--Chuck Mottley, President of El Capitan Precious Metals, Inc. (OTCBB: ECPN), has sent out his annual shareholders' letter:
Dear Shareholders:
During the year 2004 and the first quarter of 2005 El Capitan Precious Metals, Inc. has increased its asset base dramatically. We have been an exploration company, acquiring mining properties, and preparing them for sale to larger mining companies by drilling and assaying.
In this second quarter of 2005 we expect to be in production with a positive cash flow from our "high-grade silver" project in Nevada. Originally we planned on operating in Congress, Arizona, but changed to Nevada for logistical reasons. We have five people directly assigned to this project.In addition, we expect to have the additional drilling and assaying completed at the El Capitan property in New Mexico in the second quarter of 2005. The recent assays of 32 samples at 0.12 gold equivalent gives this property a very high value when compared to similar properties throughout the world. We also have the magnetite iron ore, which not only lowers the cost of mining the precious metals, but would provide an additional profit center for the company operating the mine.
Mining properties are usually sold with a scenario such as: 1) A down payment of stock, cash or a combination of both, 2) A 5 % royalty, and 3) A 6% carried interest in the profits of that particular mine.
The management of the Company has already been in contact with at least one potential buyer. We will need to complete the drilling commencing next week along with a third party assay of the precious metals to complete the documentation needed to offer the property for sale.
The Company has successfully sold 80% of the COD mine in Arizona to a company whose stock is publicly traded. The stock will be unrestricted and marketable by the middle of May.
The Weaver mine located in Arizona is another of our assets. We believe that there are significant values in this property. At this time we are working on a budget to start testing this mine. The Company increased its iron ore reserves with the acquisition of the rights to the Rainbow Valley property. Recent drilling and assaying the 1620-acre placer property indicated an estimated resource of over 30 million tons of iron ore.
The Company is presently negotiating to lease/purchase an iron property located in Nevada. This property has an estimated 100-plus million tons of iron ore with three million tons already mined and stockpiled.
Management has been working to conclude the Memo of Understanding with the Chinese steel company. The railroads do not have the capacity for us to ship to the port of Long Beach, Ca. There is the possibility of shipping from Guaymas, Mexico, but the issues with transportation remain. We are presently having positive conversations with the railroads about shipping from the Nevada iron property to a port in the San Francisco Bay area located at Richmond, Ca.
We are also in direct conversation with the Chinese through our agent, Asia Finance Corp., about the possibility of a joint venture with the Chinese. They need iron ore. We have iron ore. The issues of transportation deem to be our biggest obstacle.
The Company has made four additional appointments to the Board of Directors. All of these men are quality people with high integrity who have been very successful businessmen.
Management is excited about the dynamic state of YOUR Company. Progress continues on all of our projects. It is also comforting to know that we are not dependent on one property or project for a bright future.
Sincerely,
Chuck Mottley, President
El Capitan Precious Metals, Inc. is an exploration stage company that owns a 40% interest in the El Capitan mine located near Capitan, New Mexico, as well as a joint venture and 20% ownership of 13 mining claims and other assets known as the C.O.D. mine located near Kingman, Arizona. In addition, the Company owns contractual rights to the Rainbow Valley mine consisting of 1660 acres and 100 % of the Weaver mine, both near Phoenix, Arizona.
The statements included in this press release concerning predictions of economic performance and management's plans and objectives constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, the results of metallurgical testing, the ability to mine precious and other minerals on a cost effective basis, the company's ability to successfully complete contracts for the sale of its iron ore and other products; fluctuations in world market prices for the Company's products; competition from iron ore producers worldwide, which producers have greater resources and more established operations than those of the company; the company's ability to arrange transportation from its mining properties to ocean ports on satisfactory terms; the Company's ability to obtain or maintain regulatory approvals; the company's ability to obtain financing for the commencement of mining activities on satisfactory terms; the Company's ability to obtain necessary financing; and other risks and uncertainties described in the Company's filings from time to time with the Securities and Exchange Commission. The Company disclaims any obligation to update its forward-looking statements.
Contacts
El Capitan Precious Metals, Inc.
Ron Perkins, 480-607-7093
www.elcapitanpmi.com 
