Letters to the Editor Canmamax’s rebuttal

In reference to a letter to the editor from J. H. J. Morgan (N.M., Aug 8/88), certain statements were made about Canamax’s 100% owned Kremzar project. I would like to point out some inaccuracies in his comments.

Mr Morgan states that the cost to bring the Kremzar mine into production will be $40 million. The actual costs to date, since announcing a production decision in May, 1987, are $23 million. The 500-ton- per-day mine and mill complex at Kremzar is forecast to be completed by the end of September on budget at $24 million.

With regard to reserves, suffice it to say, the current reserves at Kremzar and Canamax’s nearby Lochalsh deposit are sufficient to support milling at a rate of 500 tons per day for a minimum of 12 years and are limited only by the depth of drilling to date.

Canamax has assembled a fine team of explorationists, mine developers and mine operators who have all contributed to the success of the Kremzar project. These people have worked hard to transform a sound geological concept into a viable economic operation. In the future, Mr Morgan should check his facts and figures with them before drawing broad comparisons. John Pearson Investor Relations Canamax Resources Toronto, Ont.