I want to take this opportunity to give you an update on the status
of your Company.There are many projects currently being
undertaken by the Company at this time and it is important to understand
how they interconnect.
The following list is not necessarily in order of importance or
timing:
1. The Company is in process of receiving commitments to receive
approximately $1,400,000 in working capital funds by the end of
October. These funds are primarily being provided from
shareholders voluntarily exercising their warrants. The funding
will provide the Company with operating capital for continuing
operating expenses as well as the funding for the extended
drilling program. 2. Discussions directed at possibly combining El Capitan Precious
Metals, Inc. and Gold and Minerals, Inc. is continuing. The
timing on a business combination will depend on securing an
audit of Gold and Minerals, Inc. The structure of the
transaction will be guided by Houlihan Lokey Howard & Zukin, the
Company's financial advisor. 3. The Company has applied for listing on the American Stock
Exchange. There are several sets of criteria to accomplish
this. The one we will most likely use will require our stock to
be above $2.00 per share for thirty consecutive days. 4. The assays of the remaining 7,500 feet of drilling are in the
process of being completed. When they are finished it is
expected that the tonnage numbers will be updated. This will be
incremental to what has already been published. 5. The Company continues to fund exploration and development
drilling for resource expansion and definition. Specifically
there will be a dual purpose drilling program started the week
of October 23rd of this year. The purposes are: A. To drill two areas of outcropping mineralization, similar to
the gold-platinum mineralization in the El Capitan property,
that is located approximately one mile to the west-southwest
and one mile to the east-southeast of the property. These
locations were originally identified as hyperspectral survey
anomalies. Subsequent field examination, sampling and fusion
assaying resulted in gold and platinum values comparable to
those considered potentially ore grade in the El Capitan
property. B. To continue drilling to the west of the El Capitan property
until the boundaries of mineralization are found. The Stage
1 and 2 drilling program, consisting of approximately 12,500
feet of drilling, was performed on approximately 75 acres.
The two anomalies are located within a three square mile
area surrounding the El Capitan property which was
recommended for Priority #1 exploration by the Company's
consulting geologist, Dr. Clyde Smith. The Company has
claims on this approximately 2,000 acres. 6. The ongoing metallurgical research work that was mentioned in
the 22-Jun-2006 news release began in late August and continues
at this time. Management remains pleased with the direction of
this effort to better understand the complex metallurgy of this
mineralization, and have received no disappointing feedback from
either the research lab or the Company's consultants directing
this project. In addition to the goal of producing a dore that
will more accurately reflect the total metal content of the ore,
the effort is producing valuable metallurgical information that
can be used in the development of a pilot plant process flow
sheet. As always, Management intends to release material
results as soon as they are available and verified.
As detailed in the aforementioned points, there are several
initiatives that should have an influence on the growth in value of our
Company.We intend to update our shareholders on each of these
initiatives as material developments arise.
I continue to be very pleased at the progress towards both the Company’s
short and long term goals.The time frame for completing some of
these projects is taking a significantly longer period of time than
originally anticipated, but I am confident that completion and results
of these projects hold a potential upside for the Company and our
shareholders.
Sincerely,
Charles C. Mottley
President/CEO
El Capitan Precious Metals, Inc. is an exploration stage company that
owns a 40% interest in the El Capitan property 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 100% of the contractual rights of the
Weaver mine, 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, interpretation of drill results, the geology,
grade and continuity of mineral deposits, results of initial
feasibility, pre-feasibility and feasibility studies and the possibility
that future exploration, development or mining results will not be
consistent with past results and/or the Company’s
expectations, discrepancies between different types of testing methods,
some or all of which may not be industry standard, 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; 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; the Company’s
ability to enter into and meet all the conditions to close contracts to
sell its mining properties that it chooses to list for sale, 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.
