Advantego Corporation (ADGO)

[Digrdoug]

Some stuff about GE:

I was the CEO of a small gold company and we spent three years trying to find a profitable gold mine in the North Yungas area of Bolivia.

A good place to start for GE newbies, see:

Post 10745 on the RB thread

This gave a summary of the positions of some of the players and the ongoing soap opera and most of it still fits!

Another interesting one!

Post 11066 on the RB thread

Some Facts about Golden Eagle International:
- over 250 million shares out. Another 150 million in options and convertible debt.
- over 20 million dollars in accumulated deficit.
- On average, for the last few years, they have incurred General and Administrative expenses of over ONE MILLION DOLLARS per year.
- A past 10 k: Net Loss $1,817,041, Exploration $156,376,
- Almost 7 MILLION dollars of debt outstanding.
- Over two million dollars out in convertible debentures that may be floorless in the conversion price or may have a fixed price of 3 cents.
- Some old equipment was virtually the only assets and was written down in value in an SEC filing.
- They now claim to have some new equipment in Bolivia.
- GE has the rights to a placer gold concession in Bolivia, called Cangalli, that it purchased from the cooperative in the area. There is no public evidence that they purchased the land above the mineral rights. This could end in a battle similar to the one in Bolivia at Amayapampa in 1996, wherein many people died.
- GE also has the rights to another placer concession, royalty free however no testing has been announced on this property.
- GE announced recently that they have issued 10 million shares for the rights to a hard rock concession near Santa Cruz, Bolivia.
- GE issued a news release in 1998 claiming a very large gold resource.
- The SEC filed a complaint of securities fraud against GE and some officers.
- GE then filed an 8k clearly stating that there are no documented gold reserves at Cangalli.
- GE and the former officers settled the complaint.
- GE has made various attempts to extract gold and has failed to get any profitable production.
- They have recently started bulk sampling and report about . 5 grams per ton.
- Posters had been claiming that GE would bulk sample or start production for over four years.
- There was news of proposed equipment purchases from a company in Bolivia but about a year vear has passed with no news of completion.
- The company recently announced that it had received equipment in Bolivia and would be in pilot production in September 2002, using conventional underground mining methods.
- They failed to start the underground so the are doing what I said they should do four years ago. open pit sampling.

It is my opinion that this company will never have a profitable gold mine at Cangalli.

Past performance
GE involvement in Bolivia started, in 1995, during the time when Bre-X was flying and IMO they intended to ride on the coat tails. They found an obscure concession at the end of the ”most dangerous road in the world” (Lonely Planet Survival Guide). A Bolivian geologist (Guido Paravicini) was hired, and after a very low 108 samples, he declared Indicated Resources of 60,771,704 troy ounces. I believe, on professional advice, that Guido’s Reserve/Resource conclusions are bogus. GE later filed an 8k (Report), with the SEC, taking the same position:

http://www.sec.gov/Archives/edgar/data/869531/0001000096-98-000577.txt

<em>“As a result of subsequent internal review of the Paravicini report, management of Golden Eagle has concluded that the techniques used by Mr. Paravicini were insufficient to justify the calculations made, and the term "reserves" may be an inaccurate characterization of the mineralization found on the Golden Eagle properties in the Cangalli district.”</em>

Dr. Donald Hausen wrote in the Journal of mining.
<em>“The variable distribution of coarse gold throughout the deposit requires large Bulk sampling. Sluice processing of samples from a number of small open pits could provide recoverable gold grades and would evaluate grade continuity to justify the development of a large open pit for production.”</em>

I have advocated this course of action almost since I first posted in the summer of 1998 and was met with flames. Why they do not do this is beyond my comprehension. There was a lot of equipment available in the area to perform this task. They have spent considerable sums on G&A expenses that I believe should partly have gone to bulk sampling.

Our company spent almost three years in the same area trying to make a profit mining gold. It is my belief that there are thin, rich, seams on the property that are good for hand miners. IMO there is no significant area on the property where a company can build a large profitable open pit gold mine.

Ongoing
There has been a steady succession of people posting continuously on Raging Bull and Silicon Investor to try to stifle any dissenting opinions and they resort to many underhanded tactics. Almost from the time I first posted on RB, in Aug. 98, the goons declared war with me. If this company was not a scam, why would they bother?

I was sued for my posted opinions but the posts were parsed to change the meanings.

GE have proposed a very complicated mining plan called block caving. I believe that this has never been done in the Cangalli Material. There is no evidence that it will work nor do they know if there is any significant quantity of gold in the area to be mined. It is my opinion that their plan is a harebrained scheme that will not work.

Most of the major mining companies will have nothing to do with alluvial (placer) mines. It is frustrating but true. It has been a time of consolidation of producing mines. There are many properties with proven reserves awaiting financing to open. GE has no proven reserves so the majors are hardly in the spirit to open an alluvial mine

Some facts and some opinions. Do your own DD.