Shareholder meeting vom 6.6.05: Fragen und Antworten.
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Tschonko
Questions and Answers
Questions about Clifton Mining Company
A number of questions were asked. Those of general interest are paraphrased below.
Question: What is the current property size of the joint venture mining property?
Answer: The property position of Clifton Mining Company with both the original property and new property added by Dumont Nickel Inc. in the joint venture, currently stands at about 34 square miles of property in one contiguous block. We believe the joint venture now holds the most important parts of both the Clifton and Gold Hill Mining districts.
Question: Will the joint venture property position change in the next year?
Answer: As geological work uncovers new potential deposits, it is likely that additional property will be picked up. Also, as geological work continues, some property will be shown to have little or no mining value and that property may be dropped. So, we expect some property changes to occur through the normal process of exploration. We expect that the net effect of the property changes will be that the total property package will remain at about the same level it is currently at over the next year.
Question: Why did you pick Dumont as partner in the property joint venture?
Answer: Clifton’s management has known Sahe Sabag (the president of Dumont) for many years. We knew that if Mr. Sabag was in charge of the project that the work would be done in a highly competent manner. Also, Dumont offered us an excellent deal. The management of Clifton has been impressed with both the quality and amount of work completed by Dumont in the last few years. Their work has led to the discovery of what could be as many as ten different deposits. They have put millions of dollars into the exploration and drilling of our property and are prepared to continue to do so.
Question: What is happening with the Kiewit Gold Zone?
Answer: Dumont has planned to drill 50-80 holes into the Kiewit Gold Zone. We had hoped to have most of that drill work completed by now. Unfortunately, Utah has set records this year in winter precipitation. At the date of the shareholder meeting 31 holes had been drilled and the rest are expected to be drilled in the next few months. As has already been announced, we hope the Kiewit Gold Zone will hold between 3-6 million ounces of gold and we still think that that is a realistic goal for the Kiewit project. A great deal of data from this property should be available in the next few months.
Question: What is happening on other parts of the property?
Answer: Core drilling has begun on the extensions to the Cane Springs gold project. Exploration work has shown that there is a good potential that the gold from the historical Cane Springs mine could continue into the silicates found to the west. The Cane Springs mine is historically known for very high gold grades, grades in excess of an ounce per ton. In the silicates we are looking for much larger deposits of what we think will be lower grade gold.
Two deep core holes (approximately 1500 feet deep) are also planned to be drilled on the IBA project property area. Surface samples and other geologic work have led us to the belief that a very large and possibly high grade gold deposit may exist in the IBA property. The deep drill holes may shed some light on that. Some of the surface samples in areas believed to be associated with the deep targets have reported multiple ounce values. So we look forward to seeing what comes from those two holes to be drilled later this summer.
Questions About American Biotech Labs
Question: Why did the company testify before Congress and where do we stand with doing business with the government?
Answer: We were invited to testify before the congressional Committee on the topic of Malaria by Congressman Smith, Chairman of the International Relations Committee Subcommittee on Africa. We were invited to attend because of the great deal of work that has been completed on the use of our ASAP 10 ppm product on Malaria and the fact that work has shown that the product has a very important curative effect on Malaria in a very short time period. Malaria is the second leading cause of death by infection on the planet right now and we were informed that the world is at least 30 million doses short this year in effective medicine to treat the disease in the third world countries. William Moeller testified about the human studies that had been completed and the fact that the ASAP product had (in the three completed studies) reportedly cured the malaria of the patients in an average of about 5 days, with no negative side effects reported. Mr. Moeller testified that American Biotech Labs would be willing to supply the government with enough of the product to help fill the shortfall in medicine if they wished us to do so. A summary of the testimony is available on the web at the congressional web site.
The company already has in place purchase contracts for both the Federal government (GSA) and also the VA hospital system. The company has worked hard to get these purchase contracts in place so that sales could be made as soon as the different agencies were ready for the purchases. American Biotech Labs has also been working with a number of U.S. military groups, which have also been doing their own testing on American Biotech Labs products. The testing has gone very well to date and the management of the company feels that they could be doing business with a number of government groups in the near future and is prepared to do so.
Question: If American Biotech Labs gets volume orders in the near future does it have the capability of producing enough product to fulfill the contracts?
Answer: ABL currently has the capacity to produce 500,000 bottles a month of the ASAP product. The company has already produced the parts it needs to bring the capacity of the plant to 1,000,000 bottles a month and could have that on line ready to go in approximately 30 days or less if needed. The company is now creating the parts it needs to again double that capacity to 2,000,000 bottles a month and estimates that that could happen within about 60 days if warranted. Current company estimates are that the company could increase production to at least 10,000,000 bottles a month in approximately 180 days as needed.
The company recently handled the largest single order to date, that being an order of 70,000 bottles of product that was ordered and shipped to Russia. The company can easily fill these types of large scale orders and has proven it can do so without a problem. That Russian company has already indicated that their next order could be in the neighborhood of 100,000 bottles in the early fall.
Question: American Biotech Labs looks to be poised to dramatically increase sales in a number of areas in the near future, is that correct?
Answer: ABL’s sales have been growing the past few years at around 30-40% annually. If nothing earthshaking happens we believe that we will achieve that same level of growth this year. With that being said however, there are a number of areas in which the company has been working that could easily break out in sales of between 10 and 50 million dollars or more.
In addition, that the SilGel product may be just a few months away from being approved by the FDA, for not one, but for 13 different applications. Each one of those 13 approvals are in areas that are touted as billion dollar industries. We have a great deal of test work completed on this product and a number of new studies are currently underway. We, in looking at the test data from labs and also data from professionals who have been using the product over the last year, believe that the product will be easily able to compete in the numerous markets it can be launched in. A number of companies have already expressed an interest in marketing the new gel product in different markets and different applications. Management believes that a great deal of new volume sales will be achieved as soon as marketing is opened on this product.
American Biotech Labs has a number of both domestic and international business that is currently in negotiation. Any one of which, could add greatly to sales for the 2005 year. Not the least of which is a new deal that was just announced with a company called General Resonance. The General Resonance deal alone could easily add $5-10 million in revenue this year.
Question: General Resonance was mentioned in the congressional testimony, who are they and how can they help move American Biotech Labs (ABL) forward.
Answer: ABL has signed a MOU with General Resonance. General Resonance (GR) is a private company managed by six directors. Their management consists of a number of the top business people in the country. They bring capital, technology, and business savvy to ABL. Owners of GR are listed as some of the most experienced business men in America. Together they have owned or controlled hundreds of U.S. corporations and are still involved with many. They have the ability to connect ABL and their products to any major market in the world. They can also place ABL products in companies that they already own or have an interest in. GR also has technology which we believe can help ABL create new second, third, and fourth generation products which may be available in just the next 1-4 years. GR has the ability to supply all the capital and expertise required to enter new markets and to help ABL increase production if needed. We believe with their help we will not only expand our business, but also line up the resources to do a great deal of humanitarian work in countries where it is needed.
Question: Has Clifton sold any of its ABL stock and why does it seem that it has a smaller position than it used to have?
Answer: Clifton has never sold any of its ABL position. When American Biotech Labs was first formed, the owners set aside a million shares to be sold over time to fund all the test work that was going on. For example, the test right now going on at a major university on the SilGel product for wound care cost approximately $100,000 for the test alone. The protocols for the test cost thousands of dollars, not to mention the attorney work that went along with it. All in all, that one test for the FDA could cost over a hundred and thirty thousand dollars. We knew that testing would be expensive, but we also that it was worth it because in the end we believed that those test could be worth hundreds of millions of dollars to us. So the million shares were set aside to be used to fund the test work. To fund that test work, stock has been sold to strategic partners (people who could add direct value to the company because of knowledge or market ability) and thus the testing has been funded and much of the test work completed to enter the product in a number of new markets. As parts of those million shares were sold, all the ABL shareholders were diluted in ownership and that is why Clifton’s position, as well as all the rest of the ABL owners, has been reduced over time. Comparatively speaking the question to be asked is whether or not it is better to have 30% of a grape or 25% of a watermelon. Clifton now holds only 25% of ABL, but that 25% is worth approximately ten times what it was worth when Clifton owned 30%.
