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To: javajake who wrote (783)	9/10/1999 9:54:00 AM
From: CIMA	Read Replies (2) of 957

Got this in my E-mail: SuperPickers - http://www.angelfire.com/sk/stockville I will be gone today, but I got an alert from a fellow group leader on this stock. The stock appears to be undervalued and has a real low float. The combination of these two facts should make this stock a mover in the next few days. TW--StockBusters Cerro Dorado Inc. (OTC-BB: CDCH) -- Patagonia Capital Initiates Investment Coverage With Strong Buy Recommendation Patagonia Capital Corp. Initiates Investment Coverage With Strong Buy Recommendation For: ------------------------------ Cerro Dorado, Inc. ("CDCH" on OTC - BB) --------------------------------------- 1399 South 700 East Suite #17 Salt Lake City, Utah 84105 Phone: (801) 484 - 2668 Fax: (801) 486 - 3633 Website: http://www.CerroDorado.com ----------------------------------------------------------------------- An undervalued mining company characterized by an incredibly tight float, participation in a rapidly-developing area play, and significant ownership of what quite possibly may be one of the largest Cu-Au discoveries ever made in Chile!! ----------------------------------------------------------------------- KEY REASONS FOR INVESTING IN CERRO DORADO: ------------------------------------------ (1) Tight Share Structure - we estimate that there are about 700,000 unrestricted shares of CDCH, of which roughly 500,000 shares are in "friendly hands", implying a trading float of just 200,000 shares. (2) Major News Expected Shortly - the results of geophysical surveys now in progress on the CDCH and adjoining Medinah Mining (MDHM on OTC-BB) properties are expected to verify the presence of a major potential breccia pipe on Cerro Dorado's property, plus a second breccia pipe on the adjoining Medinah Mining grounds. MDHM is reportedly in negotiations with some of the 16+ major mining companies and private funds that have signed a non-disclosure agreement concerning a comprehensive joint venture / development / financing package for Alto de Lipangue; the MDHM deal may include Cerro Dorado's property, or a separate financing might be structured with one of the major mining companies or funds interested in the MDHM deal. (3) A.C.A. Howe Report Verifies Property Potential - Cerro Dorado's Fortuna property recently received a resounding "thumbs-up" from A.C.A. Howe, a prestigious international mining consulting firm. This very bullish report provides significant credibility and verifies the world-class potential of the Fortuna project. (4) Large Breccia Pipe Reportedly Identified on Cerro Dorado's Property - geophysical surveys now in progress have reportedly verified the existence of a large breccia pipe on the southern edge of the Fortuna project that had been previously identified by A.C.A. Howe. The surface dimensions of the breccia are approximately 250 meters by 250 meters; no word on how deep the Cerro Dorado breccia extends but the Lipangue breccia, less than 2 km away, has reportedly been traced to 1,000+ meters. (5) Potential for Multi-Billion Ton Porphyry Deposit at Depth - an added bonus for CDCH is that Medinah Mining's Lipangue breccia is trending towards Cerro's property and that a new breccia zone appears to be present on CDCH's property. The alteration patters found and confirmed at Lipangue are also apparent on Cerro Dorado's property. Geologists theorize that the parent intrusive to the CDCH and MDHM breccia pipes that run SW to NE across the Lipangue plateau (towards and onto Cerro Dorado's ground) may underlie the entire mountain at depth - leading to the possibility of a very large bulk tonnage gold-copper porphyry deposit. (6) Area Play Rapidly Developing @ Alto de Lipangue - conventional wisdom would suggest that whichever major mining company (among the 16+ firms currently evaluating Medinah Mining) winds up acquiring / developing the Alto de Lipangue and Dos Marias properties (two major discoveries), that a similar offer would be made for Cerro Dorado, which owns the northern and eastern extensions of the Lipangue breccia system. The location of Cerro's claims adjacent to Medinah's Lipangue discovery, combined with their own potentially sizeable breccia pipe, makes CDCH a tremendous play, and any success attained by either Cerro or Medinah on the current geophysical surveys and upcoming drill programs should be immediately reflected in the market price of both companies. COMPANY BACKGROUND Cerro Dorado, Inc. ("CDCH" on OTB - BB) is a junior exploration company that was formed in March 1999 following a 15:1 reverse split, name change and a new management team taking control of Weather All Manufacturing Corp. The Company's primary objective is to explore and develop its Lobo / Solatario - Fortuna de Lampa & Ipun Island claims to the point that a major mining company will either join Cerro Dorado as a joint venture partner in further exploration and development, or, make a tender offer for the Company. In contrast to most junior companies, Cerro Dorado owns its properties outright, something we believe will prove to be a big plus in future negotiations with major mining companies. One of Cerro Dorado's "hidden assets" is its relationship with Sr. Juan José Quijano, a professor of mining law at Santiago University, and dean of Chile's law school. Sr. Quijano was recently appointed by the Peruvian Mining Commission to re-write Peru's mining laws; previously, Sr. Quijano had led the team that successfully re-wrote Chile's mining laws and investment codes. We believe that Sr. Quijano's association with Cerro Dorado provides significant credibility to CDCH's Chilean operations. With his political, industry and government connections, we believe that Sr. Quijano's ties to Cerro Dorado will prove to be invaluable in terms of permitting / developing properties they now own, as well as getting access to other potentially world-class projects in Chile and Peru. Cerro Dorado's discussion threads on Silicon Investor and Raging Bull can be accessed at http://talk.techstocks.com/~wsapi/investor/Subject-24425 and http://www.ragingbull.com/mboard/boards.cgi?board=CDCH, respectively. CERRO DORADO SHARE STRUCTURE & RECENT TRADING RANGE Total Shares Outstanding: 10.7 million Restricted / 144 Shares: 6,353,333 Shares Held by Private Investors: 4 million Public Float: 700,000 shares 1999 Trading Range: US$0.45 (low) by US$2.90 (high) Last Trade (September 3, 1999): US$1.06 Of the publicly traded float, about 500,000 shares are in "friendly hands", so only about 200,000 shares of CDCH actually trades. Earlier this year, the stock was cleaned up to US$2.90, suggesting that even modest sustained trading volumes can move the price far above current levels. There are suspicions that the same groups which have allegedly been shorting MDHM have recently begun shorting CDCH as well. If that's the case, then the first major news release could force the shorts to cover in a big hurry! FORTUNA - A HIGH GRADE, PAST-PRODUCING MINE - IS CURRENTLY BEING REPOENED The 270-hectare La Fortuna de Lampa ("Fortuna") project is located about 40 km NW of Santiago in the coastal range of Chile at an elevation of approximately 2,000 meters. Cerro Dorado acquired a 100% interest in the Fortuna project in April 1999 (subject to a 20% NPI capped at US$5 million). Fortuna is bordered to the west by Medinah's Alto de Lipangue project, where a huge (200 by 400 meters, projected to at depth of at least 1,000 meters) gold-copper breccia was recently discovered. Interestingly, the biggest gold nugget ever recovered in Chile was found on the Fortuna property - it's currently on display at the mining museum in Santiago. The area surrounding the Fortuna mine has been exploited since Spanish conquistador times for both alluvial gold and oxidized portions of the high grade quartz veins. The first modern day mining activities at the Fortuna property occurred around the turn of the century during which time the mine was worked for several years; several decades later, in 1941, mining activities started again, and, over the next 30 years, approximately 2,000 MT ore were mined, with recovered grades averaging 64 gm Au and 52 gm Ag. At present, there are over 1,100 meters of underground development on four levels at Fortuna (about one-third of the development representing drifting along the Fortuna vein), including six shafts and five chimneys. Independent geologists and engineers estimate that by re-opening the old workings (work that is currently in progress) that at least 80% of the ore reserves still in place would be available for mining and recovery. The Fortuna mine has a great deal of potential for new resources to be discovered beyond the limits of the existing proven, probable and possible ore blocks. The vein style gold mineralization at Fortuna occurs in a series of sub-parallel, fault-hosted quartz veins that strike N-NW and dip fairly steeply to the northeast. The main vein on the property is called the Fortuna vein; it can be traced underground and on surface over a total strike length of about 800 meters, and remains open at depth and along strike to the south. The mineralized quartz veins are narrow (averaging about 30 to 50 cm in thickness) but extremely rich. On the surface, several other veins occur within 5 or 10 meters in the hanging wall of the main vein and may be splays off of the main structure or fault-repeated veins. West of the Fortuna vein, at least 5 sub-parallel veins or vein zones ranging in width from 0.2 to 2 meters have been identified by A.C.A. Howe. At this time, Cerro Dorado is working on the US$1.1 million two-phase exploration program recommended by A.C.A. Howe; a 20+ line km geophysical program is currently in progress, along with detailed surface mapping and reopening the old Fortuna mine. Later this fall, CDCH plans a 6,000 meter diamond drilling program. STRONG INDICATIONS OF WORLD-CLASS Au-Cu BRECCIA PIPE ON CDCH PROPERTY At the very south end of CDCH's Fortuna property, a low bowl-shaped area (measuring about 250 by 250 meters) has been identified. Although no outcrop has been found, the area has a similar surface expression as Medinah Mining's newly discovered Alto de Lipangue copper-gold breccia pipe, located about 1.75 km to the southwest. Drilling at Medinah's Lipangue breccia has returned impressive results. The discovery hole (L99-03) intercepted 84 meters averaging 1.72 g/t Au, 10.07 g/t Ag and 0.40% Cu. Two step-out drillholes (L99-06 & L99-07) returned intercepts of 154 meters grading 0.60 g/t Au, 13.7 g/t Ag and 0.39% Cu & 124 meters averaging 0.49 g/t Au, 9.68 g/t Ag and 0.31% Cu, respectively. There are reports that geophysical surveys now underway on the adjoining property have traced the Lipangue breccia to a depth of over 1,000 meters. More importantly, the surveys apparently have discovered two other sizeable breccia pipes on the Alto de Lipangue plateau - one of which, we believe, is situated on the southern part of Cerro Dorado's Fortuna property! Robert Cintis, the author of the A.C.A. Howe report, observed in his report (p. 50) that "often breccia deposits will occur in clusters and it would not be unrealistic for additional pipes to occur on the Lipangue plateau." More importantly, breccia pipes are often indicative of a major intrusive or porphyry system at depth. The distance between Medinah Mining's Lipangue breccia and the apparent breccia pipe on Cerro Dorado's property suggests that a massive Au-Cu porphyry deposit with world-class tonnage potential may underlie the Lipangue plateau! A.C.A. HOWE INT'L REPORT SUBSTANTIATES POTENTIAL OF CDCH PROPERTY Howe Chile Ltda. ("Howe"), part of the A.C.A. Howe International group of companies, recently issued a geologic report on Cerro Dorado's property. The report's conclusions and recommendations (pg. 55) were: (1) "The Fortuna vein....can be traced at least 800 meters along strike, widening to the south, and based on the previous underground sampling programs, shows a remarkable continuity in gold values over its 300 meter strike length and 100-meter down-dip extension in the mine." (2) "...the Fortuna Property could host a significant gold resource, that it is open to both the south and at depth and that with a minimal exploration program the potential size of the deposit can be substantially increased. Other parts of the land position have only been reviewed on a preliminary basis, or not at all, and should be further explored, since the potential exists for additional Fortuna-style veins. Other early-stage targets occur on the property, such as the possible breccia target in the south that should be further explored. Howe concurs with these target objectives." (3) "The Fortuna Property area should be evaluated for small tonnage, high grade, vein-style gold mineralization and large bulk-tonnage mineable copper-gold breccia style mineralization..." IPUN ISLAND GOLD PROJECT (CHILE) On June 23rd, Cerro Dorado issued 600,000 restricted shares to acquire a 60% interest in the Ipun Island project, located 400 km south of Puerto Mont, Chile. Medinah Gold, Inc. (a private company) holds the remaining 40% interest in the project. Ipun Island, approximately 10 km long and 19 km wide, hosts large areas of gold-bearing placer sands covering major sections of the shoreline and inland dunes; bedrock-hosted gold deposits are presumed to be the source of the placers. The island has a mild climate, and the property can be accessed and worked year-round. A preliminary evaluation by Ralph Bonham suggests that with a modest amount of additional exploration work, Ipun Island might be developed as a small-scale, low cost placer operation, generating sufficient cash flow to fund a comprehensive exploration program that would assess the island's placer and lode potential (for both gold and PGE's). Cerro Dorado has deferred work on Ipun Island for the time being, electing to concentrate on its Fortuna property. WHY YOU SHOULD CONSIDER ADDING CDCH TO YOUR PORTFOLIO!! We believe that Cerro Dorado is a significantly undervalued mining company with an incredibly tight trading float (est'd @ 200,000 shares) that holds a key land position in a rapidly-developing area play. Based on our visit to the property in August 1999, we believe that the final interpretations of the geophysical surveys in progress will establish the presence of a major Au-Cu breccia pipe (est'd dimensions of 250 by 250 meters) on the southern boundary of CDCH's Fortuna property, with one, possibly two other breccia pipes on Medinah Mining's adjoining Lipangue property that strike and dip towards Cerro Dorado's ground. At depth, geologists theorize that there may be a multi-billion tonne porphyry system underlying the Lipangue plateau that is the source of the Au-Cu mineralization. An aggressive exploration work program is underway at Fortuna, and significant results are expected shortly on the geophysical surveys. Likewise, we understand that negotiations are underway with several of the 16+ major mining companies and investment funds that have been evaluating the adjoining Lipangue / Dos Marias properties of Medinah Mining, and that a significant joint venture or financing may be imminent for the property next door. Cerro Dorado will benefit from one or both events: discovery of a major Au-Cu breccia pipe on the Fortuna property would be a significant development; so would a major JV or financing for MDHM to explore and develop a similar target on the adjoining property. We view Cerro Dorado as a STRONG BUY at current prices, with potential for significant capital appreciation over the next six to twelve months. For more information, please contact: Jim Robertson - Manager Phone: (801) 484 - 2668 DISCLAIMER Patagonia Capital Corp. ("Patagonia Capital") is not a Registered Investment Advisor or a Broker / Dealer. Readers are advised that this report is issued solely for information purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy. Reproduction of this report, in whole or in part, by any means, electronic or otherwise, including via the Internet, without prior written permission of Patagonia Capital, is strictly prohibited. Patagonia Capital has independently prepared this report, drawing upon a range of public news and information sources, as well as data and opinions provided by Cerro Dorado, Inc. ("CDCH" or the "Company"). Prior to Patagonia Capital issuing this report, the Company reviewed and approved the contents hereof. Patagonia Capital has not independently verified the Company's representations. Any opinions expressed in this report are statements of judgment as of the date of publication (7 September 1999) and are subject to change without further notice, and may not necessarily be reprinted in future publications or elsewhere. Neither Patagonia Capital nor its officers, directors, partners or employees / consultants accept any liability whatsoever for any direct or consequential loss arising from any use of this report or its contents. The information contained herein is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. The opinions and analysis included herein are based on sources believed to be reliable and in good faith but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. The foregoing discussion also contains forward-looking statements that are based on current expectations and differences can be expected. The information and opinions contained herein is not intended to be a complete discussion of information regarding some of the current and/or intended business activities of the Company, and all information contained in this report should be independently verified with the Company. Readers are urged to consult with independent financial advisors with respect to an investment in the shares mentioned herein. Investors should review a complete information package on the Company which should include, but not be limited to, the Company's annual report, quarterly report, press releases, as well as all regulatory filings. In order to be in full compliance with the Securities Act of 1933, Section 17(b), Patagonia Capital advises the readers of this document that it has received 67,500 common shares of Cerro Dorado under the terms of an eight-month consulting / marketing services contract, pursuant to which Patagonia Capital will be periodically writing and disseminating research reports on CDCH, in addition to providing the Company with public relations, investor relations, broker relations and other equity market / Internet consulting services. Patagonia Capital, its officers, directors, partners and employees / consultants may profit in the event the shares of the Company increase in value. These positions may be liquidated from time to time even after Patagonia Capital, its officers, directors, partners and employees / consultants have made positive comments regarding the Company. THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. INVESTORS MUST ALSO INDEPENDENTLY VERIFY THE "BLUE SKY" ELEGIBILITY OF THE SECURITY MENTIONED IN THIS REPORT BEFORE MAKING ANY INVESTMENT DECISIONS. TIMING OF, AND ANY BUYING OR SELLING DECISIONS, ARE THE SOLE RESPONSIBILITY OF THE READER. We encourage U.S. readers to review the investing information available with the Securities and Exchange Commission ("SEC") at http://www.sec.gov/ and/or the National Association of Securities Dealers ("NASD") at http://www.nasdr.com/ The NASD has published information on how to invest carefully at its website. Cerro Dorado is not yet a fully-reporting company with the SEC. The process is expected to be completed later this year, at which time, readers can review public filings (including financial information at the SEC's EDGAR page, located at http://www.edgar-online.com/ SAFE HARBOR DISCLAIMER Certain statements contained herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Such statements include, without limitation, statements regarding business and financing plans, business trends and future operating revenues and expenses. Although the Company believes that the statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically indicated by the words: believe, expect, anticipate, intend, estimate and similar expressions, or, which by their nature, refer to future events. Patagonia Capital Corp. cautions investors that any forward-looking statements made by Cerro Dorado, Inc. are not guarantees of future performance, and that the actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, the ability to continue its substantial project growth, or to be able to fully-implement its business strategies. (c) 1999 Patagonia Capital Corp. ______________________________________________________________________ To unsubscribe, write to SuperPickers-unsubscribe@listbot.com MSN Messenger Service lets you stay in touch instantly with your family & friends - Visit http://messenger.msn.com

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