A Resourceful Entrepreneur

July 21, 1997

"Strange things are done 'neath the midnight sun by the men who moil for gold..."

So begins the immortal Robert W. Service classic that painted exotic pictures of the frozen North for so many of us when we were kids. Well, the Arctic trails still tell some fairly unusual tales, even in this day of high tech. Modern miners still abound, and, despite the shellacking gold has been undergoing of late, some have a lot to say. The Astrological Investor has come across one such adventurous resource industry executive who sees a bright future for the precious metals. He says the time to enlarge holdings of metal properties is now, and his initial thrust has been north to Alaska.

Chad C. Meek formed Petromek Nevada nearly two decades ago. Originally operated out of Denver, Meek moved the company to Las Vegas to explore and develop what he saw to be unusual geophysical potential in an area not ordinarily thought of as a major oil producer. Meek's decision came at a time when oil prices had fallen to the $13 a barrel range. With experts predicting further declines to $10, Chad boldly mounted his exploration offensive. "The time to explore is when the market is depressed," he said. In 1990 he held the record for exploration wells drilled in Nevada, and all came in below budget. Characterizing himself as a "practical dreamer," Chad Meek is now in the process of reorganizing Petromek into a gold and silver development and mining operation. The company is reincarnating as Clarity Resources, Inc.

In line with his philosophy that developing assets in a depressed resource industry maximizes success potential and shareholder return, Meek is clearly bullish on gold and silver just when it seems everyone else is a precious metal bear. With a priceless natural resource and finance background acquired by years of toil and experience in the industry, Meek sees present conditions as unusual, and ready to be exploited. "Gold," he says, "because of its intrinsic VALUE, is the antithesis of Keynesian fiat money creation. It is currently being demonized as a poor choice for investment by the financial media. There has been an unusual concerted effort by world central bankers to bring the price down. This has allowed them to monetize national debts of all countries at historically unprecedented levels. This has come during an explosion of debt and subsequent deficit spending by all governments, especially here in the U.S."

Meek observes "If the price has indeed been artificially held down, which seems quite logical because demand has eclipsed supply, then we may be in store for something analogous to someone holding a spring down. The harder and longer they push down on the spring, the higher and further it will eventually spring up!"

When we caught up with Chad recently, he was kind enough to answer a few questions we had about his operation, and his view of the markets, the world, and life.

Q: We share your faith in gold and silver, but why exactly now?

A: Mike, I entered the Natural Resource business back during the boom years. I had to fight for marginal properties and equipment that made no economic sense to other companies or investors. I am now witnessing the complete opposite in the gold and silver mining industry. I see a one year window of unprecedented buying opportunities for my company and my 425 shareholders. I have kept my corporate powder dry, so to speak. Many junior mining companies have issued common stock pell mell at ridiculously low prices. I am sure their shareholders will do well in the long run, but their stock has been substantially diluted over the last three years and will have some catch up to do before achieving the right multiples.

Q: And why Alaska? Are there any other areas of the globe you have your eyes on?

A: Alaska holds the United States', and perhaps the world's, greatest potential untapped mineral reserves. The early stampeders to Alaska were very effective miners, but were limited by archaic equipment as well as very short mining seasons. The equipment advances in gold recovery have leaped forward, and the mining seasons are now becoming year-round. As for the rest of the world, we will consider any profitable area. I recently turned down a 118,000 acre mining concession in Liberia. The property looked like it had potential, but the recent political instability gave me reason to wait a year or two. We are currently evaluating mines in Mexico for acquisition in 1998.

Q: As well as being a natural resource entrepreneur, and the CEO of a public company, you are an astrologer. Do your investors know this, and what is their reaction?

A: If I can say one thing positive about our current business philosophy, it's that we seem to be experiencing a more tolerant view toward astrology. Whether you use Gann Lines, Elliott Wave Theory, or "candlesticks," you are using a derivative form of astrology and metaphysics. So many technical analysts are closet astrologers and won't admit it. I used to conceal it, but as my abilities evolved over the years in the practice of astrology, I just consider it a part of who I am. My investors understand this, and many of my associates and employees ask me to look at their charts. I do this as my time permits, as it gives me early insights into their individual personality strengths and weaknesses that would takes years to discover otherwise.

Q: What role does astrology play in the formulation of your business plans?

A: Though business revolves around the "bottom line," it takes many "personalities" to comprise a successful operation. I want to know I can interphase as quickly and effectively as possible, and this is a superb management tool that has been utilized by Kings and Presidents since antiquity. I also use astrology in short, medium, and long range planning. For years I gathered anecdotal evidence on the eventual outcomes of potential sales or projects utilizing astrology. I compared it to what was being told to me by associates, technical experts, and others about the eventual outcome. The actual results came in 70/30 in favor of astrology. This is of course by no means an empirical study, but it does allow me to make contingency plans based on a PROBABLE OUTCOME. This is merely a conservative way of doing business. Very much like crossing the t's and dotting the i's.

Q: Generally, people who study astrology seriously hold some kind of view of the universe and its purpose. Is there a belief system or faith structure that underlies your approach to the world and life?

A: The universe, in my opinion, is comprised of ideas, or spirit. This spirit, these ideas, are always seeking a material manifestation in some way. To take this hypothesis a bit further, we can extrapolate that there must be a linear connection back to a creative source. Biblically, there are many passages that support this idea. Passages in Genesis, and quotes such as "I am the Alpha and the Omega, the beginning and the end," support a concentric universe. A universe that proceeds from its center outward. This in part gives me a foundational philosophy which works in tandem with astrological charts. These charts are, after all, 360 degree circles which also have no beginning or end - just life experiences contained within an individual's, or corporation's respective universe. Faith, or belief, is our direct line to the Creator on any part of the circle of life that you find yourself traveling on. This is, of course, my own personal belief. But none of us can discount the very wise statement of Krishnamurti, an Indian Guru and proficient astrologer, who once said "the moment of truth regarding the mysteries of the universe are only revealed when you die." So I suppose each of us will know more about the truth of life's mysteries later rather than sooner.

While a life spent wresting riches from both the earth and heaven is not for the timid, it has made Meek humble. He views the path of current society, and civilization, with concern. We probed his assessment of the future in this regard.

Q: With the stock market at all-time highs, gold going begging, and unprecedented world trade and technological innovation, how do you view this moment in time?

A: If we use the Civilizational Cycle of Nostradamus, which is 500 years, we could very well be on borrowed time. Especially here in the U.S. We are witnessing the "topping" of a great civilization. Gold and silver, which have always been a barometer of the well-being of civilizations since antiquity, have recently found intense disfavor. These metals have always, with the exception of very brief periods, kept everyone's feet in the fire of value. When the ability of kingdoms or governments to function breaks down, a state of entropy generally follows. I have been noticing a great deal of TV advertising about home refinancing through debt consolidation. This, along with rising bankruptcies, leads me to some concern. Neptune in Capricorn in the late degrees is symbolic of government promoted debt.

Q: Before we close, do you care to make any predictions, astrological or otherwise, about the future of gold and silver?

A: Mike, I would have to say, based on my view of the various planetary configurations and the coming eclipses this fall, that we may very well be seeing a major stock market correction down to 5150 on the Dow. I am looking for this correction to manifest itself in earnest on July 28, 1997. I think gold and silver will definitely increase in volatility because the shorts are vulnerable at these lower levels. But many of the short positions are intertwined with derivative trades that I believe are not only condoned, but protected by large brokerage houses and central banks. The losses involved will remain hidden for some time. I don't think that the magnitude of this activity will become common knowledge until late spring/early summer of 1998. This is when, according to my astrological models, the world will be reeducated with regard to the true value of gold and silver.

It is indeed a chilling thought, having the world's Keynesian dollars chasing a finite supply of gold and silver with a zeal encompassing both GREED and FEAR.

A chilling thought indeed, though perhaps a warmer comfort to those already holding precious metal assets. It is clear that Goldbugs and investors looking for a visionary entrepreneur need look no further than Chad C. Meek. In this day and age of bland business school cookie-cutter clones, it may be refreshing, not to mention profitable, to follow the man who has hitched HIS wagon to the stars.

In 1934 President Franklin Delano Roosevelt devalued the dollar by raising the price of gold to $35 per ounce.