$E1H1...TYING UP THE TIMMINS MINING CAMP?...The first tranche of a $1,000,000 placement was closed & announced last Friday, March 31st. Paperwork & planning continues for drilling programs at Explor’s PG-101; Montrose, and Duparquet (East Bay) properties. All three will be drilled later this spring & summer. A plan is also being developed to do further drilling on the Ogden property adjacent to the Company’s Timmins Porcupine West (TPW) GOLD deposit. With the recent excellent results at the Company’s Chester Copper resource in New Brunswick, Canada, further work is being considered there as well. Most of us are aware of intense drilling activity in the Timmins region which has led to long delays at the few labs assaying core samples. So, despite a number of promises from the lab, we continue to wait for potential VMS drill results from the Company’s 1,400meter (4,592ft) drilling on the northern edge of the Glencore Kidd mine. A new video interview is being prepared for international distribution by the Company, and most specifically, the Chinese mainland market.
It’s been difficult for most of us to understand why Teck Resources is moving so slowly at the Company’s TPW GOLD deposit, where the Hollinger-McIntyre geologic model clearly shows 25-30million ounces of GOLD in the ground. To date, they have spent $3million verifying all of Explor’s findings at the site. Taking a longer-term view, I think it would be reasonable to suggest we are about to experience a major BULL market in GOLD. The major, and intermediate, producers all have aggressive production plans in the Timmins Camp. They all know one another, and I contend, have been colluding with one another, to capture, and integrate, all promising GOLD assets into their portfolios. The TPW is within a couple of hundred meters of Tahoe Resources to the west. A number of their Directors were Directors of Goldcorp, whose major regional operations lie close to the TPW to the east. Apparently, Goldcorp has launched a $2billion, 50,000 ton a day mill development in the Timmins area. My sources tell me ‘sterilization drilling’ is underway close to Goldcorp’s old mill at their Dome Pit. Basically, they are hoping GOLD values are uneconomic, and the new mill won’t be built on the motherlode. Further, I’m hearing a variety of engineering firms, and a variety of contractors are setting up shop in Timmins preparing bids on various tenders put out by Goldcorp in conjunction with the new mill. The city is so busy with new faces, long lineups are becoming commonplace at local restaurants, for example. With reference to an interview with Goldcorp by www.metalsnews.com, the Chief Operating Officer (COO) spoke about Goldcorp’s 20/20/20 five-year plan. That’s a 20% increase in production; a 20% increase in reserves and a 20% decrease in operating costs. If they are true to their word, 50,000 tons of daily feed for the new mill must come from local sources to tie in to a 20% drop in operating costs, wouldn’t it? It makes sense to believe Goldcorp, Tahoe & Teck may have had a number of discussions about the acquisition of the TPW. Teck can own 70% of the GOLD deposit for a further cash payment of CDN$9million, to fully exercise their Earn-In Option with EXS/EXSFF/E1H1. It’s common knowledge that Explor owns the largest porphyry associated with GOLD mineralisation ever found along the Porcupine-Destor Fault Zone (PDFZ). It lies within the TPW property, and, only the southern part of the porphyry has seen extensive drilling. The current known deposit is 2000meters long, open at both ends, & open at depth. Further, it sits very close to a new proposed mining roadway, and, within a few kilometers from the new mill. I know the Big Boys well. Goldcorp and/or Tahoe wouldn’t want 70%. They want it all, but want to avoid Dupont’s $300million pricetag for the remaining 30%. Is it really so hard to believe a consortium with the power that these three wield might be playing self serving games in the EXS/EXSFF/E1H1 markets? Please stay stubborn, and hold your position. I truly believe a wild ride is coming for anyone holding EXS/EXSFF/E1H1. Given what I think is coming, anyone selling their Explor stock may be leaving a LOT of money on the table…
