JURNEY RESOURCES CORP.
Update 8/18/2010 by LGL
- Opinions expressed on this board are just that. Opinions.
- Please do your own due diligence before buying or selling JMON, there are no guarantees.
- Please weigh carefully what you are willing to risk on JMON.
- No one is responsible for your gains or losses in JMON except you!
POSTS NOT PERTAINING TO THIS STOCK OR CONTAINING OTHER STOCK SYMBOLS MAY BE REMOVED AT THE DISCRETION OF THE MODERATORS.
- Posts about other users and their motivations for posting here (i.e. basher, pumper, flipper) are TOU violations, and will be removed.
- Continually posting the same or similar information will be removed.
- Vulgarity in any manner (to include initials and characterized words) will not be tolerated and the post will be removed by any mod at anytime.
- If you are losing money in the market, you may wish to seek the advice of a licensed professional.
- If the MODS finds incorrect information, it will be removed from I-Hub I-Box.........I guess this means do your own DD
POSTS VIOLATING TOS REQUIREMENTS OF IHUB can be found here:
Journey Resources Corp.
Journey Resources Corp. is a Canadian-based exploration and advanced stage development mining company listed on the TSX Venture Exchange (ticker symbol JNY) (Frankfurt: JL4) (US Listing: JNYRF). The Company has come to our attention due, in part, to the exceptional opportunity afforded shareholders as the Company is poised to take their 100% owned high grade Charay gold property into operation and advance their 100% owned Musgrove Idaho gold project towards a projected 1M+oz gold resource.
Background: Journey Resources began as a mining entity in 2004 and spent the first couple years acquiring projects considered 'non exploration'/'late stage', where majors have been on the property, resources already drilled-off, and JNY.V needing to take it the last 30 or 40%. The first major project JNY.V acquired was the Vianey silver project in Guerrero state Mexico. This was an underground mine developed in 1996 where half a million tonnes of high grade silver-lead-zinc was developed by the former operator which had to let it go due to market conditions at the time. Vianey is now a fully developed underground mine - JNY.V has spent the last four years rehabilitating it on a 50-50 JV bases and as silver heads up in price the mine can be taken into production. Highlights of the Vianey silver mine may be seen further below. The inherent value of Vianey alone is enough to justify the current market cap of JNY.V, however the overwhelming value of Journey Resources as a Company exists in its two 100% owned gold projects of significance at Musgrove Creek Idaho and Charay Mexico; The risk-reward characteristics are highly advantageous for investors establishing a long position in JNY.V now, as the reality of undervalued nature of JNY.V becomes increasingly apparent to the market and as Journey Resources takes the high grade Charay gold deposit into operation.
Charay Gold Project expected to be operational in Q2 2010 • JNY.V making quick progress
February 2010 Interview/Progress Report & Photos of 2010 Activity at Charay • Journey Poised to Cash Flow at Charay
Journey Resources is moving ahead quickly at Charay as it arranges for initial bulk sampling followed by ongoing low-cost mining of the high grade vein-hosted gold-silver deposit. Jack Bal, President & CEO of Journey Resources Corp., returned from Charay with a check list of critical tasks complete and offered Mining MarketWatch Journal the following synopsis "We had several major things on our list to accomplish and we knocked off every one of them. 1) One was metallurgy; we shipped a 400kg sample to our metallurgist in Hermosillo and visited their facilities. 2) Second, was to organize a drill program and we decided in that process with the driller to import our drill (JNY.V owns its own Hydacore 2000 drill that it purchased ~2 years ago for ~$500,000) and have it on the property to be available for continuous drilling. We have started that process, we have an importer that we are working with to bring the drill into Mexico probably within two weeks -- the drill is in transit now. 3) Third, was to negotiate a deal with a mill to take our ore, we have a verbal agreement but don't want to sign one until we knew what the metallurgy was, but we did establish that a mill ~1 hour from the property which is 400TPD is available. 4) We wanted to develop a relationship with a mining contract group that we trusted and the main one on our list was a group from Quebec that's currently running all the operations for a major Canadian mining Company in Sinaloa State Mexico. So we did a tour of their mine and the mining contractor has been to our property, we have sent them all our data -- they want to mine our project and we are waiting for a proposal from them."
Photos of recent activity at Charay Q1 2010:
Figure 4. (Left) Photo of Metallurgy Discussion at Metallurgical Lab in Hermosillo Q1 2010
Metallurgical results are expected back soon. It looks like a large component of Journey's Charay gold will be free gold and the balance appears to be amenable to using cyanide. There appears very little sulphide, almost completely oxide. The grades will probably pick up on some samples using a different protocol to account for free gold as fire assay alone did not account for free gold.
Based on initial metallurgical results, mainly verbal right now, it looks like Journey can probably grind the material on site, do gravity separation to extract the majority of gold, and then leach the rest out all on site. This will really lower the costs and at the end of the day Journeys product is almost pure gold. The cost savings would drop the already estimated ~$100 per tonne all-in cost of getting material to concentrate using a mill. If Journey's metallurgy shows the rock is amenable to cyanide JNY.V won't need to transport off site, won't need to float it (leaching is much less expensive), and JNY.V would have more control of the final product.
Figure 5. (Left) Shaft on Charay property
There are three existing shafts on the property that go down 20 - 25m into the deposit that were constructed in the early 90s and the mining contractor is thinking of using those shafts. There is a head frame on one of the shafts. Journey's options are to put a decline into the vein or use the shafts –– Journey will be relying on the mining contractor to make that decision.
Figure 6. Stockpiled vein material Charay
Figure 7. Claim block marker Charay
Figure 8. Charay core
Journey Resources is very close to creating cash flow for the Company at Charay, a transition that will change the complexion of the company. Potential catalysts on three key fronts make JNY.V an undervalued and exceptional risk-reward scenario, Mining Marketwatch provides insight into each of these: 1) Charay Gold Property - Sinaloa, Mexico, 2) Musgrove Creek Gold Project - Idaho, USA, 3) Vianey Mine Silver Project, Guerrero, Mexico
1) Charay Gold Property - Sinaloa, Mexico - 100% Owned
Immediate cash flow from open pit beginning with a pilot 30,000 ton operation of high grade vein-hosted gold-silver mineralization
Note New Development: The mining operations contractor currently in discussion with JNY.V is exploring all possibilities and may use the existing shaft(s) on the property to access higher grades sooner than beginning with open pit.
Charay Technical Report [21.14MB PDF]
The Charay project will get Journey Resources Corp. to cash flow quickly as this is a 'ready to go' high grade gold project. Charay was drilled three years ago by Lane Exploration. Lane put another mine into production and by circumstance were forced to focus on that and the Charay reverted back to the land owner. Another public company took the deal, spent a considerable sum creating a technical report then they got caught up in a $25M potash deal and got rid of all their gold properties, they just missed the market and JNY.V were lucky enough to get the project. All the due diligence has been done and the geologist that created the report has reassayed all the core.
This is very high grade deposit, Journey Resources has over 18g/t Au, the deposit pretty much starts at surface, the maximum drill depth that they drilled was only ~50 metres and every drill hole intercepted the vein with the highest grades seen at 50m and below, intersecting areas over 100 g/t gold. JNY.V now has a blasting permit in place and the goal is to take 30,000 tonnes out immediately and create some cash flow.
Taking ~30,000 tonnes of material amounts to over 20,000 ounces of gold plus a significant component of silver as well. The grade is high enough that simply a portable mill at nominal capital outlay is all that would be required to generate cash flow. Charay would be able to cash flow the company going forward, advancing projects without further dilution to the share structure. Journey Resources' President & CEO offered the following insight on Charay: "The goal and focus is to get cash flow from this high grade deposit. We sent down some very competent people to do our DD. Our VP of exploration is Dr. Chris Wilson, he used to be the manager of exploration for Ivanhoe Mongolia. We also sent down the chief geologist for Ivanhoe, Dr. Miles Worsley, he is a gold expert and says this is not just 'epithermal', its 'mesothermal' as well with multiple phases. He believes #1) it probably goes deeper and the grades are going to improve somewhat with depth, #2) he also said it is likely a regional type system so there are probably quite a few additional veins in this system, you never get just one vein. The gold is just waiting there to be taken away, there is only ~1m of overburden sand." ... "We would like to poke a few holes below the 50m mark because every hole intersected well, and the highest grades are the deepest holes, we’ve got a lot of 70g/t, 100g/t, 120g/t intersects at that level. Our objective is to drill it down 100 metres and see if we can start building tonnage but most importantly lets get some cash flow here." ... "We will work our way to production and because the ore is so accessible we can probably take a few thousand tonnes just with a backhoe. We have a blasting permit in place and it is our objective to take out 30,000 tonnes just using some basic – sort of strip mining kind of open pit. Do it cheaply and get 20,000 ounces of gold to start. This is an exceptional deposit, we’ve had offers to sell it the day we bought it."