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By Eric Pratt
Canada’s Athabasca Basin is home to the world’s largest uranium mine, McArthur River. The mine, 30% owned by AREVA Resources and 70% by Cameco (NYSE:CCJ, TSX:CCO), produces approximately 18.7 million pounds of uranium per annum.
The McArthur River deposit contains a resource of 367 million pounds of uranium, and production grades average 20.5%; making it not only the biggest uranium mine in the world, but also the highest grade. Cameco and its partners have amassed a total of 673 million pounds of Uranium in 5 deposits throughout the Athabasca basin.
The grade and frequency of large deposits in the Athabasca Basin has resulted in the basin being widely perceived as the best place in the world to discover additional world class deposits. Currently the basin supplies approximately 30% of the world’s uranium at grades 20 times higher than those mined throughout the rest of the world.
Over the past several years there has been a rush of exploration companies acquiring land in the basin, with the hopes of discovering the next world class deposit. The stage is now set for Canada’s next big uranium discovery. Picking an explorer with a realistic chance at making a discovery is no easy task. We’ve found the key is to find companies that have completed the required prospecting, geophysics and mapping and are now actively drilling their properties. It can take up to two years before a company can properly define drill targets; most companies in the basin are still at this early stage.
Tribune Uranium (TSX.V: TCB) recently announced two separate drill programs in the basin.
According to the company’s Sept 18/07 news release, Tribune recently mobilized its exploration program, on its 60% owned 100,000 hectare North Shore Property, located immediately north of Lake Athabasca and 10 kilometers west of the Maurice Bay uranium deposit owned by Cameco. The Maurice Bay deposit, discovered in 1977, hosts 1.3 million pounds of Uranium.
Previous exploration at the North Shore Property, which included extensive ground and airborne geophysics, prospecting, geologic mapping, and drill testing, identified over 200 uranium occurrences and showings. One characteristic which sets the North Shore property apart from others in the basin is the relatively shallow depth of the basin on the west side. Exploration costs are significantly lower when holes only have to be drilled 100 feet in order to hit their targets.
This morning, Tribune announced that they had initiation a second drill program at their Botham Lake property. The Company has identified 19 preliminary drill targets at Botham Lake which have been prioritized by focusing on the projected intersection of conductors with cross-cutting structures, and then comparing the geophysical signatures to those of known deposits.
Also in the today’s release, Tribune announced that exploration on its highly prospective Dufferin Lake property has also begun. Dufferin Lake is immediately adjacent to the Cameco/UEM's Virgin River project and their recently discovered Centennial zone. Discovery holes at the Centennial zone intersected 18.3% over 5.3 metres and 6.72 per cent U3O8 over 5.2 metres. Significant uranium showings have already been reported by Cameco within 1 km of the Dufferin Lake properties and conductors follow portions of the Virgin River shear zone and the Dufferin Lake fault through the Dufferin Lake property.
Currently Tribune has 13,000,000 shares outstanding and a discovery on any of these properties would add significant upside to the share price.
While the price for Uranium has come off of its peak of $125 per pound earlier this year, it is still trading strongly in the $75-85 range, and speculation is likely to resume in the wake of market softness brought on by global money market issues.
According to a story September 6th in the Economist, “America's nuclear industry is about to embark on its biggest expansion in more than a generation.”
The reason for nuclear power’s resurgence as mankind’s best hope for the anticipated demand for increased power generation lies in the fact that it is so clean.
Every year, emission of more than 2 billion tonnes of CO2 world wide is avoided by nuclear power plants fuelled by uranium. In fact Dr Kupcis, Chair of the Canadian Nuclear Association, stated that “Without present-day nuclear capacity, Canada’s greenhouse gas levels would be between 15 and 20 percent higher.”
Existing nuclear plants in Canada avoid the emission of 100 million tonnes of carbon dioxide each year, emissions that would occur if fossil fuelled plants had produced the same electricity. Eighteen nuclear power plants provide about 15 percent of Canada’s electricity and make a significant contribution to reducing greenhouse gas and other emissions.
Electricity generation fuelled by uranium produces no carbon dioxide or other emissions that contribute to smog and acid rain. A number of independent studies have shown that life-cycle emissions for nuclear power plants – including construction, operations, fuel production, decommissioning and waste disposal – are comparable to other non-emitting generation systems such as hydro and wind.
Other studies have found that nuclear compares favorably with all other large scale sources of electricity in life-cycle cost analyses.
With world electricity demand expected to double by 2030, nuclear is an increasingly attractive option to help meet growing demand and many countries are turning to nuclear. This trend will support strong markets for Saskatchewan uranium into the future.
Tribune Uranium is a well structured exploration company focused on the acquisition and exploration of advanced stage, drill ready uranium projects. The company has an experienced management team with two joint venture exploration projects in the highly prospective Athabasca basin.
Tribune is actively evaluating additional properties that meet these criteria and expect to add high quality projects to their portfolio on an ongoing basis.
Two New Properties in Premier Russian Gold Region Make Golden Reign a Great Deal
Doug Hadfield
To look at Golden Reign’s (TSXV: GRR) stock chart, the company looks like either a bargain or a wash out: It was trading at $0.40 at the end of 2006. Since that time, shares in GRR have taken a hammering down to $0.15 per share. To me, this usually indicates a company mismanaged, but occasionally it indicates something much juicier – an overlooked, value-priced junior. After some thorough due diligence, including speaking to the company officers and reading two NI43-101 reports on the company’s two 50% JV deals, I bought in on a respectable position.
Why? It’s a bit of a no brainer, to me. The company is trading at $0.15 with two properties, both of which have proven widely disseminated gold mineralization in an area with resources of over 120 million ounces gold, nearby infrastructure, with excellent roads and transportation and the protection of an operator on the project that is a prominent Russian bank – Status LLC. What else do you want from a value-priced junior? It’s going no place but up.
Let’s go over the details. First, why has the company been sinking on the TSX Venture? Simply put, they were shafted by local politics. After pouring $300,000 into exploration last year, the government sniffed gold on the property and handed it to a local company in the next land auction.
The temporal aspect of the land auction process in Russia ensures mineral properties are actually explored, which is a good thing. There are two types of permit available at auction: A 5-year exploration license and a comprehensive 20-year mining license. Golden Reign had the former, which left it vulnerable because, when it came time to auction off the 20-year mining permit for the property, Golden Reign’s application to take part was rejected.
This time around, they have a solid high-level partner and a 20-year mining permit already in place.
I spoke with both CFO Kim Evans and Larry Myles, who runs the corporate communications department for Golden Reign. They were exuberant that the company’s slide down the TSX charts now poses a value opportunity for investors – I obviously agree.
“It’s entirely different this time,” Myles told me. “When we started in Russia, we were going from the ground up. In Russia, if you’re working with a bank or a governmental agency, you’re working from the roof down. You’re protected.”
Golden Reign’s partner, Status LLC, is the mining division of CentroCredit Joint Stock Commercial Bank, which is headquartered in Moscow, with another branch office in London. CentroCredit is a member of the Association of Russian Banks, the Moscow Banking Union and National Stock Association participating in the Russian Trading System (RTS), the Moscow Stock Exchange (MSE) and the Saint-Petersburg Stock Exchange. As of January, 2006, it was ranked the 38th largest in equity capital amongst the top Russian banks. In other words, it is the real deal.
The rest of the piece is here: http://www.resourcexinvestor.com/news.php?id=2342
Bayfield Ventures (TSXV:BYV) Upbeat on Rainy River Project
By Doug Hadfield
As I’ve noted for some time, you can tell a lot about Bayfield Ventures (TSXV: BYV) by having a look at Rainy River Resources’ work next door. Bayfield owns some important concessions, including Blocks A, B and C, in and around Rainy River’s major gold discovery zone. That discovery zone brought Rainy River to the forefront of the junior exploration scene last January, when step-out drilling from an area with no previous drilling assayed 5.42 grams per tonne gold over 43 metres with a core interval of 17.67 g/t Au over 9.5 metres. When Rainy River announced the results in November last year, the company’s stock rocked from $2.87 to $4.85 in less than a week.
Now Bayfield is hoping that its own drill results, which are expected sometime before December this year, will tap into some of the same mineralized trend.
Don Myers, who is a director at Bayfield with 20-years experience in pubco management and corporate communications, says both Bayfield and its investors are pleased with progress on the ground at Rainy River.
“We’re constantly sending off assays to the labs, but because we make it our policy to release all our results together we haven’t been able to release any yet. It’s obvious we’re more than satisfied – we’re still aggressively seeking land in the area, we’re planning more drill holes.”
If and when Bayfield does pick up new land in the area, they won’t be the only ones doing so. In August, Rainy River reported an option agreement for a 100% interest in an additional 1,570 acres of farmland in the Sifton, Richardson and Tait townships in the Rainy River district in Northwestern Ontario.
Myers told me, “Rainy River Resources is on a major land acquisition – their last six or so news releases show that they’re acquiring more land, they’re surrounding more of our properties than just the B Block – after their Canaccord Capital financing they’ve been acquiring much more land in the area. This means they’ve got lots of money to continue drilling and purchasing.”
I have a feeling Bayfield has something similar coming up in the near future: With all the drilling activity going on, the incredible results coming out of RR.V, land purchasing, this Rainy River area is really on fire. As well, Bayfield has been drilling all summer and has finished ten drill holes of the present drill program.
Read the rest here: http://www.resourcexinvestor.com/news.php?id=2343
Kootenay Gold Drilling in BC
Kootenay Gold (TSXV: KTN) Keeps the Drills (and Heads) Turning
By Doug Hadfield
This year, the summer doldrums in the resource sector were anything but dull for the boys at Kootenay Gold (TSXV: KTN). With drills turning at Jumping Josephine (BC), Promontorio (Mexico) and Connor Creek (BC), autumn is proving to be a harvest season of results and new announcements by the company and its various JV partners.
Most notable was the announcement regarding Jumping Josephine (JJ), a joint venture effort with Astral Mining (TSXV: AST). With most Phase I drill results already in from JJ, the central question on most investors’ minds was: Would the work completed to date warrant a Phase II drill program?
Jumping Josephine is an 11,665 hectare gold property in southern British Columbia. The property hosts the historic Granville Mountain mining camp and several newly discovered vein-hosted gold showings, including JJ Main, JJ West, Albion-Dubrovnik and Bonanza Pass. Previous work on the property by a number of other exploration companies turned up assays of interest, but it was not until Kootenay’s early exploration work uncovered the JJ Main and West, Albion-Dubrovnik and Bonanza Pass targets that serious exploration work took place.
The Phase I drill program comprised 2000 meters on three targets: twenty holes at the JJ Main Zone, 400 meters in five holes on the Albion and Dubrovnik targets and a further 500 meters in two holes at the Bonanza Pass. Final results were reported on September 11, along with the exciting news that exploration would indeed continue at JJ in a minimum 3500 meter (approximately 12,000 ft) Phase II drill program.
Phase I work on the JJ Main showing during 2006 revealed a gold bearing stockwork zone up to 10m in width and 240m long. This area yielded assays up to 133.91 g/t gold from one-meter channel samples. Notably, there was a consistent return of high-grade intervals, too, including 5m grading 19.2 g/t Au, 7m grading 31.19 g/t Au, 4m grading 25.24 g/t Au and 10m grading 5.0 g/t Au, and so on. The JJ Main zone is characterized by silicified and sericitized quartz monzonite hosting a distinct zone of multiphase stockwork veining and breccia zones. Mapping and geochemistry completed to date suggest that this structure may extend for over three kilometers.
The most recent results returned from JJ Main were variable. Hole 07JD016 included 10 meters (32.8 ft) averaging 1.17 grams per tonne gold from hole 07JD016, with one meter at 4.14 grams per tonne gold. Although all holes were mineralized, some drill cores were sent to another independent laboratory for a second opinion. Nevertheless, the results at Jumping Josephine did warrant a Phase II program, to begin this fall, which will target what Kootenay and Astral believe is a strong south-plunging mineralized shoot within the JJ Main gold zone.
According to a recent news brief, “The shoot has been intersected to date by holes drilled on the southernmost two sections, spaced 60 meters apart, and so far it appears to be increasing in width to the south. The drill is currently completing a fence of holes along a section 30 meters further to the south. Astral has only just begun to test the potential of JJ Main structure which, based on mapping, geophysics and surface geochemistry, may extend for over three kilometers.”
Kootenay appears to be proving its acumen for choosing properties with potential for early stage discoveries that increase shareholder value. The JJ Main, JJ West, Albion-Dubrovnik and Bonanza Pass targets at Jumping Josephine were all discovered by Kootenay after the company purchased the property. Between September and December 2006, Kootenay four times reported notable sampling and trenching results at JJ, including 21.43 g/t Au over five meters. Consequently, the company’s stock steadily increased from about $0.56 to $0.66. Finally, on the news of 7.0 m of 31.19 g/t Au, the stock jumped to over $1.
The case at Kootenay’s Promontorio Silver Project, which consists of four contiguous claims covering 37,000 hectares in northwestern Mexico, may prove to be even more providential. Chip sampling in the Pit Breccia returned 480 grams per tonne silver, 2.51 grams per tonne gold, 11,199-ppm lead and 17,284-ppm zinc over a true width of 19 meters. These findings lead to the presently ongoing 3000-meter drill program, of which 13 holes are complete and have been sent for laboratory testing. Results are imminent, but what can we expect from this previously producing mine camp?
The only feasibility study completed for Promontorio was prepared in 1973, prior to Canadian Securities Commission’s NI-43-101, which regulates disclosure by Canadian exploration companies listed on the TSX Venture – in other words, it doesn’t necessarily stand up to post-Bre-X standards. That said, no one is claiming Promontorio to be the next world-class polymetallic mine. The original ore reserve estimate was fairly modest: 384,000 metric tons grading 0.12% Cu, 2.80% Pb, 1.74%, Zn, 367 g/t Ag and 1.5 g/t Au, to a depth of 100 m below the floor of the open cut. Certainly with those grades at such a shallow depth, such a reserve estimate would indicate an economically viable mine. Yet the shallow, open-at-depth nature of this potential ore deposit argues for a substantial exploration program to both confirm and expand up the historical work. As such, the present 3000-meter drill program could make (or break) Promontorio as a major participant in the Mexican resource sector.
Maybe it’s the clairvoyant vision of director Richard Hughes (widely seen as the Canadian mining icon partly responsible for bringing Hemlo to production) or the mine-finding prowess of CEO James McDonald who co-founded multiple successful mining companies, but each of the stories behind this growing company (19 million shares outstanding) is beginning to take form. Keep a close eye out for more results this fall.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
Kootenay Gold (TSXV: KTN) Keeps the Drills (and Heads) Turning
By Doug Hadfield
This year, the summer doldrums in the resource sector were anything but dull for the boys at Kootenay Gold (TSXV: KTN). With drills turning at Jumping Josephine (BC), Promontorio (Mexico) and Connor Creek (BC), autumn is proving to be a harvest season of results and new announcements by the company and its various JV partners.
Most notable was the announcement regarding Jumping Josephine (JJ), a joint venture effort with Astral Mining (TSXV: AST). With most Phase I drill results already in from JJ, the central question on most investors’ minds was: Would the work completed to date warrant a Phase II drill program?
Jumping Josephine is an 11,665 hectare gold property in southern British Columbia. The property hosts the historic Granville Mountain mining camp and several newly discovered vein-hosted gold showings, including JJ Main, JJ West, Albion-Dubrovnik and Bonanza Pass. Previous work on the property by a number of other exploration companies turned up assays of interest, but it was not until Kootenay’s early exploration work uncovered the JJ Main and West, Albion-Dubrovnik and Bonanza Pass targets that serious exploration work took place.
The Phase I drill program comprised 2000 meters on three targets: twenty holes at the JJ Main Zone, 400 meters in five holes on the Albion and Dubrovnik targets and a further 500 meters in two holes at the Bonanza Pass. Final results were reported on September 11, along with the exciting news that exploration would indeed continue at JJ in a minimum 3500 meter (approximately 12,000 ft) Phase II drill program.
Phase I work on the JJ Main showing during 2006 revealed a gold bearing stockwork zone up to 10m in width and 240m long. This area yielded assays up to 133.91 g/t gold from one-meter channel samples. Notably, there was a consistent return of high-grade intervals, too, including 5m grading 19.2 g/t Au, 7m grading 31.19 g/t Au, 4m grading 25.24 g/t Au and 10m grading 5.0 g/t Au, and so on. The JJ Main zone is characterized by silicified and sericitized quartz monzonite hosting a distinct zone of multiphase stockwork veining and breccia zones. Mapping and geochemistry completed to date suggest that this structure may extend for over three kilometers.
The most recent results returned from JJ Main were variable. Hole 07JD016 included 10 meters (32.8 ft) averaging 1.17 grams per tonne gold from hole 07JD016, with one meter at 4.14 grams per tonne gold. Although all holes were mineralized, some drill cores were sent to another independent laboratory for a second opinion. Nevertheless, the results at Jumping Josephine did warrant a Phase II program, to begin this fall, which will target what Kootenay and Astral believe is a strong south-plunging mineralized shoot within the JJ Main gold zone.
According to a recent news brief, “The shoot has been intersected to date by holes drilled on the southernmost two sections, spaced 60 meters apart, and so far it appears to be increasing in width to the south. The drill is currently completing a fence of holes along a section 30 meters further to the south. Astral has only just begun to test the potential of JJ Main structure which, based on mapping, geophysics and surface geochemistry, may extend for over three kilometers.”
Kootenay appears to be proving its acumen for choosing properties with potential for early stage discoveries that increase shareholder value. The JJ Main, JJ West, Albion-Dubrovnik and Bonanza Pass targets at Jumping Josephine were all discovered by Kootenay after the company purchased the property. Between September and December 2006, Kootenay four times reported notable sampling and trenching results at JJ, including 21.43 g/t Au over five meters. Consequently, the company’s stock steadily increased from about $0.56 to $0.66. Finally, on the news of 7.0 m of 31.19 g/t Au, the stock jumped to over $1.
The case at Kootenay’s Promontorio Silver Project, which consists of four contiguous claims covering 37,000 hectares in northwestern Mexico, may prove to be even more providential. Chip sampling in the Pit Breccia returned 480 grams per tonne silver, 2.51 grams per tonne gold, 11,199-ppm lead and 17,284-ppm zinc over a true width of 19 meters. These findings lead to the presently ongoing 3000-meter drill program, of which 13 holes are complete and have been sent for laboratory testing. Results are imminent, but what can we expect from this previously producing mine camp?
The only feasibility study completed for Promontorio was prepared in 1973, prior to Canadian Securities Commission’s NI-43-101, which regulates disclosure by Canadian exploration companies listed on the TSX Venture – in other words, it doesn’t necessarily stand up to post-Bre-X standards. That said, no one is claiming Promontorio to be the next world-class polymetallic mine. The original ore reserve estimate was fairly modest: 384,000 metric tons grading 0.12% Cu, 2.80% Pb, 1.74%, Zn, 367 g/t Ag and 1.5 g/t Au, to a depth of 100 m below the floor of the open cut. Certainly with those grades at such a shallow depth, such a reserve estimate would indicate an economically viable mine. Yet the shallow, open-at-depth nature of this potential ore deposit argues for a substantial exploration program to both confirm and expand up the historical work. As such, the present 3000-meter drill program could make (or break) Promontorio as a major participant in the Mexican resource sector.
Maybe it’s the clairvoyant vision of director Richard Hughes (widely seen as the Canadian mining icon partly responsible for bringing Hemlo to production) or the mine-finding prowess of CEO James McDonald who co-founded multiple successful mining companies, but each of the stories behind this growing company (19 million shares outstanding) is beginning to take form. Keep a close eye out for more results this fall.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
Teryl Resources Working With Closeology and Superlatives
By Doug Hadfield
Teryl Resources Corp. (TSXV: TRC) operates within the intelligent realm of closeology and superlatives in Alaska and Arizona. By closeology I mean, of course, that the company is exploring for gold and copper very close to existing or previously producing mines. By “superlative” I mean that these mines are exceptionally large and profitable.
At Gold Hill, for example, Teryl is drilling three targets just three miles away from Phelps Dodge Corp.’s Lavender Pit. If you know mining or tourism, then you know that Lavender Pit was one of the biggest mines in the world. Between 1954 and 1970, Phelps Dodge extracted 75 million tons of gold, copper and silver ore from this open pit mine of giant proportions. Check out the satellite photographs on Google – it’s a sight to behold.
At Lavender Pit, mineralization was low-grade disseminated chalcocite with local spots of other copper and zinc sulfides.The deposit evenly blanketed the area in a brecciated intrusive porphyry plug adjoining altered Paleozoic limestones along the Dividend fault. Freeport-McMoRan Copper & Gold Inc. has fired up the drills at Lavender Pit again due to the historically high copper prices caused by the present superbull in mineral commodities. Freeport-McMoRan paid $26 Billion for Philips Dodge in March this year.
At this stage, it may be difficult to say that the mineralization at Gold Hill is the same or similar geological structure to Lavender Pit or the large low-grade Cochise Project area – hence the current drill program. As well, Teryl announced in April that it had purchased aeromagnetic data for the project area, and that the information from that lead to a recommendation of an induced polarization survey, to test for the presence of disseminated sulphides at depth.
Read the rest here: http://www.resourcexinvestor.com/news.php?id=2296
Article on Junior Company: Kootenay Gold
Kootenay Gold Employs Sound Strategy to Maximize Mineral, Minimize Dirt
By Katherine Young
My thirteen year-old daughter is studying mining in her grade eight social studies class. She tells me that when asked for the first three things they thought of about mining, the students in her class named: dirt, explosives and gold. My daughter then informed me that following their logic, a good mining company basically has less dirt and more gold. There was something elegant and simple to her conclusion, I thought. All these exploration companies with different strategies, different exploration and management styles, all essentially attempting to maximize gold, or silver as the case may be, and minimize dirt.
Kootenay Gold (TSX.V:KTN) is a company with a sound strategy for dirt, explosives and gold. Notice how the company describes its approach: To create generative exploration discoveries, establish junior venture partnerships and acquire advanced stage projects.
Clearly, Kootenay is strategic in its effort to find minerals and see projects grow and flourish. Kootenay’s teams are actively exploring in BC and Mexico to find resources that could become a real resource and mine. Their strategy of creating joint venture agreements with other companies allows them to increase their chances of finding something by casting their net wide, while simultaneously decreasing risk.
In the company’s Management Discussion and Analysis dated June 30, 2007, Kootenay listed six separate generative exploration projects in Mexico and British Columbia. Relying on joint venture agreements with companies like Klondike Silver and Astral Mining reduces risk to Kootenay because it minimizes dilution to Kootenay stock. Instead of having to raise funds on the stock market, Kootenay creates revenue by, in effect, selling a percentage of the spoils of exploration. At the same time, Kootenay is able to leverage the success of the exploration they jointly undertake by holding stock in the partner company.
Read the rest here: http://www.resourcexinvestor.com/news.php?id=2336
Kootenay Gold Employs Sound Strategy to Maximize Mineral, Minimize Dirt
By Katherine Young
My thirteen year-old daughter is studying mining in her grade eight social studies class. She tells me that when asked for the first three things they thought of about mining, the students in her class named: dirt, explosives and gold. My daughter then informed me that following their logic, a good mining company basically has less dirt and more gold. There was something elegant and simple to her conclusion, I thought. All these exploration companies with different strategies, different exploration and management styles, all essentially attempting to maximize gold, or silver as the case may be, and minimize dirt.
Kootenay Gold (TSX.V:KTN) is a company with a sound strategy for dirt, explosives and gold. Notice how the company describes its approach: To create generative exploration discoveries, establish junior venture partnerships and acquire advanced stage projects.
Clearly, Kootenay is strategic in its effort to find minerals and see projects grow and flourish. Kootenay’s teams are actively exploring in BC and Mexico to find resources that could become a real resource and mine. Their strategy of creating joint venture agreements with other companies allows them to increase their chances of finding something by casting their net wide, while simultaneously decreasing risk.
In the company’s Management Discussion and Analysis dated June 30, 2007, Kootenay listed six separate generative exploration projects in Mexico and British Columbia. Relying on joint venture agreements with companies like Klondike Silver and Astral Mining reduces risk to Kootenay because it minimizes dilution to Kootenay stock. Instead of having to raise funds on the stock market, Kootenay creates revenue by, in effect, selling a percentage of the spoils of exploration. At the same time, Kootenay is able to leverage the success of the exploration they jointly undertake by holding stock in the partner company.
Read the rest here: http://www.resourcexinvestor.com/news.php?id=2336
Kootenay Gold Employs Sound Strategy
Kootenay Gold Employs Sound Strategy to Maximize Mineral, Minimize Dirt
By Katherine Young
My thirteen year-old daughter is studying mining in her grade eight social studies class. She tells me that when asked for the first three things they thought of about mining, the students in her class named: dirt, explosives and gold. My daughter then informed me that following their logic, a good mining company basically has less dirt and more gold. There was something elegant and simple to her conclusion, I thought. All these exploration companies with different strategies, different exploration and management styles, all essentially attempting to maximize gold, or silver as the case may be, and minimize dirt.
Kootenay Gold (TSX.V:KTN) is a company with a sound strategy for dirt, explosives and gold. Notice how the company describes its approach: To create generative exploration discoveries, establish junior venture partnerships and acquire advanced stage projects.
Clearly, Kootenay is strategic in its effort to find minerals and see projects grow and flourish. Kootenay’s teams are actively exploring in BC and Mexico to find resources that could become a real resource and mine. Their strategy of creating joint venture agreements with other companies allows them to increase their chances of finding something by casting their net wide, while simultaneously decreasing risk.
In the company’s Management Discussion and Analysis dated June 30, 2007, Kootenay listed six separate generative exploration projects in Mexico and British Columbia. Relying on joint venture agreements with companies like Klondike Silver and Astral Mining reduces risk to Kootenay because it minimizes dilution to Kootenay stock. Instead of having to raise funds on the stock market, Kootenay creates revenue by, in effect, selling a percentage of the spoils of exploration. At the same time, Kootenay is able to leverage the success of the exploration they jointly undertake by holding stock in the partner company.
Read the rest of the piece here: http://www.resourcexinvestor.com/news.php?id=2336
Article on Golden Reign
Two New Properties in Premier Russian Gold Region Make Golden Reign a Great Deal
Doug Hadfield, ResourcexInvestor.com
Sept 28, 2007
To look at Golden Reign’s (TSXV: GRR) stock chart, the company looks like either a bargain or a wash out: It was trading at $0.40 at the end of 2006. Since that time, shares in GRR have taken a hammering down to $0.15 per share. To me, this usually indicates a company mismanaged, but occasionally it indicates something much juicier – an overlooked, value-priced junior. After some thorough due diligence, including speaking to the company officers and reading two NI43-101 reports on the company’s two 50% JV deals, I bought in on a respectable position.
Why? It’s a bit of a no brainer, to me. The company is trading at $0.15 with two properties, both of which have proven widely disseminated gold mineralization in an area with resources of over 120 million ounces gold, nearby infrastructure, with excellent roads and transportation and the protection of an operator on the project that is a prominent Russian bank – Status LLC. What else do you want from a value-priced junior? It’s going no place but up.
Let’s go over the details. First, why has the company been sinking on the TSX Venture? Simply put, they were shafted by local politics. After pouring $300,000 into exploration last year, the government sniffed gold on the property and handed it to a local company in the next land auction.
The temporal aspect of the land auction process in Russia ensures mineral properties are actually explored, which is a good thing. There are two types of permit available at auction: A 5-year exploration license and a comprehensive 20-year mining license. Golden Reign had the former, which left it vulnerable because, when it came time to auction off the 20-year mining permit for the property, Golden Reign’s application to take part was rejected.
This time around, they have a solid high-level partner and a 20-year mining permit already in place.
I spoke with both CFO Kim Evans and Larry Myles, who runs the corporate communications department for Golden Reign. They were exuberant that the company’s slide down the TSX charts now poses a value opportunity for investors – I obviously agree.
“It’s entirely different this time,” Myles told me. “When we started in Russia, we were going from the ground up. In Russia, if you’re working with a bank or a governmental agency, you’re working from the roof down. You’re protected.”
Golden Reign’s partner, Status LLC, is the mining division of CentroCredit Joint Stock Commercial Bank, which is headquartered in Moscow, with another branch office in London. CentroCredit is a member of the Association of Russian Banks, the Moscow Banking Union and National Stock Association participating in the Russian Trading System (RTS), the Moscow Stock Exchange (MSE) and the Saint-Petersburg Stock Exchange. As of January, 2006, it was ranked the 38th largest in equity capital amongst the top Russian banks. In other words, it is the real deal.
To earn its 50% of the new company, simply called Gold Mining Company LLC (GMC), Golden Reign must pay $6 million in expenditures over the next three years – the company raised $4 million last year in its IPO, so another small private placement (PP) or debt financing is in the offing.
Both of the two properties Gold Mining Company has in its portfolio have favourable NI43-101 reports; and both are posted on Golden Reign’s website: Goldenreignresources.com.
The Dorozhni property covers 8.8 square kilometers in the centre of Magadan Province. The property lies along an all-weather road approximately 17 kilometres west of the community of Susuman – the nearest service centre.
According to the 43-101 technical report, previous exploration work and mining of the Dorozhni gold deposit was focused on shallow dipping sub parallel gold-bearing quartz veins. The veins have been traced for lengths of 450 metres along strike and 380 metres down dip with veins ranging from 0.4 metres to 2.4 metres in width, occasionally expanding up to 17 metres (such as the Burovoya vein).
To date, gold mineralization has been reported in five separate quartz veins. Historical reports state that placer mines from Dorozhni Creek produced approximately 95,000 oz of gold.
The rest of the article is here: http://www.resourcexinvestor.com/news.php?id=2342
PMI Gold Adds Nearly 1M Oz to Portfolio
PMI Gold Adds Nearly 1 Million Ounces In Ground to Portfolio
By Doug Hadfield
Junior exploration company PMI Gold Corp. (TSXV: PMV) has added a fourth past producing mine to its portfolio in Ghana’s famous Ashanti Gold Belt. The new concession is located just twenty kilometers away from Anglogold Ashanti’s 55 million ounce Obuasi mine and is within southwest Ghana’s Golden Triangle, which has combined current reserves and historical gold production of over 170 million ounces.
Kubi has seen extensive work to date. Project exploration and development costs total more than US$20 million. In the 1920s, artisans completed numerous adits and provided a foundation for later work by BHP, which included a program of ground geophysics and drilling. BHP later optioned the property to NS Ghana, who completed extensive exploration throughout the 1990s.
The geological picture of mineralization at Kubi is described as a one to 15 metre thick blanket of gold mineralization over a span of 1,800 metres long by up to700 metres deep. The mineralized block is contained within a northeast trending shear zone straddling a major contact between the Birimian and Tarkwaiian. According to a report by The Resource Investor, more than 100 million ounces of gold have been identified within the Birimian Gold Belt. The presence of Tarkwaiian rocks is also closely linked to many large gold deposits found in Ghana.
According to a September 2007 NI43-101 technical report for the Kubi property, “The “Ashanti Trend” is a structural feature that hosts many of the gold deposits in the Obuasi area is interpreted to run through the western part of the Kubi property. Exploration in this area has not been exhaustive and additional potential for Ashanti style deposits is possible.”
Between 1996 and 2006, Ashanti mined 58,696 ounces of gold from two open pits on the property. The total ore milled was 500,230 tonnes grading 3.65 g/t. The recovered grade was 28 per cent higher than expected per Ashanti's mine modeling. Seven mineralized zones have been defined on the property, within three major generative corridors, with 85% of the reserve base currently within a zone known as the Main Garnet Zone.
Significantly, the technical report notes that a “Garnet Zone equivalent has been intersected with associated grade in boreholes drilled at (the nearby) Kubi South.” Any future drill program will make this mineralized zone a primary target. The Kubi Main Zone has been traced for two kilometers along a consistent strike and is open at a depth of 700 metres.
The details of the transaction stipulate that PMI will acquire all the shares of Nevsun Resources (Ghana) – a subsidiary of Nevsun Resources (TSX: NSU) – for nine-million shares in PMI, plus an additional $3-million in cash or stock payments. Nevsun’s holdings may not exceed 20% of the outstanding shares of PMI. Ghanaian tax and royalty considerations will be offset by project expenditures to date. At $0.28 per share of PMV.V, the total cost of the transaction to PMI is approximately US$5.5 million. Following the transaction, Nevsun will hold approximately 9% of PMI on a fully diluted basis.
Prior to announcing its acquisition of the Kubi concessions, PMI hired Golder Associates Africa to prepare a NI43-101 resource estimate on the property. Using data from NS Ghana’s work, which included 212 drill holes – and by subtracting the resource already mined by AngloGold Ashanti – Golder showed that the Kubi deposit has close to 920,000 ounces inferred and indicated.
PMI has noted that a portion of the Kubi mining lease is covered by a forest reserve. The company stated, “[We] will proceed with an underground operation “by shaft or decline from the non-forest reserve area and trucking the material off site for processing, and therefore will not be overly impacted by forest reserve issues.” The main Kubi mining lease covers 19.2 square kilometres and has a renewable 10-year term valid to April 29, 2009.
The qualified person on the project, David Farrow, stated that the Kubi Main trend “contains significant resources drilled to a depth of 700 meters vertical.”
The region in which Obuasi and the Kubi mines are located is rich in gold and historical gold mines. The Obuasi gold mine has been in continuous production for 110 years. Ghana is famous for its Ashanti Gold Belt, which is part of a volcano sedimentary belt and presently includes seven producing mines. In fact, Ghana is Africa’s second largest gold producer, mining about 80t of the yellow metal per year. Ghana is already producing over two million ounces of gold per annum This is an area of majors, too, with companies like Anglogold Ashanti, BHP, Newmont and others operating large both large scale exploration and mining activities in the region.
Over the past few years, PMI Gold has acquired three other former gold producing mines in Ghana: Nkran, Abore and Adubiaso. All were previously operated as the Obotan Gold Mine by Resolute Amansie Limited, a subsidiary of Resolute Mining of Australia.
According to PMI documents, between 1997 and 2002, “the Nkran pit at Obotan produced an average of 146,000 ounces of gold per year for a total of 590,000 ounces of gold at an average grade of 2.2 g/t. The Abore and Adubiaso pits located 12.5 km and 4.0 km northwest respectively of Nkran, together produced a further 140,000 ounces at similar grades.”
The mine was mothballed in 2002 after Resolute struggled for five consecutive years of low gold prices, averaging approximately US$300 per ounce. The price of gold on September 24th remained over $730 per ounce. Many gold bulls continue to argue that gold is undervalued and that demand for bullion (and therefore it’s price tag) will increase with the declining US dollar and diminishing production.
In 1997, a bankable feasibility study (BFS) reported 38 million tonnes grading 1.96 g/t for 2.823 million ounces at for the Obotan Gold Mine. In total, Resolute mined over 730,000 ounces of gold before closing the mine. PMI Gold believes there is an exploration target below the Nkran pit of one to two million ounces of gold grading from 3 to 6 g/t Au.
PMI Gold (TSXV: PMV) has 77 million shares outstanding including the 9 million for the Kubi acquisition (105 million fully diluted). Its 12-month high-low is $0.47 – $0.14. On September 24, 2007 the company opened at $0.27 per share.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
Bayfield Ventures Upbeat on Rainy River Project
By Doug Hadfield
September 26, 2007
As I’ve noted for some time, you can tell a lot about Bayfield Ventures (TSXV: BYV) by having a look at Rainy River Resources’ work next door. Bayfield owns some important concessions, including Blocks A, B and C, in and around Rainy River’s major gold discovery zone. That discovery zone brought Rainy River to the forefront of the junior exploration scene last January, when step-out drilling from an area with no previous drilling assayed 5.42 grams per tonne gold over 43 metres with a core interval of 17.67 g/t Au over 9.5 metres. When Rainy River announced the results in November last year, the company’s stock rocked from $2.87 to $4.85 in less than a week.
Now Bayfield is hoping that its own drill results, which are expected sometime before December this year, will tap into some of the same mineralized trend.
Don Myers, who is a director at Bayfield with 20-years experience in pubco management and corporate communications, says both Bayfield and its investors are pleased with progress on the ground at Rainy River.
“We’re constantly sending off assays to the labs, but because we make it our policy to release all our results together we haven’t been able to release any yet. It’s obvious we’re more than satisfied – we’re still aggressively seeking land in the area, we’re planning more drill holes.”
If and when Bayfield does pick up new land in the area, they won’t be the only ones doing so. In August, Rainy River reported an option agreement for a 100% interest in an additional 1,570 acres of farmland in the Sifton, Richardson and Tait townships in the Rainy River district in Northwestern Ontario.
Myers told me, “Rainy River Resources is on a major land acquisition – their last six or so news releases show that they’re acquiring more land, they’re surrounding more of our properties than just the B Block – after their Canaccord Capital financing they’ve been acquiring much more land in the area. This means they’ve got lots of money to continue drilling and purchasing.”
I have a feeling Bayfield has something similar coming up in the near future: With all the drilling activity going on, the incredible results coming out of RR.V, land purchasing, this Rainy River area is really on fire. As well, Bayfield has been drilling all summer and has finished ten drill holes of the present drill program.
“Now’s a great time for us,” Myers says. “We’re still awaiting assay results, but we’ve got three blocks of land to drill. On the B Block we’ve drilled five holes. We’ve drilled five holes on the A Block. Now we’re going back to the B Block and do two more holes there, then the C Block for two or three more. That’ll wrap up the drill program, and then you’re looking at typically four to six weeks for results.”
Read the rest of the article here:
http://www.resourcexinvestor.com/news.php?id=2343
Even More on Montello
Oil Drilling Expertise Fashioned in Alberta Translates to Hard-won Acceptance in Tennessee
John Hurst, ResourcexInvestor.com
September 26, 2007
Since the turn of the 20th century, the green hills of Tennessee have largely remained a patchwork of small, undisturbed private land holdings. Consequently, any oil exploration of note has been done by family businesses and small to intermediate oil and gas companies, while Big Oil has largely passed the Appalachians by for larger, easier pickings in Texas, Oklahoma, Kansas, Louisiana, and California.
Besides not having to deal with so many small landowners, amassing large land packages was a motivator for looking elsewhere in the early years of US oil exploration. More often, according to sources like the US Geological Survey, it was the technical nature of finding oil in the Appalachians.
Montello Resources Ltd. (TSX.V:MEO) is one of only a handful of oil & gas companies to commence a multi-million dollar oil and gas exploration program in the technically challenging Appalachians Mountains and Foothills. The upstart company from Calgary, Alberta, recently won over government approval besides local resident support to earn a shot at re-drilling two of the most exciting oil prospects that the State of Tennessee has seen in decades. Montello is undaunted by the prospect of being one of the few companies to drill far deeper than most would contemplate in this under-developed but emerging oil & gas state.
Bill Cawker, who heads Montello, rightly echoes country comedienne Minnie Pearl: “We’re just so proud to be here,” he says, “because the advice, experience, smart field savvy, overall execution and technical expertise of our Alberta professionals goes such a long way here.”
“Everyone we work with says, “You have such a professional well site! It’s amazing that you are a little company from Calgary. Anyone coming here would think this is run by Conoco, Phillips or Shell, not a small Canadian company like yourselves.”
Cawker says he believes that if Montello had not posted photographs of its well site on the company’s website, some people might not believe the progress they’ve made. Montello has chiseled a well site 250 feet by 250 feet by some 30 to 40 feet deep out of the rock.
“This is the type of project normally tackled by a company much, much bigger than ours, so we come by the upstart or underdog tag honestly here. We like proving ourselves and relish the fact that we are showing up all the naysayers to date.”
Montello’s drill site is situated at the heart of a scenic farming region that offers few discernable clues as to the potentially prolific oil reserves that are believed to exist completely untapped thousands of feet below Morgan County’s lush green pastures. Hence, the State of Tennessee Department of Environment and Conservation, Division of Geology, Oil and Gas Program, has officials monitor Montello’s work, closely and constantly. Cawker says Montello welcomes the assistance of top flight geologists from the state while drilling the John Bowen #2 Well.
A drill permit application on the Morgan Highpoint Project #1 well (officially known as the John Bowen #2 Well) was granted by the Department of Environment and Conservation, in July. Construction of the well site was completed to the satisfaction of the Department and its oil and gas inspector walked the site and presented a hard copy of the approved Drill Permit in person on Monday, July 23.
Montello and its joint venture partners are drilling on the property, 164 acres that adjoin the Howard family farm property near the community of High Point in rural north-central Tennessee, one hour and 40 minutes drive north of Knoxville. The drill location is a mile from the site of Pryor Oil’s Howard White #1 well – the original name of an over-pressurized gusher that came to be known as “the Blowout Well.” The oil released from the well was a light crude oil (38.1 API) with low to medium viscosity. It flowed at up to 750 barrels per hour, acccording to the well’s operator. But the subsequent blow-out caused a fire and a minor oil spill that essentially put the operator out of business.
The well has languished in a legal limbo ever since.
However, a nearby well named the John Bowen #1 Well (originally called the TexFlora well) also struck pay-dirt of up to 800 bpd in November 2003, but encountered problems of an entirely different nature and entirely unrelated to the well’s potential for commercialization: After the well was shut-in during the fall of 2003, owner Jerry Walsack took a Thanksgiving vacation at his home in Florida. While there, he died unexpectedly and as a result the John Bowen #1 was never put into production.
Now it’s Montello’s turn to tap into Morgan County’s previously elusive oil reserves. And this plucky junior is no stranger to major challenges and high stakes rolls of the dice, as recently appointed company president, Bill Cawker, is keen to point out.
“Montello has been around just about forever,” he says. “In 20 to 25 years the company has gone through three or four incarnations, with at least three different management groups doing mineral exploration, such as diamonds in North Alberta, shallow oil and gas, and so on.”
The current 2007 drilling programs in Tennessee and Pincher Creek, Alberta could be the company’s elusive ticket to the next level. Judging from the demonstrated oil and gas structures that caused the Howard White #1 blowout, John Bowen #2 has the potential to provide major shareholder growth.
The company and its management team have certainly risen to the occasion for their shareholders as they’ve devoted considerable time and energy, as well as big dollars to ensure that the company is marshalling the best technological know-how, the best equipment and the best consultants in the business to get the desired results from this high-impact drill program.
Contact Info:
Montello Resources Ltd (TSX Venture Exchange Symbol: MEO)
P.O. Box 1757 Station M
Calgary, AB T2P 2L8
(1-866-379-3960) / 604-408-7600/ 604-649-0080
www.montello.com / lmyles@montello.com/ bcawker@montello.com
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
The author and ResourcexInvestor.com are not shareholders in the companies herein mentioned, and the author, as an employee of Resourcex Publishing Corp is expressly prohibited for owning any securities about which they may write for a period of 30 days prior to and 30 days after initial publication of the article in which the securities of any company are mentioned.
Yale Encounters Porphyry Deposits in Mexico
As Yale Encounters Porphyry Deposits in Mexico, a Grand Mystery Unfolds as to its True Nature
By John Hurst
ResourcexInvestor.com
September 26, 2007
A grassroots company no longer, porphyry deposits have encouraged Yale Resources Ltd. (TSX.V:YLL) to expand its La Verde land package in Mexico by 400 hectares. Often a holy grail for explorers, porphyry deposits – all the way from Alaska to Chile – make for great exploration targets. They are typically low grade, promise immense tonnages and create your “As Seen on Google Earth”, open-pit mines.
Yale Resources’ La Verde project, a copper-zinc-silver-gold property located 45 km northwest of Hermosillo, Sonora State, Mexico, has at least six deposits, with workings on them dating back to the early 1900’s.
“We now have known mineralization of potentially economic grades. It’s not a grassroots exploration play. These are deposits and we are going to determine how large they are as quickly as we can,” stated Ian Foreman, the Vancouver company’s geologist-president.
La Verde Grande (The Big Green) is the project’s main deposit. Yale’s first program was done there. Land acquisitions adjoining its northeast corner cover the La Sierrita copper-zinc-molybdenum porphyry that was drilled in early 2000’s by Freeport McMoRan. In its amalgamation with Phelps Dodge, that behemoth chose to leave Mexico and the project was dropped. Another Canadian junior had the project in the 1990s, and dropped it too.
“In each case, the company would drop the property for larger economic reasons, not geological reasons,” Foreman said. “Either the metal prices were too low or the Canadian exchange rate was too high or the world markets were weak…but nobody came to a conclusion with regards to the geological potential of the project, and that was really key for us.
“Freeport-McMoRan drilled eight holes, of which seven are on land that Yale controls. Five of those holes intersected a porphyry. Each of those holes has long intervals of anomalous copper, zinc and molybdenum mineralization. We know that over this four-square-kilometer area, that’s a huge exploration target, and we’ve added a large additional target to the property,” Foreman said.
“So we know that there is a large mineralizing system present. The association between the La Sierrita porphyry and the skarn deposits we are concentrating on at the present, is currently unknown. Is it the source for all the mineralization that has bled into the limestones and created the skarns, or maybe that is indicative of additional porphyry present and maybe the additional porphyry is what is feeding these skarn systems and therefore is a genuine porphyry target on its own.”
The La Verde Grande mine has three principal levels – two of which are about 100 metres in length – and recent field work has identified two additional levels vertically higher, which indicate that there is the potential for additional resources to be defined both up and down dip. The northeast extension of the mine, located 30 metres to the north, has additional workings that continue for another 30 metres along strike. The northeast extension has a second level of workings, located 23 metres below, which have visual mineralization. These were not sampled in previous exploration campaigns but have been sampled by Yale personnel. A three-week rehabilitation program was required before sampling could begin.
A total of 175 samples have been taken and all samples have been submitted to ALS Chemex labs in Hermosillo. Samples were taken every five metres as vertical chip channel samples along the walls of the workings. This sampling program also included initial samples from the historic workings that are all within a radius of 150 metres of the La Verde Grande Mine. In each working, skarn mineralization with visible copper mineralization was encountered.
There has been only very limited drilling done at La Verde. Yale’s exploration strategy for the La Verde Project is that it wants to explore all the targets in the concept that there is a larger mineralizing system present. The technical team and sampling crews will now be moving to the El Picacho prospect, located 900 metres along strike from the La Verde Grande Mine, where work in the early 1900's exposed a breccia with strong copper oxide staining over a 15 metre width.
Trails leading up to the La Tescalama prospect, some 250 metres up the hillside, are being cleared so that the crews will have access. The La Tescalama prospect saw significant historical development as the principal working extends in at least 40 metres and exposed strongly copper mineralized skarn throughout.
“It’s our impression that all previous exploration has tackled these small, high-grade deposits individually,” he stated.
“How are they connected? Are they connected, and if so, what is the key that ties them together? Right now, we are trying to get a feeling for how much mineralization there is. In the La Verde Grande area, there is a mine with three levels of workings; there is an extension off to the northeast with two levels of workings that show the strike length is a deposit in the neighborhood of 150 metres. To us, that already is twice as long as what we understood the deposit to be when we first optioned the property. Now, in just simple exploration, we’ve identified six other small pits or workings that the old-timers had found mineralization, back in the day when they found just something interesting.
“That, to us, indicates that there is genuine exploration potential not just in the 150-metre radius surrounding the mine, but in the surrounding land.”
Much of the site is covered by calcrete, a calcium alteration product up to several metres in thickness and more difficult to explore. All will have to be reckoned with before Yale decides where to drill.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
The author and ResourcexInvestor.com are not shareholders in the companies herein mentioned, and the author, as an employee of Resourcex Publishing Corp is expressly prohibited for owning any securities about which they may write for a period of 30 days prior to and 30 days after initial publication of the article in which the securities of any company are mentioned.
As Yale Encounters Porphyry Deposits in Mexico, a Grand Mystery Unfolds as to its True Nature
By John Hurst
ResourcexInvestor.com
September 26, 2007
A grassroots company no longer, porphyry deposits have encouraged Yale Resources Ltd. (TSX.V:YLL) to expand its La Verde land package in Mexico by 400 hectares. Often a holy grail for explorers, porphyry deposits – all the way from Alaska to Chile – make for great exploration targets. They are typically low grade, promise immense tonnages and create your “As Seen on Google Earth”, open-pit mines.
Yale Resources’ La Verde project, a copper-zinc-silver-gold property located 45 km northwest of Hermosillo, Sonora State, Mexico, has at least six deposits, with workings on them dating back to the early 1900’s.
“We now have known mineralization of potentially economic grades. It’s not a grassroots exploration play. These are deposits and we are going to determine how large they are as quickly as we can,” stated Ian Foreman, the Vancouver company’s geologist-president.
La Verde Grande (The Big Green) is the project’s main deposit. Yale’s first program was done there. Land acquisitions adjoining its northeast corner cover the La Sierrita copper-zinc-molybdenum porphyry that was drilled in early 2000’s by Freeport McMoRan. In its amalgamation with Phelps Dodge, that behemoth chose to leave Mexico and the project was dropped. Another Canadian junior had the project in the 1990s, and dropped it too.
“In each case, the company would drop the property for larger economic reasons, not geological reasons,” Foreman said. “Either the metal prices were too low or the Canadian exchange rate was too high or the world markets were weak…but nobody came to a conclusion with regards to the geological potential of the project, and that was really key for us.
“Freeport-McMoRan drilled eight holes, of which seven are on land that Yale controls. Five of those holes intersected a porphyry. Each of those holes has long intervals of anomalous copper, zinc and molybdenum mineralization. We know that over this four-square-kilometer area, that’s a huge exploration target, and we’ve added a large additional target to the property,” Foreman said.
“So we know that there is a large mineralizing system present. The association between the La Sierrita porphyry and the skarn deposits we are concentrating on at the present, is currently unknown. Is it the source for all the mineralization that has bled into the limestones and created the skarns, or maybe that is indicative of additional porphyry present and maybe the additional porphyry is what is feeding these skarn systems and therefore is a genuine porphyry target on its own.”
The La Verde Grande mine has three principal levels – two of which are about 100 metres in length – and recent field work has identified two additional levels vertically higher, which indicate that there is the potential for additional resources to be defined both up and down dip. The northeast extension of the mine, located 30 metres to the north, has additional workings that continue for another 30 metres along strike. The northeast extension has a second level of workings, located 23 metres below, which have visual mineralization. These were not sampled in previous exploration campaigns but have been sampled by Yale personnel. A three-week rehabilitation program was required before sampling could begin.
A total of 175 samples have been taken and all samples have been submitted to ALS Chemex labs in Hermosillo. Samples were taken every five metres as vertical chip channel samples along the walls of the workings. This sampling program also included initial samples from the historic workings that are all within a radius of 150 metres of the La Verde Grande Mine. In each working, skarn mineralization with visible copper mineralization was encountered.
There has been only very limited drilling done at La Verde. Yale’s exploration strategy for the La Verde Project is that it wants to explore all the targets in the concept that there is a larger mineralizing system present. The technical team and sampling crews will now be moving to the El Picacho prospect, located 900 metres along strike from the La Verde Grande Mine, where work in the early 1900's exposed a breccia with strong copper oxide staining over a 15 metre width.
Trails leading up to the La Tescalama prospect, some 250 metres up the hillside, are being cleared so that the crews will have access. The La Tescalama prospect saw significant historical development as the principal working extends in at least 40 metres and exposed strongly copper mineralized skarn throughout.
“It’s our impression that all previous exploration has tackled these small, high-grade deposits individually,” he stated.
“How are they connected? Are they connected, and if so, what is the key that ties them together? Right now, we are trying to get a feeling for how much mineralization there is. In the La Verde Grande area, there is a mine with three levels of workings; there is an extension off to the northeast with two levels of workings that show the strike length is a deposit in the neighborhood of 150 metres. To us, that already is twice as long as what we understood the deposit to be when we first optioned the property. Now, in just simple exploration, we’ve identified six other small pits or workings that the old-timers had found mineralization, back in the day when they found just something interesting.
“That, to us, indicates that there is genuine exploration potential not just in the 150-metre radius surrounding the mine, but in the surrounding land.”
Much of the site is covered by calcrete, a calcium alteration product up to several metres in thickness and more difficult to explore. All will have to be reckoned with before Yale decides where to drill.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
The author and ResourcexInvestor.com are not shareholders in the companies herein mentioned, and the author, as an employee of Resourcex Publishing Corp is expressly prohibited for owning any securities about which they may write for a period of 30 days prior to and 30 days after initial publication of the article in which the securities of any company are mentioned.
Explosion of Cellular Phone Use Drives Commerce Resources’ (TSX.V:CCE) Value
By Darryl Kelley
Commerce Resources is developing what may very well be newest domestic source of tantalum and niobium in North America. The company has just raised $32.7 Million in a financing that will see it continue to develop resources at its 100%-owned Blue River Tantalum-Niobium Project.
Commerce Resources Corp.'s stated goal is to become the world's next source of tantalum and niobium. Commerce is the most active tantalum and niobium explorer in North America, with a focus on developing its Upper Fir deposit into production.
At present the major use of tantalum is in capacitors which are used in desktop and laptop computers, mobile phones, digital cameras, pagers, PDA's, handheld games, automotive applications and a number of other fields in the electronic industry. It is estimated 65 percent of tantalum made available each year is used in the production of capacitors.
Rising numbers of cell-phone-using teens have become a key source of growth for the wireless industry.
The latest estimates show that by the end of the year, 84 percent of the U.S. population will be carrying mobile phones, according to SNL Kagan, a communications research firm.
This has left yet-to-be-connected youngsters as one of the few remaining ready sources of new subscribers.
Major companies such as AT&T, Verizon Wireless and Sprint Nextel Corp. have done a brisk business by encouraging existing customers to sign up for family calling plans. These services allow the addition of a mobile phone to an account, usually for an additional charge of about $10 a month.
Tantalum capacitors are a key component in mobile phones. The sector's rapid growth has led to a worldwide tantalum shortage and prices have risen significantly, swelling the coffers of the Congo's warring factions who profited historically from increased demand for the material.
In January 2000, a kilogram of tantalum cost $65. Last December, the price was $550, although that has fallen back to about $375 today.( Where are these price quotes coming from? They are not consistent with current prices that we know of. A pound of concentrate would be worth around $55 dollars. A pound of tantalum oxide would be $ 150 pp and a pound of capacitor grade powder would be worth approximately $ 350pp
Tantalum ores are found primarily in Australia, Canada, Brazil, and central Africa, with some additional quantities originating in southeast Asia and in China. There is also interest in exploration for this element in various regions of the world, such as Canada, Egypt and Saudi Arabia.
Tantalum minerals with over 70 different chemical compositions have been identified. Those of greatest economic importance are tantalite, microlite, and wodginite; however, it is common practice to name any tantalum-containing mineral concentrate as 'tantalite' primarily because it will be processed for the tantalum values and is sold on that basis.
The single largest source of tantalum mineral concentrates is the production by Sons of Gwalia Ltd. from its Greenbushes and Wodgina mines in Western Australia. These two mines combined produce between 70 and 80% of the world's supply, with production in 2001 reported at approximately 1.8 million pounds.
Additional operating mines are the Tanco Mine (Cabot) in Manitoba, Canada, the Kenticha Mine (Ethiopia Minerals Development Authority) in Ethiopia, the Yichun Mine in China, and the Pitinga Mine (Paranapanema) and Mibra Mine (Metallurg) in Brazil.
Quantities are available from Brazil through the processing of small alluvial deposits by prospectors and in numerous countries in Africa, such as Rwanda, Namibia, Uganda, DRC-Kinshasa, Zaire, Gabon, Nigeria, South Africa, and Burundi.
The central African countries of Democratic Republic of the Congo (DRC-Kinshasa) and Rwanda and their neighbours used to be the source of significant tonnages. But civil war, plundering of national parks and exporting of minerals, diamonds and other natural resources to provide funding of militias has caused the Tantalum-Niobium International Study Center to call on its members to take care to obtain their raw materials from lawful sources. Members should refrain from purchasing materials from regions where either human welfare or wildlife are threatened.
Read the rest of the story here: http://www.huliq.com/34922/explosion-of-cellular-phone-use-drives-commerce-resources-tsx-v-cce-value
Explosion of Cellular Phone Use Drives Commerce Resources’ (TSX.V:CCE) Value
By Darryl Kelley
Commerce Resources is developing what may very well be newest domestic source of tantalum and niobium in North America. The company has just raised $32.7 Million in a financing that will see it continue to develop resources at its 100%-owned Blue River Tantalum-Niobium Project.
Commerce Resources Corp.'s stated goal is to become the world's next source of tantalum and niobium. Commerce is the most active tantalum and niobium explorer in North America, with a focus on developing its Upper Fir deposit into production.
At present the major use of tantalum is in capacitors which are used in desktop and laptop computers, mobile phones, digital cameras, pagers, PDA's, handheld games, automotive applications and a number of other fields in the electronic industry. It is estimated 65 percent of tantalum made available each year is used in the production of capacitors.
Rising numbers of cell-phone-using teens have become a key source of growth for the wireless industry.
The latest estimates show that by the end of the year, 84 percent of the U.S. population will be carrying mobile phones, according to SNL Kagan, a communications research firm.
This has left yet-to-be-connected youngsters as one of the few remaining ready sources of new subscribers.
Major companies such as AT&T, Verizon Wireless and Sprint Nextel Corp. have done a brisk business by encouraging existing customers to sign up for family calling plans. These services allow the addition of a mobile phone to an account, usually for an additional charge of about $10 a month.
Tantalum capacitors are a key component in mobile phones. The sector's rapid growth has led to a worldwide tantalum shortage and prices have risen significantly, swelling the coffers of the Congo's warring factions who profited historically from increased demand for the material.
In January 2000, a kilogram of tantalum cost $65. Last December, the price was $550, although that has fallen back to about $375 today.( Where are these price quotes coming from? They are not consistent with current prices that we know of. A pound of concentrate would be worth around $55 dollars. A pound of tantalum oxide would be $ 150 pp and a pound of capacitor grade powder would be worth approximately $ 350pp
Tantalum ores are found primarily in Australia, Canada, Brazil, and central Africa, with some additional quantities originating in southeast Asia and in China. There is also interest in exploration for this element in various regions of the world, such as Canada, Egypt and Saudi Arabia.
Tantalum minerals with over 70 different chemical compositions have been identified. Those of greatest economic importance are tantalite, microlite, and wodginite; however, it is common practice to name any tantalum-containing mineral concentrate as 'tantalite' primarily because it will be processed for the tantalum values and is sold on that basis.
The single largest source of tantalum mineral concentrates is the production by Sons of Gwalia Ltd. from its Greenbushes and Wodgina mines in Western Australia. These two mines combined produce between 70 and 80% of the world's supply, with production in 2001 reported at approximately 1.8 million pounds.
Additional operating mines are the Tanco Mine (Cabot) in Manitoba, Canada, the Kenticha Mine (Ethiopia Minerals Development Authority) in Ethiopia, the Yichun Mine in China, and the Pitinga Mine (Paranapanema) and Mibra Mine (Metallurg) in Brazil.
Quantities are available from Brazil through the processing of small alluvial deposits by prospectors and in numerous countries in Africa, such as Rwanda, Namibia, Uganda, DRC-Kinshasa, Zaire, Gabon, Nigeria, South Africa, and Burundi.
The central African countries of Democratic Republic of the Congo (DRC-Kinshasa) and Rwanda and their neighbours used to be the source of significant tonnages. But civil war, plundering of national parks and exporting of minerals, diamonds and other natural resources to provide funding of militias has caused the Tantalum-Niobium International Study Center to call on its members to take care to obtain their raw materials from lawful sources. Members should refrain from purchasing materials from regions where either human welfare or wildlife are threatened.
Exploration to date at the Upper Fir deposit has outlined an indicated resource of 8.6Mt with 208.2 g/t Ta2O5 and 1,372.6 g/t Nb2O5 and an inferred resource of 5.5Mt with 208.2 g/t Ta2O5 and 1,349.9 g/t Nb2O5 (Gorham, 2007). Exploration to date at the Fir deposit has outlined an indicated resource of 5.65Mt with 203.1g/t Ta2O5 and 1,047g/t Nb2O5 (Verzosa, 2003). The Fir is also host to an inferred resource of 6.7Mt with 196g/t Ta2O5, 646g/t Nb2O5 and 3.20% P2O5 (McCrea, 2001). The Verity deposit, 10 km north of the Fir property, is estimated to host an inferred resource of 3.06Mt with 196g/t Ta2O5, 646g/t Nb2O5 and 3.20% P2O5 (McCrea, 2001).
Niobium is an additive to the production of steel. A 2% alloy of niobium has the ability to triple the tensile strength of the steel, from a PSI (pounds per square inch) of 40,000 to 120,000. Niobium-alloyed steel is found in construction steel, oil and gas pipelines, nuclear plant pipelines, the automotive industry and aerospace.
The primary mineral from which niobium is obtained is known as pyrochlore, found occurring in carbonatites globally. The world's largest deposit located at Araxa, Brazil, is operated by CBMM, and averages between 2.5% and 3.0% Nb205. Two other currently operating pyrochlore mines are the Anglo American Brasil Mineracao (Brazil), grading at 1.34% niobium oxide and the Iamgold-owned Niobec (Quebec) at their St. Honore deposit, grading at 0.67% niobium and mined underground.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
ValGold’s (TSX.V:VAL) Incredible 3
Sept 2007
By Eric Pratt
ValGold (TSX.V:VAL), is a Vancouver-based international mining development company focused on the exploration of high-value targets in a portfolio of properties in the Guiana Shield of South America. ValGold’s holdings in South America comprise approximately 4,900km2 in Guyana, and 882 km ² in Venezuela. Valgold started life as Valerie Gold and was a high flying stock in the last cycle. Less than stellar results and the last bear market lead to a long quiet period for VAL. This being said, Valgold has undergone many changes in the past few months, with a new project focus in the Guyana Shield and a greatly increased pace of activity.
Los Patos Gold Occurrence
Throughout the summer of 2007, ValGold had an active drill program exploring the Los Patos gold occurrence located in Bolivar State, Venezuela. The Los Patos gold occurrence is located within the Lo Increible 3 concession approximately 20 kms northeast of the town of El Callao and 4.5 kms northeast of Crystallex's La Tomi gold mine. It is one of several gold occurrences found along the east-west striking, 6.8 km long, Los Chivos Shear Zone which cuts through the central portion of the Lo Increible 3 concession.
Los Patos is the first gold occurrence in Venezuela to be drilled by ValGold. During the spring and early summer of 2007, the Company tested the occurrence with 28 diamond drill holes for an accumulated length of 7,971 metres. These holes outlined up to five parallel zones of mineralization which when averaged with the intervening lower grade material gave zones up to 58.0 metres wide assaying 1.27 g/t gold (true width 95%). Other notable intersections include 4.75 g/t gold over 17.0 metres in hole LI307-07 and 3.98 g/t gold over 36.0 metres in hole LI307-11. With depth the mineralization appears to coalesce into one or two zones but sometimes with very high grades such as those found in hole LI307-22 which averaged 14.66 g/t over 4.0 metres.
On September 6, the company announced drill results from its first program on Lo Increible, the strongest of which were 7.25 grams/tonne ("g/tonne") gold over a true width of 19.0 meters ("m") {0.21 ounces/ton ("oz/t") over 62.3 feet ("ft")}. Most of the diamond drill holes targeted the main Los Patos gold zones and, although assays are still pending on several of the deeper holes, results so far indicate the presence of a gold mineralized body to a depth of 225m below surface. The Los Patos gold zones remain open in all directions and will require further drilling to define their limits. Since the last news release on the Increible 3 drilling, ValGold has received and compiled assays for an additional six holes, LI07-25 to -30. The company reports that each of the six holes intersected well mineralized gold zones.
The main Los Patos gold zone continues to consist of wide mineralized intersections that in LI07-30 returned an interval of economic significance that assayed 3.22 g/tonne gold over 13.0m (0.1 oz/t gold over 42.7 ft), includeing, a 3.0m interval grading 9.64 g/tonne (9.8 ft grading 0.28 oz/t) gold. This LI07-30 intersection occurred at a vertical depth of approximately 200m which is one of the deepest for Los Patos to date.
It goes without saying that Venezuela hosts some of the world’s largest gold deposits. Two of the most massive, Crystallex International’s (KRY-T, Amex) Las Cristinas deposit and Gold Reserve‘s (GRZ-T, Amex) Brisas, are adjacent to ValGold’s Chicanan East and West concessions which cover numerous gold occurrences. Many of these occurrences have seen little or no previous exploration work and as such are considered highly prospective for the discovery of a large, near surface gold deposit. One area of particular interest is the Mochila Lineament area where a number of gold occurrences are hosted within a thick and complexly folded and faulted layered mafic-ultramafic intrusion. According to the 43-101 report available on SEDAR, this structure contains numerous artisinal workings covering and area of 14km by 3km.
Crystallex International Corporation is developing the Las Cristinas gold deposit, which contains a total estimated 20 million ounces of gold.
Gold Reserve Inc. is developing the 10 million ounce Brisas project, which is in Bolivar State in southeast Venezuela near the small community of Las Claritas.
Guyana Properties
Besides Venezuela, the company controls a massive land position next door in Guyana in a JV with Newmont Mining (NYSE:NEM). In late October 2006, ValGold signed a letter of intent to enter into an agreement with Newmont Overseas Exploration Limited, a subsidiary of Newmont Mining Corporation, to earn 100% interest (subject to certain interests reserved by Newmont) in four highly prospective properties in northwest Guyana. The total size of the areas is approximately 4,900 km² or 1,213,500 acres.
The properties are located in the northern part of the Archean-Proterozoic Guiana Shield. This terrane is considered to be the equivalent of the Birimian Supergroup in West Africa, which is host to several large gold deposits including AngloGold Ashanti's Obuasi Mine in Ghana that has annual production of approximately 400,000 ounces and a current mineral resource in the order of 24 million ounces. Major deposits found within the Guiana Shield include the Rosebel mine in Suriname, the Omai mine in Guyana and the Las Cristinas and Brisas deposits in Venezuela.
The properties are considered highly prospective for gold and, potentially, diamonds, uranium and copper-nickel and/or platinum group metals (PGM). Several gold occurrences have already been discovered on the properties including the Makapa occurrence where rock samples have returned gold values as high as 136.0 g/T. Limited drilling at the same occurrence has intersected up to 18.3 g/T gold over 2.0 metres in silicified volcaniclastic conglomerate. Large areas have also seen no work or have good gold stream silt anomalies that have not been investigated. Alluvial diamonds have been found at a number of locations yet very little exploration has been conducted for this commodity. Radiometric surveys have identified several uranium anomalies and layered, intrusive, mafic to ultramafic rocks could potentially host copper-nickel and/or PGM mineralization.
To date, a small, first pass, drill program was completed on the Erakiri gold occurrence on August 16th. A total of nine holes were drilled for a total accumulated length of 1,331 metres. All of the holes targeted porphyry-volcanic contacts along which placer gold is present.
Besides drilling at Erakiri, three large soil-sampling programs have been completed over gold targets in the Whana and Piai areas. Follow-up mapping, sampling and trenching, is currently underway, with drill programs slated to begin winter 2007.
Exploration for Gold and Base Metals in Ontario:
The Ontario properties, which will ultimately be spun out into its own corporate vehicle, stand on their own merits.
A 43-101 compliant report is currently being written by ACA Howe International on the Garrison gold property located 100 kilometers east of Timmins, Ontario. A resource calculation for the JP Zone will comprise part of the report. Drilling on the property was completed in July and has been ongoing almost continuously since late 2005. During this period, a total of 74 holes have been drilled on the property for an accumulated length of 32,012 metres.
An eight hole drill program was completed August 9th on the Tower Mountain gold property located 40 kilometres west of Thunder Bay. A total of 2,090 meters were drilled to test mostly extensions to previously discovered zones such as that in 04-36 where 50.0 g/t gold were intersected over a core length of 1.5 metres. Assays for all eight holes are currently pending.
ValGold’s qualified person on these projects is Tom Pollock - Vice-President of Exploration.
Tom brings more than 25 years of exploration and management experience and has held various positions with BHP Minerals Ltd. from 1980 to 2000, which saw him work in Canada, Mali, Ghana, Saudi Arabia and China. His last position with BHP was Country Manager (Exploration) for China where he managed several joint ventures and four exploration offices. Following this, Tom worked as a geological consultant for a number of Vancouver based exploration companies. Mr. Pollock graduated from Queen's University in 1977 with a B.Sc. in geology and from McGill University in 1980 where he received a M.Sc.A. in mineral exploration.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
Drilling at Pryor's old blow out (12,000 bbl/d) is nearly complete
Montello (TSXV: MEO) Progresses toward Depth at Massive Formation in Tennessee
By Doug Hadfield
Resourcex Investor
Sept. 18, 2007
As a director of Montello Resources (TSXV: MEO), a financial journalist and seasoned stock speculator, Marc Davis doesn’t get particularly caught up in the excitement of most oil & gas drill projects any more. But there are rare exceptions. And that’s why he agreed to become a director of the feisty oil & gas upstart, Montello Resources. He views it as a company that is drilling an oil and gas formation with the potential to blow Tennessee’s oil and gas industry wide open – literally. I spoke with Davis on the phone briefly and he explained a few of the salient details on the ground at Montello’s John Bowen #2 Test Well.
“We're drilling right now to find the hydrocarbon source of the most over-pressured oil county in all of Tennessee. In layman’s terms, there’s something big down there that was responsible for a gusher that spewed so much oil that the rig was apparently lifted right off the ground and the well had to be plugged for safety reasons,” Marc said, referring to the Howard-White #1 Well, which Pryor Oil drilled in 2002.
According to numerous 3rd party reports provided at www.montello.com, the Howard-White #1 could have been the largest well in recent Eastern US history – had it not blown out under its own unpredictably massive pressure and caught fire. The result was an ugly environmental accident that led the US Government and the Environmental Protection Agency (EPA) to halt the project indefinitely. That is, until Montello’s spud on August 15th, 2007. Pryor Oil essentially had the rights to Howard-White stripped from it; legal and cleanup fees sounded the company’s death knell. Read through www.pryoroil.com for the full picture.
Since then, little follow-up exploration has been reported in the area of the Howard-White #1. Records show that when Pryor’s drilling hit oil, the well began gushing light gravity crude oil at up to 750 barrels per hour, or 12,000 barrels of oil per day, which at today’s oil prices could generate close to $1 million in revenue per day. In spite of this, the oil and gas formation underlying the Howard-White #1 well remains untapped and tied up in a legal battle that has no end in sight.
According to Pryor Oil, the Howard-White #1 could have produced in excess of 5 million cubic feet of gas per day. (Both oil & gas co-exist in this part of Tennessee). Moreover, the same zone that caused the blow-out at the Howard-White #1 Well was encountered in the John Bowen # 1 Well – located 250 feet away from Montello's John Bowen # 2 Well.
According to a recent article posted by Davis on his electronic financial newsletter, www.smalllcapmedia.com, the John Bowen #1 remains significant to the overall picture in the area. It apparently flow tested at up to 800 barrels of oil per day prior to being cased and shut-in ahead of a production decision that never came, due to legal issues relating to the untimely death of the well's operator.”
Davis points out that Montello is not just after the rich shallow pocket of oil and gas that Pryor discovered, but also the source itself. That’s the big payoff. As such, Davis says, the company is not overly concerned that it has not yet hit the same shallow high pressure interval that Pryor hit back in 2002.
“I’m not in a position to say whether or not we’ve hit anything substantial yet, but we’re more than satisfied with our progress having drilled to a depth over 4000 feet to date”. He also told me: “We’re aware that there is concern that we’ve drilled past 2,400 feet and haven’t reported significant news yet but investors need to understand that the geology is very complex in this area and that what we are really after is the source of what caused the Howard-White #1 well to become over pressured at 2,400 feet.
To put the location of Montello’s John Bowen #2 Test Well into context, if you were to jump in your truck and drive from John Bowen #1 directly to Howard-White #1, you would be there in about a minute or two. It is so close geologically that the company, pundits, and many investors believe that Montello can hit the same pocket as Pryor Oil.
Montello and its 45% joint venture partners Austin Developments Corp. (TSXV: AUL) and Great Northern Oil Sands Inc. (OTC: GNNS:PK) have now progressed approximately 4,380 feet of the way down the planned maximum 9,000 foot well. The present well is the first of up to three or four that Montello the Operator, feels should be drilled to evaluate the potential in the area.
“We believe that one or more really big pay zones potentially exist at much deeper depths than we have penetrated so far,” Davis continued. “The fact that there was oil under such high pressure at 2,400 feet suggests that it migrated from a deeper formation, from the originating source if you will, and we're going after it.”
Davis anticipates another three weeks of drilling before Montello has a clear picture of the contents of John-Bowen #2. “Really the proof is in the pudding, which is illustrated by the mere existence of the blow out well, and also the John Bowen #1, which was never completed. There could be prolific oil and/or gas, but nobody has ever gone to basement. No company has gone to depth to probe where all the oil is emanating from. So we’re probing into uncharted geological territory.”
In response to concerns that company insiders have been clearing out their holdings or taking profit, Davis is dismissive. “Any selling that’s going on by company insiders is being used to prudently cash up Montello’s treasury. There’s not much of a spread on the exercise of these warrants or options. Certainly nobody’s selling them just to pocket small amounts of money. We’ve generated over $650,000 that way so far to help in the financing of acquiring further land leases, optioning of additional land, and to cover any unforeseen additional costs.”
Davis stated emphatically: “A company looks to make a discovery to benefit itself, its joint venture partners, and its shareholders not competitors waiting to pounce when it is opportunistic as land prices can be driven up to unreasonable levels. We need to try to ensure that a discovery benefits us – not the competition or unaffiliated 3rd parties.”
Montello Resources trades on the TSX Venture under the symbol MEO. The company has approximately 148,575,386 shares outstanding and a year high-low of $0.165 - $0.085. Find out more at www.montello.com
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
The author and ResourcexInvestor.com are not shareholders in the companies herein mentioned, and the author, as an employee of Resourcex Publishing Corp is expressly prohibited for owning any securities about which they may write for a period of 30 days prior to and 30 days after initial publication of the article in which the securities of any company are mentioned.
More on Montello: The results from John Bowen #2 are due any day... !
Montello (TSXV: MEO) Progresses toward Depth at Massive Formation in Tennessee
By Doug Hadfield
Resourcex Investor
Sept. 18, 2007
As a director of Montello Resources (TSXV: MEO), a financial journalist and seasoned stock speculator, Marc Davis doesn’t get particularly caught up in the excitement of most oil & gas drill projects any more. But there are rare exceptions. And that’s why he agreed to become a director of the feisty oil & gas upstart, Montello Resources. He views it as a company that is drilling an oil and gas formation with the potential to blow Tennessee’s oil and gas industry wide open – literally. I spoke with Davis on the phone briefly and he explained a few of the salient details on the ground at Montello’s John Bowen #2 Test Well.
“We're drilling right now to find the hydrocarbon source of the most over-pressured oil county in all of Tennessee. In layman’s terms, there’s something big down there that was responsible for a gusher that spewed so much oil that the rig was apparently lifted right off the ground and the well had to be plugged for safety reasons,” Marc said, referring to the Howard-White #1 Well, which Pryor Oil drilled in 2002.
According to numerous 3rd party reports provided at www.montello.com, the Howard-White #1 could have been the largest well in recent Eastern US history – had it not blown out under its own unpredictably massive pressure and caught fire. The result was an ugly environmental accident that led the US Government and the Environmental Protection Agency (EPA) to halt the project indefinitely. That is, until Montello’s spud on August 15th, 2007. Pryor Oil essentially had the rights to Howard-White stripped from it; legal and cleanup fees sounded the company’s death knell. Read through www.pryoroil.com for the full picture.
Since then, little follow-up exploration has been reported in the area of the Howard-White #1. Records show that when Pryor’s drilling hit oil, the well began gushing light gravity crude oil at up to 750 barrels per hour, or 12,000 barrels of oil per day, which at today’s oil prices could generate close to $1 million in revenue per day. In spite of this, the oil and gas formation underlying the Howard-White #1 well remains untapped and tied up in a legal battle that has no end in sight.
According to Pryor Oil, the Howard-White #1 could have produced in excess of 5 million cubic feet of gas per day. (Both oil & gas co-exist in this part of Tennessee). Moreover, the same zone that caused the blow-out at the Howard-White #1 Well was encountered in the John Bowen # 1 Well – located 250 feet away from Montello's John Bowen # 2 Well.
According to a recent article posted by Davis on his electronic financial newsletter, www.smalllcapmedia.com, the John Bowen #1 remains significant to the overall picture in the area. It apparently flow tested at up to 800 barrels of oil per day prior to being cased and shut-in ahead of a production decision that never came, due to legal issues relating to the untimely death of the well's operator.”
Davis points out that Montello is not just after the rich shallow pocket of oil and gas that Pryor discovered, but also the source itself. That’s the big payoff. As such, Davis says, the company is not overly concerned that it has not yet hit the same shallow high pressure interval that Pryor hit back in 2002.
“I’m not in a position to say whether or not we’ve hit anything substantial yet, but we’re more than satisfied with our progress having drilled to a depth over 4000 feet to date”. He also told me: “We’re aware that there is concern that we’ve drilled past 2,400 feet and haven’t reported significant news yet but investors need to understand that the geology is very complex in this area and that what we are really after is the source of what caused the Howard-White #1 well to become over pressured at 2,400 feet.
To put the location of Montello’s John Bowen #2 Test Well into context, if you were to jump in your truck and drive from John Bowen #1 directly to Howard-White #1, you would be there in about a minute or two. It is so close geologically that the company, pundits, and many investors believe that Montello can hit the same pocket as Pryor Oil.
Montello and its 45% joint venture partners Austin Developments Corp. (TSXV: AUL) and Great Northern Oil Sands Inc. (OTC: GNNS:PK) have now progressed approximately 4,380 feet of the way down the planned maximum 9,000 foot well. The present well is the first of up to three or four that Montello the Operator, feels should be drilled to evaluate the potential in the area.
“We believe that one or more really big pay zones potentially exist at much deeper depths than we have penetrated so far,” Davis continued. “The fact that there was oil under such high pressure at 2,400 feet suggests that it migrated from a deeper formation, from the originating source if you will, and we're going after it.”
Davis anticipates another three weeks of drilling before Montello has a clear picture of the contents of John-Bowen #2. “Really the proof is in the pudding, which is illustrated by the mere existence of the blow out well, and also the John Bowen #1, which was never completed. There could be prolific oil and/or gas, but nobody has ever gone to basement. No company has gone to depth to probe where all the oil is emanating from. So we’re probing into uncharted geological territory.”
In response to concerns that company insiders have been clearing out their holdings or taking profit, Davis is dismissive. “Any selling that’s going on by company insiders is being used to prudently cash up Montello’s treasury. There’s not much of a spread on the exercise of these warrants or options. Certainly nobody’s selling them just to pocket small amounts of money. We’ve generated over $650,000 that way so far to help in the financing of acquiring further land leases, optioning of additional land, and to cover any unforeseen additional costs.”
Davis stated emphatically: “A company looks to make a discovery to benefit itself, its joint venture partners, and its shareholders not competitors waiting to pounce when it is opportunistic as land prices can be driven up to unreasonable levels. We need to try to ensure that a discovery benefits us – not the competition or unaffiliated 3rd parties.”
Montello Resources trades on the TSX Venture under the symbol MEO. The company has approximately 148,575,386 shares outstanding and a year high-low of $0.165 - $0.085. Find out more at www.montello.com
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
Montello Resources (TSX.V:MEO) - Drilling Down The Devil’s Throat
By Eric Pratt
ResourcexInvestor.com
Montello Resources (TSX.V:MEO – www.montello.com), an oil and gas exploration firm based in Calgary, Alberta, potentially has a very big problem on its hands. It’s the kind of problem most junior explorers only wish they had.
The company is in the last leg of drilling on the John Bowen #2 test well in Tennessee, just over a mile from the site of the now notorious Pryor Oil blowout, after a drill penetrated a formation at 2,400 feet that was under an estimated 2200 pounds per square inch of pressure. The resulting explosion of condensates blew the derrick into the air, and by the time the EPA showed up to take control of the scene, the gusher had flowed at rates of up to 12,000 boe a day!
Pryor Oil was all but annihilated by the legal and cleanup costs, and for years afterwards, the Tennessee Oil and Gas Authority banned any further exploration in the region.
That was over 5 years ago, and it has taken that long for Montello president Bill Cawker to get the company’s ducks in a row to take another shot at the monster formation.
When it came to putting a property package together in Tennessee, fractured ownership and obtuse property configurations were enough to alienate all the usual American Big Oil suspects for a well with potential of the John Bowen.
The reality is that highly pressurized formations like the one under Tennessee are merely a technical challenge requiring a strategic approach to sinking a well.
Montello was delayed in spudding the John Bowen #2, originally planned for January 2007, due to the lead time required to organize specialized drilling equipment for the drilling program. The drilling contractor is Nabors Drilling USA, a subsidiary of Nabors Industries (NYSE:NBR). Nabors is the world’s largest provider of land and platform drilling contact services for exploration of oil, gas, and geothermal wells.
High-pressure reservoirs are traditionally drilled with large overbalanced margins to minimize the risk of unplanned reservoir inflow. The high pressures associated with these influxes can result in larger kick volumes, reduced reaction time and consequently, greater risk. Challenges associated with these overbalanced margins serve to increase loss of circulation risk, resulting in high-pressure kicks, differential sticking and wellbore damage, never mind environmental accidents like the one involving Pryor Oil in 2002.
Domestic supplies of hydrocarbon energy are a new priority for George Bush and the U.S. government. The upside for Montello is that should this first well result in the safe oil and gas production from a domestic source, it is likely that “Tennessee Oil and Gas” will be predisposed to accommodate Montello in its application for additional drill permits.
In the August monthly newsletter of the Tennessee Oil and Gas Association, the lead article quotes Montello’s intentions from the company’s own web site, which seems to demonstrate local support for Montello.
There are good reasons why major oil companies have steered clear of Tennessee. About 215 million years ago, under the heat and pressure of a continental collision, the rocks in northern Tennessee began to bend. When they broke — in a series of long, jagged, parallel lines — oil and gas migrated from deep in the Earth into cracks and folds in the rocks. Prospectors in Tennessee spend lifetimes tracing the patterns of ancient breakage; they call it "chasing fractures."
That makes the reservoir like the one that produced the Pryor gusher a rarity, and big oil companies don’t like to waste time on such locations. Drilling is shallow and cheap here, compared with Texas or Oklahoma, but the biggest discoveries have topped out at 1,000 barrels a day, a payoff too small to attract large companies.
''There are thousands of acres east of this that have never been drilled,'' added Alan Murrell, one of the owners of Southeastern Energy, the company that discovered an 800 boe/d well in 2004 near Pickett County.
'This has been a hot area to drill in,'' he said. ''Tennessee is finally getting the recognition it deserves. It's a little Texas, I've always thought.''
Montello, on the other hand, is drilling deep in an effort to get a broad understanding of the geophysical characteristics of the target ground. Montello will be drilling to the basement (Pre-Cambrian) to the depth of the "Granite Wash Shale” to an estimated depth of between 7000-9500 feet.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
The author and ResourcexInvestor.com are not shareholders in the companies herein mentioned, and the author, as an employee of Resourcex Publishing Corp is expressly prohibited for owning any securities about which they may write for a period of 30 days prior to and 30 days after initial publication of the article in which the securities of any company are mentioned.
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Yale Resources Reveals Progress at Carol Porphyry, Mexico
By Dale Anderson
Now that Yale Resources (TSXV: YLL)has completed phase one of its exploration program on its Carol property, investors who have been holding back awaiting progress will have a clearer picture of the potential of wholly owned concession.
According to a report released on July 13th, the property, located in the state of Sonora, Mexico, has turned up high grade results of 6.31 grams per tonne gold, 69.5 grams per tonne silver, 8.13 percent zinc and copper as high as 4.86 percent. While these results – and the copper and gold assays in particular – are notable, a further trenching program will be carried out between and around the high-grade samples from the first program in preparation for further drilling on the property.
The emerging picture of the property is that of a large skarn body that measures at least 1,100 metres by 400 metres, located in the southern portion of the property. This area was previously referred to as the “Balde skarn zone.” The sampling program consisted of a grid of samples taken at “50-metre intervals along sample lines spaced at 100 metres in order to get initial coverage of the whole area,” the press release stated.
Carol is an early stage prospect that Yale’s president Ian Foreman, P.Geo. says he and his board of directors chose for two reasons. First, some early sample grades assayed as high as 1.3% copper and 16% zinc over four meters, which suggested a deposit with the correct economics for further development.
The other attractive thing about Carol is its proximity to Frontera Copper Ltd.’s (TSX: FCC) Piedras Verdes copper mine, which is a 191 million tonne copper porphyry grading 0.36% Cu. Piedras Verdes is less than five kilometers away from Carol – “spitting distance” says Foreman – and is the most likely source for the Carol skarn(s).
“It’s a huge deposit, a really large porphyry and we’re on the periphery of the porphyry – try to say that five times fast – and at Carol we’ve identified a body that appears to be just over a kilometre in length about 500 hundred meters in width. If that is all mineralized and has interesting grades, then it could turn into a significant project.”
Now Yale will commence a trenching program between and around the high-grade samples from the first program. The first priority for the phase two program will be follow-up sampling over a 200-metre-by-300-metre zone located in the southwestern portion of the grid. It was here that the exploration team discovered three contiguous samples that returned 0.506 g/t, 1.875 g/t and 6.310 g/t of gold, and where four consecutive samples (over a width of at least 200 metres) returned high copper and zinc values, “up to a maximum of 1.78 per cent copper and 1.39 per cent zinc,” according to the press release.
Yale has had an active summer with numerous press releases announcing advancements on its various projects. Most recent was the addition of a promising new project to its growing Mexican portfolio. The past producing La Verde Grande Cu-Zn-Ag-Au Mine consists of six contiguous concessions that total approximately 300 hectares, as well as the nearby La Verdecita and El Picacho prospects, both of which saw limited production in the early 1900's. Both are also on strike with the La Verde Grande mine.
The company has also staked 1,900 hectares of prospective ground surrounding this area to cover additional skarn and porphyry potential.
Historical sampling within the 610m of historical workings at the La Verde Grande Mine, which saw operation in the 1900s and the 1960s, demonstrates the potential of the property. Reported grades include: 2.06 % copper, 1.91 % zinc, 33.07 g/t silver and 0.3 g/t gold for the upper workings and 2.54 % copper, 0.76 % zinc, 132.59 g/t silver and 0.3 g/t gold for the lower workings. As the deposit is at surface, the company anticipates that it could be exploitable by open pit methods.
Foreman says he also noticed copper-molybdenum (Cu-Mo) mineralization on his first visit to the property. Even with desert weathering conditions, modern IP surveys are very good at detecting weathered Cu-Mo deposits. These can be huge – and very profitable. Any indication of a major Cu-Mo deposit will attract the attention of the world’s biggest mining companies, such as Freeport-McMoRan, and Teck Cominco.
Foreman is keeping an eye on the big picture. “The geologic maps that we have, have no real evidence of large porphyries in this area. But we do know that Freeport-McMoRan drilled 8 holes, essentially on a 1 km spacing, and each hole intersected mineralized porphyry. So there’s a significant porphyry at the NE corner of our property that trends off our property. It’s anomalously mineralized and we still have yet to truly determine the size and scope of that porphyry. No drilling has been done in the core of the claims. Very limited reverse circulation drilling was done in the vicinity of the La Verde Grande mine.”
Yale’s other projects include Zacatecas, which recently saw 382 g/t silver and 416 g/t silver, with zinc reaching high grades of 2.50% and 3.19%; and Urique, which is sandwiched between Goldcorp's two million ounce El Sauzal gold mine to the south and Kimber Resources’ Monterde Property, with a reported 800,000 ounces gold and 45 million ounces silver, to the north.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.
Yale Resources Reveals Progress at Carol Porphyry, Mexico
By Dale Anderson
Now that Yale Resources (TSXV: YLL)has completed phase one of its exploration program on its Carol property, investors who have been holding back awaiting progress will have a clearer picture of the potential of wholly owned concession.
According to a report released on July 13th, the property, located in the state of Sonora, Mexico, has turned up high grade results of 6.31 grams per tonne gold, 69.5 grams per tonne silver, 8.13 percent zinc and copper as high as 4.86 percent. While these results – and the copper and gold assays in particular – are notable, a further trenching program will be carried out between and around the high-grade samples from the first program in preparation for further drilling on the property.
The emerging picture of the property is that of a large skarn body that measures at least 1,100 metres by 400 metres, located in the southern portion of the property. This area was previously referred to as the “Balde skarn zone.” The sampling program consisted of a grid of samples taken at “50-metre intervals along sample lines spaced at 100 metres in order to get initial coverage of the whole area,” the press release stated.
Carol is an early stage prospect that Yale’s president Ian Foreman, P.Geo. says he and his board of directors chose for two reasons. First, some early sample grades assayed as high as 1.3% copper and 16% zinc over four meters, which suggested a deposit with the correct economics for further development.
The other attractive thing about Carol is its proximity to Frontera Copper Ltd.’s (TSX: FCC) Piedras Verdes copper mine, which is a 191 million tonne copper porphyry grading 0.36% Cu. Piedras Verdes is less than five kilometers away from Carol – “spitting distance” says Foreman – and is the most likely source for the Carol skarn(s).
“It’s a huge deposit, a really large porphyry and we’re on the periphery of the porphyry – try to say that five times fast – and at Carol we’ve identified a body that appears to be just over a kilometre in length about 500 hundred meters in width. If that is all mineralized and has interesting grades, then it could turn into a significant project.”
Now Yale will commence a trenching program between and around the high-grade samples from the first program. The first priority for the phase two program will be follow-up sampling over a 200-metre-by-300-metre zone located in the southwestern portion of the grid. It was here that the exploration team discovered three contiguous samples that returned 0.506 g/t, 1.875 g/t and 6.310 g/t of gold, and where four consecutive samples (over a width of at least 200 metres) returned high copper and zinc values, “up to a maximum of 1.78 per cent copper and 1.39 per cent zinc,” according to the press release.
Yale has had an active summer with numerous press releases announcing advancements on its various projects. Most recent was the addition of a promising new project to its growing Mexican portfolio. The past producing La Verde Grande Cu-Zn-Ag-Au Mine consists of six contiguous concessions that total approximately 300 hectares, as well as the nearby La Verdecita and El Picacho prospects, both of which saw limited production in the early 1900's. Both are also on strike with the La Verde Grande mine.
The company has also staked 1,900 hectares of prospective ground surrounding this area to cover additional skarn and porphyry potential.
Historical sampling within the 610m of historical workings at the La Verde Grande Mine, which saw operation in the 1900s and the 1960s, demonstrates the potential of the property. Reported grades include: 2.06 % copper, 1.91 % zinc, 33.07 g/t silver and 0.3 g/t gold for the upper workings and 2.54 % copper, 0.76 % zinc, 132.59 g/t silver and 0.3 g/t gold for the lower workings. As the deposit is at surface, the company anticipates that it could be exploitable by open pit methods.
Foreman says he also noticed copper-molybdenum (Cu-Mo) mineralization on his first visit to the property. Even with desert weathering conditions, modern IP surveys are very good at detecting weathered Cu-Mo deposits. These can be huge – and very profitable. Any indication of a major Cu-Mo deposit will attract the attention of the world’s biggest mining companies, such as Freeport-McMoRan, and Teck Cominco.
Foreman is keeping an eye on the big picture. “The geologic maps that we have, have no real evidence of large porphyries in this area. But we do know that Freeport-McMoRan drilled 8 holes, essentially on a 1 km spacing, and each hole intersected mineralized porphyry. So there’s a significant porphyry at the NE corner of our property that trends off our property. It’s anomalously mineralized and we still have yet to truly determine the size and scope of that porphyry. No drilling has been done in the core of the claims. Very limited reverse circulation drilling was done in the vicinity of the La Verde Grande mine.”
Yale’s other projects include Zacatecas, which recently saw 382 g/t silver and 416 g/t silver, with zinc reaching high grades of 2.50% and 3.19%; and Urique, which is sandwiched between Goldcorp's two million ounce El Sauzal gold mine to the south and Kimber Resources’ Monterde Property, with a reported 800,000 ounces gold and 45 million ounces silver, to the north.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.
Yale Resources Reveals Progress at Carol Porphyry, Mexico
By Dale Anderson
Now that Yale Resources (TSXV: YLL)has completed phase one of its exploration program on its Carol property, investors who have been holding back awaiting progress will have a clearer picture of the potential of wholly owned concession.
According to a report released on July 13th, the property, located in the state of Sonora, Mexico, has turned up high grade results of 6.31 grams per tonne gold, 69.5 grams per tonne silver, 8.13 percent zinc and copper as high as 4.86 percent. While these results – and the copper and gold assays in particular – are notable, a further trenching program will be carried out between and around the high-grade samples from the first program in preparation for further drilling on the property.
The emerging picture of the property is that of a large skarn body that measures at least 1,100 metres by 400 metres, located in the southern portion of the property. This area was previously referred to as the “Balde skarn zone.” The sampling program consisted of a grid of samples taken at “50-metre intervals along sample lines spaced at 100 metres in order to get initial coverage of the whole area,” the press release stated.
Carol is an early stage prospect that Yale’s president Ian Foreman, P.Geo. says he and his board of directors chose for two reasons. First, some early sample grades assayed as high as 1.3% copper and 16% zinc over four meters, which suggested a deposit with the correct economics for further development.
The other attractive thing about Carol is its proximity to Frontera Copper Ltd.’s (TSX: FCC) Piedras Verdes copper mine, which is a 191 million tonne copper porphyry grading 0.36% Cu. Piedras Verdes is less than five kilometers away from Carol – “spitting distance” says Foreman – and is the most likely source for the Carol skarn(s).
“It’s a huge deposit, a really large porphyry and we’re on the periphery of the porphyry – try to say that five times fast – and at Carol we’ve identified a body that appears to be just over a kilometre in length about 500 hundred meters in width. If that is all mineralized and has interesting grades, then it could turn into a significant project.”
Now Yale will commence a trenching program between and around the high-grade samples from the first program. The first priority for the phase two program will be follow-up sampling over a 200-metre-by-300-metre zone located in the southwestern portion of the grid. It was here that the exploration team discovered three contiguous samples that returned 0.506 g/t, 1.875 g/t and 6.310 g/t of gold, and where four consecutive samples (over a width of at least 200 metres) returned high copper and zinc values, “up to a maximum of 1.78 per cent copper and 1.39 per cent zinc,” according to the press release.
Yale has had an active summer with numerous press releases announcing advancements on its various projects. Most recent was the addition of a promising new project to its growing Mexican portfolio. The past producing La Verde Grande Cu-Zn-Ag-Au Mine consists of six contiguous concessions that total approximately 300 hectares, as well as the nearby La Verdecita and El Picacho prospects, both of which saw limited production in the early 1900's. Both are also on strike with the La Verde Grande mine.
The company has also staked 1,900 hectares of prospective ground surrounding this area to cover additional skarn and porphyry potential.
Historical sampling within the 610m of historical workings at the La Verde Grande Mine, which saw operation in the 1900s and the 1960s, demonstrates the potential of the property. Reported grades include: 2.06 % copper, 1.91 % zinc, 33.07 g/t silver and 0.3 g/t gold for the upper workings and 2.54 % copper, 0.76 % zinc, 132.59 g/t silver and 0.3 g/t gold for the lower workings. As the deposit is at surface, the company anticipates that it could be exploitable by open pit methods.
Foreman says he also noticed copper-molybdenum (Cu-Mo) mineralization on his first visit to the property. Even with desert weathering conditions, modern IP surveys are very good at detecting weathered Cu-Mo deposits. These can be huge – and very profitable. Any indication of a major Cu-Mo deposit will attract the attention of the world’s biggest mining companies, such as Freeport-McMoRan, and Teck Cominco.
Foreman is keeping an eye on the big picture. “The geologic maps that we have, have no real evidence of large porphyries in this area. But we do know that Freeport-McMoRan drilled 8 holes, essentially on a 1 km spacing, and each hole intersected mineralized porphyry. So there’s a significant porphyry at the NE corner of our property that trends off our property. It’s anomalously mineralized and we still have yet to truly determine the size and scope of that porphyry. No drilling has been done in the core of the claims. Very limited reverse circulation drilling was done in the vicinity of the La Verde Grande mine.”
Yale’s other projects include Zacatecas, which recently saw 382 g/t silver and 416 g/t silver, with zinc reaching high grades of 2.50% and 3.19%; and Urique, which is sandwiched between Goldcorp's two million ounce El Sauzal gold mine to the south and Kimber Resources’ Monterde Property, with a reported 800,000 ounces gold and 45 million ounces silver, to the north.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.
Yale Resources Reveals Progress at Carol Porphyry, Mexico
By Dale Anderson
Now that Yale Resources (TSXV: YLL)has completed phase one of its exploration program on its Carol property, investors who have been holding back awaiting progress will have a clearer picture of the potential of wholly owned concession.
According to a report released on July 13th, the property, located in the state of Sonora, Mexico, has turned up high grade results of 6.31 grams per tonne gold, 69.5 grams per tonne silver, 8.13 percent zinc and copper as high as 4.86 percent. While these results – and the copper and gold assays in particular – are notable, a further trenching program will be carried out between and around the high-grade samples from the first program in preparation for further drilling on the property.
The emerging picture of the property is that of a large skarn body that measures at least 1,100 metres by 400 metres, located in the southern portion of the property. This area was previously referred to as the “Balde skarn zone.” The sampling program consisted of a grid of samples taken at “50-metre intervals along sample lines spaced at 100 metres in order to get initial coverage of the whole area,” the press release stated.
Carol is an early stage prospect that Yale’s president Ian Foreman, P.Geo. says he and his board of directors chose for two reasons. First, some early sample grades assayed as high as 1.3% copper and 16% zinc over four meters, which suggested a deposit with the correct economics for further development.
The other attractive thing about Carol is its proximity to Frontera Copper Ltd.’s (TSX: FCC) Piedras Verdes copper mine, which is a 191 million tonne copper porphyry grading 0.36% Cu. Piedras Verdes is less than five kilometers away from Carol – “spitting distance” says Foreman – and is the most likely source for the Carol skarn(s).
“It’s a huge deposit, a really large porphyry and we’re on the periphery of the porphyry – try to say that five times fast – and at Carol we’ve identified a body that appears to be just over a kilometre in length about 500 hundred meters in width. If that is all mineralized and has interesting grades, then it could turn into a significant project.”
Now Yale will commence a trenching program between and around the high-grade samples from the first program. The first priority for the phase two program will be follow-up sampling over a 200-metre-by-300-metre zone located in the southwestern portion of the grid. It was here that the exploration team discovered three contiguous samples that returned 0.506 g/t, 1.875 g/t and 6.310 g/t of gold, and where four consecutive samples (over a width of at least 200 metres) returned high copper and zinc values, “up to a maximum of 1.78 per cent copper and 1.39 per cent zinc,” according to the press release.
Yale has had an active summer with numerous press releases announcing advancements on its various projects. Most recent was the addition of a promising new project to its growing Mexican portfolio. The past producing La Verde Grande Cu-Zn-Ag-Au Mine consists of six contiguous concessions that total approximately 300 hectares, as well as the nearby La Verdecita and El Picacho prospects, both of which saw limited production in the early 1900's. Both are also on strike with the La Verde Grande mine.
The company has also staked 1,900 hectares of prospective ground surrounding this area to cover additional skarn and porphyry potential.
Historical sampling within the 610m of historical workings at the La Verde Grande Mine, which saw operation in the 1900s and the 1960s, demonstrates the potential of the property. Reported grades include: 2.06 % copper, 1.91 % zinc, 33.07 g/t silver and 0.3 g/t gold for the upper workings and 2.54 % copper, 0.76 % zinc, 132.59 g/t silver and 0.3 g/t gold for the lower workings. As the deposit is at surface, the company anticipates that it could be exploitable by open pit methods.
Foreman says he also noticed copper-molybdenum (Cu-Mo) mineralization on his first visit to the property. Even with desert weathering conditions, modern IP surveys are very good at detecting weathered Cu-Mo deposits. These can be huge – and very profitable. Any indication of a major Cu-Mo deposit will attract the attention of the world’s biggest mining companies, such as Freeport-McMoRan, and Teck Cominco.
Foreman is keeping an eye on the big picture. “The geologic maps that we have, have no real evidence of large porphyries in this area. But we do know that Freeport-McMoRan drilled 8 holes, essentially on a 1 km spacing, and each hole intersected mineralized porphyry. So there’s a significant porphyry at the NE corner of our property that trends off our property. It’s anomalously mineralized and we still have yet to truly determine the size and scope of that porphyry. No drilling has been done in the core of the claims. Very limited reverse circulation drilling was done in the vicinity of the La Verde Grande mine.”
Yale’s other projects include Zacatecas, which recently saw 382 g/t silver and 416 g/t silver, with zinc reaching high grades of 2.50% and 3.19%; and Urique, which is sandwiched between Goldcorp's two million ounce El Sauzal gold mine to the south and Kimber Resources’ Monterde Property, with a reported 800,000 ounces gold and 45 million ounces silver, to the north.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.
Yale Fast-Tracks Toward Producer Status with Past Producer
By Mel Davies
July 3, 2007
While many juniors are content to remain purely exploration-focused companies, some endeavor to become full-fledged producers. The quickest and most cost effective routes involve acquiring projects with near-term production potential or redeveloping past producing mines.
Yale Resources [Frankfurt: YAB; TSXV: YLL] is a prime example of a junior exploration company on the road to producer status. With four promising projects in Mexico, Yale is positioned to take advantage of the country’s historical mining heritage, extensive geological potential and favorable investment climate.
Since the turn of this century, Mexico has experienced a boom in the recommissioning of past producing mines and new discoveries on previously explored properties. When placed in the context of the long-term bullish outlook for metals such as gold and silver, and the current upsurge in most of the mineral commodity sector, it is clear Mexico’s present mining boom could continue for decades to come.
On June 30, Yale announced it had added another past producing property to its portfolio. The company acquired a 100% interest in the 300 hectare La Verde Grande Cu-Zn-Ag-Au Mine property for $US 1.6 million. In addition, the company has staked a further 1,900 hectares prospective ground for a mere $12,000. According to the press release, the new acquisition lies within 2 km of a paved highway and power grid, and consists of the La Verde Grande Mine, and the La Verdecita and El Picacho prospects. All three are historical mining sites that saw limited production in the early 1900s.
The property is situated in the state of Sonora, which has a significant mining history dating back to the Spanish Colonial era. Sonora is a part of the Mexican Copper Belt, from which the majority of Mexico’s copper is mined. Sonora is also home to the country’s highest copper producers, the Cananea and La Caridad mines. As one of the leading gold producing states in Mexico, Sonora also hosts the country’s largest gold producer, the La Herradura Mine.
The La Verde Grande Mine is an advanced stage target and saw limited production in the 1960’s, as well. A defined—although, non-NI 43-101compliant— historic resource of 459,551 tonnes grading 2.29% Cu, 98.54 g/t Ag, and 0.38 g/t Au was calculated in 1989. According to Yale Resources’ President, Ian Foreman, P.Geo, “there’s been a very small reverse circulation drill program done in the vicinity of the property.” The historical data from this work reports on samples taken within 610m of old workings on the La Verde Grande Mine: 2.06% Cu, 1.91% Zn, 33.07 g/t Ag and 0.3 g/t Au from the upper workings and 2.54% Cu, 0.76% Zn, 132.59 g/t Ag and 0.3 g/t gold from the lower workings.
The mineralization on the property involves a series of structurally controlled polymetallic skarn bodies (Cu, Zn, Ag, and Au) and veins. “It looks like there’s a real structural component,” says Foreman, “to where the 6 or 7 known targets are on our property.” Some of these targets lie in the La Verde Grande Mine site and some are in the La Verdicita and El Picacho prospects.
Yale’s short-term plans for the project involve obtaining the necessary environmental permitting. “We’re in Sonora,” says Foreman, “and the state of Sonora has very strict permitting laws.”
The next step in developing the property is, of course, identifying drill targets: “We want to get down there and start determining the exposed extent of the mineralization and confirm the orientation of the workings. And then we want to be putting some drill holes into this thing.”
In the early 1900’s, a significant amount of work was completed on the property and Yale has obtained a vast amount of historical data relating to this work. “We have a mountain of data right now,” says Foreman, “and that’s another key reason that we’re excited about this property. We’re not coming onto this property completely cold. We’ve got a real head start in regards to drill logs, geophysics, sample data, underground maps, satellite imagery, all these things. That saves us at least a year’s worth of work.”
Included in the historical data are shift reports from 1908 that describe as many as thirty workings within the property area. Initial work on the property will involve identifying all of the old workings. “Right now,” says Foreman, “we know of eight.” Foreman has been using satellite images to identify a number of workings that the company was previously unaware of. Because of the close proximity of the property to the Senora state capital, Hermosillo, says Foreman, “there’s actually very detailed satellite photo coverage of the area.”
Foreman believes many of the old workings may have collapsed in the last hundred years and therefore will be hard to spot with satellite imaging. How will Yale find the old collapsed workings? “Now we have to go ‘ground truth’,” says Foreman. “We need to put boots on the ground.”
What are Yale’s long-term goals for the La Verde Grande Mine project? “I want to put this property into production,” says Foreman.
Because the deposit lies in outcrops, Yale anticipates the mineralization could be extracted by small open-pit methods. “We can do that profitability,” believes Foreman, “and now we have to determine the level of consonance we need in order to start digging.” To make these determinations, Yale plans to conduct sampling and compile additional data on the property.
“We envision that the La Verde Grande property is going to be able to catapult Yale into a different category of companies,” predicts Foreman. With the acquisition of its newest Mexican property and management’s aggressive advancement on the Zacatecas Venture project, Yale has hopped on the fast-track to near-term producer status.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.
Yale Fast-Tracks Toward Producer Status with Past Producer
By Mel Davies
July 3, 2007
While many juniors are content to remain purely exploration-focused companies, some endeavor to become full-fledged producers. The quickest and most cost effective routes involve acquiring projects with near-term production potential or redeveloping past producing mines.
Yale Resources [Frankfurt: YAB; TSXV: YLL] is a prime example of a junior exploration company on the road to producer status. With four promising projects in Mexico, Yale is positioned to take advantage of the country’s historical mining heritage, extensive geological potential and favorable investment climate.
Since the turn of this century, Mexico has experienced a boom in the recommissioning of past producing mines and new discoveries on previously explored properties. When placed in the context of the long-term bullish outlook for metals such as gold and silver, and the current upsurge in most of the mineral commodity sector, it is clear Mexico’s present mining boom could continue for decades to come.
On June 30, Yale announced it had added another past producing property to its portfolio. The company acquired a 100% interest in the 300 hectare La Verde Grande Cu-Zn-Ag-Au Mine property for $US 1.6 million. In addition, the company has staked a further 1,900 hectares prospective ground for a mere $12,000. According to the press release, the new acquisition lies within 2 km of a paved highway and power grid, and consists of the La Verde Grande Mine, and the La Verdecita and El Picacho prospects. All three are historical mining sites that saw limited production in the early 1900s.
The property is situated in the state of Sonora, which has a significant mining history dating back to the Spanish Colonial era. Sonora is a part of the Mexican Copper Belt, from which the majority of Mexico’s copper is mined. Sonora is also home to the country’s highest copper producers, the Cananea and La Caridad mines. As one of the leading gold producing states in Mexico, Sonora also hosts the country’s largest gold producer, the La Herradura Mine.
The La Verde Grande Mine is an advanced stage target and saw limited production in the 1960’s, as well. A defined—although, non-NI 43-101compliant— historic resource of 459,551 tonnes grading 2.29% Cu, 98.54 g/t Ag, and 0.38 g/t Au was calculated in 1989. According to Yale Resources’ President, Ian Foreman, P.Geo, “there’s been a very small reverse circulation drill program done in the vicinity of the property.” The historical data from this work reports on samples taken within 610m of old workings on the La Verde Grande Mine: 2.06% Cu, 1.91% Zn, 33.07 g/t Ag and 0.3 g/t Au from the upper workings and 2.54% Cu, 0.76% Zn, 132.59 g/t Ag and 0.3 g/t gold from the lower workings.
The mineralization on the property involves a series of structurally controlled polymetallic skarn bodies (Cu, Zn, Ag, and Au) and veins. “It looks like there’s a real structural component,” says Foreman, “to where the 6 or 7 known targets are on our property.” Some of these targets lie in the La Verde Grande Mine site and some are in the La Verdicita and El Picacho prospects.
Yale’s short-term plans for the project involve obtaining the necessary environmental permitting. “We’re in Sonora,” says Foreman, “and the state of Sonora has very strict permitting laws.”
The next step in developing the property is, of course, identifying drill targets: “We want to get down there and start determining the exposed extent of the mineralization and confirm the orientation of the workings. And then we want to be putting some drill holes into this thing.”
In the early 1900’s, a significant amount of work was completed on the property and Yale has obtained a vast amount of historical data relating to this work. “We have a mountain of data right now,” says Foreman, “and that’s another key reason that we’re excited about this property. We’re not coming onto this property completely cold. We’ve got a real head start in regards to drill logs, geophysics, sample data, underground maps, satellite imagery, all these things. That saves us at least a year’s worth of work.”
Included in the historical data are shift reports from 1908 that describe as many as thirty workings within the property area. Initial work on the property will involve identifying all of the old workings. “Right now,” says Foreman, “we know of eight.” Foreman has been using satellite images to identify a number of workings that the company was previously unaware of. Because of the close proximity of the property to the Senora state capital, Hermosillo, says Foreman, “there’s actually very detailed satellite photo coverage of the area.”
Foreman believes many of the old workings may have collapsed in the last hundred years and therefore will be hard to spot with satellite imaging. How will Yale find the old collapsed workings? “Now we have to go ‘ground truth’,” says Foreman. “We need to put boots on the ground.”
What are Yale’s long-term goals for the La Verde Grande Mine project? “I want to put this property into production,” says Foreman.
Because the deposit lies in outcrops, Yale anticipates the mineralization could be extracted by small open-pit methods. “We can do that profitability,” believes Foreman, “and now we have to determine the level of consonance we need in order to start digging.” To make these determinations, Yale plans to conduct sampling and compile additional data on the property.
“We envision that the La Verde Grande property is going to be able to catapult Yale into a different category of companies,” predicts Foreman. With the acquisition of its newest Mexican property and management’s aggressive advancement on the Zacatecas Venture project, Yale has hopped on the fast-track to near-term producer status.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.
my pick is going to be wwf
Yale Resources as a social and environmental steward: a good reputation well earned
June 28, 2007
By Alison Metcalfe
Two millennia since the classical Romans laid down world-class roads to benefit their armies and their provincial taxpayers, farsighted mining engineers have been copying this workable practice.
Now, in a world suddenly re-awakened to the urgency of remedies for Planet Earth, some junior resource companies have stepped up their engineering in environmentally and socially sensitive countries. One junior has embarked on developing environmentally friendly coal-water fuels for its local mining equipment; others, like silver explorer Yale Resources Ltd. (TSXV.YLL), have focused on infrastructure that benefits the communities living near project properties.
The alternatives are not attractive: projects of great promise can fail with the first wind of a bad reputation.
Ian Foreman, the geologist who heads Yale Resources, has spent years working in Mexico, where local communities have risen to expect understanding and cooperation from the mining companies scratching for minerals in their vicinity.
“We take the environment first and foremost with regards to our exploration and still our industry has received a negative image with regard to the environment,” Foreman said recently. “I think that of all the industries, from chemical through forestry through mining, I would be surprised if the mining and exploration industry isn’t at the forefront of all industries leading change.”
He pointed out that Vancouver-based Yale Resources is making more than idealistic statements in Sonora, Mexico’s northwestern-most state, which diligently follows guidelines for environmental regulations.
Yale announced on June 25 that its Mexican subsidiary - Minera Alta Vista S.A. de C.V. - agreed to purchase a 100-percent interest in the La Verde Grande copper-zinc-silver-gold mine located in Sonora. La Verde Grande is Yale’s fourth acquisition in Mexico in the last year, and its most advanced property to date. The company also acquired, by staking, 1,900 hectares of prospective ground surrounding this area to cover additional skarn and porphyry potential.
The La Verde Grande Cu-Zn-Ag-Au Mine property is made up of six contiguous exploitation concessions that total about 300 hectares. The property contains the historic La Verde Grande copper-zinc-silver-gold mine, as well as the La Verdecita and El Picacho prospects, both of which saw limited production in the early 1900s. The property is within two km of a paved highway and a power grid.
"Exploration potential for the property is significant as the numerous mines, prospects and showings in the area have never been examined as a whole. Each of the various zones has been considered as separate bodies rather than part of a much larger mineralized system,” Foreman said.
Yale has purchased the complete historical database for 40,000 shares in Yale from Scorpio Mining Corp., which held an option on the property between 1999 and 2002 but performed limited exploration in the immediate area. Social and environmental concerns are a factor from the moment Yale considers purchasing a property.
“Before we even start a trenching program, we need to get an environmental permit from the State of Sonora. We actually have to file an environmental impact assessment study as we have with our Carol property. Later, we’ll have to go through the process of remediating the property as well – filling in the trenches and adits, and making sure that the access roads and such are built to standard,” he stated.
Environmental concerns alone, however, do not address communities’ longstanding concerns, particularly in developing countries where governments sometimes struggle to find the capital to build and maintain infrastructure such as roads in rural communities.
“There is a real advantage to cutting access roads in Mexico,” Foreman said. “Roads create access for more than just the exploration company. A lot of the time, the locals – the small farmers, the people who live in the communities – are greatly advantaged by us making these roads so that they have access to other communities and land.
“Because we are doing that, there is a potential for liability. So obviously the roads and access routes we build have to be made correctly, with attention to drainage and other engineering concerns. We have to be very careful with regards not only to where but also how we make these access roads.”
Yale also meets with the local communities, stating its objectives, and asking advice from elected leaders. Letting them become part of the process also works into the public relations aspect of a socially conscious business enterprise. The communities then can tell the explorers which groves of trees should be preserved, along with other social and environmental concerns.
Yale’s road on its Carol property is less than 1 km long, but other roads created when mining explorers initiated drill programs, were much longer.
The Carol property consists of six mining claims over 758.14 hectares, is 20 km north of Alamos in Sonora. It is about six km north of Frontera Copper Corp.'s huge Piedras Verdes copper porphyry deposit, making the Carol property reachable by excellent infrastructure. The property hosts three distinct mineralized targets – a copper-zinc-gold-silver skarn, a high-grade shear zone, and an epithermal vein hosting silver and gold.
Yale’s social and environmental actions are an early signal of a new cooperation throughout the industry that may lead to mining companies becoming more recognized as stewards of social and environmental responsibility.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.
Yale Resources as a social and environmental steward: a good reputation well earned
June 28, 2007
By Alison Metcalfe
Two millennia since the classical Romans laid down world-class roads to benefit their armies and their provincial taxpayers, farsighted mining engineers have been copying this workable practice.
Now, in a world suddenly re-awakened to the urgency of remedies for Planet Earth, some junior resource companies have stepped up their engineering in environmentally and socially sensitive countries. One junior has embarked on developing environmentally friendly coal-water fuels for its local mining equipment; others, like silver explorer Yale Resources Ltd. (TSXV.YLL), have focused on infrastructure that benefits the communities living near project properties.
The alternatives are not attractive: projects of great promise can fail with the first wind of a bad reputation.
Ian Foreman, the geologist who heads Yale Resources, has spent years working in Mexico, where local communities have risen to expect understanding and cooperation from the mining companies scratching for minerals in their vicinity.
“We take the environment first and foremost with regards to our exploration and still our industry has received a negative image with regard to the environment,” Foreman said recently. “I think that of all the industries, from chemical through forestry through mining, I would be surprised if the mining and exploration industry isn’t at the forefront of all industries leading change.”
He pointed out that Vancouver-based Yale Resources is making more than idealistic statements in Sonora, Mexico’s northwestern-most state, which diligently follows guidelines for environmental regulations.
Yale announced on June 25 that its Mexican subsidiary - Minera Alta Vista S.A. de C.V. - agreed to purchase a 100-percent interest in the La Verde Grande copper-zinc-silver-gold mine located in Sonora. La Verde Grande is Yale’s fourth acquisition in Mexico in the last year, and its most advanced property to date. The company also acquired, by staking, 1,900 hectares of prospective ground surrounding this area to cover additional skarn and porphyry potential.
The La Verde Grande Cu-Zn-Ag-Au Mine property is made up of six contiguous exploitation concessions that total about 300 hectares. The property contains the historic La Verde Grande copper-zinc-silver-gold mine, as well as the La Verdecita and El Picacho prospects, both of which saw limited production in the early 1900s. The property is within two km of a paved highway and a power grid.
"Exploration potential for the property is significant as the numerous mines, prospects and showings in the area have never been examined as a whole. Each of the various zones has been considered as separate bodies rather than part of a much larger mineralized system,” Foreman said.
Yale has purchased the complete historical database for 40,000 shares in Yale from Scorpio Mining Corp., which held an option on the property between 1999 and 2002 but performed limited exploration in the immediate area. Social and environmental concerns are a factor from the moment Yale considers purchasing a property.
“Before we even start a trenching program, we need to get an environmental permit from the State of Sonora. We actually have to file an environmental impact assessment study as we have with our Carol property. Later, we’ll have to go through the process of remediating the property as well – filling in the trenches and adits, and making sure that the access roads and such are built to standard,” he stated.
Environmental concerns alone, however, do not address communities’ longstanding concerns, particularly in developing countries where governments sometimes struggle to find the capital to build and maintain infrastructure such as roads in rural communities.
“There is a real advantage to cutting access roads in Mexico,” Foreman said. “Roads create access for more than just the exploration company. A lot of the time, the locals – the small farmers, the people who live in the communities – are greatly advantaged by us making these roads so that they have access to other communities and land.
“Because we are doing that, there is a potential for liability. So obviously the roads and access routes we build have to be made correctly, with attention to drainage and other engineering concerns. We have to be very careful with regards not only to where but also how we make these access roads.”
Yale also meets with the local communities, stating its objectives, and asking advice from elected leaders. Letting them become part of the process also works into the public relations aspect of a socially conscious business enterprise. The communities then can tell the explorers which groves of trees should be preserved, along with other social and environmental concerns.
Yale’s road on its Carol property is less than 1 km long, but other roads created when mining explorers initiated drill programs, were much longer.
The Carol property consists of six mining claims over 758.14 hectares, is 20 km north of Alamos in Sonora. It is about six km north of Frontera Copper Corp.'s huge Piedras Verdes copper porphyry deposit, making the Carol property reachable by excellent infrastructure. The property hosts three distinct mineralized targets – a copper-zinc-gold-silver skarn, a high-grade shear zone, and an epithermal vein hosting silver and gold.
Yale’s social and environmental actions are an early signal of a new cooperation throughout the industry that may lead to mining companies becoming more recognized as stewards of social and environmental responsibility.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.
Interesting Article
http://www.resourcexinvestor.com/news.php?id=1781
Interesting Article
http://www.resourcexinvestor.com/news.php?id=1781
Junior Exploration Companies Stand to Profit from Silver Bull
Myrna Davies
Gold Investments managing director, Mark O’Byrne, is optimistic about silver’s future and believes that silver will surpass $US 20/oz in 2007, $48.70/oz (non-inflation adjusted) before 2012, and $130/oz (inflation adjusted) in the next 8 years. In his May 2007 article, “Why the Silver Price is Set to Soar”, O’Byrne pens a convincing argument for why silver, one of the most undervalued commodities, is in the early stages of a long-term bull market.
O’Byrne lists several fundamental reasons for the emerging silver bull. The most convincing of his arguments, and the one most likely to effect the price of silver over the long-term, is the increasing gap between the near depleted above-ground supply of silver and the rising industrial demand.
O’Byrne reports that the industrial uses for silver, including in the auto, medical, and electronic industries, have increased since 2001 to a record high in 2005. He cites the most recent report from London-based researcher GFMS Ltd., which predicts a 6% growth rate this year in industrial uses of silver. This increasing industrial demand for silver can be linked to the economic growth of countries like China, and India, as well as with economically developing places like Brazil and Eastern Europe.
In March of this year, CBS MarketWatch’s Kevin Kerr, concluded “industrial demand [for silver] has been outstripping mining supply for the past 15 years, driving above ground supply to historically low levels.” O’Byrne believes the supply and demand gap “hasn’t resulted in significantly higher prices yet because the world has been able to fill the gap with inventories and official government stockpiles.” But, now all those stockpiles are dangerously close to running out.
CPM Group reports that between the years 1900 and 1990 the above ground silver supply was diminished by 65% (from 12 billion oz. to 2.2 billion oz). By today’s estimates, the supply of above ground refined silver now stands at a paltry 300 million oz.
Mark O’Byrne believes that the inelastic nature of both silver supply and demand “is another powerfully bullish aspect unique to silver.” The inflexible supply implies that significant mine supply cannot be expected to exert any downward pressure on value after silver rises in price. “It is extremely rare,” writes O’Byrne, “to find a commodity that is price inelastic in both supply and demand.”
A large majority of the investing public and financial services industry, says O’Byrne, “remains ignorant of the fundamentals in silver.” When considering all the evidence for the long-term silver bull, getting into the market at this stage will most likely pay off in a big way for smart investors. One of the ways O’Byrne suggests that investors can get in on the bull is by buying stock in silver exploration companies. Yale Resources is one such company whose unique properties deserve a closer look from investors.
Earlier this month, Yale released the results from their phase one drill program on its Zacatecas Venture silver project in Mexico. Much of the results confirmed Yale’s expectations of an average 200-300 grams per tonne silver; however, to management’s surprise, one hole on the Mina San Jose property showed an intercept of 1,340 grams per tonne over 0.8 metres.
The properties, under option from Impact Silver Corp., lie in Mexico’s Zacatecas mining district. The region hash a rich silver production history dating back to the Spanish Colonial era with past production estimated at 1.2 billion ounces. Penoles' Fresnillo Mine, ranked as the world's second largest primary silver mine (33.93 Moz Ag) in 2005, is also located in the Zacatecas mining district.
GFMS Ltd.’s survey of the silver market reports that in 2006 Mexico was the world's second largest silver producer (15%), just shy of first place (Peru, 17%). The major production states include Zacatecas, Durango, and Chihuahua.
Yale Resources president and CEO, Ian Foreman P.Geo. says, “Mexico is very well known for its historical resources, long history of mining and exploration, for being a mining friendly jurisdiction, and it is politically stable.”
Yale’s involvement with the Zacatecas project began last October when the company signed a letter agreement with Impact Silver Corp. [IPT- TSX-V], whose portfolio of advanced silver projects in Mexico includes two currently producing mines and a 500 tpd processing plant at Royal Mines in the Zacualpan Silver District. The terms of the agreement require Yale to reimburse Impact the property purchase cost and perform a minimum of US$ 100,000 exploration work within 18 months in order to earn a 65 % interest in the venture.
Each of the four properties Yale has optioned contains old workings, including a series of adits, left over from the days of the Spanish colonialists. Beside each of these adits are fortuitously located dumps with mineralization that Yale’s management assumes was uneconomical to the Spanish. “So we've gone in and sampled a lot of those dumps,’ said Foreman, “and the average grades come back 200-300 g/t silver, which a lot of companies promote as being economical underground and this is sitting on the surface.”
Having these mineralized dumps on the surface near the adits is really unique. It provides Yale with the knowledge that mineralization does exist at a certain depth and “it gives us a good idea as to what the low grade material is because you assume they've taken out the core which would be the high grade material.” The surface dumps also make it easy for Yale to start generating some cash flow relatively soon to advance the project. Its partner, Impact, is under an option agreement to purchase the Veta Grande Mill, which lies in close proximity to the Zacatecas project. Once everything is finalized, the two companies plan to use the mill to process the surface mineralization.
Zacatecas is one of four projects Yale is advancing throughout Mexico. Others include La Verde Grande mine (copper-zinc-silver-gold), Carol (copper-zinc) and Urique (gold-silver). These projects are evenly distributed between grassroots and advanced stage. The La Verde Grande mine is the company’s newest and most advanced stage acquisition. Historical documents claim there are 460,000 tonnes of copper-zinc-silver-gold mineralized rock here, which at today’s metal prices (as per Kitco.com on June 26th) would have an in-situ value of approximately $250 per tonne (not 43-101 compliant). The in-situ value of such a resource would be approximately $115 million. Yale’s market capitalization, however, is approximately $7.2 million suggesting that a robust drill program on the property to shore up the resource could add significantly to shareholder value.
The silver bull market is still in its infancy, and the likely long-term effects of the supply-demand gap on silver prices is bound to pay off for juniors like Yale Resources whose unique operations place them in prime standing to benefit from silver’s strengthening position in the commodity market.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.
Junior Exploration Companies Stand to Profit from Silver Bull
Myrna Davies
Gold Investments managing director, Mark O’Byrne, is optimistic about silver’s future and believes that silver will surpass $US 20/oz in 2007, $48.70/oz (non-inflation adjusted) before 2012, and $130/oz (inflation adjusted) in the next 8 years. In his May 2007 article, “Why the Silver Price is Set to Soar”, O’Byrne pens a convincing argument for why silver, one of the most undervalued commodities, is in the early stages of a long-term bull market.
O’Byrne lists several fundamental reasons for the emerging silver bull. The most convincing of his arguments, and the one most likely to effect the price of silver over the long-term, is the increasing gap between the near depleted above-ground supply of silver and the rising industrial demand.
O’Byrne reports that the industrial uses for silver, including in the auto, medical, and electronic industries, have increased since 2001 to a record high in 2005. He cites the most recent report from London-based researcher GFMS Ltd., which predicts a 6% growth rate this year in industrial uses of silver. This increasing industrial demand for silver can be linked to the economic growth of countries like China, and India, as well as with economically developing places like Brazil and Eastern Europe.
In March of this year, CBS MarketWatch’s Kevin Kerr, concluded “industrial demand [for silver] has been outstripping mining supply for the past 15 years, driving above ground supply to historically low levels.” O’Byrne believes the supply and demand gap “hasn’t resulted in significantly higher prices yet because the world has been able to fill the gap with inventories and official government stockpiles.” But, now all those stockpiles are dangerously close to running out.
CPM Group reports that between the years 1900 and 1990 the above ground silver supply was diminished by 65% (from 12 billion oz. to 2.2 billion oz). By today’s estimates, the supply of above ground refined silver now stands at a paltry 300 million oz.
Mark O’Byrne believes that the inelastic nature of both silver supply and demand “is another powerfully bullish aspect unique to silver.” The inflexible supply implies that significant mine supply cannot be expected to exert any downward pressure on value after silver rises in price. “It is extremely rare,” writes O’Byrne, “to find a commodity that is price inelastic in both supply and demand.”
A large majority of the investing public and financial services industry, says O’Byrne, “remains ignorant of the fundamentals in silver.” When considering all the evidence for the long-term silver bull, getting into the market at this stage will most likely pay off in a big way for smart investors. One of the ways O’Byrne suggests that investors can get in on the bull is by buying stock in silver exploration companies. Yale Resources is one such company whose unique properties deserve a closer look from investors.
Earlier this month, Yale released the results from their phase one drill program on its Zacatecas Venture silver project in Mexico. Much of the results confirmed Yale’s expectations of an average 200-300 grams per tonne silver; however, to management’s surprise, one hole on the Mina San Jose property showed an intercept of 1,340 grams per tonne over 0.8 metres.
The properties, under option from Impact Silver Corp., lie in Mexico’s Zacatecas mining district. The region hash a rich silver production history dating back to the Spanish Colonial era with past production estimated at 1.2 billion ounces. Penoles' Fresnillo Mine, ranked as the world's second largest primary silver mine (33.93 Moz Ag) in 2005, is also located in the Zacatecas mining district.
GFMS Ltd.’s survey of the silver market reports that in 2006 Mexico was the world's second largest silver producer (15%), just shy of first place (Peru, 17%). The major production states include Zacatecas, Durango, and Chihuahua.
Yale Resources president and CEO, Ian Foreman P.Geo. says, “Mexico is very well known for its historical resources, long history of mining and exploration, for being a mining friendly jurisdiction, and it is politically stable.”
Yale’s involvement with the Zacatecas project began last October when the company signed a letter agreement with Impact Silver Corp. [IPT- TSX-V], whose portfolio of advanced silver projects in Mexico includes two currently producing mines and a 500 tpd processing plant at Royal Mines in the Zacualpan Silver District. The terms of the agreement require Yale to reimburse Impact the property purchase cost and perform a minimum of US$ 100,000 exploration work within 18 months in order to earn a 65 % interest in the venture.
Each of the four properties Yale has optioned contains old workings, including a series of adits, left over from the days of the Spanish colonialists. Beside each of these adits are fortuitously located dumps with mineralization that Yale’s management assumes was uneconomical to the Spanish. “So we've gone in and sampled a lot of those dumps,’ said Foreman, “and the average grades come back 200-300 g/t silver, which a lot of companies promote as being economical underground and this is sitting on the surface.”
Having these mineralized dumps on the surface near the adits is really unique. It provides Yale with the knowledge that mineralization does exist at a certain depth and “it gives us a good idea as to what the low grade material is because you assume they've taken out the core which would be the high grade material.” The surface dumps also make it easy for Yale to start generating some cash flow relatively soon to advance the project. Its partner, Impact, is under an option agreement to purchase the Veta Grande Mill, which lies in close proximity to the Zacatecas project. Once everything is finalized, the two companies plan to use the mill to process the surface mineralization.
Zacatecas is one of four projects Yale is advancing throughout Mexico. Others include La Verde Grande mine (copper-zinc-silver-gold), Carol (copper-zinc) and Urique (gold-silver). These projects are evenly distributed between grassroots and advanced stage. The La Verde Grande mine is the company’s newest and most advanced stage acquisition. Historical documents claim there are 460,000 tonnes of copper-zinc-silver-gold mineralized rock here, which at today’s metal prices (as per Kitco.com on June 26th) would have an in-situ value of approximately $250 per tonne (not 43-101 compliant). The in-situ value of such a resource would be approximately $115 million. Yale’s market capitalization, however, is approximately $7.2 million suggesting that a robust drill program on the property to shore up the resource could add significantly to shareholder value.
The silver bull market is still in its infancy, and the likely long-term effects of the supply-demand gap on silver prices is bound to pay off for juniors like Yale Resources whose unique operations place them in prime standing to benefit from silver’s strengthening position in the commodity market.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.
Anticipation Builds Over Bayfield Ventures’ Rainy River Drilling
By Jared King
It is a rarity in today’s market to find a junior resource company that possesses such a diverse property package, experienced management team and tight share structure as Bayfield Ventures (TSXV: BYV). Bayfield is involved in exploration for gold in Northwestern Ontario, copper-gold and coal in Mongolia and diamonds in Central Saskatchewan. And although Bayfield has solid JVs with major players including both Goldcorp and BHP Billiton, Bayfield is trading at only $0.58 with a market cap just over $9 million. Value situations like this can turn pennies into dollars, and average traders into wealthy investors.
It seems Bayfield needs look no further than right next door to see the tremendous potential of its Rainy River property. The Rainy River property is located to the immediate east of Rainy River Resources’ recent mammoth gold discovery. Rainy River Resources Ltd. (TSXV: RR) has been very successful on the adjacent property, most recently drilling 55.7 meters true width interval grading 4.01 g/t Au (uncut) including a 27.8 meter true width interval of 7.20 g/t Au (uncut). It is important to note that Rainy River is currently trading at $5.15 with a market cap of over $220 million. With a matching geology, Bayfield has been employing the same exploration methods as Rainy River Resources in its initial fieldwork. Overburden sampling and tight grid electromagnetic and a magnetometer surveys have already been conducted. With these results Bayfield has defined the most promising targets for the Spring/Summer 2007 diamond drill program, which commenced at the end of May this year.
Bayfield’s president Donald C. Huston has a lot to be excited about. Speaking about the summer drill program at Rainy River, Huston said he was confident that drills would be turning as early as July 12th, and by the latest August. Bayfield has already had 300 overburden samples collected from the Rainy River properties this spring alone. “The gold grades in the samples have been very impressive to date,” Huston said. Mr. Huston also mentioned that Rainy River Resources relied heavily on overburden drilling to define their drill targets. This exploration method has proven very successful in its ability to focus drilling, resulting in cost efficient exploration.
Considering Bayfield’s tight share structure and recent interest in the Rainy River area, it’s increasingly possible that one or two solid assays will take this stock from the current price of $0.58 to over the $1.00 mark. When analyzing the technical position of BYV investors will find less potential for near turn downside that Bayfield’s peers. The chart shows strong support at the $0.55 level, and the diverse property package held by this micro cap company provides a high level or risk abatement. Speculation alone may carry this stock upwards in a somewhat slow summer market.
Not only does Bayfield have exciting properties, focused exploration programs, and large upside potential, it also has the management team to make it all come together. President Donald Huston and CEO James Pettit have over 40 years combined experience in the resource industry. Both men have had tremendous success with numerous public resource companies. Exploration Manager David Busch, P.Geo, has over 30 years experience working in Northwest Ontario alone, and has held position with Phelps Dodge, Brinex Ltd, and Getty Canadian Minerals Ltd. Busch was directly involved with the discovery of the Courageous Lake gold deposit – one of the 15 largest undeveloped gold deposits in the world.
Conclusion
Bayfield has a property package that is diverse, yet focused, and a management team that has an outstanding track record for success. The Rainy River property has the proximity and geology to host a major gold discovery and an aggressive exploration program is underway to find just that. At a price of $0.58 and a very tight share structure BYV provides huge upside potential with very little downside risk. This summer should be interesting with constant news and drilling underway. As investors start to recognize how undervalued BYV is, the price should climb steadily in anticipation of fall results. All there is to do from here is accumulate shares at these low prices and trust in this proven management team to bring up some holes similar to their successful neighbor.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.
Anticipation Builds Over Bayfield Ventures’ Rainy River Drilling
By Jared King
It is a rarity in today’s market to find a junior resource company that possesses such a diverse property package, experienced management team and tight share structure as Bayfield Ventures (TSXV: BYV). Bayfield is involved in exploration for gold in Northwestern Ontario, copper-gold and coal in Mongolia and diamonds in Central Saskatchewan. And although Bayfield has solid JVs with major players including both Goldcorp and BHP Billiton, Bayfield is trading at only $0.58 with a market cap just over $9 million. Value situations like this can turn pennies into dollars, and average traders into wealthy investors.
It seems Bayfield needs look no further than right next door to see the tremendous potential of its Rainy River property. The Rainy River property is located to the immediate east of Rainy River Resources’ recent mammoth gold discovery. Rainy River Resources Ltd. (TSXV: RR) has been very successful on the adjacent property, most recently drilling 55.7 meters true width interval grading 4.01 g/t Au (uncut) including a 27.8 meter true width interval of 7.20 g/t Au (uncut). It is important to note that Rainy River is currently trading at $5.15 with a market cap of over $220 million. With a matching geology, Bayfield has been employing the same exploration methods as Rainy River Resources in its initial fieldwork. Overburden sampling and tight grid electromagnetic and a magnetometer surveys have already been conducted. With these results Bayfield has defined the most promising targets for the Spring/Summer 2007 diamond drill program, which commenced at the end of May this year.
Bayfield’s president Donald C. Huston has a lot to be excited about. Speaking about the summer drill program at Rainy River, Huston said he was confident that drills would be turning as early as July 12th, and by the latest August. Bayfield has already had 300 overburden samples collected from the Rainy River properties this spring alone. “The gold grades in the samples have been very impressive to date,” Huston said. Mr. Huston also mentioned that Rainy River Resources relied heavily on overburden drilling to define their drill targets. This exploration method has proven very successful in its ability to focus drilling, resulting in cost efficient exploration.
Considering Bayfield’s tight share structure and recent interest in the Rainy River area, it’s increasingly possible that one or two solid assays will take this stock from the current price of $0.58 to over the $1.00 mark. When analyzing the technical position of BYV investors will find less potential for near turn downside that Bayfield’s peers. The chart shows strong support at the $0.55 level, and the diverse property package held by this micro cap company provides a high level or risk abatement. Speculation alone may carry this stock upwards in a somewhat slow summer market.
Not only does Bayfield have exciting properties, focused exploration programs, and large upside potential, it also has the management team to make it all come together. President Donald Huston and CEO James Pettit have over 40 years combined experience in the resource industry. Both men have had tremendous success with numerous public resource companies. Exploration Manager David Busch, P.Geo, has over 30 years experience working in Northwest Ontario alone, and has held position with Phelps Dodge, Brinex Ltd, and Getty Canadian Minerals Ltd. Busch was directly involved with the discovery of the Courageous Lake gold deposit – one of the 15 largest undeveloped gold deposits in the world.
Conclusion
Bayfield has a property package that is diverse, yet focused, and a management team that has an outstanding track record for success. The Rainy River property has the proximity and geology to host a major gold discovery and an aggressive exploration program is underway to find just that. At a price of $0.58 and a very tight share structure BYV provides huge upside potential with very little downside risk. This summer should be interesting with constant news and drilling underway. As investors start to recognize how undervalued BYV is, the price should climb steadily in anticipation of fall results. All there is to do from here is accumulate shares at these low prices and trust in this proven management team to bring up some holes similar to their successful neighbor.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.
Yale Resources Board of Directors has Industry Great
By Greg Nelson
June 25, 2007
How does the presence of a player like Wayne Gretzky affect a hockey team? Sure he helps it win games, but what else? Because of his prowess on the rink, ticket sales go up. He brings a certain amount of prestige and notoriety to the team and the home city. He attracts skilled players who want to play with him and learn from the very best the league has to offer.
It’s no different in mining, especially in the current superbull. Stars are made. Fortunes are made. Everyone wants to work with the stars because they have proven time and time again that they can deliver beyond what anyone expects. Yale Resources (TSX.V:YLL), a silver/gold/copper junior exploration company with three properties in Mexico is lucky enough to have on its board of directors, one of the greats in the Canadian mining industry, Richard Hughes.
Mr Hughes is revered primarily because he was instrumental in discovering the gold deposit at Hemlo, Ontario in the 1980’s. Hughes started two exploration companies, Golden Sceptre and Goliath Gold, disovered the deposit and secured rights to a large land package in the Hemlo area. Stock prices for both companies, which began in the $0.20 range, ran up to $94.00 and $96.00 respectively at the top of the market. Subsequent to the discovery, both companies were acquired by Noranda, which built the Golden Giant mine and operated it under the flag of Hemlo Gold Mines. The mine had a 21-year life and mined in excess of 6 million ounces of gold. The average gold grade was 10 g/t gold. Production peaked in the early 1990’s with approximately 500,000 ounces of gold per year. It was a massive deposit which made many people – not least of all Mr. Hughes himself – very wealthy.
Mr. Hughes was also pivotal in the Balmoral discovery in Quebec approximately 30 years ago, which led to the creation of the Balmoral Mine, a mine that produced for about 13 years. Stock prices began at $0.10 and ran up to $40.00 before lower gold prices coincided with Balmoral running out of economic grade ore.
The Sleeping Giant mine north of Amos, Quebec, another notch in Hughes’ exploration belt, has been in production for 15 years. Those stocks were Perron Gold, which started at $0.12 and hit a high of $7.00 and Dorville started at about $0.20 and went up to $13.
If Mr. Hughes had the golden touch then, he doesn’t seem to have lost it. He is President and owner of Hastings Management Corp. and oversees the activities of several junior exploration companies. Many of them are doing well at the moment, partly, many think, because the Hughes name is attached. Investors have begun following whatever Richard Hughes is involved in.
Recently, Hughes’ Golden Chalice Resources (TSX.V:GCR) exploration team put a drill hole in the ground at its Langmuir property south of Timmins Ontario and intersected 1.14% nickel over 72.50 meters, including two high grade zones of 2.23% nickel, 0.22% copper and 0.20g/t platinum over 17.50m; and 1.74% nickel, 0.12% copper and 0.20g/t platinum over 13.10m. The results, reported on May 16 caused GCR stock to skyrocket from below $0.30 to a high of $4.05 over the following weeks, before settling back down around the $3.00 mark. Since the initial results, Golden Chalice drilled a second hole and encountered similar mineralization.
What was “Langmuir” before is now “the Langmuir Discovery.” In an interview with, Stanley Hunt, who after 25 years in the industry could barely contain his excitement about Langmuir’s potential, Hughes himself said “we have something that looks quite significant… this has the smell of something big about it…There’s blebs of massive sulphides within the disseminated nickel right through the rock. These little blebs would indicate to us that there’s probably a massive sulphide source somewhere either to one side or most likely at depth, which would be more like a Voisey’s Bay or a perhaps Norilsk deposit, the largest deposit in the world, which is located in Russia.”
Wouldn’t it have been nice to be in on the ground floor on that one? In an interview with CEOCFO Interviews and News, Hughes said, “We look for something big. There are lots of little mineralized narrow veins, but the odds of finding a mine are one chance in a thousand from a prospect. However, our odds are one chance in thirty-five. We beat the odds considerably.”
So how does it bode for Yale Resources have Hughes on the team? It’s a boon: Because of his track record of creating value and discovering mines, no doubt, he helps win games. But what else? He attracts talent. He has connections. Money seems to follow him like a lost dog that won’t go home. And investors want a piece of whatever he does. As Yale Resource President Ian Foreman said in an interview about his stellar board of directors, “In this industry successful people will continue to be successful and good management will create a successful company. The question will just be then, How long does it take for that company to be successful? ”
Even if success takes a while, Yale gives us reason to be hopeful. Reporting on June 11, Yale announced that the recent phase I drill program on its Zacatecas project returned a highlight intercept of 1,340 g/t silver over 0.80m. Keeping in mind that Yale shares outstanding are 19,609,223 and the stock is trading in and around the $0.30 mark, Yale still offers plenty of upside potential.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.
Eric check out wwf. I bought it at 11 cents really good volume.