Yale Resources Team Selects Top Properties, Unveils High Grades in Mexico
By Rob Staianno
June 21, 2007
On June 11, 2007, Yale Resources (TSX.V:YLL) reported significant intercepts from its Phase I drill program at the Zacatecas project. Highlights included a huge 1,340 g/t silver over 0.80m. With the recent completion of the Phase I drill program on Zacatecas, Yale Resources has only to finish drilling at San Sabino to complete the terms of its option agreement and earn a 65% interest in the Mina San Jose, San Sabino and Salvador properties. Drilling at San Sabino is scheduled to take place this fall.
Yale Resources has a letter of agreement with IMPACT Silver Corp to acquire 80% interest in the three properties in the Zacatecas silver district in Mexico. Yale will earn 65% interest in San Sabino, San Jose and Salvador, collectively known as the Zacatecas project by paying IMPACT its full purchase price for the properties, and spending US$100,000 on exploration within 18 months. Once it has earned the initial 65% interest, Yale can earn the remaing 15% by paying US$125,000 or the equivalent in shares – IMPACT’s choice.
With the Phase I program at Zacatecas completed, Yale Resources plans a Phase 2 program to begin on the property this fall, concurrent with drilling at San Sabino. The Phase 2 drilling will focus particularly on the high grades coming out of the Mina San Jose property, which was host to the high grade intercept of 1,340 g/t silver and where dump samples turned up grades of 1kg/t silver.
Yale Resources’ highly experienced management team acquired the Zacatecas properties because of the high silver grades from the run of mine dumps, which they believe to be indicative of the high grade ore remaining in the ground below. Sampling showed that mineralization from the dumps grades on average more than 300 g/t silver.
Also of note, Yale management plans to investigate the possibility of processing mineralized dumps through a mill that IMPACT, Yale’s joint venture partner, has an option to acquire. If testing of the milling goes well, Yale hopes to generate cash flow while using mineralized dumps as a bulk sample.
Management at Yale, which includes the much respected and followed Richard Hughes, were well aware of the promise of the prolific Zacatecas region when they acquired the properties. Silver production in the area dates back to the Spanish period. And the Zacatecas region in Mexico is one of the largest silver regions in the world.
In addition to the Zacatecas Venture, Yale has two other Mexican projects, which also reflect the expertise of the Yale team in selecting properties, the Urique Project and the Carol Property. A significant amount of historic work has been done on the Urique Property, which, although not NI 43-101 compliant, nonetheless is evidence of potential within the 11 concessions totaling 28,880 hectares in the Sierra Madre Gold Belt in Northern Mexico.
The Sierra Madre Belt is home to large gold deposits and gold mines. Especially of interest, the Urique property directly borders the El Sauzal Mine which has proven and probable resources of 15,821,000 tonnes at 3.29 g/t gold for 1,673,000 ounces of gold and measured and indicated resources of 20,529,000 tonnes at 2.73 g/t gold for 1,802,000 ounces of gold.
Historic results on the Urique property include highlights of 532 g/t silver and 0.57 g/t gold over 1.5m from El Suaz. Samples from El Frijolar included 4.2 g/t gold and 46.9 g/t gold. Other areas boast historic grades as high as 86 g/t gold and 161 g/t silver from sampling at Urique and 35 g/t gold and 482 g/t silver from San Pedro.
The Urique Project is a joint venture with Exmin where Yale can earn 75% interest by spending US $4.5 million on exploration and property acquisition and issuing 1.5 million shares to Exmin over 5 years.
Following mangement’s acquisition logic, Yale’s Carol Property is located in northern Mexico 6 km from Frontera Copper Corp.’s Piedras Verdas copper deposit, which has proven and probable reserves of 191 million tonnes at 0.36% copper. NI 43-101 compliant sampling on one of the three mineralized zones on the Carol Property, the Balde Skarn Zone returned results including 5.32% copper, 1.53% zinc, 300 ppb gold and 8.0 g/t silver. Historic sample results from a second zone, the Escondida zone returned 5.5% copper, 3.18% zinc, 0.99% gold and 15 g/t silver over 4m.
Yale can earn 100% interest in the Carol Property by paying US $250,000 over 3 years.
With these excellent Mexican properties and high grades in hand, the Yale Resources team is poised to move forward. President Ian Foreman perhaps said it best in an interview, “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?”
With Yale Resources stock sitting at an attractively low $0.285, getting in at this stage of the game on properties with excellent grades and a management team that consistently delivers, may be an excellent way to maximize the upside.
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.
