INTL. NORTHAIR MINES LTD. (INM : TSX-V : C$1.20) -
SPECULATIVE BUY -
12-MONTH TARGET PRICE: NA
Graeme Currie
Comment: International Northair reports additional high-grade Au/Ag trench values Yesterday, Northair reported the technical trench results from the next zone tested in this program - the E Zone. Results from this target, too, have confirmed previous chip sample grades. We understand that the trenching program will continue through February and that an initial drill program could be considered for a late February start date. Though no budget is yet set, we would assume that drilling of some 2000-3000 metres might be considered as a first phase. Though very early in its exploration stage, the El Tesoro prospect has already yielded some very encouraging surface values. The mechanical trenching results assist in removing some concerns relating to surface enrichment, and the values reported from the A and E Zones do provide further evidence of potential economic grades and thickness. Though a grassroots target, we consider the exploration potential as evidenced by results to date as positive. The exploration leverage provided by this junior, given the current market capitalization of Northair that is just over $15 million, appears to be very good. We rate the shares as a SPECULATIVE BUY for risk accounts only.
