Canadian Stocks: Current Trends and Chart Analysis

[december]

KNP.V nice report from Goldeditor.com

Knight Resources (TSXv: KNP) –Advancing One of the World’s Most Prospective Nickel Sulfide Areas…

Mention the word “nickel” and investors’ thoughts of the Sudbury mining area immediately spring to mind. But few investors realize there is another nickel region equally as lucrative - that the smart money is now gravitating towards. The Cape Smith Mineral Belt in north-western Quebec has emerged as one of the most prospective areas in the world to discover new deposits of Nickel-Sulfide mineralization.

Of particular note is the West Raglan project, a 720 square kilometer joint venture between Knight Resources and Anglo American Exploration (Canada). This area is located some 90 kilometers from Xstrata’s producing Raglan Nickel Mine. With the Raglan Mine boasting a reported resource of 32 million tonnes averaging 2.8% Nickel, the old adage about finding a new mine next to an existing one definitely applies here. In fact nickel mineralization in the Cape Smith Belt occurs in two different settings – the Raglan Formation and the Delta Horizon. Both settings extend some 65 kilometers onto the West Raglan project which is why investors are now starting to take a serious interest in Knight Resources.

However, Mother Nature can be cruel when it comes to readily giving up her cache of mineralization. Knight’s breakout discovery exploration season - 2003/2004 indicated that the nickel mineralization on the property occurs in sulfide lenses that vary in size and shape. These lenses also dip at a sharp angle.

Over the next three seasons, drill holes were oriented in a southerly direction to capture the premise that these lenses were oriented similar to the mineralization 90 kilometers away at Xstrata’s Raglan Mine. This is where Mother Nature can be cruel. After awhile it became obvious that the mineralized lenses actually dipped in a different direction than what they thought.

This untimely realization did not sit well with shareholders and Knight Resources stock price stayed dormant for three years, reflecting the street’s sentiment. However, undaunted and unfazed, Knight Resources kept pushing forward with an eye to unlocking the geological puzzle that lay beneath their feet. And the 2006 drill program was indeed a moment for the team to savor. Some of the more significant drill results returned nickel contents between 1.71% and 4.16% over widths of 7.8 meters (25 feet) to 24.5 meters (79 feet).

And as an added bonus, exploration efforts are now being headed up by Robin Adair who joined the team late in 2006 after enjoying a successful 25 year career in sulfide mineralization exploration with Falconbridge and Noranda.


Under the guiding hand of Mr. Adair, the 2007 exploration program will see 8000 meters of drilling at a budgeted cost of C$4.5 million. The objective of this program will be to discover new mineralized lenses further down dip and further along strike. Drilling commenced 20 days ago.

Nickel prices remain in their bullish uptrend, driven by strong demand and driven by the notion that the global mining community has not made a significant new Nickel discovery in years. Combine this with the notion that every drill hole at the West Raglan project is making the picture come into clearer focus, the time for investors to consider taking a position in Knight Resources is right now.

http://www.goldeditor.com/articledisplay.php?id=1911