InMed Pharmaceuticals Inc. (INM)

[amarksp]

International Northair Mines (INM : TSX-V : C$0.85) - HOLD - Target price: NA
Graeme Currie
Comment: International Northair initial drill results from El Tesoro below surface values

International Northair is a junior currently focused on the El Tesoro project. The initial phase of drilling was conducted in Q1/04 and yesterday the results were released. We calculate that the gold grade multiplied by thickness for the four zones tested average at 4.52 g/t Au, with the A Zone having the highest average of 7.45 g/t Au. If the higher-grade interval in hole 04-006 is removed from the calculation, the average grade for all zones declines to 3.78 g/t Au, thus this one hole clearly influences the overall results. As compared to the surface chip samples from the appropriate zones all grades fell well shy of initial surface values, thus there may have been some form of surface enrichment, though this is only conjecture at present. We have also reviewed mechanical trench assay values from the A Zone previously reported by the company. Again, the drill assays reported yesterday fall well shy of trench values save for holes 006 and 020. Additional exploration and drilling is clearly warranted for this project and is planned – however, the results released to date fall shy of our expectations regarding grade. Thus, we are lowering our recommendation from Speculative Buy to HOLD