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Friday, February 11, 2011 8:32:32 PM
16 Month Old Report on Samex, but still good information.
SAMEX MINING CORP: A Very Special Report
By Clive Maund
Published: October 28, 2009 by GoldSpeculator
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On 17th October 2009 the Maund brothers, senior independant geologist Nigel Maund and stockmarket analyst Clive Maund visited Samex Mining Corp's Chimberos prospect in northern Chile with Samex President and Director Jeff Dahl and VP Exploration and Director Robert Kell. A complete assessment of the geologic potential of the prospect was undertaken by Nigel Maund and an update on the potential for the stock based on technical analysis has been added by Clive Maund. What follows below is a two part article featuring this work.
PART 1: Nigel Maund's Fundamental Analysis of SAMEX MINING CORP.
by Nigel H Maund
BSc(Hons)Lond. MSc, DIC, MBA, F.AusIMM, F.AIG, F.SEG, MIMMM
Westralian Exploration Consultants Limited (Australia) – Principal Geologist
TICKER – SXG.V
SAMEX MINING CORP: CHIMBEROS Cu – Au – Ag PROSPECT REVIEW - CHILE
“THE GEOLOGIC SCENE IS SET FOR A MAJOR IOCG DISCOVERY”
The writer visited the Chimberos Prospect in Region III of Chile with this website owner Clive Maund and SAMEX Directors, Mr. Jeff Dahl and Mr. Rob Kell on the 17th October 2009. A complete geologic review of the prospect was undertaken with a view to its overall exploration potential.
The location of the Chimberos Prospect is given on Plate 2 below together with other SAMEX properties in the region. SAMEX tenement holdings over this prospect are given on Plate 4 further down the page. A substantial Chilean mining company, Sociedad Contractuel Minera Carola (Carola), holds title to the balance of the ground over the Chimberos prospect. This company is currently mining one of the long established Punte del Cobre copper – gold mines immediately south and east of the regional centre of Copiapo (150,000 inhabitants) in Region III of Chile, as shown on Plate 2. The latter has produced more than 140Mt at a grade of nearly 2% Cu and 0.4 g/t Au, from extensive underground mines, working vein breccia and stacked manto deposits, developed on the NE flank of the large Candeleria open pit copper – gold mine, which is now owned and operated by Freeport McMoRan. Carola currently has three large diamond rigs drilling 600m to 800m deep and steep angled holes, as shown on Plates 1 and 4, in an initial 10,000m program. Their target is a Candelaria type IOCG (Iron Oxide Copper Gold) porphyry system with associated Punte del Cobre type higher grade copper – gold manto and vein breccia deposits which occur as stacked systems astride high angle to vertical input feeder structures. The Candeleria / Punte del Cobre system hosts a resource of some 5 to 7 Mt of copper metal and 3 to 5 M oz gold, making it a Class II copper – gold resource. This counts as a major exploration target.
Plate 1: A Sociedad Contractuel Minera Carola truck mounted diamond rig drilling an angled hole towards and near the boundary of SAMEX tenements at the Chimberos prospect - Chile
Plate 2: The location of the Buena Esperanza – Tres Puntas (Chimberos) Prospects – Region III – Chile – Metallogenic Geologic Map (SERNAGEOMIN). Red line points to Chimberos prospect.
The Candelaria Mine, illustrated on Plate 9, contains greater resources than the out-of-date published reserves of 450Mt at 1.0% Cu and 0.30 g/t Au and is the most significant mineral deposit in Chile’s Coastal Cordillera belt. Owing to the complex tenement holdings around Candelaria, Freeport’s scope for reserve expansion around the drilled out deposit is somewhat restricted. Hence, the reserve does not reflect the full scale of the Candeleria resource. The latter is thought to be in the vicinity of 1 Gt of similar grades from exploration drilling undertaken on adjacent ground.
SAMEX has to date largely focused their activities on securing all the tenements and in undertaking exploration work at their “Los Zorros” complex of prospects located some 60km south of Copiapo. Rob Kell has been assembling the SAMEX tenement package in Chile based on sound geologic area selection principles and his own extensive industry experience. The Chimberos prospect was built around the old Buena Esperanza silver – copper mines shown on Plate 2 and illustrated on Plates 3 and 4. These workings have extracted high grade silver and copper ores, principally as native silver, oxides and from disseminated metal sulfides, including freibergite – cuprite – chalcocite and chalcopyrite over more than 120 years. The workings extend to depths of up to 150m below surface in substantial vertical shafts and Buena Esperanza was the third largest silver producer up until the establishment of the huge mechanized porphyry copper mines in Chile. The structure that controls the vein and manto style deposits at Buena Esperanza can be traced along strike for more than 6km to the mine workings at Tres Punta to the north, and hence is a major geologic feature. At surface the mineral assemblage is high level epithermal to upper mesothermal with localized high grade gold – silver veining and replacement bodies, and copper – gold – silver. However, at depth it is strongly suspected that this mineralization style will morph into Punte del Cobre copper - gold type structure – lithology controlled steep vein breccia and gently dipping stacked “manto” replacement deposits offering significant tonnage potential.
Plate 3: A view south along the Buena Esperanza silver - gold - copper workings located entirely within SAMEX tenements at the Chimberos Prospect. The structural control to mineralization is apparent on the plate.
Plate 4: A Google Earth image showing the location of SAMEX tenements and areas where Sociedad Contractuel Minera Carola are currently drilling in their Phase 1 diamond drilling program.
Furthermore, and perhaps more significantly, the hydrothermal alteration envelope, in terms of mineralogy and scale, identified by SAMEX, and substantiated by the writer, points to a major IOCG system of the Candelaria type developed at unknown depth beneath the Chimberos project. However, the expected depth is unlikely to be more than a few hundred meters, given the hydrothermal alteration mineral assemblage and sheer scale of the alteration developed, as apparent on Plate 8. The geologic stratigraphy exposed on the property reveals members of the Abundancia Formation which comprises a sequence of interbedded limestones and andesitic volcaniclastic rocks. This formation is underlain by the main ore host at Punte del Cobre and Candeleria mines; i.e., the Punte del Cobre formation, which comprises a suite of andesitic volcanic lavas, tuffs, agglomerates and lahars (collectively known as volcaniclastics). At Chimberos, the writer observed major hydrothermal alteration and skarn development in the Abundancia Formation members with coarse andradite (garnet) – epidote – chlorite – carbonate ± specular hematite skarn rocks suggestive of proximal development to the heat source. This tabular gently south dipping skarn body is immediately underlain by substantial manto copper – gold mineralisation, developed over a distance of 1.5km as chrysocolla, cuprite, chalcocite and chalcopyrite as shown on Plates 5 and 6. This mineralization underlies the SAMEX tenements. There is evidence exposed on the Chimberos prospect of stacked skarn and copper – gold manto bodies typical of the Punte del Cobre style of mineralization. These areas have never been tested by drilling.
Table 1, below, has been prepared to summarize for the investor the main features of the Chimberos prospect. From Plate 4 above, it is apparent that SAMEX possesses a strategic tenement holding in the unfolding exploration play currently underway. Furthermore, the location of any resource defined by exploration drilling within 2 to 4 km from an “A” class asphalted road could hardly be better. The only problem the writer can foresee will be the availability of water. The terrain itself poses no problems to exploration or subsequent development.
SAMEX’s strategy should now be focused towards drill testing the deeper potential of the Buena Esperanza mine workings for Punte del Cobre copper – gold – silver mineralization where a substantial tonnage of stacked manto deposits may be expected. SAMEX are very well placed to benefit from the positive results of the unfolding IOCG exploration play currently underway, as Carola will be strongly constrained in any potential mine development by the SAMEX ground holding, as evidenced on Plate 4.
Plate 5: Copper Manto development immediately beneath the andradite garnet – epidote – carbonate – hematite skarn with blue (chrysocolla) – cuprite – chalcocite (grey) and ochreous hematite – limonite developed in the oxide zone after copper sulfides.
Plate 6: Extensive local miner (picaneros) workings developed within the copper gold manto immediately beneath the andradite – grossular – epidote – carbonate – hematite skarn at the Chimberos prospect.
Plate 7: Coarse euhedral andradite - grossular garnet IOCG skarn developed on the SAMEX Chimberos prospect – Abundancia Formation – Chile – skarn ridge shown on Plate 8 below.
Plate 8: A view south from the coarse andradite garnet – epidote – chlorite – hematite – carbonate skarn manto overlooking the main exploration target area currently being drill tested by Sociedad Contractuel Minera Carola for Candelaria – Punte del Cobre style copper – gold mineralization.
Table 1: Assessment Criteria for the SAMEX Chimberos Prospect
Plate 9: A view of Freeport McMoRan’s “Candeleria” open pit copper – gold (IOCG) mine near Copiapo – Region III Chile. This picture provides some idea of the target being sought within the Chimberos prospect area.
PART 2: Clive Maund's Technical Analysis of SAMEX MINING CORP.
by Clive Maund
Samex Mining is a stock that is still in the earliest stages of a major bullmarket advance. On its 3-year chart we can see that it has just started to emerge from a low Flat Pan base, which formed above a clear line of support after it finally hit bottom in October last year after a severe decline. The upside volume buildup that preceded the breakout, and the heavy volume on the breakout, which have driven the On-balance Volume line up, are signs that an important uptrend is beginning. What typically happens in a situation like this is that the stock takes off like a rocket as the market gets its collective head around the sudden improvement in fortunes and outlook for the company, and after a large percentage gain stalls out and runs off sideways for many months consolidating, which gives the steadily improving fundamentals of the company "time to catch up" and justify the higher stock price. This is the dynamic that creates the common and bullish Pan & Handle base pattern. On the Samex chart we see the price starting to ascend from the completed Pan - it should now ascend rapidly, probably to the resistance level in the 50 - 60 cent area - but possibly considerably higher due to its spectacular fundamentals, before it runs off sideways probably for many months forming a "Handle" to complete the Pan & Handle base formation, giving the company time to improve its situation on the ground.
On the 6-month chart we can see recent action in more detail. Here we see where the stock was first recommended on Clive Maund due solely to the correct assessment of its technical condition. After that the writer was shown around the Los Zorros goldfield by company senior geologist Rob Kell and saw at first hand the huge potential of this prospect. This led to the second recommendation of the stock in October at the strategic point shown following a reaction, and principally on technical grounds, as price - volume action following the first recommendation had been very bullish. Then Nigel Maund arrived from Australia and in addition to visiting Los Zorros we inspected the astonishing Chimberos prospect in the company of Rob Kell and CEO Jeff Dahl, where we witnessed the neighbour's diamond drilling rigs in action close to Samex's tenements. Returning to the chart we see that following the 2nd recommendation of the stock it soared, this time on huge volume as it broke out from the Pan base, since which time it inched higher before reacting back to ease the overbought condition. While further consolidation or reaction would be helpful before the advance resumes, this is considered to be one of those rare cases where the outlook for the company is improving so rapidly - and the market's appreciation of this fact - that the stock price could continue to advance, overbought or not, with only the briefest of pauses for consolidation or minor reaction. Even in the event of a general market cave-in it is considered unlikely that the price will drop back below the new support at the 20 cent level. Thus anyone wishing to take positions in the stock should not expect to see more than a minor reaction - waiting for a larger one may involve missing it completely.
For the benefit of those who require a little guidance regarding the outlook for the stock price in the event of a major discovery being made, the following chart shows what happened to the stock price of Arequipa after it made a major discovery...
Chimberos is not the only promising prospect in Samex Mining's possession. Look out for another Special Report in due course on the wholly owned Los Zorros goldfield which is also in the same rich coastal belt in northern Chile, not far south of Freeport's giant Candelaria copper mine.
SAMEX MINING CORP: A Very Special Report
By Clive Maund
Published: October 28, 2009 by GoldSpeculator
------------------------------------------------------------------
On 17th October 2009 the Maund brothers, senior independant geologist Nigel Maund and stockmarket analyst Clive Maund visited Samex Mining Corp's Chimberos prospect in northern Chile with Samex President and Director Jeff Dahl and VP Exploration and Director Robert Kell. A complete assessment of the geologic potential of the prospect was undertaken by Nigel Maund and an update on the potential for the stock based on technical analysis has been added by Clive Maund. What follows below is a two part article featuring this work.
PART 1: Nigel Maund's Fundamental Analysis of SAMEX MINING CORP.
by Nigel H Maund
BSc(Hons)Lond. MSc, DIC, MBA, F.AusIMM, F.AIG, F.SEG, MIMMM
Westralian Exploration Consultants Limited (Australia) – Principal Geologist
TICKER – SXG.V
SAMEX MINING CORP: CHIMBEROS Cu – Au – Ag PROSPECT REVIEW - CHILE
“THE GEOLOGIC SCENE IS SET FOR A MAJOR IOCG DISCOVERY”
The writer visited the Chimberos Prospect in Region III of Chile with this website owner Clive Maund and SAMEX Directors, Mr. Jeff Dahl and Mr. Rob Kell on the 17th October 2009. A complete geologic review of the prospect was undertaken with a view to its overall exploration potential.
The location of the Chimberos Prospect is given on Plate 2 below together with other SAMEX properties in the region. SAMEX tenement holdings over this prospect are given on Plate 4 further down the page. A substantial Chilean mining company, Sociedad Contractuel Minera Carola (Carola), holds title to the balance of the ground over the Chimberos prospect. This company is currently mining one of the long established Punte del Cobre copper – gold mines immediately south and east of the regional centre of Copiapo (150,000 inhabitants) in Region III of Chile, as shown on Plate 2. The latter has produced more than 140Mt at a grade of nearly 2% Cu and 0.4 g/t Au, from extensive underground mines, working vein breccia and stacked manto deposits, developed on the NE flank of the large Candeleria open pit copper – gold mine, which is now owned and operated by Freeport McMoRan. Carola currently has three large diamond rigs drilling 600m to 800m deep and steep angled holes, as shown on Plates 1 and 4, in an initial 10,000m program. Their target is a Candelaria type IOCG (Iron Oxide Copper Gold) porphyry system with associated Punte del Cobre type higher grade copper – gold manto and vein breccia deposits which occur as stacked systems astride high angle to vertical input feeder structures. The Candeleria / Punte del Cobre system hosts a resource of some 5 to 7 Mt of copper metal and 3 to 5 M oz gold, making it a Class II copper – gold resource. This counts as a major exploration target.
Plate 1: A Sociedad Contractuel Minera Carola truck mounted diamond rig drilling an angled hole towards and near the boundary of SAMEX tenements at the Chimberos prospect - Chile
Plate 2: The location of the Buena Esperanza – Tres Puntas (Chimberos) Prospects – Region III – Chile – Metallogenic Geologic Map (SERNAGEOMIN). Red line points to Chimberos prospect.
The Candelaria Mine, illustrated on Plate 9, contains greater resources than the out-of-date published reserves of 450Mt at 1.0% Cu and 0.30 g/t Au and is the most significant mineral deposit in Chile’s Coastal Cordillera belt. Owing to the complex tenement holdings around Candelaria, Freeport’s scope for reserve expansion around the drilled out deposit is somewhat restricted. Hence, the reserve does not reflect the full scale of the Candeleria resource. The latter is thought to be in the vicinity of 1 Gt of similar grades from exploration drilling undertaken on adjacent ground.
SAMEX has to date largely focused their activities on securing all the tenements and in undertaking exploration work at their “Los Zorros” complex of prospects located some 60km south of Copiapo. Rob Kell has been assembling the SAMEX tenement package in Chile based on sound geologic area selection principles and his own extensive industry experience. The Chimberos prospect was built around the old Buena Esperanza silver – copper mines shown on Plate 2 and illustrated on Plates 3 and 4. These workings have extracted high grade silver and copper ores, principally as native silver, oxides and from disseminated metal sulfides, including freibergite – cuprite – chalcocite and chalcopyrite over more than 120 years. The workings extend to depths of up to 150m below surface in substantial vertical shafts and Buena Esperanza was the third largest silver producer up until the establishment of the huge mechanized porphyry copper mines in Chile. The structure that controls the vein and manto style deposits at Buena Esperanza can be traced along strike for more than 6km to the mine workings at Tres Punta to the north, and hence is a major geologic feature. At surface the mineral assemblage is high level epithermal to upper mesothermal with localized high grade gold – silver veining and replacement bodies, and copper – gold – silver. However, at depth it is strongly suspected that this mineralization style will morph into Punte del Cobre copper - gold type structure – lithology controlled steep vein breccia and gently dipping stacked “manto” replacement deposits offering significant tonnage potential.
Plate 3: A view south along the Buena Esperanza silver - gold - copper workings located entirely within SAMEX tenements at the Chimberos Prospect. The structural control to mineralization is apparent on the plate.
Plate 4: A Google Earth image showing the location of SAMEX tenements and areas where Sociedad Contractuel Minera Carola are currently drilling in their Phase 1 diamond drilling program.
Furthermore, and perhaps more significantly, the hydrothermal alteration envelope, in terms of mineralogy and scale, identified by SAMEX, and substantiated by the writer, points to a major IOCG system of the Candelaria type developed at unknown depth beneath the Chimberos project. However, the expected depth is unlikely to be more than a few hundred meters, given the hydrothermal alteration mineral assemblage and sheer scale of the alteration developed, as apparent on Plate 8. The geologic stratigraphy exposed on the property reveals members of the Abundancia Formation which comprises a sequence of interbedded limestones and andesitic volcaniclastic rocks. This formation is underlain by the main ore host at Punte del Cobre and Candeleria mines; i.e., the Punte del Cobre formation, which comprises a suite of andesitic volcanic lavas, tuffs, agglomerates and lahars (collectively known as volcaniclastics). At Chimberos, the writer observed major hydrothermal alteration and skarn development in the Abundancia Formation members with coarse andradite (garnet) – epidote – chlorite – carbonate ± specular hematite skarn rocks suggestive of proximal development to the heat source. This tabular gently south dipping skarn body is immediately underlain by substantial manto copper – gold mineralisation, developed over a distance of 1.5km as chrysocolla, cuprite, chalcocite and chalcopyrite as shown on Plates 5 and 6. This mineralization underlies the SAMEX tenements. There is evidence exposed on the Chimberos prospect of stacked skarn and copper – gold manto bodies typical of the Punte del Cobre style of mineralization. These areas have never been tested by drilling.
Table 1, below, has been prepared to summarize for the investor the main features of the Chimberos prospect. From Plate 4 above, it is apparent that SAMEX possesses a strategic tenement holding in the unfolding exploration play currently underway. Furthermore, the location of any resource defined by exploration drilling within 2 to 4 km from an “A” class asphalted road could hardly be better. The only problem the writer can foresee will be the availability of water. The terrain itself poses no problems to exploration or subsequent development.
SAMEX’s strategy should now be focused towards drill testing the deeper potential of the Buena Esperanza mine workings for Punte del Cobre copper – gold – silver mineralization where a substantial tonnage of stacked manto deposits may be expected. SAMEX are very well placed to benefit from the positive results of the unfolding IOCG exploration play currently underway, as Carola will be strongly constrained in any potential mine development by the SAMEX ground holding, as evidenced on Plate 4.
Plate 5: Copper Manto development immediately beneath the andradite garnet – epidote – carbonate – hematite skarn with blue (chrysocolla) – cuprite – chalcocite (grey) and ochreous hematite – limonite developed in the oxide zone after copper sulfides.
Plate 6: Extensive local miner (picaneros) workings developed within the copper gold manto immediately beneath the andradite – grossular – epidote – carbonate – hematite skarn at the Chimberos prospect.
Plate 7: Coarse euhedral andradite - grossular garnet IOCG skarn developed on the SAMEX Chimberos prospect – Abundancia Formation – Chile – skarn ridge shown on Plate 8 below.
Plate 8: A view south from the coarse andradite garnet – epidote – chlorite – hematite – carbonate skarn manto overlooking the main exploration target area currently being drill tested by Sociedad Contractuel Minera Carola for Candelaria – Punte del Cobre style copper – gold mineralization.
Table 1: Assessment Criteria for the SAMEX Chimberos Prospect
Plate 9: A view of Freeport McMoRan’s “Candeleria” open pit copper – gold (IOCG) mine near Copiapo – Region III Chile. This picture provides some idea of the target being sought within the Chimberos prospect area.
PART 2: Clive Maund's Technical Analysis of SAMEX MINING CORP.
by Clive Maund
Samex Mining is a stock that is still in the earliest stages of a major bullmarket advance. On its 3-year chart we can see that it has just started to emerge from a low Flat Pan base, which formed above a clear line of support after it finally hit bottom in October last year after a severe decline. The upside volume buildup that preceded the breakout, and the heavy volume on the breakout, which have driven the On-balance Volume line up, are signs that an important uptrend is beginning. What typically happens in a situation like this is that the stock takes off like a rocket as the market gets its collective head around the sudden improvement in fortunes and outlook for the company, and after a large percentage gain stalls out and runs off sideways for many months consolidating, which gives the steadily improving fundamentals of the company "time to catch up" and justify the higher stock price. This is the dynamic that creates the common and bullish Pan & Handle base pattern. On the Samex chart we see the price starting to ascend from the completed Pan - it should now ascend rapidly, probably to the resistance level in the 50 - 60 cent area - but possibly considerably higher due to its spectacular fundamentals, before it runs off sideways probably for many months forming a "Handle" to complete the Pan & Handle base formation, giving the company time to improve its situation on the ground.
On the 6-month chart we can see recent action in more detail. Here we see where the stock was first recommended on Clive Maund due solely to the correct assessment of its technical condition. After that the writer was shown around the Los Zorros goldfield by company senior geologist Rob Kell and saw at first hand the huge potential of this prospect. This led to the second recommendation of the stock in October at the strategic point shown following a reaction, and principally on technical grounds, as price - volume action following the first recommendation had been very bullish. Then Nigel Maund arrived from Australia and in addition to visiting Los Zorros we inspected the astonishing Chimberos prospect in the company of Rob Kell and CEO Jeff Dahl, where we witnessed the neighbour's diamond drilling rigs in action close to Samex's tenements. Returning to the chart we see that following the 2nd recommendation of the stock it soared, this time on huge volume as it broke out from the Pan base, since which time it inched higher before reacting back to ease the overbought condition. While further consolidation or reaction would be helpful before the advance resumes, this is considered to be one of those rare cases where the outlook for the company is improving so rapidly - and the market's appreciation of this fact - that the stock price could continue to advance, overbought or not, with only the briefest of pauses for consolidation or minor reaction. Even in the event of a general market cave-in it is considered unlikely that the price will drop back below the new support at the 20 cent level. Thus anyone wishing to take positions in the stock should not expect to see more than a minor reaction - waiting for a larger one may involve missing it completely.
For the benefit of those who require a little guidance regarding the outlook for the stock price in the event of a major discovery being made, the following chart shows what happened to the stock price of Arequipa after it made a major discovery...
Chimberos is not the only promising prospect in Samex Mining's possession. Look out for another Special Report in due course on the wholly owned Los Zorros goldfield which is also in the same rich coastal belt in northern Chile, not far south of Freeport's giant Candelaria copper mine.
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