NWT Mineral Exploration

[kraftdinner]

Talked to the company this morning to get an idea of activities for the winter.
- the updated mineral resource update to include the 10,000 meters of drilling this year is supposed to be 'imminent'
- drilling was done earlier in the year on the Del Norte property and assays are due 'soon'
- there will be some work done before year end on the Red Lake properties to fulfill flow-through obligations. Sounded like the Newman-Madsen was going to get most of the focus but all of the properties would get some attention.
- a metallurgy study will be done this winter on the Hackett River project
- drilling at Hackett River won't resume until the spring, he said April which matches this year


Looking at it now I think we're still expecting results from Hacket River, didn't ask him about that. Maybe they will come with the resource estimate. Anyway, when the results do come I believe Teck will have a 90 day period to back in for a 60% interest.

http://www.sabinasilver.com/documents/property-oct17-2005-SabinaSilverProjects.pdf

41.3M shares f/d

Hackett River is a rich deposit but its also up north with the diamond mines near the Artic Circle. I'm not sure just how rich it has to be to be economical but here is what we have (page 15 of above link):
Silver: 154,000,000 oz
Zinc: 1,700,000 tons
Lead: 233,000 tons
Copper: 125,000 tons
Gold: 448,000 oz

Add all this up and you get: 685,000,000 oz Ag-Equivalent (Does this equal 11,400,000 oz Au-Equivalent at 60:1???)
685M oz Ag x $7.50 = $5,137,500,000

Even if you discount this to 2% you get $102,750,000 divided by 41,300,000 shares = $2.49

With the property they just sold they have $15 million in working capital consisting of at least $2 million cash and $9 million worth of Wolfden shares (4,000,000 shares).

- I don't have a good idea of how far apart the zones of mineralization are but they all appear to go from surface to 200+ meters

From Page 19, Del Norte has potential for a million oz Au-Equivalent

Took a position today as it looks like the flow-through selloff has levelled off and well... it quacks like a duck, and it looks like a duck...