iHub Mining Sector Entrance Lobby

[echarter]

Gold surges over five hundred bucks US and looks poised to
"take a run north."

Exall Resources is adding drills to its Gold Eagle deep drilling
play on the fabled Mackenzie Island at the east end of Red Lake
Ontario, spitting distance from the fabulous Goldcorp, the richest gold mine in the world. (We mean Red Lake itself, not the town of the same name. Balmertown is the closest town to the Red Lake district's big mines.)

Goldcorp's average grade exceeds the highest grade longest running mines in Canada by at least 2.5 times and it is 5 times higher grade than the highest grade large mines that ran in his country.

Grade leader in Canada for at least 40 years was the nearby-to-Exall, Campbell Red Lake at just under 0.50 oz's per ton. The Lakeshore in Kirkland Lake ran at 0.50 ozs/T for most of its life, for about 8 million ounces, about the same ounceage as the Campbell. The Leitch Mine in Beardmore, Ontario and the Discovery Mine of the NWT both ran for 1,000,000 ounces of one ounce gold per short ton. The Hollinger ran for 20,000,000 ounces at an average grade of 0.40 ozs/T. Kerr Addison mined 13 million ounces of gold, but its grade was often below 0.20 ounces per ton. The McIntyre produced 16 million ounces of gold at an average grade of 0.368 ozs/T. So we can see if this drill off continues to produce 0.80 oz/T for a few million ounces, it puts it at the forefront of CDN gold mining, which we know to be fairly profitable.

Drilling intersections of 100.0 ozs gold per short ton were found in the discovery phase of Goldcorp. While no really, really high grade intersections of this type have been pulled yet from the Exall drilling, it is encouraging to say the least to see such widths of way better than average mine run ore being found at these depths.

Goldcorp was found by drilling down plunge (along strike direction and deeper) of an older, considered worked-out mine, the Dickenson. Dickenson had also mined what is considered shallow depths in Canada and had no incentive to work any deeper or further out. An astonishing drill program, began in the late nineties, interesected astonishing value at a moderate depth of perhaps 4000 feet, a few years after the mine had closed.

In the same bay of the same Lake, 50 years after the Gold Eagle mine had closed and some 15 after the Cochenour Willans closed, along comes Exall with a program that may to a degree duplicate the success of Goldcorp. Along strike of the Cochenour Willans and at a depth of 1200 metres, their drilling has hit rich, wide gold ore. It appears the magical depth has been reached. The structure they are in is sufficiently permissive and of a size to support a mult-million ounce orebody. Grades and widths are very generous for underground mining. This ore is being found about 1500 feet deeper and directly below the Gold Eagle shaft on Mackenzie Island. Exall is hitting grades of 0.80 ozs/ton and widths of 20 feet. This could be the big one.

Exall is teamed on this one with SSR/TSX, Southern Star. They each have 50% of this play. Exall however owns 10% of SSR, so they actually have 60%. Exall has been able to arrange financing quite quickly with Dundee, a group which is known for its early value investing in the mining industry.

Exall's price has vaulted from 70 cents 2 weeks ago or so to $1.68 today. It is said by management that it may print a five dollar bill before settling.

Let's do a little geofantasy for a moment. Looking at the earning capacity of its 70,000,000 shares out, if they run into an 8 million ounce mine..(the size of Campbell Red Lake, not far away) the stock price even at 50% may get better than that. Let's say you mine this hypothetical structure out in 15 years and it runs 0.60 oz's per ton, a fairly safe figure in this corner of the Lake. An after tax profit of 39,000,000 dollars/annum is possible, assuming 50% profit of 50% of the proceeds at 2500 tons per day of ore hoisted. At 15 times earnings, they may justify a stock price of $5.85 easily, even if they issue 30 million shares to get going. In the meantime, if they wangle a bigger share in return for financing it, which seems likely, they may earn a bigger piece of the pie. In the run up and on receiving news of continuing exploration success, they could run north of that figure without too much trouble. Seems worth the gamble in this mining speculation business.

-- ed ...

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 Gold Price Dec 02 2005 in New York  
   
 New York Spot Price  
 MARKET IS OPEN  
 Will close in 1 hour 39 minutes  
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 Metals        Bid        Ask           Change        Low       High  
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 Gold         503.30     504.10     +1.00  +0.20 %     498.80    505.60  
 Silver         8.51       8.54      0.00   0.00 %       8.45      8.59  
 Platinum     992.00    1002.00     +5.00  +0.51 %     992.00   1010.00  
 Palladium    263.00     269.00     +3.00  +1.15 %     263.00    273.00  
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  Last Update on Dec 02, 2005 at 11:51.45  
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Ticker and Chart for T.EXL (T stands for Toronto Xchange, big board. EXL is not Venture Xchange.)

http://www.siliconinvestor.com/quote.aspx?ticker=T.EXL

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Latest Exall News
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SECOND DRILL STARTS AT GOLD EAGLE, RED LAKE, ONTARIO Toronto, Ontario, October 18, 2005 - Exall Resources Limited (EXL/TSE) and joint venture partner Southern Star Resources Inc. (SSR/TSX) announced that a second diamond drill rig commenced drilling today on the Gold Eagle Mine Property in Red Lake, Ontario.

The new drill is located on Mackenzie Island and is targeting the recently discovered Bruce Channel gold structure.

The drill has re-entered drill hole BC-6 which was drilled last year to a total depth of 1,500 metres. BC-6 will be used as a master hole from which offset wedge holes will be drilled targeting the Bruce Channel gold structure.

This rig is scheduled to continue drilling until freeze up and resume in early 2006. Diamond drilling is continuing on drill hole BC-11 which is located adjacent to BC-10 on the east side of the Bruce Channel.

It will continue drilling through the freeze-up period. This hole has now intersected the Balmer assemblage rocks that host the extended high-grade gold zones as reported on August 29, 2005 and September 21, 2005. The BC-11 master hole is expected to be completed by the end of October with assay results to be released in early November.

A number of wedge holes will thereafter be undertaken with assay results released when available. The Gold Eagle Mine Property drill program is being carried out under the direction of John F. Whitton, P.Geo, the qualified person within the meaning of National Instrument 43-101, who has reviewed the contents of this news release.

Exall Resources Limited is a Toronto Stock Exchange listed company that trades under the symbol EXL (S.E.C. registration #82-3535). Exall is active in the business of gold exploration and development in Red Lake, Ontario, as well as oil and gas exploration, development and production from its properties in Alberta, British Columbia, Texas and in the North Sea offshore England. There are 69.6 million common shares issued and
outstanding.

Stephen G. Roman Chairman,
President, and CEO.
416-368-3949
EXALL RESOURCES LIMITED
8 King Street East, Suite 1700
Toronto, Ontario
Canada M5C 1B5

phn: 416-368-3949

FaX: [phone]

Website: http://www.exall.com

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