Archive for October, 2007
by Christina de Wit
It looks as if Grenville Gold (TSX.V:GVG) has all the ingredients needed for success at its Silveria project in Peru. The company recently released a 43-101 report on Silveria which outlines its exploration and development plan for a potential silver-zinc-lead-copper resource. In addition to its three Peruvian properties, the company has a property in Ecuador which has a history of artisanal gold mining.
Silveria is located in Huarochiri Province, 80 km WNW of Lima. The property consists of 2,797.16 hectares in 224 concessions that cover four historical mining areas (Germania, Millotingo, Pacococha and Silveria). The area is well-serviced and there are several mills in the area, including an operable, 350 tonnes per day mill with related buildings at Millotingo. The Pacococha Mine (which eventually absorbed the Germania and Silveria operations), saw 30 years of production from high-grade mineralization. The Millotingo and Pacococha mines closed in 1992, due to weak metal prices and political turmoil.
The project is in the early phase of development, and Grenville has so far focused on consolidating the available database of historical Pacococha mine records, plans and sections into digital, 3-D format. This information will be superimposed on topographic maps to create a 3-D model that will provide a solid blueprint for underground channel sampling programs, drilling programs and a scoping study.
According to the company’s NI 43-101 report, the structural picture at Silveria suggests that the general area was subjected to severe tectonic compression that produced strong fracture patterns, on a regional scale, that in part allowed for the intrusion of polymetallic mineralization within quartz sulfide veins that filled open fractures. There are approximately 33 mineralized veins in the Pacococha mining area– seven mineralized veins at Germania-Silveria and two mineralized veins at Millotingo. It is suggested that this mineralogical environment is analogous to the one found at the neighboring Coricancha mine– recently reopened by Gold Hawk Resources, which will soon reach 600 tpd production.
The property is dotted with adits left by past producers. 86,000 tonnes of mineralized rock have been identified as being accessible in the short-term. Grenville’s long-term objective is to identify potential resources in the existing underground workings and then explore below this level for disseminated deposits.
Of particular interest are the tailings dams adjacent to the Millotingo mill. The company plans to sample these tailings to assess the viability of heap leaching to recover the contained silver and gold. Other potential mineral resources that have been identified are numerous small- to medium-sized mineralized surface rock dumps (not including dumps left by artisan miners for collection and sale); unmined veins in the underground mine workings, on existing production levels, and in newly developed areas both beyond and beneath the developed limits of the existing production levels; and various surface exploration targets.
34 grab samples from the rock dumps returned assay results showing anomalous to low-grade gold values in all the Pacococha and Germania mine samples, but ore-grade gold values from Millotingo mine. Silver grades are consistently high in all the dump samples, with assays ranging from 3.50 g/t to 2,220 g/t Ag. Base metal values vary between 0.007% and 3.90% Cu, 0.01% and 7.15% Pb and 0.07% to 19.70% Zn, thus pointing to a high-grade polymetallic nature of the veins from all the districts.
The company has a particularly innovative strategy
The old chestnut that states that “the best place to find a new mine is near an old one”, certainly applies in this situation. Soaring copper prices make formerly producing mines (especially in Peru) worth reexamining. Management has capitalized on market interest by recently launching a far-reaching market awareness campaign, with conference appearances in Calgary, Frankfurt, Munich, Zurich, Geneva, and London.
Grenville is led by individuals with many years of successful exploration experience in key development roles on major projects. The company’s chairman, Mr. Len de Melt, is a graduate of the renowned Haileybury School of Mines and was instrumental in starting and building six mines, including Gulf Oil’s Rabbit Lake mine (uranium), Syncrude mine (oilsands), Denison Mines’ Quintette (coal), Homestake’s Golden Bear mine (gold), BHP’s Ekati mine (diamonds) and Goldust’s Croiner mine (gold). Mr. A. Paul Gill, the company’s president, held senior positions with Norsemont Mining Inc. and is a Director of Lomiko Resources.
Grenville provides investors the opportunity to have their cake and eat it too: with properties that have a proven history and merit further exploration, a pragmatic, structured approach that lends itself to both short and long-term valuation possibilities, a current revenue stream, a comparatively tight share structure given today’s market (32,694,200 fully diluted), an international promotional effort in full swing, a mining-friendly climate in Peru, and record metals prices.
If the proof is in the eating, the market is showing a healthy appetite– GVG closed at $0.55, up $0.05 on Wednesday.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
Resourcex Investor is an internationally distributed newsletter about emerging junior resource companies. Sign up for a free 1-month trial to our newsletter and get instant access to news and investing
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by Leonard Montgomery
A UK land investment transaction can be made easier by utilizing the UK Land Registry. The following questions and answers will give you a brief summary of what the UK Land registry offers and how the land investor can use the registry to their advantage:
What is the UK Land Registry?
The UK Land Registry is overseen by the Lord Chancellor and was developed to maintain an efficient and secure system of land registration for England and Wales. The UK Land Register holds official documentation of all registered land in both England and Wales. Each record contains the following five items:
1) A unique number: The title number
2) A description of the property: The property register
3) The location and boundaries of the land: The title plan
4) A statement of who legally owns the land: The proprietorship
5) Information on mortgages, rights, or interests: The charges register
History of the UK Land Registry:
A mandatory land registration system for UK land was attempted several times during the late 1800’s but it was not until 1925 that the compulsory land registration system was successful in mandating that all transactions such as mortgages and sales must include land registration. The 2002 Land Registration Act modified the UK land registration system by allowing the use of electronic signatures for conveyancing purposes.
What are the general benefits of registering UK Land?
1) A public record of extent of ownership and rights of way are created
2) A guarantee of legal title is ensured
3) Decreased possibility of fraud and land dispute
4) All mortgages and covenants are legally recorded
How can UK Land Registry information be of benefit to me?
When you are planning to invest
1) Name of the owner
2) Property description
3) Rights of way, restrictions, or other possible adverse conditions regarding the property
4) Property price (only available if registered after March 31, 2000)
5) Name of mortgage lender, if applicable
How does one register UK Land?
The Land Registry maintains 24 local offices. Each office services several counties in both England and Wales. Registration fees vary according to type and size of land. Your local office can provide you with more information regarding the fee scale, required forms, and registration process for the specific type of land that you wish to register.
Leonard Montgomery is a an expert in UK Land and land investment. For more information about the opportunities and pitfalls in UK land investment please visit http://www.land-investment-uk.com
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by Mejo
Investment British Columbia is becoming more and more popular with many Columbians. This kind of real estate investment could further provide you a regular source of income from rents, an increase in the value of savings and the option of noteworthy capital gains. Many people are turning to real estate property investment as a protection for their retirement period.
But purchasing real estate property in British Columbia is a major financial commitment. Before a decision is made, the real estate investment must be carefully evaluated and fully analyzed. Real estate brokers are generally experienced in investment property lending and are able to discuss your financing needs whenever and wherever is mainly suitable to you for your property investment. You can even get flexible mortgage for purchase and re-finance on a full range of commercial property including retail, office, industrial, and leisure.
Generally in BC the mortgage loan provider offers long-term real estate investment funding to individuals, partnerships, limited companies, and offshore companies obtaining residential properties. You can contact any one of real estate Company located across the country and talk to a dedicated team of expert lenders who share your British Columbia real estate in the property market, offering you local knowledge with national expertise. You also go through some of the tips and articles on investing
When it comes to real estate investing in British Columbia and its surrounding areas, data information is the chief key to organization your risk. British Columbia Real Estate Investment Property is a type of amazing property. In the common law systems personal property might as well be documented as property. It is distinguished from real property, or real estate. Touring around BC would be a truly fun experience with mind-blowing shopping option and personalized culinary experience. So tour around British Columbia and it is as well a good option to purchase a piece of land out there. So just go ahead and travel around and find a unique real estate for yourself in the British Columbia areas.
Mejo is a Copywriter of Lots for sale kelowna . He had written various articles in different topics on Kelowna Real Estate. For more information visit: www.bigwhitepropertyforsale.com. Contact him at bigwhitepropertyforsale@gmail.com
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by Regal
Investing
Once the broker i.e. the third party, buys the insurance from the original policy holder, he is responsible for paying all the premiums on the insurance policy. Only senior citizens, who are above the age of sixty five years, are eligible for taking a life insurance settlement and of course, they need to have a life insurance policy or any other insurance policy in their name to get the money through this settlement. Investing in life settlement is gaining popularity day by day, as this is one means which insures that life after retirement does not get complicated and difficult. Money is one need, which is constant in our life, no matter what our age is or where we stay. So it is very important that we make all arrangements, so that we do not face a money crunch at any time.
Investing in a life settlement solution can turn out to be complex option for any senior citizen if they are not properly educated about this. There are several sources through which one can gather all the information that they need about life settlement solution and internet is one of the most reliable sources. Some of the other sources for gathering information about this are accountants, CPAs, estate planners, attorneys, charitable trust officers and others. You must make sure that you talk with any of these professionals before you sell your insurance policy for investing in a life settlement from your broker.
It is very important to make sure that you are dealing with a genuine broker. There have been instances, when people have been duped by fraud brokers. It will be best if you can do some background study about the broker with whom you are going to deal. The background study will give you an idea about how he does his work and based on that, you can decide if you want to deal with the broker or not. There are so many advantages associated with investing in life settlement that you will find that more and more people are opting for this.
William Regal is an expert in dealing with life settlement. If you have any queries about investing in life settlement ,coventry life settlement, bonded life settlement, senior life settlement and life settlement broker visit: www.mylifesettlementbroker.com
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by Christina de Wit
Since historic times, the clarity and value of rubies have been praised in works of literature- from the Bible to the Metaphysical Poets. Now investors are discovering a modern-day version of these same qualities as True North Gems (TSX.V:TGX) enters a new chapter in the saga of its Fiskenaesset Ruby Project in Greenland. As per its September 18th press release, the company announced visible ruby and pink sapphire mineralization in 12 of 25 holes drilled as part of the ongoing 5,000m drill program. So far, a total of 2,313.5m has been drilled with the depth of individual holes ranging from 50.3m to 221.9m, with individual crystals ranging from less than 1mm to 10mm in size.
The Fiskenaesset Ruby Project covers a sizeable 110km2 of land and is located on the southwest coast of Greenland, about 160km south of the capital Nuuk. True North has an option to own a 100% interest on the claims. Logistical support for the project is much easier than one might imagine. The warming effect of the Gulf Stream current keeps Greenland’s west coast ice free year-round, and facilitates the timely transport of materials and personnel to the Fiskenaesset site. The exploration season at the Fiskenaesset location is longer than the Company’s Canadian arctic projects and a commercial operation would enjoy a long work season in a maritime climate.
The Geological Survey of Greenland and Denmark (GEUS) first discovered rubies in outcrop in this area in 1966. True North has worked on the project since 2004, doing bulk sampling, mapping and drilling, and is now in the permitting and scoping stage. The company has recently hired Wardrop Engineering, one of the world’s top engineering firms, to carry out its scoping study as part of the project’s feasibility preparations. True North also has emerald and sapphire properties in the Yukon and on Baffin Island.
The Aapaluttoq (Greenlandic for ‘Big Red’) occurrence contains ruby and pink sapphire. The rubies and sapphires (both are varieties of the mineral corundum) occur in a highly altered zone between ultramafics and anothosite schists. This alteration zone has significant potential to provide the tonnage and grade required to justify a viable mine. There are many more occurrences on this very large property that have yet to be drilled. An encouraging factor is that the best stones come from the thickest parts of the altered zone. Overall grades point to a commercial viability scenario, with concentrations of high-quality gem-grade ruby and pink sapphire averaging 1,937 g/tonne (9,685 carats/tonne) from a 30-tonne sample. Rubies are rarer and can be more valuable than diamonds, and large, high quality rubies can sell in the range of US $1,450-$25,000 per carat.
Independent valuations have priced a 0.69 carat ruby from Aapaluttoq at $3,220/carat, and a 0.96 carat pink sapphire at $460/carat. The best sample contained a large ruby crystal weighing 88g (440 carats), which was carved into the Kitaa Ruby, weighing 302 carats and displaying intricate scenes of oceanic legends.
Presently, over 90% of the world’s rubies come from one country– Myanmar– better known as Burma. There is currently a UN trade embargo against the country due to the military junta’s human rights abuses, and the country is becoming increasingly unstable in the wake of this week’s protests (already dubbed the ‘Saffron Revolution’) led by thousands of Buddhist monks and nuns. The military enriches itself through black market ruby sales– similar to the ‘blood diamond’ trade in some African countries. Slave labour is also used in Burmese ruby mining and processing. To date, the economics of processing have favoured hand-sorting of coloured gems in low-wage countries. However, recent developments in improved exploration methods and in optic sorting technology have made it possible for high-wage countries to gain a competitive advantage.
True North is in a unique position to create not only value for investors and consumers, but positive social change for the gemstone market. The gemstone manufacturers and prominent jewellery retailers such as Tiffany’s have boycotted Burmese rubies– thus creating a large vacuum on the supply side — one that True North can step right into. History has shown that consumers are willing to pay a premium price for high-quality, ethically sourced gemstones — as evinced by the success enjoyed by Diamet with the cachet of its ‘Polar Diamonds’. True North is well-placed to become its coloured gem counterpart.
According to the company’s Greenland Ruby Project Fact Sheet, 2006 saw a Christie’s St. Moritz auction set a new per carat record for ruby. An 8.62 carat ruby sold for $3.6 million US, or 425,000US per carat. Rubies that are completely untreated and still of excellent quality command a large premium.
As the company moves into the test marketing phase of its development, it has forged relationships with the well-established cutting houses centred in Asia. In India, where ruby demand has always been strong, the gemstone market has been picking up following increasing customer demand. According to a survey, the jewellery market in the country has been growing at a rate of 20 per cent annually. To meet the demand, new, reliable sources of rubies need to come on stream.
True North’s goal is to become the Arctic’s first producer of coloured gems. Several factors are in place that point to the realization of this goal: experienced, focused management with an integrative approach to the gem business, a high-quality gem project at an advanced proving stage, the high-tech advantage, and an accessible price point for near-term gain. The company has a loyal core of retail investors and is beginning to turn heads among the institutional crowd. With regards to its investors– in a twist on a line from the Book of Job — the True North story could easily be a case of wisdom being as precious as rubies.
TGX closed unchanged Wednesday at $0.49 on a volume of 29,562 shares.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
The author and ResourcexInvestor.com are not shareholders in the companies herein mentioned, and the author, as an employee of Resourcex Publishing Corp is expressly prohibited for owning any securities about which they may write for a period of 30 days prior to and 30 days after initial publication of the article in which the securities of any company are mentioned.
Resourcex Investor is an internationally distributed newsletter about emerging junior resource companies. Sign up for a free 1-month trial to our newsletter and get instant access to news and investing
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by Gerald Wollert
Mutual Funds are probably the best way to invest
For both the novice and experienced investor, Mutual Funds and Exchange Traded Funds (ETFs) are probably the best investment vehicles to invest in the stock market.
There are many reasons that make mutual funds investing
Diversification: Mutual Funds and Exchange Traded Funds hold a portfolio of anywhere from 20 to 200 individual stocks. The multiplicity of holdings shields the entire portfolio from plummeting when bad news hits one particular stock.
Professional Management: Mutual Fund companies employ highly experienced professional managers to manage their individual mutual funds. These managers get to know all of the companies in their portfolio. They have tremendous computer and support resources at their disposal. Few individual investors have that level of sophistication.
Economies of Scale: Mutual funds are able to take advantage of their economies of scale to reduce the transaction costs associated with buying and selling. This translates to a savings for those investors involved in mutual funds investing.
Divisibility: Someone who only as $1,000 to $5,000 to invest cannot begin to purchase a sufficient number of individual stocks to get sufficient diversification. With No-Load Mutual Funds, there are no commissions to pay and an investor can get started investing with as little as $1,000.
How to get started: Investors can invest in a mutual fund directly with the Mutual Fund Family. However, it is far better to purchase mutual funds from a discount brokerage firm that handles many different families of mutual funds. (T.D. Ameritrade, Charles Schwab, and Scottrade, are three good alternatives.) This enables the investor to trade or upgrade their mutual fund holdings between various mutual fund families by placing the order with their discount broker. Mutual Fund or ETF Trading can be done online with a very user friendly trading platform.
Rebound Mutual Fund Trader: This is a robust trading system that consistently outperforms the S&P 500. In fact, subscribers to this mutual fund trading system recently doubled their money in just 32 months. When fully invested, the Rebound Mutual Fund Trader holds 7 No-Load Mutual Funds or Exchange Traded Funds. The average holding time is currently running about 97 days. This system only trades about twice per month and takes less than 30 minutes per month to perform the mutual funds trading. This mutual fund trading system is currently generating an annualized rate of return nearly triple that of the broader market indices. To get started on your way to doubling your money in the next 3 years by investing in Mutual Funds.
Contact Rebound Trading Systems to get started on your way to doubling your money in the next 3 years by learning How to Invest in Mutual Funds.
Gerry Wollert is a graduate of Purdue University and was once listed in “Who’s Who in America.” During most of his 31 year career, his favorite hobby was investing in the markets with the support of various computer systems. Gerry is the System Developer and President Rebound Trading Systems .
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by
We’ve all been frustrated in the stock market
Did you remember the time when you identified a really good stock with really good news on its heels and rallying strong? However, just a couple of days after you buy shares of that company, it pulls back and you incurred a loss? Even worse when you used futures on that stock instead?
Didn’t it make you wonder why such strong stocks pull back so strongly? In fact, why does stock markets even pullback as a whole?
There is an explanation to this and it is what we refer to in economics as the “Law of Diminishing Marginal Utility”. The Law of Diminishing Marginal Utility states that as consumption of something increases, the satisfaction (marginal utility) of having that something decreases as every unit of that same thing is given to that same person.
Too abstract? Well, it really means in layman terms that the more of something a person have, the least the satisfaction in that thing in question. Have you ever been to a buffet? Can you remember the satisfaction of that first taste of food after having prepared for this by starving for the day? However, can you remember how less satisfied you feel with every new plate of food until you can no longer derive any satisfaction from eating?
That’s the exact same thing happening in the stock market.
The satisfaction of a profit diminishes as more and more profit is made, to be replaced by the fear of losing the profits already made. It will come a point in time when the satisfaction of more profits becomes zero to be totally consumed by the fear of losing the profits that was already made. At that point onwards, investors start taking profit by selling and thus a pullback in price. That point seems unusually correlated amongst human beings and once the first sight of profit taking occurs, the rest succumbs to their fears too and sell off.
Did you remember the first time you made a profit in the stock market? Did you remember how it felt when the figures turned green in your trading account for the very first time? You were elated, weren’t you? You wanted more profits, didn’t you? However, did you remember how more and more uncertain you became as the profits grew higher and higher? Did you ask yourself if you should continue to hold on and bet for more profits or simply get out while the going is good? Did it come a point where your fear of losing that profit totally consumed any satisfaction derived from have more possible profits? What did you do then?
Well, we all know that now, don’t we?
So, the Law Of Diminishing Marginal Utility made certain that no stock nor market go up ceaselessly so nobody, but the most disciplined and patient investors could make a consistent profit. Are you that kind of disciplined and patient investor?
Jason Ng is the Founder of Masters ‘O’ Equity Asset Management, a fund manager specialising in options trading. His Star Trading System has helped thousands. Please visit MastersoEquity & OptionTradingpedia.
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by Local Guide
The market for your money is always gaining more competition which is great news for consumers. The options used to be rather limited in off the shelf investment. Most bank accounts (standard transaction accounts) pay either a low rate of interest or non at all. One of the main options used to be term deposits. This type of deposit is for a set time frame and you can usually get these which range from 3 months to 5 or even 10 years. One of the key disadvantages of term deposits is that the funds are effectively tied up for the length of time of the deposit. If you withdraw the funds before maturity then you either lose all the interest gained or get interest at quite a low amount (usually might be the standard transaction account level of interest.
With new types of account such as high interest savings accounts on the market it has opened up a new range of savings opportunities. These accounts can offer a great deal of flexibility and allow you to deposit and withdraw as you wish without incurring any penalties or losses for doing so. These accounts are usually accessed via the web with transactions in and out of the account driven there.
Another great article from high interest savings account information site. Visit at http://www.highinterestsavingsaccount.info for further information.
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by Doug Hadfield
This year, the summer doldrums in the resource sector were anything but dull for the boys at Kootenay Gold (TSXV: KTN). With drills turning at Jumping Josephine (BC), Promontorio (Mexico) and Connor Creek (BC), autumn is proving to be a harvest season of results and new announcements by the company and its various JV partners.
Most notable was the announcement regarding Jumping Josephine (JJ), a joint venture effort with Astral Mining (TSXV: AST). With most Phase I drill results already in from JJ, the central question on most investors’ minds was: Would the work completed to date warrant a Phase II drill program?
Jumping Josephine is an 11,665 hectare gold property in southern British Columbia. The property hosts the historic Granville Mountain mining camp and several newly discovered vein-hosted gold showings, including JJ Main, JJ West, Albion-Dubrovnik and Bonanza Pass. Previous work on the property by a number of other exploration companies turned up assays of interest, but it was not until Kootenay’s early exploration work uncovered the JJ Main and West, Albion-Dubrovnik and Bonanza Pass targets that serious exploration work took place.
The Phase I drill program comprised 2000 meters on three targets: twenty holes at the JJ Main Zone, 400 meters in five holes on the Albion and Dubrovnik targets and a further 500 meters in two holes at the Bonanza Pass. Final results were reported on September 11, along with the exciting news that exploration would indeed continue at JJ in a minimum 3500 meter (approximately 12,000 ft) Phase II drill program.
Phase I work on the JJ Main showing during 2006 revealed a gold bearing stockwork zone up to 10m in width and 240m long. This area yielded assays up to 133.91 g/t gold from one-meter channel samples. Notably, there was a consistent return of high-grade intervals, too, including 5m grading 19.2 g/t Au, 7m grading 31.19 g/t Au, 4m grading 25.24 g/t Au and 10m grading 5.0 g/t Au, and so on. The JJ Main zone is characterized by silicified and sericitized quartz monzonite hosting a distinct zone of multiphase stockwork veining and breccia zones. Mapping and geochemistry completed to date suggest that this structure may extend for over three kilometers.
The most recent results returned from JJ Main were variable. Hole 07JD016 included 10 meters (32.8 ft) averaging 1.17 grams per tonne gold from hole 07JD016, with one meter at 4.14 grams per tonne gold. Although all holes were mineralized, some drill cores were sent to another independent laboratory for a second opinion. Nevertheless, the results at Jumping Josephine did warrant a Phase II program, to begin this fall, which will target what Kootenay and Astral believe is a strong south-plunging mineralized shoot within the JJ Main gold zone.
According to a recent news brief, “The shoot has been intersected to date by holes drilled on the southernmost two sections, spaced 60 meters apart, and so far it appears to be increasing in width to the south. The drill is currently completing a fence of holes along a section 30 meters further to the south. Astral has only just begun to test the potential of JJ Main structure which, based on mapping, geophysics and surface geochemistry, may extend for over three kilometers.”
Kootenay appears to be proving its acumen for choosing properties with potential for early stage discoveries that increase shareholder value. The JJ Main, JJ West, Albion-Dubrovnik and Bonanza Pass targets at Jumping Josephine were all discovered by Kootenay after the company purchased the property. Between September and December 2006, Kootenay four times reported notable sampling and trenching results at JJ, including 21.43 g/t Au over five meters. Consequently, the company’s stock steadily increased from about $0.56 to $0.66. Finally, on the news of 7.0 m of 31.19 g/t Au, the stock jumped to over $1.
The case at Kootenay’s Promontorio Silver Project, which consists of four contiguous claims covering 37,000 hectares in northwestern Mexico, may prove to be even more providential. Chip sampling in the Pit Breccia returned 480 grams per tonne silver, 2.51 grams per tonne gold, 11,199-ppm lead and 17,284-ppm zinc over a true width of 19 meters. These findings lead to the presently ongoing 3000-meter drill program, of which 13 holes are complete and have been sent for laboratory testing. Results are imminent, but what can we expect from this previously producing mine camp?
The only feasibility study completed for Promontorio was prepared in 1973, prior to Canadian Securities Commission’s NI-43-101, which regulates disclosure by Canadian exploration companies listed on the TSX Venture — in other words, it doesn’t necessarily stand up to post-Bre-X standards. That said, no one is claiming Promontorio to be the next world-class polymetallic mine. The original ore reserve estimate was fairly modest: 384,000 metric tons grading 0.12% Cu, 2.80% Pb, 1.74%, Zn, 367 g/t Ag and 1.5 g/t Au, to a depth of 100 m below the floor of the open cut. Certainly with those grades at such a shallow depth, such a reserve estimate would indicate an economically viable mine. Yet the shallow, open-at-depth nature of this potential ore deposit argues for a substantial exploration program to both confirm and expand up the historical work. As such, the present 3000-meter drill program could make (or break) Promontorio as a major participant in the Mexican resource sector.
Maybe it’s the clairvoyant vision of director Richard Hughes (widely seen as the Canadian mining icon partly responsible for bringing Hemlo to production) or the mine-finding prowess of CEO James McDonald who co-founded multiple successful mining companies, but each of the stories behind this growing company (19 million shares outstanding) is beginning to take form. Keep a close eye out for more results this fall.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
Resourcex Investor is an internationally distributed newsletter about emerging junior resource companies. Sign up for a free 1-month trial to our newsletter and get instant access to news and investing
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by Andrew K. Burger
As signs of a split corporate personality start to appear, Tribune Uranium Corp. (TSX.V: TCB) is looking to cure the condition by spinning off its non-core assets, including giving shareholders an unanticipated dividend.
The Vancouver-based exploration company announced October 9 it has two letters of intent (LOI) in hand for gold and copper-zinc properties in Manitoba’s Reed Lake mining district, near the recent VMS Ventures Inc. (TSX.V: VMS) copper discovery.
But Tribune was set up as a uranium company and plans to stay that way, says chief executive Graham Harris.
“We just happened to have a couple of opportunities,” Harris said in an interview. “They came at a good price and they are drill-ready.”
So the Manitoba properties will join Tribune’s Potonico gold property in El Salvador - brought on board initially because vice-president, exploration, Marco Montecinos, knows the region - in a new stand-alone company.
The legal work to create that company may take up to six months, Harris said, and, by that time, as Tribune continues its active search for drill ready properties, he expects to have another non-uranium acquisition to bolster value.
Tribune will have no stake in the new corporation, which will have completely separate management, Harris said. Tribune shareholders can expect shares in the new company in some ratio to their current holdings, for example 1:5, he said.
With plans for a first-quarter 2008 drill program in place once the 90-day period for due diligence is up, work on the newly-acquired Manitoba properties may be well underway before shareholders get a look at that company.
Under the LOIs with W.S. Ferreira Ltd., Tribune can earn a 100% interest in the Quartz Claims, northeast of Snow Lake, Man. and the Green Claims, south of Snow Lake, for $170,000 cash and an aggregate of 500,000 common shares over five years, for each property. The company will also pay a finder’s fee of $50,000 for each property to an arm’s length party, for a total of $100,000, subject to final TSX approval.
Assay results released by VMS Ventures of North Vancouver on Oct. 4 include 10.5 metres of 11.19% copper and 2.50 metres of 15.30% copper from drill hole RD 07-02 on its new Reed Lake project, near Snow Lake.
That project, as well as Tribune’s new properties, lie within the Flin Flon-Snow Lake Volcanogenic Massive Sulphide (VMS) belt that to date has yielded more than 20 VMS deposits of copper-zinc along with gold and silver, producing ore worth more than $29 million.
The belt’s average 5 million tonne VMS deposit has a gross metal value of more than $1.5 billion.
The Quartz Claims was last drilled in the 1980s by Hudbay Minerals Inc., but Harris said those old results look more interesting today as discoveries over the ensuing years have helped in understanding the geology of the area.
The Quartz Claims cover a 4,800-foot-long electromagnetic conductor, interpreted as lying in a fold axis. The old drill results turned up significant gold mineralization, along with the alternation mineralization commonly associated with VMS. Results from the eastern end include 0.64 oz/t (18.14 g/t) Au over 4.2 feet and 0.43 oz/t (12.19 g/t) Au over 4.5 feet.
The untouched western end of the conductor, with two EM conductor bodies, will be the site of the 2008 drill program.
Old drill results from the Green Claims to the south, straddling the east shoreline of Blue Lake, turned up copper and zinc, including 0.75% Cu over 46.9 feet and sulphide exhalite grading 3.12% Cu and 2.25% Zn over 1.3 feet.
For both properties, “we’ve got some pretty good drill targets based on past exploration,” Harris said.
Work on the 149.5-square-kilometre Potonico property in El Salvador rests in limbo right now as local opposition to mining makes even the first step tricky. “We’re negotiating with the local bishop to gain access to the property,” Harris said. “I think we can come to an agreement with him.”
But drilling programs are underway on Tribune’s joint venture properties in northern Saskatchewan’s uranium-rich Athabasca region, currently home to the world’s largest uranium mine, owned by Cameco Corporation (NYSE:CCJ, TSX:CCO) and minority partner Areva Resources Canada Inc. That mine is producing 18.7 million tonnes per year of 20.5% uranium, the highest grade in the world.
Tribune is currently working on its 60%-owned, 100,000-hectare North Shore Property, just north of Lake Athabasca and 10 km west of Cameco’s Maurice Bay uranium deposit, discovered in 1977 and containing an estimated 1.3 million pounds of uranium.
The company also recently announced winter drilling programs for its joint venture properties of Dufferin Lake-East, on the southern edge of the Athabasca Basin and adjacent to Cameco’s Virgin River uranium project with its recent Centennial zone discovery, and for its near-by Botham Lake property.
As well, the shopping spree continues, with Tribune close to making a “significant” uranium acquisition, Harris said.
But a $3.4 million private placement in May, 2007 is enough to keep Tribune going. “We’re fully funded right now,” he said. “I don’t anticipate raising any capital.”
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
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