Thursday 14th December 2017

Resource Clips


May, 2011

High Grades, Smaller Envelopes

May 31st, 2011

Argentex is Piling Up the Silver Ounces in Argentina

By Ted Niles

Peter Ball is very keen that you grasp the concept. For, impressive as Argentex Mining’s recently reported intercept of 88.8 grams per tonne silver over 61.8 metres may seem, its Executive VP of Corporate Development is more interested in what those numbers include. In this case, an interval of 675.7 g/t silver over 5.8 metres. “We’ve had areas of 277 grams over 24 metres—but our focus is defining mineralized widths of higher-grade material over concentrated or smaller widths. The concept in this area is open slot mining, near surface. Multiple pits. We’re not going to have a pit 300 feet wide!”

The area to which Ball refers is the Deseado Massif in the Patagonia region of Santa Cruz Province, Argentina. In addition to Argentex’s polymetallic Pinguino property, the area hosts Extorre Gold Mines’ Cerro Moro project, Pan American Silver’s Manantial Espejo mine, AngloGold Ashanti’s Cerro Vanguardia mine, Coeur d’Alene’s Mina Martha and Goldcorp’s Cerro Negro project. Ball explains, “They’re all mining these open slots, near surface. The first 50 to 100 metres everywhere on our project has been oxidised, where the gold and silver has been leached out, and it’s high grade. You’ve got this nice meat. That’s what’s going to be mined.”

Argentex is Piling Up the Silver Ounces in Argentina

Argentex has 100% control of over 124,000 hectares of property in the Santa Cruz and Rio Negro provinces, of which its Pinguino property is the most advanced. Pinguino comprises 10,000 hectares and has a 2009 indicated resource estimate (at a 50 g/t cut-off) of 7.32 million tonnes grading 169.64 g/t silver equivalent and inferred resources of 35.4 million tonnes grading 123.63 g/t silver equivalent (totalling approximately 180 million ounces silver equivalent).

Last year, a discovery hole at Pinguino graded 2,428 g/t silver and 0.22 g/t gold over 6 metres, bringing new attention to the near-surface vein systems.

Pinguino assays released May 26 include 88.8 g/t silver over 61.8 metres (including 675.7 g/t silver over 5.8 metres), 1.33 g/t gold and 92.9 g/t silver over 29 metres (including 3.83 g/t gold and 271.3 g/t silver over 9 metres), 1.14 g/t gold and 38.8 g/t silver over 17.8 metres and 1.03 g/t gold and 112.7 g/t silver over 11 metres.

May 5 assays revealed 118.1 g/t silver over 19 metres (including 3.21 g/t Au and 678 g/t silver over 3 metres), 205.5 g/t silver over 20 metres (including 1.64 g/t gold and 470 g/t silver over 8 metres) and 86.2 g/t silver over 21 metres (including 2.77 g/t gold and 121.9 g/t silver over 7 metres).

Ball reports, “We’re consistently seeing veins with widths in the range of four to 12 metres within the first 100 metres of surface, with the vein systems open at depth and open along strike. And some of these veins can range longer than a couple kilometres. Wherever we drill, we appear to consistently and continuously hit high-grade silver with positive associated gold grades. We currently have in excess of 50 veins measuring over 75 line-kilometres, and we keep finding more as we go along. All sitting very close to surface. So it is quite a large, very high-grade system. We believe it’s the second-largest mineralized vein swarm in Patagonia—second only to the Cerro Vanguardia mine, which is along strike to the southeast.”

Wherever we drill, we appear to consistently and continuously hit high-grade silver with positive associated gold grades – Peter Ball

Ball characterizes the Pinguino property as “advanced exploration or early development.” He notes that, to date, Argentex has drilled greater than 50,000 metres on the property and that a preliminary economic analysis has been completed. “At today’s prices, we could build a small mining operation for under $22 million. Internal rate of return would be just under 200%, a payback period of less than six months. That small mine would run over 650,000 ounces of silver for eight years and approximately 6,000 ounces gold.” And that’s based on the resource calculated two years ago.

But Ball does not see production in Pinguino’s future. He says, “This year and most of next we’re working on prefeasibility studies and more drilling and such. We’re looking to have two resource estimates completed by the fourth quarter of this year. One will be an update on the polymetallic; the second will be for the new near-surface stuff, which will probably be giving us a nice re-rate. We are looking to build a significant silver resource and build value through ounces in the ground first.” He adds, “We will worry about building a mine when we have done the due diligence.”

Argentex has not been wanting for interest. Its major shareholder is International Finance Corporation—a member of the World Bank Group—who holds 19.9% of the company. And, Ball adds that the company’s $20-million financing announced May 26 is being led by GMP Europe, “an excellent financial group to have representing us, supported by a solid syndicate including Byron, Northland Capital, LOM, Casimir and Haywood.”

Ball concludes, “Shortly after I joined Argentex, the phone was ringing. I was contacted by most of the investment houses and banking groups looking to be involved in the Argentex story. Within a month I had six analysts on site in Argentina. It’s one of the few stories I’ve had the pleasure of working for where the calls coming into the office outmatched the calls going out.”

Argentex currently has 59.8 million shares trading at $1.17 per share. The company has a market cap of $69.97 million.

Tyhee President David Webb on NWT assays of 6.68 g/t gold over 2.5m

May 31st, 2011

“The Yellowknife Gold Project is quite advanced. We’ve completed prefeasibility, and we’ve filed for permits to start production. We have two million ounces gold in our measured and indicated category and another quarter-million ounces inferred. The applications are pending, and we’re going to the review process.

“These results are very good. They continue to show the extension of the mineralized zone up to the north and limiting it to the northeast now. That leaves us wide open for over one kilometre of strike length down the southeast and up to the northwest, with some low-grade numbers that have defined the edge of the deposit and some higher grade numbers that have come within the deposit.

“Twelve months from now we hope to have a feasibility study completed; we hope to have our permits in hand; and we’ll be looking to get project financing to start a 3,000-tonne-per-day mine that’ll produce over 100,000 ounces gold annually for seven-and-a-half years. The deposit is open in all directions for most of the zones, and every zone is open to depth.

“We’ll drill as a combined engineering study as well as exploration. Our zones are open. Clan Lake, for example, is open in all directions. So we’re trying to find the edges of the zones so we can start modelling pits. It’s one of those good news, bad news situations. The good news is we’re still in mineralization. The bad news is it’s kind of hard to model a pit when you haven’t found the edges of the zone.

“It’s a classic Archean gold deposit, and the deposits in Yellowknife typically have mine lives of 20 to 60 years. We hope to be one of those, and we’re just starting off. If you take a look at the people we have on board, we’re all production people that have done this before.”

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Gold-Ore CEO Glen Dickson on Sweden gold assays of 77.95 g/t over 5.9m

May 30th, 2011

“The Bjorkdal gold mine was discovered in 1985 as a result of geochemical sampling and was put into production in 1988. It ran quite well until the price of gold collapsed in 1998-99. Then it went into receivership. After a year, the plant started operating, processing low-grade stockpile material. As the price of gold went up, this material became valuable. We looked at it in 2005, and it was pretty much a salvage operation at that point. But we felt that the ore body could be extended underground. So we signed an option to purchase the project in 2006. Then we undertook about $6.5 million to $7 million in investment to follow the ore body underground, develop resources and reserves. At the same time, the price of gold kept going up so that we found that we had residual resources and reserves in the open pit. So currently it’s mined from underground and from open pit at the rate of about 3,200 to 3,400 tonnes per day.

“The main lessons of this press release, are the so-called off-section holes which reach out into the hinterland—for lack of a better term—where we had spotty intersections previously. We’re not really deep, but we’re still about 200 to 300 metres below surface. We refer to these holes as off-section because they cut the ore zones at an oblique angle. We discovered that the mineralized system—which is a sheeted vein complex within a granodiorite—continues out well beyond where our resources/reserves are from the underground. What that does is it gives us the added confidence that we have a long mine life there. So, if we want, for example, to start purchasing more of our own equipment and developing that part of our business, we know that there’s going to be a long mine life at the current gold price.

“It’s ongoing drilling in the mine site. We continually develop resource drilling. It’s kind of a mine-a-tonne, find-a-tonne operation. So, we’ll continually drill underground. And there’s an area in the open pit that, historically, was left untouched because there was some waste rock on top of it. We’re currently drilling under that waste rock to see if we can justify removing that limestone cap. Then we’ll process that. So we’re drilling in the pit as well.

“As soon as you get into production you realize that you’re always trying to reduce costs and increase production. So what we’re targeting is incrementally increasing production at Bjorkdal and incrementally decreasing costs. We are suffering a little bit because we’re working in the Swedish krona—which is all our operating costs—and it’s been very strong against the US dollar. But production-wise, I believe that Bjorkdal has a long future ahead, and we’ll incrementally increase production as we move forward.”

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Argentex VP Peter Ball on Argentina assays of 675.7 g/t silver over 5.8m

May 27th, 2011

“We are 100% focussed in the province of Santa Cruz in Argentina. We have about 136,000 hectares of land. Our top priority focus of all our projects is Pinguino. Pinguino is about 100 square kilometres. We have about 75 line kilometres of veins. We are actively exploring and developing the resource within that one project. We’ve drilled, up to today, probably 50,000 metres. We’ve done over 500 holes. We have an old resource from October 2009 that had about 180 million ounces of silver equivalent, contained in this polymetallic resource. The program this year was to expand that resource, but also to develop a near surface silver-gold oxide resource. Since discovering the discovery hole near surface of 2,428 g/t silver over 6 metres, we started drilling around all these veins outside of the polymetallic. Because there are two separate geological mineralized events; they can be mined and explored separately. Since then we’ve had some phenomenal hits: 500 g/t over 12 metres, 1000 g/t over 5 metres, 1000 g/t over 10 metres, yesterday we had 700 g/t over 5.75 metres, plus also we’re starting to discover some interesting gold values. We hit about 6 g/t gold over 5.75 metres. So it’s a huge, very high grade system. We believe it’s the second largest mineralized vein swarm in Patagonia—second only to AngloGold Ashanti’s Cerro Vanguardia mine, which is along strike to the southeast. They’ve been mining there for 14 years, it was their first mine.

“We’re consistently seeing width in the range of six to 12 metres within the first 100 metres of surface. Open at depth, open along strike. And some of these veins are 8 kilometres long, 2 kilometres long, 5 kilometres long. Wherever we drill, we appear to consistently and continuously hit high-grade silver. A lot of people are very interested in the story, because of the high grade and the size of the project. We’re not talking about one vein, we’re talking about at least 50-some veins, and we keep finding more as we go along. All sitting directly on surface.

Wherever we drill, we appear to consistently and continuously hit high-grade silver. – VP Peter Ball

“I would say that the Pinguino deposit would be categorized as advanced exploration or early development. One reason is we’ve done a heck of a lot of drilling; we’ve got drill results coming out probably until September. We’re going to have two resource estimates completed this year, probably October Q4. One will be an update on the polymetallic, the second will be for the brand new near surface stuff, which will probably be giving us a nice re-rate. The only reason I say early development is because we completed a preliminary economic assessment, a scoping study, announced in March. Basically, at today’s prices, we could build the mine for $20 million. Internal rate of return would be just under 200%, a payback period of less than six months. That small mine would run 650,000 ounces of silver for eight years, and less than 10,000 ounces gold. But what one must realize, is that the PEA was done on our resource from two years ago.

“But we’re not the next emerging silver producer. We’re going to have a significant silver resource, and sure, if we wanted to, we could push forward; but the goal is to build value through ounces in the ground first, and get some re-rates, then focus on that. Because this year and most of the next year we’re working on prefeasibility studies and more drilling and such.

“We control 100% of all of our projects. We actually own the land of the Pinguino deposit. We purchased it for less than $1 million late last year. Our major shareholder is International Finance Corporation which is an arm of the World Bank, one of the largest funds in the world.They went to Argentina, looked at a number of projects, and selected ours for their first investment, and their only investment, I believe, in Argentina. They purchased 19.9% of us. As of today we have 57 million shares out, but we just announced a $20 million financing this morning, led by a syndicate of bankers that are looking to get on our side. The financing is being led by GMP Europe, which is a phenomenal name to have representing us. And the company has never been marketed until about two and half months ago! Very tight and lean management structure. Very low burn rate. Probably less than $150,000 a month, including the whole company, including Argentina—unless we’re drilling. If we drill you can add $500,000 per month, per rig. We have $4 million in the bank. We have great shareholders, a great management team, great board of directors. And we’ve been having excellent feedback.

“We’re looking forward to having some analyst coverage here fairly soon. Two weeks after I joined the company I had pretty much all the banks phone me, and I had six analysts down on site after they requested to go down. It’s one of the few stories I’ve ever worked on where they phone me.”

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Abcourt President Renaud Hinse on Quebec silver assays of 300.99 g/t over 4.9m

May 27th, 2011

“It’s a property that Abcourt has had for 30 years. We were in production for five years, from 1985 to 1990. Then when the price of silver dropped below $5, and the price of zinc was also falling, we decided to close the mine. Since that time we’ve had several drilling programs with the objective of increasing the resources. And we have been quite successful in that endeavor. We’re drilling again to raise and improve the resources on the property. So the latest drill results are an indication that the zone is there and that it continues to give us some good values.

“For 2011, we’ll keep on drilling. We have to do a few holes on other properties for work requirements, but most of the drilling will be on Abcourt-Barvue. We have ore reserves on that property which total about 7 million tonnes. In addition to that we have inferred resources, with very good values in silver, which is what we’re drilling now.

“We had a feasibility study done in 2007, and we’ve been working on improving that. We purchased used mill equipment which is on the site now. This reduced the total cost of the project. And we’re trying now to increase the resources, and this will give us the possibility of increasing the daily tonnage of ore that we could extract. Every time we do an operation like that it improves the economics. Of course, the price of silver right now is very good and the price of zinc is not too bad, so our project looks very good.”

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May 26th, 2011

Gangbuster gold equities in Yukonby The Gold Report
Nicaragua emerges from the jungle, carrying goldby VantageWire
The coming hell for American familiesby The Grandich Letter
Gold price to hit five digits?by Equedia
Are you ready for commodity bargain season?by GoldSeek

How Far Does It Go?

May 25th, 2011

Aura is Proving Up Its Mexico Silver-Gold Project

By Ted Niles

Robert Boaz’s assessment is about as straightforward as they come. “We’re going to have a mine there,” the President/CEO of Aura Silver Resources says of the Higo Blanco prospect on its Taviche silver-gold project. “This is a system that is approximately two kilometres long. If you’ve got two kilometres of fairly decent mineralization over wide widths, you have a mine.”

Aura currently holds a 46.8% interest in the Taviche project, located in Oaxaca State, Mexico. Its joint venture partners, Pan American Silver and Intrepid Mines, hold 30% and 23.2% respectively. The project consists of three property concessions—West Taviche, East Taviche and Alma Delia—covering 52,340 hectares of the San Jose Mining District. Aura has been concentrated mostly on Higo Blanco, a mineralized complex running through the East Taviche and Alma Delia concessions.

Aura is Proving Up Its Mexico Silver-Gold Project

Boaz remarks, “We started to do some significant drilling [on Higo Blanco] back in 2008. What we’ve been doing since is trying to step out from those initial holes and determine two things: How far does the mineralization go, and where is the source?” May 24 assays of Higo Blanco include 89.8 grams per tonne silver over 5.8 metres, 33.2 g/t over 27.5 metres and 23.1 g/t over 122.7 metres (including 68.4 g/t over 22.9 metres). Notable gold results include 0.81 g/t gold over 7.5 metres and 0.62 g/t gold over 4.4 metres.

“At this stage, we have not found the source,” he continues. “The geology, as anywhere in Mexico, is difficult. However, we have identified that, with the mineralization from surface to 200 metres, we have this continuous stratified layer of silver and gold mineralization. That is quite exciting.”

Aura plans to have a resource estimate for Higo Blanco completed before September 1. “That’s a requirement of the option agreement with Pan American,” Boaz explains. “Then they can make a decision whether they want to continue with their 30% or allow us to dilute them down. My guess is that Higo Blanco will not be huge yet, because we haven’t got enough drill holes in the ground. But we’re excited about the prospect. There’s something there. And it’s something that no one can walk away from. We just have to continue to drill.”

There’s something there. And it’s something that no one can walk away from. – Robert Boaz

It is also worth noting that the West Taviche concession shares a boundary with Fortuna Silver’s San Jose Project. With silver equivalent resources of 37.6 million ounces indicated and 30.36 million ounces inferred at a 150 g/t cut-off, their San Jose Mine is slated to begin production in Q3 2011. “It’s obvious that their resource goes onto our property,” exclaims Boaz. “We have yet to get approval from the community to drill on that part of our property, but we’re coming very close. I think we’ll be drilling there in a couple of months, which means we’ll probably find the other half of Fortuna’s San Jose Mine resource.”

While Aura has the potential to earn in excess of a 70% interest in the Taviche project, Boaz does not expect that Aura will take it to production by itself. “We are not production people,” he says. “Unless we make a conscious decision to bring people in who understand how to mine, my guess is we’ll enter into partnerships with established miners. In my discussions with Pan American Silver—and we have a great relationship with them—they’ve told us that once we’ve put the resource together, once it becomes mineable, they would like to be operators. And, quite frankly, who else would you want to operate a mine but Pan American?” He adds, “The quid pro quo is they would like us to develop other properties that they have as operators.”

Aura Silver has a market cap of $19.6 million and traded at press time at $0.24 per share. The company’s other major project, Greyhound, is a high-grade silver and base-metals property in Nunavut, 32 kilometres south of Agnico-Eagle’s Meadowbank Mine.

Aura President Robert Boaz on Mexico assays of 23.1 g/t silver over 122.7m

May 25th, 2011

“We started working with our joint venture partner, Intrepid Mines, back in 2006 on the Taviche Property. Intrepid Mines have an option with Pan American Silver on these properties—East Taviche, West Taviche and Alma Delia, a property acquired after that agreement—and Intrepid asked us to come in and be a joint venture with them. We started to do some significant drilling back in 2008 in an area called Higo Blanco, and that year we released the first holes. And that’s what propelled the stock. Since that time we’ve had very good holes, and we’ve been continuing to deliver more.

“This is a system that is approximately two kilometres long. If you’ve got two kilometres of fairly decent mineralization over wide widths, you have a mine. So what we’ve been doing is trying to step-out from those initial holes and determine two things: how far does the mineralization go, and where’s the source. At this stage we have not found the source, although in hole 35 there seems to be some indication that we’re coming closer to it. However we have identified that with the mineralization close to surface—from surface to 200 metres—we have this continuous stratified layer of silver and gold mineralization that is quite exciting. In the last press release we showed a couple of holes that we did—28 and 29—that had lower grades, but over an extensive width. Which according to our geologist is very important. We’re getting over 100 metres of gold and silver mineralization. We’ve got 57 metres of over 90 g/t silver, and then we have the gold-bearing side.

“It’s an ongoing process. After hole 35 we’ll be regrouping. I’ll be flying down to Mexico next week, to take a look at the geology, figure out exactly where we want to go in terms of the next drilling program.

“We have to put a resource estimate together before September 1. That’s a requirement of the option agreement with Pan American. They have to see that resource September 1, and then they can make a decision whether they want to continue with their 30% or allow us to dilute them down. We have diluted Intrepid down to a point where if the JV was exercised today we would own over 46% of the entire property, Intrepid 23% and Pan American 30%. So we do have to put the resource together. At this stage, we don’t know. We basically have to sit our geologists down and have them compute the numbers and see what we have. My guess is that Higo Blanco will not be huge yet—because we haven’t got enough drill holes in the ground. But we’re excited about the prospect. When you get 300 grams, 500 grams, 600 grams, and there was one interval that had 2.5 kilograms of silver over a reasonable width—there’s something there. And it’s something that no one can walk away from. We just have to continue to drill.

“We are not production people. We don’t have miners in our management. Unless we make a conscious decision to bring people in who understand how to mine, my guess is we’ll enter into partnerships with established miners. In my discussions with Pan American Silver—and we have a great relationship with them—they’ve told us that once we’ve put the resource together, once it becomes mineable, they would like to be operators. And, quite frankly, who else would you want to operate a mine but Pan American? And I’d be happy to be a partner with them. The quid pro quo is they would like us to develop other properties that they have as operators. So there’s going to be a working relationship going forward with Pan Am.

“Where we are in Mexico is great. We have not had any problems at all. The bad guys tend to be further up north. It’s basically a rural community where we are. Our office is in a very small town that’s very supportive of us. There’s been no violence in our area—well, in 2005, there was a teachers’ strike in Oaxaca where a few people were injured, but that was negotiated away. Since that time there has been no violence, no threats. The towns love us because we have an ongoing policy 1) to employ people, and 2) to help them out with infrastructure in their area in terms of road building, bridge building. And we’ve helped with the purchase of computers for some schools. That’s the type of relationship we want with the communities. And we’re becoming well known in the Oaxaca State for being a community-friendly company.

“Moreover, the first time I went down there—we were doing a lot of trenching to determine what the grades were—and the locals were doing the work. They were great workers; the trenches were impeccable, they did a fabulous job.

“We’re going to have a mine there. I firmly believe we’ll have a mine there. The geology, as anywhere in Mexico, is difficult. Where we thought we would find the source of this close-to-surface silver we went empty; now we think the whole system dips to the southwest, so we’re changing our drilling pattern to try to hit that dip. But it’s a very positive gold-silver district, and it’s going to work out.

“The other thing to think about, is that our West Taviche concession surrounds Fortuna Silver’s San Jose Mine. The San Jose Mine will be operating by Q3 this year. It has a reserve of 25 million ounces silver—that’s silver equivalent, which includes gold—and they have an inferred resource of another 25 million ounces. And we surround it. San Jose’s resource butts-up against the boundary between ourselves and Fortuna, and it’s obvious that their resource goes onto our property. We’ve yet to get approval from the community to drill on that part of our property, but we’re coming very close. We’ve had great discussions with the Mayor, and they do want to work with us. I think we’ll be drilling there in a couple of months, which means we’ll probably find the other half of Fortuna’s San Jose Mine resource.”

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Pelangio VP Brendan Cahill on Ghana gold assays of 14.1 g/t over 7m

May 25th, 2011

“Last fall we hit high grade results within 10 metres of surface, 36 g/t gold over 9 metres and 8.6 g/t over 12 metres. That was along 50 metres of strike. So now that we’ve hit those grades at 100-metres depth it’s looking like it’s a continuous zone over 100 metres strike. So it’s a very positive development in that we’ve got the high grade and oxide and we’re confirming that high grade in the fresh rock beneath. We’ll see what comes of it, but there are similar underground-style deposits at the nearby mines of Ahafo and Chrano. It adds a further interesting dimension to the Manfo property and makes it look comparable to the other mines in the area.

“We made the first discovery in September last year, so we’re eight months in and moving as fast as we can. We know we’ve got a lot of potential there, but in terms of putting a specific date on resources, it’s a bit early for that.

“We’re hoping to add more drills at Pokukrum West as soon as we can, subject to availability of course,” Cahill continues. “We’ve got one on it now. Pokukrum East is something we really want to go back to and extend the strike length and then start drilling to depth, and infill drilling it a bit. Pokukrum West is high grade and everybody likes high grade; we’ve got to start tracing it down to depth and along strike as well. That’s the plan for those two this year. And then Nfante West—where we hit a 1.5 g/t gold over 61 metres last fall—we followed it up with more good results earlier this year, and it’s a target that definitely warrants further drilling. We’ll be trying to drill all of these targets, as well as looking for other new discoveries on the property at the same time.

“We’re drilling away at Obuasi. We have some really good targets there. If we don’t hit on the first go around then we’ll go back and drill them again, because some of the targets there warrant it.

“In this market there’s three avenues you can go through. At $1,500 gold, there’s production. The Detour Gold transaction was extremely profitable for our shareholders—where you take an equity position in the company that brought it from late-stage exploration through development and to production. Or there’s the take-out along the way. All we know is what we can control, and that’s taking all the steps we need to put together a resource and then make a decision from there. The thing that’s in our control is going towards production, but there’s lots of other things you can do along the way. That’s the thing about Pelangio: as we move down the path, we look at these three avenues and decide which is best for our shareholders.”

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Metals Creek President Sandy Stares on Ontario assays of 2.61 g/t gold over 18.1m

May 24th, 2011

“Ogden covers an eight-kilometre strike length of the Porcupine Destor Break, which is the key conduit for gold in the Timmins Camp. We’ve signed an option joint venture with Goldcorp, where we can earn 50% interest in the property by spending $3.1 million, and cash and shares totalling $460,000. There’s four known mineralized zones on the property: Nabob North, Nabob South—which is a past producer—Porphyry Hill and the Thomas Ogden zone. There is an historic, non-43-101 resource of one million tonnes at 4 g/t at the past-producing Nabob Mine.

“We’re very excited about these assay results. The nice thing about this new zone—Thomas Ogden North—is we’ve traced it for 145 metres now. There’s low grade, near surface, bulk tonnage potential there. Also, we’re starting to drill the Thomas Ogden zone itself a bit deeper now, and we’re still hitting. Both zones are still open to the east and west and at depth.

“We’re hoping to do 10,000 to 15,000 metres of drilling before the end of the year, and try to prove something up on the property.

“Absolutely, we intend to take this to production. Ogden is the main focus of the company right now. So we’re hoping to prove up a resource there. Goldcorp is a partner on this and its Dome Mill is only eight kilometres away from the property.

“Personally, I think this is one of the best projects in Timmins right now. We’re very excited about the Ogden project. We really look forward to getting back in there and doing a strong drill program on it and try to move this thing along as quickly as we can.”

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