More companies move in on Zenyatta’s Ontario graphite project
by Greg Klein
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In just over five weeks at least a dozen companies have picked up properties around Zenyatta Ventures’ TSXV:ZEN Albany graphite project in north-central Ontario. A steady source of encouraging news since its January 2012 discovery, Albany was bound to attract admirers—but why so late and suddenly so many? Little is being said, other than the properties became available and the timing couldn’t be better.
“It’s been great for the markets,” says Michael England, CEO/director of Cariboo King Resources TSXV:CKR. “All the juniors that have gone in have seen an increase in volume and even some financings. It’s been fantastic. It’s kind of what the doctor ordered for our markets. All of us were so dead but with the [Alpha Minerals TSXV:AMW/Fission Uranium TSXV:FCU] uranium play in the Athabasca Basin and this one—wow! What a change it’s made.”
Among the earlier entrants reported by ResourceClips.com on July 17 were Brookemont Capital TSXV:BKT with its 416-hectare Albany East property, Cavan Ventures’ TSXV:CVN 768-hectare Cage claims, TAD Mineral Exploration’s TSXV:TJ 257-hectare Constance Lake property and Bluenose Gold’s TSXV:BN.H Zenyatta West project.
Other acquisitions include Weststar Resources’ TSXV:WER 304-hectare Albany South East property announced July 16, TAD’s second foray with the 386-hectare Constance Lake West property announced July 25 and Ashburton Ventures’ TSXV:ABR 16-claim, 256-hectare Page property announced the following day.
Cariboo King heralded its 256-hectare Nezen property July 29. The next day Alchemist Mining TSXV:AMS did the same for its 256-hectare Mondatta property and the day after that MPH Ventures TSXV:MPS got in on the act with its same-sized North Albany. On August 13 GTA Resources and Mining TSXV:GTA said it increased its Auden project to over 26,000 hectares, making it the area’s largest landholder.
Then the play moved farther afield with two August 15 announcements, Cariboo King’s 1,536-hectare Pito property 20 kilometres west of Albany’s drill holes and, about 25 kilometres east of Zenyatta, the 256-hectare Hearst project for Benton Resources TSXV:BEX—which passed it on to Alabama Graphite CNSX:ALP the very next day. Alabama IR officer Danny Gravelle tells ResourceClips.com, “The property became prospective to Benton not only because of the location but an historic report by Noranda which gave some really strong indicators that there’s potential for graphite.”
But what prompted so many companies to pour into the Albany area at this time? Gravelle responds that Zenyatta’s story obviously has investors compelled. After trading for less than $2 in May the stock hit a 52-week high of $5 on July 26. “For a stock to perform as it has in the worst market I’ve seen in my lifetime shows a significant amount of strength. I think investors are convinced that Zenyatta has great potential because they’ve shown they like this story even in the worst of markets. That’s what really generated the interest.”
Cariboo King, with projects close to a number of former graphite mines in Quebec and also to Timcal Graphite & Carbon’s operating Lac-des-Iles mine, evidently lets others lead the way. “I do play closeology a lot with my companies,” England tells ResourceClips.com. He saw the policy pay off when New Gold TSX:NGD took out Geo Minerals in December 2011. “That was something that we never even drilled but it was close to their Blackwater deposit.”
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