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Posts tagged ‘Jayden Resources Inc. (JDN)’

Small Cap, Big Plans

September 20th, 2011

Otterburn drills Palladium-Platinum in Finland

By Greg Klein

(UPDATE: Effective Sept. 26, 2011, Otterburn Ventures Inc will change its name to Finore Mining Inc. The company’s CNSX trading symbol will change from OTB to FIN.)

Nano-caps—companies with market caps often well below $75 million—”have the greatest potential for outsize performance,” according to Paul Zweng, a Portfolio Manager with Resource Venture Advisors. “You can literally generate 10-times returns with these tiny companies.” Needless to say, there is risk. “That is why you really need to understand the geology, the prospectivity and the management team,” he emphasizes. “Are these people who can husband their money and their resources carefully?”

Following Zweng’s advice, these would be the criteria to evaluate Otterburn Ventures’ recently optioned Läntinen Koillismaa Project (LK) in Finland. A palladium-platinum property with gold, copper and nickel, it’s further advanced than the projects Zweng referred to, despite Otterburn’s nano $14-million cap. LK already has a resource estimate, an experienced drill team, a highly regarded management team and, Otterburn President Steven Green says, plenty of blue-sky potential.

Otterburn drills Palladium-Platinum in Finland

Value for money was what brought Otterburn to Finland and LK. The company pulled out of a venture in Tanzania when drill results turned spotty. “We decided we’d better preserve our cash and look at properties elsewhere,” Green explains. “Shortly thereafter, the opportunity in Finland came up. After the Tanzanian experience, we really wanted to see the stability of the country and the stability of the mining environment. Then on top of that you’re looking for all the usual things related to a potential property—that it’s underfunded but doesn’t have any serious flaws, that politically and environmentally it looks like it has growable mineralization. That’s what attracted us to LK. I went over in mid-July, and what I found were four interesting properties. A good, small, knowledgeable staff was on site; they knew what they wanted to do and why they wanted to do it. It looks like there’s a lot of potential along strike and at depth. It has power, a lot of infrastructure. This is a country that is quite interested in mining. In fact, the local community could actually get involved in funding. There’s a nearby vanadium mine that they’re opening, and the community is actually investing in it. We thought we had a much more attractive place to do business.”

A February 2011 resource by Nortec Minerals estimates 60,332 ounces palladium, 19,492 ounces platinum, 6,497 ounces gold, 4,908 tonnes copper and 3,464 tonnes nickel indicated and 378,263 ounces palladium, 133,007 ounces platinum, 91,279 ounces gold, 63,153 tonnes copper and 40,534 tonnes nickel inferred. The estimate covers just two of LK’s four properties and suggests potential large-tonnage, open-pit mining.

A JV with Nortec came through last August, granting Otterburn the option to acquire up to an 80% interest in LK. The agreement has Otterburn earning the initial 49% by paying Nortec $4.5 million, issuing Nortec $2 million in shares and spending $5 million on the project. As for the additional 31%, Otterburn must pay Nortec $3 million, issue Nortec $1 million in shares and spend $5 million. Otterburn must also issue 400,000 common shares to Nortec and 1.85 million common shares to a third party as a finder’s fee.

Green says that even without the extra financing that Otterburn is now working on, the company has enough cash on hand for up to a year of drilling. The next program starts in November, despite LK’s location 65 kilometres south of the Arctic Circle.

“There are sections in all four properties which are on hard ground; they can be drilled any time of the year,” Green says. “There’s an all-weather highway right in the middle of it, power lines right through the middle of it and a rail head about 40 kilometres south. A two-hour drive along the highway takes you to the city of Oulu, which has the main airport and a seaport leading to the Baltic.”

It looks like we could turn this into a potential operating deposit which would give us revenue. We’re in a stable environment; we’ve got room to grow; and we’ve got a good team in place —Steven Green

Green explains that, apart from drilling, geophysics normally constitute the largest exploration expense, and this is an expense Otterburn won’t face for some time, thanks to the advance work done by Nortec.

As it explores the property further, Otterburn intends to apply for a listing on a more senior stock exchange.

Returning to Zweng’s criteria for a successful nano-cap—”the geology, the prospectivity and the management team”—it’s time to ask whether the company is led by “people who can husband their money and their resources carefully.”

A geologist with over 25 years’ experience, Green has worked for Freeport McMoRan, Noranda, Santa Fe Pacific Gold and Cambior. Most recently, he took charge of geological data for Fronteer’s US operations. With experience in Alaska and northern Canada, he’s undaunted by Finland’s Arctic.

CEO/Director Peter Hughes is co-founder of Pirie Hughes Consulting and has over 25 years of management experience in pharmaceuticals, alternative energy and mineral exploration.

Director David Eaton also acts as CEO/Executive Director of Jayden Resources and Managing Director of the Baron Group, a few highlights of his more than 20 years experience building junior resource companies.

Geological Adviser Lawrence Dick is noted for a number of significant discoveries and holds or has held senior positions with companies including Jayden Resources, Sprott Resource, Golden Fame Resources, Evolving Gold, Timmins Gold and Confederation Minerals.

As if he’s directly addressing Zweng’s criteria, Green sums up the LK Project this way: “We have an interesting platinum-palladium property with gold, copper and nickel. It looks like we could turn this into a potential operating deposit which would give us revenue. We’re in a stable environment; we’ve got room to grow; and we’ve got a good team in place.”

At press time Otterburn had $3.5 million in cash and 38.4 million shares at $0.34 for a $13.1 million market cap.

Disclaimer: Otterburn Ventures Inc is a client of OnPage Media.

Disclaimer: Jayden Resources Inc is a client of OnPage Media.

A Fresh Look

September 20th, 2010

Jayden Resources leads the new class of Stewart Camp mining companies

By Kevin Michael Grace

David Eaton, the CEO of Jayden Resources has a wealth of experience in hands-on entrepreneurship, even if he is missing the “formal schooling” in business. And his knowledge leads him to conclude that Jayden’s Silver Coin Mine in northern B.C. is going to be a winner.

Eaton recounts, “I started in this business as a runner out of high school, working on trading desks at the old Vancouver Stock Exchange. I learned from the street level on structuring deals, structuring finance, every aspect of the deal right up to running a public company.”

He then went into land development, throughout North and Central America, before, in his own words, “becoming bored with it.” The lure of starting and building companies was just too strong. “Now I’m chairman of the Baron Group, which was set up with the backing of Joseph Wan. He took me under his wing. We do everything from marketing to geological services to finance. Everything from A to Z.”

The Baron Group, established 1998, is headquartered in Hong Kong with offices in Beijing, Macau, Vancouver and New York. Eaton likes to refer to the “Baron platform,” which is how he describes the “one-stop” shop the company has built for its clients. Baron facilitated the June changeover from Pinnacle Resources Ltd. to Jayden Resources Inc., a name Eaton says was chosen primarily to “reflect the large Asian shareholder base.” Since June, Jayden has been trading on the TSX Venture Exchange under the symbol JDN.

The Silver Coin site, approximately 1,255 hectares, is located in the Stewart Camp, 25 kilometres north of Stewart. Prospecting began there in 1898, and the area saw significant exploitation of gold (two million ounces) and silver (43 million ounces) at the Silbak-Premier Mine and tremendous exploitation (420 million pounds) of copper at the legendary Granduc Mine.

Silver Coin is 70% owned by Jayden (with an option for another 10%) and 30% owned by Mountain Boy Minerals. It was drilled extensively in the 1980s and 1990s, and 60,000 ounces of gold was mined then. From 2004 to 2008, Pinnacle and Mountain Boy drilled 292 surface holes and cut 75 surface trenches.

Under Jayden’s management, activity at Silver Coin is moving into top gear. Why now? According to Eaton, “We brought a fresh look to an old project. We believe there’s a world-class gold deposit there. We got lucky, and we were able to take control of this thing during the ’08 downturn. I believe we can put this on a path to production, and I believe we bring the knowhow and the expertise.”

As Eaton points out, Jayden is hardly the only company expanding in the region. “If you look at what’s happening up at the Stewart Camp, especially this year, you’ll see companies like Great Bear, Mascot and Ocean Park are bringing new life to it. A whole bunch of money is coming into the Stewart Camp and that has to do with the precious metals prices as high as they are.”

Gold traded just over $400 per ounce in 2004. Today, the price hovers over $1,100, with many believing it will go substantially higher.

Jayden has planned another drilling project this year and has hired AMEC Earth and Environmental to perform second-stage environmental work. The work is extensive and expensive but a pittance compared to the money saved by Stewart Camp’s location. Eaton enthuses, “A road runs right to us. Right there that saves us a hundred million bucks. Usually you have to fly in by helicopter. And we have power close by. That just saves massive amounts of capital.”

Above all what distinguishes Silver Coin for David Eaton is this: “It’s one of the only projects I’ve been involved with that actually has a deposit that we can grow. I believe we can double this up. We have the proven reserve.”

All about the Infrastructure

September 13th, 2010

Jayden Resources’ Silver Coin, B.C. Project is positioned to succeed.

By Kevin Michael Grace

Movie trivia buffs will know that John Carpenter’s 1982 horror cult classic The Thing was filmed just outside Stewart, BC. Now, given that the Stewart area stood in for central Antarctica in the movie, you might think that Stewart would be an awkward place indeed for a successful gold mine. You might think that, but you’d be wrong.

As it turns out, Stewart, 288 miles north of Prince Rupert, is well positioned. For starters, it is an ice-free port, the northern most on Canada’s Pacific Coast. It is well-served by road as well, with a spur off BC’s Highway 37. Stewart was a precious metals boom town before the First World War, with a population that reached as high as 10,000. The Stewart-Premier-Hyder, Alaska area has been home to such fabled producers as Riverside, Silbak-Premier, Eskay Creek and Granduc.

Obviously, historic accomplishment and easy access do not guarantee anything. You need to find gold as well. And that, VP Exploration and Development Robert Perry reports, is precisely what Jayden Resources Inc. has done at its Silver Coin property, located in the Stewart Camp 25 kilometres north of Stewart. From 1988 to 1994, about 30,000 ounces of gold were produced on this site from underground drift mining. However, “In the past six years,” Perry says, “we have explored the property and identified a significant gold and silver resource and ongoing engineering and metallurgical studies suggest the deposit can be economically mined by open pit methods and the gold and silver can be recovered by conventional processes.”

(Perry clarifies, “Back in the Bre-X days things were fast and free, and investors were victims of exaggeration on a frequent basis, so the government stepped in and clamped down and made rigorous rules for the disclosure and reporting of information about mineral deposits. 43-101 lays out in great detail the procedures that must be followed and the qualifications of the people doing this reporting.”)

The geology, Perry explains, gives every indication of being mineral rich. “In the case of Silver Coin, going through the center of the zone there is a breccia (which just means broken rock). This happens where a major fault has come through, and faults form pathways for mineralization of all kinds. At Silver Coin, there is a very large zone where the rocks are all busted up. The current deposit as drilled forms a sort of elongated, north-south oval, which lends itself very well to open pit mining, which costs about one-tenth as much per ton as underground mining.”

And the Silver Coin deposit “sits more or less on a ridge, and this makes the geometry extremely favourable.” In other words, “You don’t have to move very much waste off to get to the ore. Any time you’re mining waste, you’re eating up your profit.” The waste to ore ratio, according to Perry, is about 1.3 to 1. “This is a great strip ratio, as it’s not uncommon to see projects with a 3 to 1, 5 to 1 or even 8 to 1 strip ratio.”

To sum up Silver Coin: The gold has been discovered; second-phase environmental studies are commencing, including fisheries and aquatics baseline studies, stream flow monitoring, and about $50,000 is being spent on a weather station. Transportation is secure, as “the Granduc Mine built this magnificent road from Stewart right through the middle of our project and north of there.” And electrical power needs to be extended only five kilometres from the current grid. The “best-case scenario,” Perry says, is a three-to-four year timeline to production.

So Bob Perry is excited about Silver Coin. But he is even more excited about the surrounding area, whose potential he believes to be much greater than two million ounces. “The periphery of the Silver Coin deposit, both north and south, has not seen the level that the interior has. In 2008 there were a couple of holes drilled to the south which were just spectacular holes. When I got involved with it, I noticed that people didn’t seem to be all that wound up about them, and I thought, ‘Gee those are some great holes, and there are great unrecognized opportunities down to the south.’”