Tumi news on Kitco. This may explain the latest move.
GOLD, SILVER, PLATINUM, PALLADIUM AND DIAMONDS
This is our latest stock recommendation:
Tumi Resources Limited
TM – Canadian TSX Venture Exchange
Website: www.tumiresources.com
52 WK High/Low: $C0.24/$C0.69 Shares issued: 7.2 million
Recent Price $0.60 Float: 1 million
Investor Information
Nick L. Nicolaas
Tel: 604-657-4058
E-mail: nicolaas@attglobal.net
Overview Two recent significant acquisitions located near Guadalajara, Mexico in the historic Jalisco silver belt
have positioned Tumi Resources Limited as one of the premier junior silver-gold explorers in Mexico. The
Company has started work on the advanced Cinco Minas silver-gold project and has an extensive portfolio of early
stage silver-gold projects in the Gran Cabrera area including more than fifteen significant old precious metal
mines that historically produced high-grade silver-gold ore. Tumi has an option to earn a 60% interest in the
Projects with the right to acquire the remaining 40% interest. The Company also has two (2) exploration
projects in Peru (collectively the "Projects").
Cinco Minas Area: The historic Cinco Minas mine production (Rivera and Vazquez, 1963), by agitation
leaching from high grade zones, is recorded as 97,000 ozs gold and 15 million ozs of silver from 1.08 million
tonnes of ore (recovered grade 3.2 g/t Au and 476 g/t Ag). An independent consultant, Cuellar, 1999, reported
resources remaining in the old mine area of 5.07 mt @ 1.24 g/t gold and 120 g/t Ag that are amenable to
open-pit mining. In order to confirm this resource Tumi has started underground rehabilitation and channel
sampling of the accessible workings in the old mine ("Cinco Minas Mine").
Tumi controls 5 kilometres of highly prospective ground which includes the aforementioned historic Cinco Minas
Mine and also two other significant mineralized, drill-ready targets: 1) Cerro Colorado about 1,100 metres from
the Cinco Minas Mine workings where surface sampling averaged 96 g/t Ag and 1.57 g/t Au over 11.75 metres;
and 2) the El Abrita.
Gran Cabrera Area: The Company has an option to earn a 60% interest (and right to purchase the remaining
40%) in the Gran Cabrera properties covering 3,950 hectares. Known within this area are more than fifteen
historically prolific silver-gold mines. Tumi’s initial exploration efforts will focus on several old high-grade
mine areas that may be open-pitable and economic.
Corporate Objectives Immediate Objectives are to: 1) bring the historic open-pitable silver-gold Cinco Minas
Mine into a resource classification sufficient to undertake initial scoping studies; 2) do advanced exploration
along the 5 km strike-length of the Cinco Minas vein which is under Tumi’s control; 3) commence a Phase I
exploration program at Gran Cabrera; together with 4) further financing for exploration and public awareness
program without creating unnecessary dilution.
The Cinco Minas Mine A northwesterly trending zone of a previously underground mined, bonanza-grade,
silver-gold vein and stockwork epithermal deposits occur within an area approximately 40 kilometres long by
10 kilometres wide.
The Cinco Minas Mine lies within this zone and historic mining took place over a distance of 876 metres to a depth
of 790 metres within the vein, at the Cinco Minas Mine. Crosscuts and stopes were systematically developed
every 30 metres, both vertically and horizontally, over 16 years (1912 to 1928) by Anaconda Mining Co.'s
co-founder Marcus Daley. Production records from the mine between 1922 - 1928 (Rivera and Vazquez, 1963),
by agitation leaching from high-grade zones, is recorded as 97,000 ounces gold and 15 million ounces of silver
from 1.08 million tons of ore (recovered grade 3.2 g/t Au and 476 g/t Ag). Although the entire Cinco Minas Mine
area was systematically developed, only high-grade zones were developed and mined, and hanging-wall
mineralization up to 20 metres thick and averaging 12.8 metres remains intact and mineable by open-pit
methods.
Previous Independent Opinions by four independent mining consultants to Tumi‘s joint venturer, Minera San
Jorge, undertook sampling programs from surface and accessible underground workings and reviewed and
reported on their findings. Cuellar, 1999, reported resources in the mine area of 5.07 million tonnes at 1.24
grams per tonne gold and 120 grams per tonne silver.
As only 18 per cent of the known vein system was sampled, the independent consultants stated that the geological
potential of the area is estimated to be 500,000 ounces gold and 52 million ounces silver if only 5 per cent of the
untested area contains mineralization. It should be noted that this potential grade and quantity is conceptual in
value and there has been insufficient work undertaken to define this value, and it remains uncertain if further
exploration will result in the discovery of increased mineral resources on the property.
During recent property examination conducted by Tumi, a Company representative and an independent consulting
geologist (John Nebocat, B.Sc., P.Eng, a qualified person in accordance with National Instrument NI 43-101)
collected eight contiguous chip samples along a 14 metre width of the hanging wall of the Cinco Minas vein to the
southwest. The samples were taken from the southeast wall of the "384 Adit" located at the El Abra zone of the old
underground mine and sent by Chemex Laboratories in Mexico to Vancouver for analysis. This interval averaged
136 g/t Ag and 2.0 g/t Au over 14 metres and is bounded by an open stope to the northeast and what is believed to
be "barren" quartz in the immediate hanging wall of the vein. This barren zone is only about 1-2 metres wide in
this area. These results support the conclusions from previous exploration programs that the unmined
hanging-wall (averaging 12.8 metres thickness) of the Cinco Minas vein is a viable open-pit silver-gold target.
In November of 2002, based on the historical information and database at hand as well as its own recent property
examinations and finding, the Company commenced a Phase I work program at the Cinco Minas Mine in order to
confirm that there is at least 5 million tonnes of open-pitable and economically mineable reserves in the old
Mine. Starting with the rehabilitation of access to the uppermost four levels of the Mine (Famosa, Destajos,
Trinidad and Cinco Minas levels), the current work endeavors to get access to all of the crosscuts in accessible
areas to an initial potential open-pit depth, below surface, of about 150 metres and over a length of 876 metres.
In a Press Release dated November 25, 2002 Tumi announced that rehabilitation of underground access to the
un-mined hanging wall of the Cinco Minas vein was progressing and that the first reported underground channel
sample results did confirm the prospectivity for finding open-pitable resources within the hanging-wall of the
Cinco Minas vein. The results confirm as well that the old report-database is reliable. Rehabilitation of
underground access on the Destajos and Trinidad levels is continuing and further sample results should be
available soon.
Significant "blue sky" potential along the 5 km strike length of the Cinco Minas epithermal silver-gold vein
Of other exploration significance is the prospect named Cerro Colorado, located along the vein about 1,100 metres
from the rich El Abra ore shoot and Cinco Minas Mine workings. Here, surface sampling by previuos exploration
programs over the vein width of 750 metres of bold outcropping vein shows an average of 11.75 metres in width
grading 1.57 g/t Au and 96 g/t Ag and is an immediate drill target for additional resources.
Minimal historic work has been undertaken at Cerro Colorado area and no drill holes are recorded, however many
people who have worked on the property have documented their belief that this is the extension of the Cinco Minas
vein and that further exploration should be undertaken. The hope for this "Blue Sky" target is to duplicate the
historic high grade Cinco Minas Mine.
Another prospect, the El Abrita, lies in between the Cinco Minas Mine area and Cerro Colorado. The El Abrita
remains completely untested by modern exploration methods as well.
Gran Cabrera The 3,950 hectare Gran Cabrera property area covers more than fifteen significant old precious
metal mines that historically produced high grade silver-gold ore. A number of the old mine areas show potential
for substantial open pit type silver-gold resources and an initial Phase I work programs will focus on these
areas.
The Gran Cabrera properties are centered on three large silver-gold epithermal systems associated with volcanic
units northwest of Guadalajara, Mexico. San José, Espada-La Deseada and Las Caridades are groupings of rich,
historic silver-gold mines located in the historic Hostotipaquillo mining district. The Cabrera mega-system
contains stockworks, breccia hosted ore bodies and large vein feeder sub-systems at the intersection of the Sierra
Madre and the Trans Mexican Volcanic Arc.
Periodically the more than fifteen significant old precious metals mines within the property areas historically
produced high grade silver-gold ore over a period of more than 350 years beginning with discovery by early
Spanish Conquistadors. Included within the property areas are the San José, Esperanza, Crestón, Espada, Deseada,
Paloma, Dura, Esmeralda, Burro, Concordia, Escondida, Banco, Peralta, Caridad and Victoria mines.
There are four immediate primary target areas: 1) the Espada-Dura-Deseada-Esmeralda ("Espada Mines")
cluster; 2) the San Jose cluster (with the Velazquez exploration adit driven at a lower level) including the
Esperanza and Crestón mines; 3) the Caridad cluster of mines including the Banco, Escondida, Concordia, la
Caridad, Victoria, Burro and Paloma Mines, the latter two along the Santiago River; and 4) the area around the
Peralta Mine and adjacent areas.
All four areas show evidence of Spanish exploration and mining as well as mining efforts conducted by American
mining interests into the early part of the 20th Century.
The Phase I work program on the Gran Cabrera properties will consist of data recompilation, geological mapping
and verification or extension of earlier channel sampling of vein, stockwork and breccia hosted precious metal
mineralization to seek ore grade mineralization suitable for open pit mining. Once target areas have been
identified drilling will be programmed as soon as practicable.
Cinco Minas and Gran Cabrera Agreement Terms Under the terms of the Heads of Agreement the Company may earn
a 60% interest by, over a three-year period, spending a total of $US2.5 million on the Gran Cabrera or Cinco
Minas properties.
The Cinco Minas terms include producing a feasibility study regarding production and issuing a total of 1.1
million common Tumi shares. In year one the Cinco Minas work commitment is $US250,000 of which $100,000
has been spent and 100,000 shares have now been issued. The agreement also includes an option to purchase the
remaining 40% interest.
For the Gran Cabrera properties the Company will issue a total of 750,000 shares of which 250,000 shares
have been issued with the remaining 500,000 shares committed over two years. At Gran Cabrera Tumi has
committed to incur minimum expenditures of $US75,000, $US100,000 and $US150,000 over three years
respectively. Here as well, the Company has the right to purchase the remaining 40% interest in the Gran
Cabrera properties should a development area be identified.
In addition to all this, the Company has an option to acquire a 100% interest in a further 10,862 hectares of
concessions located contiguous with, or near, the core Cinco Minas area.
Financing and Investor Awareness Program Both the Cinco Minas Phase I work program and the Phase II
follow-up drilling program are funded by cash on hand. The follow-up Phase II exploration program at the Cinco
Minas vein which will include 2,000 metres of large diameter (HQ) core drilling and 500 metres of HQ core
drilling at the Cerro Colorado zone (referred to above under Further Significant "Blue Sky" Potential). On
December 1, 2002, the Company commenced a public awareness program. With expected steady good results from
Phase I and II the Company intends to raise $1 to $2 million with the proceeds to go mainly to a) further advanced
exploration at the Cinco Minas along the full 5 km strike-length of the vein which is under Tumi’s control; b)
initial scoping studies at Cinco Minas; and c) a Phase I exploration program at Gran Cabrera.
PERU Tumi has: 1) the right to acquire a 70% interest in the Las Lomas massive sulphide properties located
about 15 km northeast of Manhattan Mineral Corp’s Tambo Grande deposit in northern Peru (the Company has
postponed the planned work program); and 2) 100% right to the Tinka property in southern Peru, a large
copper-gold porphyry target.
Exellent Medium Risk/ High Reward investment Opportunity For investors Tumi Resources offers an exellent
medium risk/high reward investment opportuniy.
The un-mined hanging-wall (averaging 12.8 metres thickness) of the Cinco Minas vein is a viable open-pit
silver and gold target. This is supported by the conclusions from previous exploration programs and reports plus
the recently reported underground channel sample results at the historical Mine.
Old and recent channel sample results confirm that the old database at hand is reliable and that there is exellent
prospectivity for expanding the open-pitable resources within the mine area hanging-wall vein reported to be
5.07 million tonnes at 1.24 grams per tonne gold and 120 grams per tonne silver as reported by Cuellar, 1999.
Management expects that, subject to final resource confirmation and subsequent scoping study, the remaning ore
in the Cinco Minas Mine can be open pitted and economically mined. This will give Tumi Resources an excellent
head-start at the beginning of a precious metals "Bull Market".
The hope for the El Abrita and Cerro Colorado "Blue Sky" targets to duplicate the historic high grade of the Cinco
Minas Mine would deliver tremendous upside and share value potential.
This is an opportunity to invest in a growing mineral resource that could easily exceed 20 million economically
mineable tonnes of ore. In addition, this is essentially a Silver play and then the question is - Why should you
invest in Silver?
Because of the ongoing Silver supply deficit (100 million ounces per year), known Silver stockpiles are low and
are well on their way to zero. Silver is being consumed and not stored like gold. New uses are steadily being
discovered for various applications: among others; Silver use in super conductivity technology for electricity
transmission efficiency; use in battery manufacture for electric and electric/gas hybrid cars; soldering by
replacing the now used tin-lead alloys to soldering with a tin Silver alloy. There is new evidence that colloidal
Silver may be used in the future as a disinfectant as it has been found to be a very efficient killer of bacteria. All
in all, supply and demand issues favor Silver.
Remember Gold is "Accumulated" but Silver is "Lost". Also there is currently 10 times more Gold than Silver in
above ground stocks!
Percentage wise I expect Silver to outshine Gold in the years to come.
David Henstridge, Tumi’s President & CEO is a serious and pragmatic explorer and his background attests to that.
You may recall him as the President of Peruvian Gold. With Peruvian he wanted to take over Gabriel Resources
and its’ Romanian Project. However, after a hearing by the Securities Commission that was initiated by some
financial people who wanted to use the money in the Peruvian Treasury (approx. Can$14 million) to go hi-tech,
he was forced to abandon the Gabriel takeover. It was too bad that Peruvian Gold and David lost out on taking over
Gabriel because Gabriel now has a mineable reserve of 10.5 million oz/Au and they just raised US$95 million to
put the mine into production. However that's in the past but, in any event, it exemplifies why I have a high regard
for David's pragmatic mining and management capabilities.
Forward Looking Statements: This Company Information contains certain "forward-looking" statements and information
relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by, and
information currently available to, the Company's management.
Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without
limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and
strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological
change, changes in industry practices and one-time events. Should any one or more of these risks or uncertainties
materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those
described herein.
If this was already out there I apologize.
regards
ralfph |
