MAI,v from CC Jan12
52-week price range: $1.00-$0.16
Shares O/S: basic 23.6M, fully diluted 27.8M
Major shareholder: N. Degerstom, 21%
Weekly trading volume: 117,500
Working capital: $1.3M
Long-term debt: nil
Exploration over the past three years has
defined nine Au/Ag targets with follow-up drilling on several of the
targets confirming the potential for economic deposits. For example,
early in 1999 drilling on the Huevos Verde high-grade vein system
confirmed the targets over 2.0 km. strike with the best hole yielding
7.0 m of 9.7 g/t Au and 630 g/t Ag. Although this zone is budgeted to
receive further exploration focus, in the first phase of this seasons
program the company is returning to the Saavedra West zone. This is
occurring because over the past year geologic re-evaluations has
defined what is hypothesized as a large, sub-surface, structurally
controlled, volcanic/sedimaentary basin that offers the potential to
host a bulk-tonnage, disseminated precious metals deposit.
In 1998 drilling at Saavedra West identified an area of exposed
breccia pipes as being mineralized and five holes in the Discovery
Hill area yielded assays up to 6.0 m of 61 g/t Au and 1,647 g/t Ag.
Other reported drill hole values included 21 m of 6 g/t Au and 874 g/t
Ag as well as 15 m of 7.5 g/t Au and 677 g/t Ag.
Subsequent mapping, structural interpretive work, and geophysics
suggested that the Au and Ag hosted within the breccia bodies might
represent upward fluid migration from a deeper-seated, basin-hosted
source. The geophysics identified a target roughly 1.0 km by 500 m in
size, about 100-300 m below surface. The drill program is specifically
focused at testing this hypothesis. Three holes of at least 250 m are
planned. In addition, we would not be surprised if this junior also
completed further drill holes at the Huevos Verde vein.
PHNPI |
