Jay Taylor on GPXM,
GOLDEN PHOENIX MINERALS (NASDAQ - GPXM - $0.28) - This remains my favorite
junior mining stock for this year because I believe this company is on its way toward
establishing not one but two world class orebodies. Equity prices for resources are so
depressed at this time that investors don't seem to care at all about the intrinsic value being
developed by a handful of mining companies. In time that attitude will change and those
companies that have been able to build viable mining projects will be richly rewarded.
Golden Phonenix cerainly seems to be on its way to expanding an already valuable deposit,
namely the Contact deposit. The company announced last week that mineralization was
extended 400 ft. to the west along the Banner zone, which is now over 4,000 ft. in strike
length. The company also said that metallurgical work was completed from samples taken
from two other targets found three miles to the west and one mile to the southwest. Samples
from several mine dumps were collected, crushed, and placed into separate leach columns.
A weak sulfuric acid solution was circulated and measured for 63 days, which resulted in
projected recoveries of 88% in one sample and 82% in the second. Management said these
results suggest that copper mineralization hosted in granodiorite rocks can be readily
leached. Last week I spoke to geologist Steve Craig who told me the company is now in the
process of recalculating the previously announced resource at the Contact property. Based
on this most recent drill program, I would expect we will see a bigger resource number. Until
now, the company has spoken about 39.5 million tons averaging 0.952% copper at a 0.2%
cutoff grade, leaving the project with a total resource of 752 million pounds of copper.
What I think is important to bear in mind are the dimensions of the Contact mineralized
system. Not only is the Banner Zone over 4,000 ft. in length, but other zones which are part
of the same system extend three miles to the west in once instance and one mile to the
southwest in the other instance. This is why Dr. Whitney emphasized to me last summer
that I had to pay attention to this company. John believed then and he continues to believe
that the Contact has the potential to develop into one of the truly great mineral deposits in the
world.
Meanwhile at the Borealis gold deposit, which I believe may also evolve into a multi-million
ounce gold deposit, more data should be forth coming in the near future. So as the market
for mining shares appears to be all but dead, Golden Phoenix is establishing intrinsic value
that should justify the price of this company's stock to rise well above $1 per share.
miningstocks.com
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IT'S NOT THE internet, but if you like this kind of gamble,
you never know what might happen.
going to have to check out the size of the property.
I wonder how much stock John owns, any one know off hand.
see if I can do some checking. |
