STARFIELD RESOURCES INC., SRU-CDNX, LK&Z Update - Friday, July 21, 2000
close Can$ 1.20
Ferguson Lake (Nunavut Territory in Canada) Nickel Copper Palladium
Exploration.
Websites: www.starfieldres.com (for previous updates and discussions please
visit www.LKZ.com )
Much has been said on how un-loved Canadian Junior Mining companies have
been in the last two years. Indeed, getting financing has been tough for
most and several mining exploration companies have closed shop or defected
into the dot-com sector. But many have continued to pursue what they know
best - finding mines! Starfield Resources Inc. is such a company and
investors are well advised to follow the company's drilling progress in the
next few weeks and months. After conclusion of our follow-up research (a
comprehensive research report of SRU can be found on www.LKZ.com ), we are
pleased to present the following snapshot:
· The company is finalizing a commitment for a $1.5 to 2 Million financing
from Canadian sources. A Press release should be issued in the next few
days;
· 2 drilling units are on site and a third one will join in a few weeks.
· The 10'000 meter drilling program, exploring the west zone of the
property, will be starting in 8 to 10 days. The west zone (detailed in the
latest Starfield Press release dated June 1st 2000) offers a prolific
drilling target with the potential of adding significant mining tonnage to
the already indicated proven resource base of 19Million tons (approx. 1.5%
Ni/Cu and 2.5 grams of Palladium and 2 to 3 Lb of Cobalt valued at approx.
US$ 125 /ton at today's prices);
· Extensive UTEM surveys continue on the property. Specific emphasis is
given to the East side where some anomalies have been detected warranting a
closer look;
· The company has held several meetings with large International Mining
firms interested in the property. Negotiations are advancing but no deals
have been struck. It is in Starfield's interest to continue an aggressive
exploration program proving the anticipated mining reserves before striking
a deal.
LK&Z Opinion
A quick look at Starfields trading chart tells a story of share accumulation
by a wide range of investors. Increasingly, SRU is becoming an investment
story followed by investors and brokers across Canada and increasingly in
the US. This is not your average size Ni/Cu exploration story. The company
is driving to prove a world class mining reserve showing in excess of 100
Million tons of a minimum of 2% Ni/Cu and, as an added value sweetener, 2.5
grams of Palladium. The company has shown superb technical expertise,
managerial stamina and maturity in making financing decisions. Increasingly
their story is being recognized as a "star in the making". We recommend
continued aggressive accumulation of SRU shares. We believe the stock will
test its all time closing high of $2.25(end of May 1999) within the next 6
weeks. As the results of the drilling program become known we could see a
rapid and significant move into the $ 4 to 5 range.
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DISCLAIMER: K.D. Zahnd of LK&Z has prepared this Update. Information
contained herein is drawn from sources believed reliable, however, this
cannot be guaranteed. Any and all information is intended for the sole use
of the person whose name appears on the header. This communication does not
in any way constitute an offer to buy / sell investments in any
jurisdiction. The writer may hold shares or be a member of the board of
directors of the company. |
