From todays Cannacord Capital Daily Letter:
++++++++++++++++++++++++++++++++++++++++++++++++++
SPECULATIVE BUY Corner Bay Silver Inc. (BAY : TSE : $1.58 : Issued
15.55M)
Graeme Currie (604) 643-7405 graeme_currie@canaccord.com
HIGHLIGHTS
* Corner Bay Silver announces the resumption of drilling at the Alamo
Dorado silver heap leach property, Mexico
* After further structural interpretation, drilling is to begin
likely mid-Q2) testing other targets on the property
* Corner Bay Silver remains one of our top picks in the junior
exploration sector
Recommendation: SPECULATIVE BUY
52-week price range: $3.25-0.60
Shares O/S: basic 15.55M
fully diluted 19.42M
Major shareholder: Management
Weekly trading volume: 180,000
Working capital: $6.0M (CCC est.)
Long-term debt: nil
Market capitalization: $24.6M
Asset statistics:
Alamo Dorado Silver resources (equiv.) 128.8M ounces mineable
2001 budget : Gross $5.0M
Geographic location: Sonora, Mexico
Geological host(s): Ag/Au Mesothermal /Metasedimentary host
Sector: Junior Mining
Web site address: www.cornerbay.com
Corner Bay Silver announces the resumption of Drilling at the Alamo
Dorado silver heap leach property
Corner Bay Silver, which recently completed a $5.5 million financing
and a name change from Corner Bay Minerals, has announced the
resumption of exploration and development work on its 100% held Alamo
Dorado silver property located in Sonora, Mexico. Exploration to date
has outlined a mineable reserve in all categories of 52.5 million
tonnes containing 128.8 million ounces of silver (equivalent: Ag + Au)
and which remains open for further expansion within the Main zone as
well as at several other target areas within the property.
The initial phase of drilling will include in-fill drilling in the
area of the proposed Phase One or starter pit and is designed to
improve grade/thickness data and to upgrade some areas of the deposit
to mineable categories. The Phase One pit is currently scheduled to
cover the initial three years of production at a strip ratio of less
than 1:1 and which we have estimated could produce some 16 million
ounces of silver (equivalent) in years one and two. Drilling will also
be completed at the southern end of the deposit, which is truncated by
a well-defined, low-angle detachment fault. Previous drilling in this
area yielded values up to 697 g/t Ag and 0.41 g/t Au over 52.5 metres
in hole AD-49. There is the potential to add to the reserve base along
this fault. More importantly though, the company indicated that
previous drill holes, inclusive of AD-49 above, may represent the
upper portions of a feeder system.
After further Structural Interpretation, Drilling is To Begin (likely
mid-Q2) testing other Targets on the property
The company is also initiating property-wide, detailed structural
interpretive work. This will allow for better understanding of the
controls for the main deposit and for further assistance in defining
drill hole locations on outlying target areas. We would expect that
the drilling of such targets could begin as early as mid to late Q2.
All of the work presently underway will be incorporated in the
company's plans to complete a bankable feasibility study by the end of
the year.
Corner Bay Silver Remains one of our Top Picks in the junior
exploration sector
This junior provides a combination of a large resource and reserve
base of silver and gold which, based on pre-feasibility data, can
yield NPV at a 10% discount (employing silver prices at US$5.00/ounce)
of $4.36/share fully diluted. Added to this is the exploration upside
to expand the Main zone and the opportunity to develop further targets
on the property. We continue to rate the shares as a SPECULATIVE BUY.
For further background we reference our report dated January 11, 2001. |
