Weekly Update July 10 - 15, 2006.
The Companies Most Likely To Succeed
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The Resourcex Investor is produced by Doug Hadfield and James West, two investors who became investigative journalists after realizing that no reliable journalism was available to the average junior resource investor. Regulatory limitations on corporate disclosure prevent companies from discussing developments on a day-to-day basis. We bring you insight from within the companies, visiting their properties, and interviewing technical people on the ground. We always disclose our position, if any, in the companies we talk about. See our track record here.
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We talk to the people on the ground. Technical reports serve the function of confirming what everybody suspects. We find the companies on the verge of success through our network of correspondents in all of the resource producing countries of the world. We filter through the noise to bring you information from inside companies.Read more about us.
Energy Update >>>
Falcon Oil and Gas (TSX.V:FO). continues to drill in Hungary with excellent results. It is expected the Mako trough will yield somewhere between 45 and 90 trillion cubic feet of gas when all is said and done. Falcon is developing one of the world's largest known Basin Centered Gas Accumulation (BCGA) formations in Hungary known as the Mako Trough, as well as conventional reservoirs in Romania and Canada. See the latest presentation here.
Gold - Century Mining Corp. (TSX.V:CMM)
The gold price continued its strengthening fundamental outlook this week as the bulls seem poised to take the metal on another surge up the price ladder. The see-saw pattern of 3 steps forward and two back will continue, in our opinion, well past $1,000 per ounce, which we think will be broken by Q2 next year.
Why Buy Century Now?
Peruvian acquisition has historical inferred resource estimate (non 43-101) of between 5.7 million and 17 million ounces of gold,on just one of 4 projects;
Drill program to commence within weeks;
Company had Q1 operating profit of CA$1.9 Million;
Full TSX listing imminent;
Company is on track to produce 90,000 ounces this year from two mines in Canada;
Peggy Kent's stated mission is to "build the next Barrick";
She has the drive, gumption,and track record to do it;
Recent financing of $25 million means she has the capital rasing ability to do it;
On an operational earnings-per-share basis, this company should be trading at at least CA$5;
Takeover targets have been identified;
Negotiations are under way with majors for JV's and or property acquisitions;
Century Mining Corp. (TSX.V: CMM) continues to make progress on their recently acquired San Juan Mine project in Peru. Having now acquired 90% ownership of the entire project, the company is in a position to force the sale of the remaining 10%. The project's 4 known deposits have the potential to host anywhere from 3 to 35 million ounces of gold, based on a comparison of geology near Arequipa where the project is located.
"Properly capitalized, San Juan can be a world class gold operation."
-Margaret Kent, CEO
Geological mapping and grid geochemical sampling has begun on the Golden Champune prospect, located approximately four kilometers east of the San Juan Gold Mine. Reconnaissance mapping shows that the Golden Champune alteration and mineralization zone covers three mountain ridges oriented roughly northwest-southeast, and spans a lateral east-west distance of approximately two kilometers. The highest part of the zone, Golden Champune, stands approximately 400 meters above the surrounding dry stream beds (quebradas), while the two adjacent lower ridges to the east stand 225 meters (Champune Media) and 100 meters high (Champune Pequeño), respectively. The extent of the zone in a north-south direction is more than 600 meters.
Further research into the archives at the San Juan Mine has uncovered the existence of an encouraging historical geochemical study performed on a limited part of Golden Champune in June, 1989. The studies were conducted under the direction of the Peru Universidad Nacional de Ingenieria, Facultad de Ingenieria Geologica, Minera y Metalurgica. A total of 190 soil and rock chip samples were collected from the quebradas and lower slopes of Golden Champune. Gold values in the rock chip samples ranged from 1.0 g/t to a high of 3.1 g/t gold. The area in which the samples were taken measured 1.5 km by 1.7 km. Coverage is clustered along the quebradas.
The same study also included soil and rock chip sampling from the Santa Clarita prospect, located approximately 5 kilometers from the San Juan mine site. The area in which the samples were taken measured 2.5 km by 1.0 km. Coverage is clustered along the quebradas and on the ridge lines. A total of 196 soil and rock chip samples were collected. Rock chip samples ranged in value from 0.5 to 4.0 g/t gold. Santa Clarita exhibits geology similar to that of Golden Champune.
Century’s grid rock chip sampling program on Golden Champune has begun this week. The grids will be established on a nominal 50 meter by 50 meter spacing. The samples will be transported directly to a newly-constructed sample preparation laboratory at the San Juan Mine, where the samples will be crushed and a portion shipped to Lima for analysis. Approximately 700 samples will be collected over the next few weeks.
The San Juan Mine operation is located near the southern Peruvian coast, approximately 80 kilometers inland from the mouth of the Ocoña River and the city of Camana, and is currently producing gold from extensive veins and shears within intrusive rocks. More than 35 mineralized structures have been identified on the property, of which only two have been extensively mined. Our sources in Peru advise that one of the deposits was the subject of a take-over bid by Teck Cominco, who allegedly offerred to put up to $20 million into exploration in exchange for a controlling interest.....Visit Century's web site.
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Except for the statements of historical fact contained herein, certain information presented constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to, those with respect to the price of gold, silver and copper, the timing and amount of estimated future production, the potential and/or projected cash flow generated from production, costs of production, reserve determination and reserve conversion rates, and the potential for further equity dilution involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of any mentioned companies to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to international operations, risks related to joint venture operations, the actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, uncertainty in the estimation of ore reserves and mineral resources, changes in project parameters as plans continue to be refined, future prices of gold, silver and copper, economic and political instability, environmental risks and hazards, increased infrastructure and/or operating costs, labor and employment matters, and government regulation. Accordingly, readers should not place undue reliance on forward-looking statements.
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