Here's Today's
From canaccord.com
WESTERN COPPER HOLDINGS
(WTC : TSE : $4.50 : Issued 10.7M; 13.8M f.d. :1.0M cash)
WTC has intersected 163 m of massive sulphides starting at
a 205 m depth in Hole SAL-25 on the El Salvador Project, Mexico. This
project is a 45/55 joint venture with Teck, which earns 55% before the
Mexican vendor backs in for 25% working interest. This would leave
Western Copper with a net 22.4% interest. Normally this diluted
interest would dampen our enthusiasm, but the length of this massive
sulphide intersection is compelling. Teck, as operator, has been
drilling blindly on this project for the last year. It has
intersected some very respectable grades (i.e. Hole SAL#12 with 2 g/t
gold, 196 g/t silver, 1.0% copper, and 6% zinc), but surrounding holes
have been barren. This was before Teck completed an advanced IP
geophysical survey that has outlined several large zones of sulphides.
Drill hole SAL-25 has been drilled into one of these anomalies that
measures 500 x 500 m. The size and strength of this geophysical
anomaly leads us to believe this is not an isolated pod of
mineralization. Unlike the recent discovery area, there is only a
faint IP response around the previously drilled SAL#12 located a few
km away. We caution, though, that SAL-25 was drilled vertically, and
there is no indication of true width for the zone, which is believed
to be flat lying. However, the hole stopped in sulfides.
And:
* SPECULATIVE BUY Western Copper-163 m of massive sulphides
intersected in Mexico (A. Muir)
Our confidence in the potential grade of the 163 m intersection is
boosted by comments from WTC management. Mr. Dale Corman, President,
Western Copper, and Mr. Bill Meyers, VP Exploration, Teck, flew to the
project on Tuesday. Mr. Corman commented that the core of SAL-25
looks very similar to SAL-12, which averages US$150/t gross value over
13 m. Assuming that the market cap values 10% of a given asset of a
resource company, we assign $10/t for a potential ore body of 150.0M
tonnes. Western Copper's net 22.4% interest in this possible blue-sky
target would equal $24.00/share. We expect initial assays next week.
The drill has been moved off to another target, and the Company does
not know when drilling will resume. We believe Hole SAL-25 could be a
new discovery and recommend Western Copper as a BUY for speculative
accounts.
Andrew Muir, CFA (604) 643-7008 |
