From: newsout@canada-stockwatch.com
Date: Thu, 19 Feb 1998 11:13:49 -0800
Subject: Stockwatch: Primero Industries Ltd - Research
To: ajanko@erinet.com
Yorkton says buy
Primero Industries Ltd PMI
Shares issued 9,286,448 Feb 17 close $0.23
Thu 19 Feb 98 Research
Art Ettlinger and Douglas Leishman say why
Primero has a 50% option interest from New Claymore on the 250,000 acre
Peace River prospect. Drilling of 19 potential kimberlite anomalies is
planned for this winter. The property is in an area of variable till
thickness approximately halfway between the Mountain Lake diatreme and the
kimberlite discoveries of Ashton. Regional geologic studies show the area
to be a zone of ancient uplift, as defined by carbonate reef patterns, and
to contain numerous northeasterly and northwesterly striking faults. The
company has selected drill targets based on their geometry as defined by
ground magnetic surveys. Targets are typically ovoid in shape and measure
from 200 to 320m in length and 100 to 200m in width. Primero plans to
initially drill two core holes into each of the targets, which are
estimated to lie within 75m of the surface.
One of Primero's highest priority drill targets is in the eastern corner of
its 250,000 acre Peace River project. Immediately east of this target, on
Lucero's Fafner prospect, lies a cluster of small lease blocks held by
Ridgeway Petroleum Corp and optioned to New Claymore. These small leases
were originally part of a much larger land package held by Ridgeway, but
were kept by the company due to the quality of geophysical targets they
contained. We view this as further confirmation as to the validity of
Primero's survey and interpretation abilities in generating kimberlite
targets.
We are recommending Primero Industries for purchase by the speculative
investor based on the company's competent technical team of Jim
Dawson/Jonathan George, known geophysical targets and close proximity to a
cluster of geophysical anomalies on Lucero's Fafner prospect.
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