From Canaccord Capital Gold Update:
In previous issues of the Junior Golds Update, we have highlighted the
South Voisey's Bay area play, and in particular have focussed on
Donner Resources (DML : VSE : $2.33), Northern Abitibi Mining (NAI :
ASE : $1.66), and Cypress Minerals (CYP : VSE : $0.55). These three
companies expect to see drilling resume on their holdings in the South
Voisey's Bay camp probably by early May. We are awaiting formal
announcement of a drill start date and overall budgets, but
nonetheless do anticipate sizeable exploration programs. These
programs will follow up on discovery hole 97-96 made by partners
Donner and Northern Abitibi late in the year, which intersected 15.7 m
of massive sulphide with an average grade of 1.13% Ni, 0.78% Cu, and
0.20% Co. This discovery is significant in that it is the first time
outside of the original discovery at Voisey's Bay that a
nickel-bearing interval greater than 1 m has been intercepted. As
well, this intercept appears to be in the right geologic suite of
rocks, suggesting an opportunity for the development of a significant
resource. Ongoing drilling will continue to test this target along
strike and to depth as well as test other geophysical anomalies both
on the joint venture ground and Cypress Minerals' ground.
We'd like to flag a fourth potential player in the area play, Major
General Resources (MGJ : VSE : $0.39), whose share price has recently
risen from the low $0.30s. This company holds the Sarah Lake project
in the South Voisey's Bay camp, and we note in a news release dated
March 9 that a preliminary exploration budget could see exploration in
the order of $1.0M.
The companies noted in the South Voisey's Bay play continue to
demonstrate strong liquidity in the current market environment, and
share price appreciation has been relatively consistent since forming
share price lows in mid-December. We continue to rate the shares a
SPECULATIVE BUY. We do note, however, that accumulation should be had
on weakness and that all positions should be considered short-term
trading opportunities only.
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