Prior Resources Ltd. (Alberta: PQL) makes their second paid appearance in Hot Stocks Review. When we last looked at this company, PQL had been exploring for silver in another part of Mexico. During late 1995/early 1996, they hopped over to the Ukraine to explore for diamonds with limited, but uneconomic, success. Again, they explore in Mexico, under the exploration supervision of Ron Tammekand.
On this go-around, PQL is exploring on a property near Mazatlan, Mexico in the state of Sinola. I had several discussions with Ron Tammekand after the first round of drilling. He was quite impressed with the positive inkling that this current drill play might eventually become a success. Until now, it appears that PQL had been nothing but a stock promotional play. At this time, PQL appears to be quite serious about their exploration activity.
Finding "something" of merit can certainly change a company's objectives. On October 18th, PQL announced a "discovery hole" on their Mazatlan property. According to that news release, "The assay values from the drill core of the first eight holes, received to date, show economic amounts of gold and silver in all holes. The highest values were obtained in Hole #7 with 107 feet grading 1.15 grams of gold/ton (containing a five-foot section grading 17.5 grams of gold/ton and 31.6 grams of silver/ton."
This isn't bad. It is a very good start. At least one gold mine, near this area, has been started on overall grades less than Hole #7. After the drill results were announced, I spoke with Tammekand again. He was fairly pleased with the results and insisted that PQL had to do "infill drilling." In his first pass-through on the drilling, he methodically drilled a large portion of the property. Infill drilling
would be designed to more selectively drill the most promising areas and to drill a lot more holes there. The nature of this program was on the order of 10,000 feet which would cost several hundred thousand dollars. According to Tammekand, the next program would be designed to
prove up 200,000 ounces of gold.
That would be very good news for PQL shareholders. The property still requires a lot more trenching, mapping and, of course, more reverse circulation drilling. It is not a sure thing. It could go either way: a gold mine or a dud. That is what one is betting on with PQL, on their next drill program.
The key is to find economic values of gold. Tammekand, from his years of exploration experience in Mexico, told me in our last telephone interview: "The company should definitely drill." That would result in the most advanced exploration this penny-stock company has undergone to date. Those, who routinely trade PQL, are most successful in obtaining positions at under C$0.18/share and trading the stock, during its inevitable runup, to between C$0.25 and C$0.30/share. In the event, that PQL hits during a future drill program, it would probably shock most Canadian speculators and set a record high. One learns to expect surprises in the junior exploration business.
Contact: Dalton Dupasquier Telephone: 604-682-0410
Toll Free: 800-972-6564 Fax: 604-682-0412 Email: prior@portal.ca
WWW Site: www.priorltd.com
Corporate Headquarters:
Suite 601, 431 Pacific Street
Vancouver, BC, Canada V6Z 2P6
By George Chelekis |
