Gold Ridge Investment Corp. Presents:
AN UNDERVALUED EXPLORATION COMPANY WITH A 1.85 MILLION OUNCE GOLD RESOURCE BASE (690,000 oz Au mineable)
LATITUDE MINERALS CORP. ("LTU" - VSE) OFFERS INVESTORS AN UNPARALLELED OPPORTUNITY TO PARTICIPATE IN A COMPANY OPERATED BY PROFESSIONALS WITH TRACK RECORDS OF MULTIPLE GOLD DISCOVERIES
LATITUDE MINERALS CORP.
Suite 612 475 Howe Street
Vancouver, B.C. V6C 2B3 Canada
Phone: (604) 688 - 2010 Fax: (604) 688 - 2015
Toll-Free: (800) 668 - 0071
website: latitudeminerals.com
S.E.C. Exemption: 12g3-2(b)82-4004
Over the past six months, Latitude Minerals' management team has acquired an impressive portfolio of advanced-stage, disseminated gold properties in the western United States containing gold resources of more than 1,850,000 oz Au.
CORPORATE BACKGROUND
Latitude Minerals Corp. ("LTU" on the VSE) is an exploration company with several advanced-stage gold projects located in Idaho and Montana, a resource base of more than 1.85 million ounces of gold, a strong management team, and the financial capabilities to grow and prosper.
LTU's officers and directors collectively have more than 100 years of
exploration experience the western United States, including an impressive track record of discovering and developing profitable gold mines.
The company's major properties, Kilgore (Idaho - 700,000 oz Au) and Miller Mountain (Montana - 864,000 to 975,000 oz Au) already have sizeable gold resources outlined, and, with another round or two of drilling, there is an excellent potential to discover an additional one to three million ounces of gold on each property.
Currently Latitude Minerals ("LTU") is trading at just Cdn$0.32 (US$0.21)
per share.
On a fully-diluted basis, for every Cdn$1.00 invested in Latitude Minerals, investors are effectively controlling 0.45 troy ounces of gold resources; looking at this another way, buying shares of Latitude Minerals is the equivalent of acquiring gold in the ground for just Cdn$2.23 (US$1.45) per ounce.
With increased market and investor awareness, it seems reasonable to expect that LTU's gold resources will be valued at comparable levels to its peers - somewhere on the order of US$10 to US$15 per ounce of gold resources in the ground.
Latitude Minerals could be a profitable investment for those with patience because the company already has known gold reserves and resources, with the potential to significantly increase reserves at their properties based on additional drilling. Several other properties which may fit LTU's criteria are under evaluation and may be acquired; all properties under consideration have proven gold / silver reserves and are located in the western United States.
CORPORATE FINANCIALS & MARKET INDICATORS
Shares Issued: 6,021,803 Fully-Diluted: 12,885,553
52-week high: Cdn$0.16 52-week low: Cdn$0.69
Current bid/ask: Cdn$0.32 - Cdn$0.35 Last Trade: Cdn$0.32
Market Indicators (fully-diluted):
Total Market Capitalization: Cdn$4,123,337
Market Capitalization per Ounce: Cdn$2.23
Ounces of Gold per LRU Share: 0.1436
MANAGEMENT
Despite its small market capitalization, Latitude Minerals has assembled an outstanding management team, composed of individuals who have collectively worked in U.S. gold exploration for over 100 years, and who have discovered numerous gold deposits that were subsequently developed as profitable mines.
LTU's team is also noted within the industry for their incredible networks; their pooled knowledge has allowed Latitude Minerals to quickly and professionally asses and close on new acquisition opportunities, such as Kilgore, Miller Mountain and Blue Hill Creek.
Dr. John R. Carden (President & Director) - over 20 years experience in exploration and management, with an excellent track record of discovering ore deposits throughout the western United States. Prior to joining Latitude Minerals, Dr. Carden worked for Echo Bay Mines (1986 - 1997) in various roles, most recently as Director of U.S. Exploration, where he managed a staff of 13 and an operating budget of US$3 to US$5 million.
Carden is credited with discovering the Lamefoot gold deposit in Washington State (560,000 oz Au); this project has been Echo Bay's lowest cost producing mine for the last three years. He also discovered the Easy Junior deposit in Nevada, a deposit sold to and mined by Alta Gold. Dr. Carden is one of the industry's best prospect generators, with broad experience in managing and directing all phases of exploration programs including personnel, budgets, drilling and logistics. Dr. Donald E. Ranta (Director) - currently President & Managing Director of Union Hill, a firm engaged in raising private equity funds for investment in the mining industry worldwide. Prior to that, Ranta worked for Echo Bay Mines as VP - Exploration between 1993 and 1997, where he managed a professional / technical staff of 40 with annual budgets of up to US$37 million.
While at Echo Bay, Ranta managed exploration teams that acquired and
expanded the Paredones Amarillos gold deposit in Mexico (1.5 million
ounces), the Aquarius deposit in Ontario (1.3 million ounces, and the
Kilgore deposit in Idaho (0.7 MM oz). Ranta also managed the teams that discovered the Dolores gold-silver deposit in Mexico and the Youga deposit in Burkina Faso.
Mitchell Bernardi (VP - Exploration) - an associate and business partner of John Carden, Bernardi has over 20 years of professional experience in mineral exploration (including several discoveries) in the western United States.
Prior to joining Latitude Minerals, Bernardi was credited with
co-discovering the Kilgore gold deposit in Idaho (22.58 million ST @ 0.031 oz Au/ST containing 706,000 oz Au). He has a proven ability to identify and evaluate precious metals acquisition targets and opportunities throughout the western United States, particularly in Montana and Idaho.
Bernardi is also credited with discoveries of: Cyprus Mineral
Exploration's Crypto zinc deposit in Utah (6.01 MM ST @ 8.68% Zn); Cyprus' Coulterville project in the California Mother Lode (70,000 oz Au), and discovering a 50,000 ounce gold resource at the WD - VAR project in Idaho.
KILGORE (IDAHO)
The Kilgore deposit, a large, volcanic-hosted, disseminated epithermal gold system in northeastern Idaho, is Latitude Minerals core asset. LTU's land position includes 634 unpatented mining claims (approximately 20 square miles) plus 480 acres of leased State lands.
Kilgore shares many geologic similarities to the world-class Round Mountain (NV) and McDonald Meadows (MT) gold deposits. The geologic environment at Kilgore is such that an extremely-large tonnage deposit (> 100 million tons) is possible, and there is excellent potential for discovering an additional one to three million ounces of gold.
In order to acquire an initial 49% interest in the Kilgore project,
Latitude Minerals must spend US$100,000 on exploration and make property payments to Echo Bay totaling US$50,000 during the first year of the agreement. Over five years, Latitude Minerals is obligated to spend US$2 million on exploration / development and make property payments to Echo Bay totaling US$1 million . An additional 49% interest can be acquired from Echo Bay Mines for US$1.4 million.
The Kilgore property was originally acquired by Placer Dome in 1990, and during the next five years, over US$6 million was spent on exploration by Placer Dome, Pegasus Gold & Echo Bay Mines.
Independent resource estimates completed by Mine Reserve Associates Inc on behalf of Echo Bay (based on 122,217 ft of core and RVC drilling) established a global resource of approximately 700,000 ounces of gold, of which the potential mineable part of the resource is approximately 417,000 oz Au. The stripping ratio is estimated at 2.7 : 1. The ores are amenable to heap leach processing, with test results indicating 94% gold recovery from oxide ores, 80% on mixed material and 63% on unoxidized ores.
There are several targets at Kilgore which have not been drill-tested; the possibility of finding additional reserves is good
Results from Latitude Minerals' first round of drilling at Kilgore included three holes with intercepts of anomalous gold mineralization averaging 330 feet thick. Drilling expanded upon an extension of disseminated mineralization discovered by Echo Bay Mines in 1996, and represents a significant gold discovery open to the west, northwest and south.
MILLER MOUNTAIN (MONTANA)
The Miller Mountain property contains an historic mining district that lies at the headwaters of Confederate Gulch, a prolific placer that produced over one million ounces of gold.
LTU's land position includes 195 unpatented and 7 patented lode claims as well as 2 millsites and 4 unpatented placer claims. To earn a 100% interest in Miller Mountain, Latitude Minerals must spend US$700,000 on exploration over the next three years, including US$150,000 in the first year of the agreement.
Between 1983 and 1994, over 400 holes were drilled at Miller Mountain. Pegasus Gold estimated a cross-sectional global resource of 864,000 to 975,000 ounces of gold. Recently, Latitude Minerals retained Mine Reserves Associates (MRA) to prepare a kriged ore reserve.
Mine Reserves Associates reported ore reserves of 7,500,000 ST @ 0.039 oz Au/ST based on a cut-off grade of 0.02 oz Au/ST; within this figure is a mineable open pit reserve of 4,500,000 ST @ 0.035 oz Au/ST with a 1.5 : 1 stripping ratio. Heap leach processing is projected to recover 80% to 85% of the gold in oxide ores and 55% in the sulfides.
Five magnetic / geochemical targets exist on the property, but only one, Miller Mountain, has been drill-tested.
Miller Mountain's intrusive-hosted gold mineralization is typical of
environments that often host extremely large tonnage gold deposits (> 200 MM ST). LTU's management feel that the Miller Mountain property has excellent potential to host a multi-million ounce gold deposit
Both the Schabert and Stonewall intrusives contain drill intercepts that are open-ended and have not been offset; at Schabert, a 400-foot intercept averaging 0.033 oz Au/ST has yet to be offset. Additionally, air magnetic surveys suggests the presence of at least three large, westward-dipping tabular intrusive sheets which have not been drill-tested
BLUE HILL CREEK (IDAHO)
Earlier this year, Latitude Minerals acquired a 100% interest in the Blue Hill Creek gold project in southern Idaho. Previous exploration work by Meridian Minerals (1986 - 1987) identified an epithermal hot spring gold system with a 170,000 ounce gold resource.
Blue Hill Creek has excellent potential for hosting a large, bulk-tonnage disseminated gold reserve. A north-trending mineralized zone, not yet fully-explored, has been identified and may represent a feeder structure to mineralization. Dimensions of the main target zone (Ampa Zone) are 1,100 ft long by 800 feet wide by 250 feet deep
This summer, Latitude Minerals tested the step-out potential of the known resource. Nine RVC drill holes intercepted significant thickness' of ore-grade to sub ore-grade gold mineralization ranging from 45 to 285 feet thick, including:
LTU Drill Hole Intercept / Assay
98-LBR-25 245 ft (25 to 270) @ 0.014
98-LBR-26 285 ft (70 to 355 ft) @ 0.017
98-LBR-27 250 ft (330 to 580 ft) @ 0.013
The 1998 drilling program increased the gold resource at Blue Hill Creek to over 200,000 ounces; the orebody remains still open in all directions, and has an excellent potential to host a gold deposit in excess of 500,000 ounces.
Latitude Minerals' management is of the opinion that Blue Hill Creek and Cold Creek are part of a geologic environment that has district potential, and in light of recent drilling results, further land acquisition in the area has been undertaken. LTU has had inquiries form three major mining companies with respect to the Blue Hill Creek / Cold Creek projects, and have recently entered into a confidentiality agreement with one of the interested parties.
COLD CREEK (IDAHO)
In October 1998, Latitude Minerals entered into an agreement to acquire a 100% interest in the Cold Creek gold deposit, located four miles north of LTU's Blue Hill Creek project. The 50,000 ounce gold resource at Cold Creek was acquired for 100,000 common shares of LTU.
The mineralized zone at Cold Creek is at least 5,000 feet long and up to 1,000 feet wide; surface values range up to 0.0606 oz Au/ST.
Meridian Minerals drilled a total of 9,205 feet in 38 RVC holes between 1985 and 1988 to partially test the Cold Creek target. The current resource is open along strike. Numerous ore-grade intercepts are open and have yet to be offset; faulted-off and buried mineralized sections remain untested.
Management believes that Cold Creek has the potential to host a gold
deposit in excess of 500,000 ounces.
OPPORTUNITY FOR INVESTORS
If ever there was a time to bottom-fish the gold market, this is probably it!
Over the past two years, gold has been largely ignored by the investment community, but now, astute investors are preparing for what many believe will be the strongest run on gold prices since the late 1970s. The only real question is why so few people fail to heed these clear warning signs, missing the chance to load up on good stocks at bargain basement prices and instead only come on board after the party has started and prices are up significantly.
Many analysts are encouraging clients to take positions in selected junior gold exploration companies such as Latitude Minerals, a firm with excellent technical management, a multi-million ounce gold resource base, good financial backing and solid growth prospects. LTU should do very well in the future.
From a technical standpoint, we believe that has LTU has turned the corner, breaking out of its downtrend line with bottom-fishers once again taking positions.
At current prices (Cdn$0.32 / share), there is little downside risk, given LTU's sizeable (1.85 million ounce) gold resource base.
In closing, we believe that Latitude Minerals has all of the ingredients for success: expert management with an established track record of discovering large, low-cost gold mines, plus several excellent properties at different stages of development - each with the potential to host between 500,000 and several million ounces of gold. A run in the price of gold like we all expect would reward shareholders with large capital gains, and make LTU a prime merger or takeover target.
For more information, please contact:
Brian Hillhouse (Manager - Investor Relations)
Toll-Free: (800) 647 - 3303
DISCLAIMER
This is not an offer to sell any securities of Latitude Minerals Corp.
("Latitude Minerals").The securities may only be offered by registered broker-dealers which may have agreed to market Latitude Minerals' securities. Gold Ridge Investment Corp. ("Gold Ridge") is not such a registered broker-dealer.
The information contained herein has been provided by Latitude Minerals to Gold Ridge for information purposes only and should not be construed as, and shall not form part of an offer or solicitation to buy or sell any securities nor should it be construed as investment advise. In addition, the information contained in this report is not intended to be a complete discussion of information regarding some of the current and/or intended business activities. Gold Ridge has not conducted any due diligence into the company or into any of the representations contained in this report.
The information contained herein has been compiled or derived from sources believed reliable and contains information and opinions which are believed to be accurate and complete. However, Gold Ridge makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability whatsoever for any loss arising from any use or reliance upon this report or its contents.
Gold Ridge has received Cdn$5,000 cash from Latitude Minerals as
consideration for the preparation of this report, and, prior to Gold Ridge writing this information, Latitude Minerals has reviewed and approved the contents hereof.
Mr Metals
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