Bill:
For your information: Johnson Matthey does cover the Lac des Illes Mine of North American Palladium in the Current issue of "Platinum 1998" "Interim Review" see page 10, this is available on the Johnson Matthey web page. My opinion on other matters raised in your post:
1. most analysts and newsletter writers do not do their "Homework" they rely on company information and releases. See BreX for a good example.
2. Current Management of North America Palladium is completely non promotional, hence very little market information or interest.
3. Lack of past operating profits, due to: incompetent past mine management, use of obsolete junk equipment, poor mill practice, and poorly considered and structured forward sales of Palladium and currency hedges which depressed the financial results. In addition there was the overhanging debt to Kaiser Francis Oil Company.
4. Probably some analysts and others retain a negative impression related to the extremely optimistic promotional efforts of Madeline Mines when it was in control of the property.
5. North American Palladium has published on its web page and annual reports "ore reserve" information (note that the term "ore" is a technical term of specific meaning which is often misused by non-mining people). Conversation with government personnel and others in The Thunder Bay Mining Community leads to the opinion that these numbers meet the normal technical standards and are credible.
6. Currently defined "ore reserves" do not appear to be sufficient to liquidate the debt to Kaiser Francis Oil Company. However, ongoing exploration at the mine site adjacent to the existing operations is generating substantial tonnages of additional "ore". Furthermore an ongoing scoping study is examining the possibility of upgrading approximately 30 million tons of lower grade material to "ore" status; due to the great increase in palladium prices over the recent year. If the results of this study are positive then the long term economics of the Lac des Illes Mine would be very good.
7. North American Palladium has a current exploration budget of better than $1,000,000 Canadian and is both very actively exploring on the mine property and on other properties in the general area, which have been acquired by either staking or optioned from prospectors or Junior companies.
8. Current Mine Management {Keith Minty, President) has addressed the operational weaknesses, upgraded the equipment fleet and mill operations, resulting in substantial improvements in daily tonnage and mill throughput and lower operating costs.
9. I and a number of other prospectors and geologists both private and employed by the Ontario Government toured the property and reviewed the ongoing operations and exploration efforts in the late fall of 1998. The foregoing points represent my personal opinion only, based on the data made available and my personal observations at this time as well as my knowledge of the general area.
To briefly address a number of other matters that have been raised in some of the posts on this thread that I have reviewed.
Other potentially productive exploration projects and companies for PGMs.
1. Pacific Northwest Capital projects: the one near Sudbury; this general area is getting pretty hot with a number of companies and individuals active, the geology looks pretty good. The Big Trout Lake Complex: north of Thunder Bay, far north, fly in project, high cost, pure frontier will take a big budget to do much unless the company is very lucky.
2. Tib Lake, Houston Lake Mining, good values from past work, good basic geology, good access, company needs more financing.
3. Mustang Gold (MUST T)this company is in the East Bull Lake play, near Sudbury with a strong land position and some interesting preliminary drill and surface results.
4. Freewest Resources Canada (FWR M) also in the East Bull Lake play an interesting company and project, it is a secondary project for the company, their big play is a very good looking gold project in New Brunswick. But the company has announced a drill program on the PGM project and has generated some pretty good surface numbers, this company has excellent technical management.
5. Starcore Resources (SOE VSE) and ProAm Explorations (PMX VSE)joint venture on the newly discovered Samuels Lake PGM project. Located west of Thunder Bay, Ontario. Excellent road access, good surface assay numbers, will be drilling within the next two weeks. Very interesting geophysical targets under the lake, on strike with the surface showing. This is a brand new discovery with no past exploration of any kind. The two companies put out a joint news release Thursday. In the interest of full disclosure I am one of the prospectors who staked this discovery and optioned it to the companies.
Do your own research on these companies and projects but for someone who is interested in speculative early stage exploration plays in the Platinum Group Metals these companies and projects are worth some study and research. |
