Junior exploration efforts to discover economic/ore grade PGMs ...
First we should all recognize the pre-assay valuation
determinants - i.e. compare the # shares outstanding
and % ownership of each company.
The share structure, ownership and assays (grade, depth
and width of drill intersections) will determine the
height of the bar. Obviously, 'the higher the grade',
'the shallower the depth', 'the wider the intersection'
the better for project economics:
1. Starcore and Proam: Samuels Lake results
(Mar 22 release)
Starcore Resources Ltd
Shares issued 10,918,192
50/50 JV
1999-03-16 close $1.05
Drill hole, SM-99-3, is part of a 1,200-metre reconnaissance
drillingprogram testing separate targets within the Samuels
Lake mafic intrusion.
From To Interval Cu Ni Pt+Pd+Au
m m m % % g/t
------ ----- ------- ----- ---- --------
SM-99-3
71.71 141.05 69.34 0.22 0.15 0.074
SM-99-3
177.06 222.6 45.74 0.82 0.64 0.8
including
208 213.33 5.33 1.74 1.13 0.8
Drill holes SM-99-1, SM-99-2 and SM-99-4 were drilled on
separate targets from hole SM-99-3. Drill hole SM-99-1
returned anomalous values in platinum, palladium and
copper, while assays are awaited on holes SM-99-2 and
SN-99-4.
2. Freewest and Sparton: Folson Lake assay results
(Mar 15 release)
Freewest Resources Canada Inc
Shares issued 33,102,190
50/50 JV
Mar 12 close $0.46
The first three holes in the program tested the
Valhalla showing:
Hole From To Width Pt+Pd
m m m g/t
321-99-01 0.2 50.6 50.4 0.62
including 13.3 16.1 2.8 1.93
27.9 30.15 2.25 1.69
321-99-02 2.1 54.5 52.4 0.58
including 24.9 33.5 8.6 1.06
321-99-03 4.8 34.7 29.9 0.71
including 14.O 24.0 10.0 1.13
3. Mustang Gold: East Bull Lake assays
(Mar 10 release)
Mustang Gold Corp
Shares issued 15,654,568
100% Mustang
Mar 9 close $0.18
Assay results from the recently sampled Atomic Energy
of Canada Ltd. drill hole No. 4 (AECL DDH-No. 4). The
AECL completed four deep holes in 1983 at East Bull Lake
intrusion, approximately 1,500 metres west of the company's
recent drill holes (news release of Feb. 11, 1999).
Hole No. Layer Combined Core Depth
Pt-Pd-Rh-Au Length
(g/t) (m) (m)
-------- ----- ----------- ------ ------
AECL DDH-No.4 A 1.86 6.5 361-367.5
Incl 2.36 4.5 361-365.5
Incl 3.06 2.15 362.35-364.5
B 0.27 79.8 372.2-452
Incl 0.34 33.1 400.5-433.6
Feb 11: East Bull Lake drill results from ME 98-01 to 07:
Hole Layer Combined Length Depth
No. Pt-Pd-Rh-Au (m) (m)
(g/t)
----- ----- ----------- ------- -------
ME
98-01 A 1.07 13.5 8.5-22
incl 1.62 5.0 8.5-16
incl 5.65 1.5 14.5-16
B 0.25 39 37-76
ME
98-02 A 1.40 3.7 7.3-11
incl 4.33 0.7 7.3-8
ME
98-03 A 0.73 12 7.5-29.5
incl 2.19 1.5 23.5-25.0
B 0.50 33 38.5-71.5
incl 1.38 3.0 52-55
ME
98-04 A 1.1 3.0 22-25
incl 2.0 1.5 23.5-25
B 0.47 34 53.5-88
incl 1.18 1.6 64-65.6
ME
98-05 B 0.52 24.5 43.5-68
incl 1.2 2.0 43.5-45.5
ME
98-06 A/B 0.45 42 28-70
incl 1.35 1.5 28-29.5
incl 1.08 1 56.5-58
ME
98-07 A 1.75 1.5 31-32.5
B 0.57 31.5 58-89.5
incl 1.76 1.5 58-59.5
incl 1.03 4.5 77.5-82
NOTE: ME 98-08 intersected a mafic dyke its' entire
length and returned no appreciable PGE assays.
4. Avalon Ventures, East West Resource Corp. and
Canadian Golden Dragon: Wolf Mountain results
(Mar 12 release)
Avalon Ventures Ltd
Shares issued 19,792,731
50-50: Optioned to East West and Cdn Golden
1999-03-11 close $0.87
Exploration work and ground acquisition costs by
Avalon exceed $275,000 which involved surface sampling,
magnetic surveys, auger holes on unconsolidated
(weathered) ultramafic material, and eight diamond drill
holes. Assays returned anomalous values in the drill
core of up to 0.85 grams PGE.
April 22, 1998: drill results
Several shallow holes were drilled by auger to test
the PGE-enriched black sands exposed at surface as
well as eight diamond drill holes, totalling 1,272 metres,
to a maximum depth of 300 metres. Several shallow holes
drilled into this unit with an auger showed that the
unconsolidated sands locally extend to depths exceeding
6.0 metres, and average close to 0.5 g/t PGE. Seven of the
eight diamond drill holes intersected highly anomalous PGE values(Pt+Pd) of up to 0.875 g/t over 1.50 metres in a 1:1
ratio, within multiple mineralized horizons averaging 0.2
to 0.5 g/t over widths ranging from 6.1 to 21.0 metres.
5. Houston Lake Mining (HLM-A): Tib Lake
Houston Lake Mining Inc
Shares issued 9,946,600
1998-08-06 close $0.14
From the prospectors 1995 shallow hole drill program,
drill hole TL-95-09 intercepted the following
mineralization under the Kuhner occurrence at a depth
of 30.5m.
Estimated True Palladium Platinum Au Combined
Width (m) (g/t) (g/t) (g.t) (g/t)
-------------- --------- ------- ------ --------
13.6 1.10 0.38 0.21 1.68
incl. 5.2 1.85 0.58 0.31 2.74
incl. 1.5 3.09 1.03 0.41 4.53
March 1999: Drill results pending.
__________
Lessons I have learned:
1. PGM surface sampling rarely shows up in the drill core.
2. Proximity to a deposit and previous drill results are
better indicators of the potential for a discovery.
3. CAVEAT EMPTOR - buyer beware of companies with insiders
that day trade their stock and do not buy on press releases
that are based on speculation.
___________
Comment on HLM-A: Lesson #1 is not why they drilled Tib Lake,
Tib was drilled because of #2. #3 does not apply to HLM, they
are more interested in building long-term shareholder value.
DRT |
