Peter Grandich reports on LTU. Also of note is that drilling should commence on Pan Deposit in less than 60 days.
Grandich Publications
P. O. Box 354
Perrineville, NJ 08535-0354
Office: (732) 792-7724
E-mail: pgrandich@injersey.com
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I find it quite fitting that my last commentary on one individual company I am working for, would be what the textbook suggests a junior resource company is suppose to be all about. The last several years have been the best, and worst, of times in the junior resource market. We have seen it all, and quite frankly, have had enough. However, if we learned anything, it would be to go back to basics.
The whole idea of a junior resource company was for the price of high risk/high return, one would speculate that their company would be the one in one hundred to go from exploration, discovery, development and into production. The reward for such a feat is anticipated to be well worth the gamble. While I am clearly bias due to my compensated position with Latitude Minerals Corporation (LTU.V), I truly believe it has most of the chapters needed to make up the textbook on successful junior resource opportunities.
While I must state only what is already known, I can tell you that LTU seems to have the rare advantage of both strong management and good properties. I must also be candid in the fact that the two key management players are not stock market savvy. However, after the last couple of years, perhaps it's time we only let successful mining people run mining companies.
Key Management- No matter what else is said about LTU, the number one bullish factor is the strength of top management. Some of the most successful junior stories have had former major mining executives at their helm. If history truly tends to repeat itself, and then LTU has already jumped over a hurdle others never do.
The technical management of LTU is made up of former Echo Bay Mines senior executives from the U.S. Division. Make no mistake about it, anyone who followed Echo Bay over the years knows they got away from depending on their geologist team and instead brought in so-called corporate development experts who, based on apparent hindsight, loaded Echo Bay up with less then attractive deals (at the expense of letting go many of their geologists and hands-on technical team). One only has to look at the performance of Echo Bay's share price to know the end result.
In a nutshell, Dr. John Carden, Ph.D., and Mr. Mitch Bernardi, Ms.C., both former senior executives at Echo Bay (John Carden was Director of U.S. Exploration and has 22 years of experience and Mitch Bernardi was the former Senior Geologist), took several advanced projects when they left Echo Bay and placed them under a private company of theirs. They sought out a public vehicle and vended in several of their projects into LTU.
Key Projects
With so many juniors getting burnt by political risk worldwide, it should be comforting to know that the key projects of LTU all are in the Western United States.
Kilgore Gold Deposit, Idaho This very advanced stage gold deposit has had over USD + ACQ-$6.0 million in exploration and development work done by Placer Dome, Pegasus and Echo Bay. Because of management's previous position at Echo Bay, this project became a key factor early on.
An initial engineering study completed by Echo Bay reportedly shows the project potential at a gold price of $320. The resource stands at about 700,000 ounces, of which 417,000 are potentially mineable according to senior management at Echo Bay. Management believes Kilgore has the potential to reach multi-million ounces based in part on a new discovery hole they drilled while still at Echo Bay in December, 1996. Further drilling by Latitude in 1998, resulted in three additional stepout holes encountering the new zone.
Pan Gold Deposit, Nevada Current resource of 250,000 ounces. The property is located at the south end of the prolific 30 million ounce Battle Mountain-Eureka Trend. Management has re-evaluated the available technical data and believes the deposit has the potential to reach at least 500,000 ounces. There is a high degree of cautious optimism that the feeder zone may have been found which could lead to the deep potential of the deposit. Here too, drilling is anticipated within a couple of months.
Blue Hill Creek Gold Deposit, Idaho The Company owns a 100+ACU-interest in this 200,000 ounce epithermal hot spring gold deposit. Previously, Meridien Minerals drilled 17 holes on the property of which 13 bottomed in mineralization. The deposit is open to depth and in three directions on surface. Management believes the potential can be 500,000 ounces. Recent drilling results have only bolstered management's beliefs in the project. Additional staking has been done due to the results.
Miller Mountain Gold Deposit The Company has agreed to acquire a 100+ACU- interest in this gold inferred and indicated resource of 960,000 ounces of which 290,000 are potentially mineable. It has the potential to become a multi-million ounce gold deposit. The deposit is part of a large intrusive-hosted gold system. A recent airborne magnetic survey suggests the presence of at least three large, westward- dipping tabular intrusive sheets with gold anomalies at the surface.
Summary During a time when many juniors did all they could just to keep the lights on, LTU has assembled a strong management team and projects of merit. Any real strength in the gold price can only enhance the potential LTU already possesses.
Corporate Data
Address 612-475 Howe Street, Vancouver, BC V6C 2B3
Tel# 1-604-688-2010 Toll Free 1-800-668-0071
Fax 1-604-688-2015 E-Mail mineral@mineweb.com
Website www.latitudeminerals.com
Symbol LTU- Vancouver Stock Exchange
Recent price $.40
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Neither Peter Grandich nor Peter Grandich Company, is a Registered Investment Advisor or a Broker/Dealer. This communication (print or electronic) reflect Mr. Grandich's opinions and does not necessarily reflect those of anyone else related to the firm and may be in conflict with the views or official views of the companies mentioned. Readers are advised that this publication (print or electronic) is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy. The opinions and analysis included herein are based from sources believed to be reliable and in good faith but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. This information is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. All statements, included in this report, including, without limitation, statements regarding potential mineralization and reserves, explorations results, and future plans and objectives of company or companies mentioned are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are advised to refer to publicly filed documents on company or companies mentioned.
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