Thoughts please....
PATAGONIA CAPITAL CORP. ANNOUNCES:
Starfield Resources, Inc. (“SRU” on ASE)
Suite 420 - 625 Howe Street
Vancouver, B.C., Canada V6C 2T6
Phone: (604) 608 - 0400 Fax: (604) 608 - 0344
website: starfieldres.com
Recently-completed exploration program defines continuous sulfide mineralization in Main Zone over 8+ kilometer strike length plus other sizable zones running parallel to the Main Zone – bigger than Voisey's Bay !!!
Ferguson Lake deposit open along strike and at depth; drilling establishes over 300 meters of continuous sulfide mineralization!
Company is fully funded - next round of drilling to begin in July!!
COMPANY PROFILE
Starfield Resources Inc. (SRU on the Alberta Stock Exchange) is a Vancouver-based mineral exploration company focused on the acquisition and development of world-class precious and base metal projects in western Canada. The company was incorporated in 1994 and taken over in 1997 by Canadian mining and financial professionals with strong ties to North American and European capital markets.
Starfield Resources' flagship project is the Ferguson Lake Ni-Cu-Co-Pt-Pd property, a deposit previously-owned by Inco that hosts significant ore reserves and that also has a very high probability of hosting a world-class platinum-palladium deposit.
THE PROPERTY
The Ferguson Lake property, located 160 kilometers southwest of Baker Lake and 190 km west of the port of Rankin Inlet in the Nunavut Region of the Northwest Territories of Canada. On-site infrastructure includes an airstrip and a fully equipped 45-person base camp. The local and provincial governments are regarded as being strongly pro-mining.
On February 9th, SRU entered into an agreement to acquire a 100% interest in the Ferguson Lake project (subject to a 3% NSR) by paying C$75,000, issuing 4.25 million performance shares (to be paid out at the rate of one share for each C$0.40 of expenditures on the property), and complete a two-phase, C$1.7 million exploration program. Starfield Resources anticipates completing the earn-in agreement and acquiring 100% ownership of the Ferguson Lake property by the end of the year.
PRIOR EXPLORATION WORK BY INCO & HOMESTAKE AT FERGUSON LAKE
Ferguson Lake was discovered in the late 1940s by Canico, a subsidiary of Inco. During the 1950s, over C$15 million (in current dollars) worth of exploration work was undertaken, including over 37,500 meters of surface diamond drilling, reconnaissance geological mapping, airborne and ground geophysical surveys and two bulk sample tests. During this period, Inco evaluated Ferguson Lake only for its nickel and copper potential. More importantly, Inco's drilling was shallow, with only a few holes penetrating below the 100 meter level.
Drilling conducted by Inco in the early 1950s along a small portion of the Main Zone (about 730 meters) delineated a drill-inferred resource of 6.4 million tonnes grading 0.87% Cu and 0.75% Ni (exploration records show that the drill core was only assayed for Ni and Cu).
Nickel and copper grades are significantly higher in the eastern portion of the deposit. Step-out drilling by Inco along strike 4 kilometers to the east of the indicated resource returned a drill intersection of 23 meters averaging 1.28% Ni and 1.08% Cu.
Following discovery of the Thompson (Manitoba) nickel deposit in the mid-1950s, no further exploration was undertaken at Ferguson Lake until 1986-87, when Inco granted Homestake Mineral Development Co. permission to conduct a surface rock sampling program along the 8.2 km long strike length of the Main Zone. Homestake reported assay results of up to 2800 ppb Pt and 5600 ppb Pd from rock samples taken from the hornblendite-hosted gossans.
In 1992, Inco allowed the mining leases to lapse and the Ferguson Lake Syndicate acquired the property by staking in 1997.
STARFIELD RESOURCES' PHASE I EXPLORATION RESULTS
The recently-completed Phase I exploration program resulted in two major discoveries at Ferguson Lake: first, a tremendous increase in the size of the deposit, and secondly, the discovery of significant platinum (Pt), palladium (Pt) and cobalt (Co) mineralization.
Geophysics - On May 21st, SRU reported < starfieldres.com > that geophysical surveys had traced the Main Zone to depths of at least 300 meters over a strike length of more than 8 kilometers. These results indicate a tremendous extension from the known deposit explored in the 1950's by Inco, who defined a resource of 6.4 million tonnes grading 0.87% Cu and 0.75% Ni over a strike length of just 730 meters.
Preliminary geophysical results indicate that the two primary ore zones (East + West) are connected and open beyond the 8.2 km strike length. Based on these results, SRU has staked additional ground at Ferguson Lake.
SRU's geophysical program also detected sizeable new anomalies running parallel to the Main Zone. Based on the size and strength of these new zones, it is entirely likely that the ultimate size of Ferguson Lake could be much larger than Voisey's Bay!
Drilling - On June 16th < starfieldres.com >, Starfield Resources announced results from its initial 5 hole Phase I drilling program. All drill holes in the East and West Zones encountered significant Pt, Pd and Co mineralization. FL 99-05 intercepted 11.09 meters grading 0.76% Ni, 0.93% Cu, 0.11% Co and 1.58 g/t combined Pt + Pd.
Combined, the Phase I drilling and geophysics established that mineralization appears to thicken with depth and that grades appear to be increasing to the east and at depth. More importantly, massive sulfide mineralization has been traced down-dip for over 300 meters along the East Zone, and remains open at depth.
SRU's PHASE II EXPLORATION PROGRAM TO BEGIN IN JULY
Starfield Resources expects to begin its C$1.2 million Phase II exploration program in July. The summer program includes about 3,000 to 4,500 meters of drilling, geologic mapping, and an airborne mag geophysical survey.
What are the goals of the program?
We expect that Phase II drilling will begin to block out additional ore tonnages, particularly along the higher-grade East Zone. More importantly, there will likely be some deep exploratory holes drilled into the hinge of the fold (identified by geophysics in Phase I), where much higher-grade material could be found.
CAPITAL STRUCTURE & TRADING RANGE (as of June 24, 1999)
Issued & Outstanding: ~ 10.2 million shares
Fully-Diluted: ~ 14.6 million shares (excluding property acquisition)
Float: ~ 4 million shares
Current Bid & Ask: C$0.85 by C$0.90
Last trade (05/25/99): C$0.88
WHY YOU SHOULD CONSIDER ADDING SRU TO YOUR PORTFOLIO !!
Ferguson Lake is not a grass roots play where several years of exploration are required to begin outlining a resource, but rather, a situation where Starfield Resources is about to begin blocking off ore tonnages along an 8.2 km long contiguous mineralized structure that is open along strike and at depth.
Based on the recently-announced geophysical results, we believe that the geology and structure of Ferguson Lake are such that the ultimate size of the deposit might prove to be on the order of 150 to 200 million tonnes – truly world-class potential.
As an investment, we expect SRU shares to perform in a similar manner to Argentina Gold. As was the case with ARP's Veladero project in Argentina, Starfield Resources' shares should rapidly increase in value as the reserves are expanded - in particular, as the platinum and palladium grades are established.
How high might SRU's share price go?
Let's take Voisey's Bay as an example.
Going back a few years to the last big nickel rush, Diamond Fields ran to C$170 per share on the strength of it's Voisey's Bay discovery (and no PGE's !). If SRU shares perform only one-tenth as well as Diamond Fields (a very conservative estimate, given the great number of similarities between Ferguson Lake and Voisey's Bay), then we are still looking at potentially C$17 / share!
Starfield Resources' management has spent the last few months presenting the deal to mining analysts, retail brokers and institutional fund managers throughout Canada and Europe, building an incredible base of support. Given the high levels of interest among the major Canadian brokerage firms, everyone expects that SRU will trade at considerably higher levels as further exploration results are announced.
With cash in the till and geophysical results indicating a truly world-class deposit at Ferguson Lake, we view SRU as a STRONG BUY at current prices; SRU offers investors exceptional short and long term upside potential . As retail and institutional investor awareness of Starfield Resources increases, and further drilling results from the Ferguson Lake property are released, SRU's shares should move much higher.
For more information, please contact:
Investor Relations
Toll-Free: (877) 233 – 2244
E-mail: info@starfieldres.com
DISCLAIMER
Patagonia Capital Corp. (“Patagonia Capital”) is not a Registered Investment Advisor or a Broker / Dealer.
Patagonia Capital has independently prepared this report, drawing upon a range of public news and information sources. This report reflects opinions from Starfield Resources, Inc. (the “Company”). Readers are advised that this publication is issued solely for information 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 on 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. The foregoing discussion contains forward-looking statements that are based on current expectations and differences can be expected.
The information contained herein has been provided by the Company to Patagonia Capital Corp. for information purposes only; 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 of the Company. Readers are urged to consult with independent financial advisors with respect to an investment in the shares mentioned herein.
Investors should review a complete information package on the Company, which should include, but not be limited to, the Company's annual report, quarterly report, press releases, as well as all regulatory filings. All information contained in this report should be independently verified with the Company mentioned herein. Any opinions expressed in this report are statements of judgment as of the date of publication (25 June 1999) and are subject to change without further notice, and may not necessarily be reprinted in future publications or elsewhere. Neither Patagonia Capital nor its officers, directors, partners or employees / consultants accept no liability whatsoever for any direct or consequential loss arising from any use of this report or its contents.
Patagonia Capital advises the readers of this document that it has not received any fees or other compensation from Starfield Resources for its efforts in researching, writing and presenting the information contained herein. Prior to Patagonia Capital issuing this report, the Company reviewed and approved the contents hereof. Patagonia Capital, its officers, directors, partners and employees / consultants may profit in the event the shares of the Company increase in value. These positions may be liquidated from time to time even after Patagonia Capital, its officers, directors, partners and employees / consultants have made positive comments on the Company.
THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK.
We encourage readers in the USA to review the investing information available with the Securities and Exchange Commission ("SEC") at sec.gov. and or the National Association of Securities Dealers ("NASD") at nasdr.com. The NASD has published information on how to invest carefully at its website. A complete listing of the Starfield Resources' public filing's with the Alberta Stock Exchange (including news releases and financial statements) can be viewed at the SEDAR web site, located at sedar.com.
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