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Gold/Mining/Energy : Corner Bay Silver (BAY.T) -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (289)	10/29/1999 2:56:00 PM
From: kidl	Read Replies (1) \| Respond to of 4409

Yorkton Securities says buy Corner Bay Minerals Inc BAY Shares issued 10,941,109 Oct 28 close $1.80 Fri 29 Oct 99 Research Mr. Doug Leishman and Mr. Art Ettlinger say We have monitored Corner Bay Minerals Inc. for a number of years, initially when the company's focus was in northern Quebec and more recently as this focus shifted to Mexico. Corner Bay's focus in Mexico was on oxide-copper deposits, however this has now changed to silver properties with near-surface, bulk-tonnage leach potential. In this quest, the company has been successful in identifying a significant silver-gold resource on the Alamo Dorado property located approximately 280 kilometres southeast of Hermosillo, in the state of Sonora. Alamo Dorado was acquired as a result of an extensive evaluation of numerous properties with potential for silver throughout northern Mexico. Corner Bay can acquire a 100-per-cent interest in the 509-hectare property for $800,000 (U.S.) paid over a four-year period. The company also acquired an additional 4,885 hectares of adjacent and contiguous ground by staking. There is no evidence or documentation of any significant amounts of exploration on this property prior to Corner Bay's involvement. Since acquiring Alamo Dorado, Corner Bay has completed over 41 drill holes, primarily reverse circulation (RC), most of them targeted on the main discovery area. Normally, with such a large number of reverse circulation drill holes, we would be concerned about assay and sample reliability. In this instance, we understand all of the holes have been drilled dry, thus lessening the likelihood of sample contamination. Assays have been released for the final 23 holes (RC) drilled and 12 holes (RC) that were extended beyond their initial depth. Based on our own sectional interpretation there appears to be a correlation between the new assay intervals and those previously released. Drilling has now delineated a silver resource over a strike length of greater than 400 metres, with a width in places of over 200 metres and in some sections to a depth of greater than 150 metres. Early in the year Corner Bay released the results of a study by Mintec, Inc. who calculated a resource potential of 24.7 million tonnes grading 71 grams per tonne (g/t) silver and .22 g/t gold based on a dozen drill holes. This tonnage figure implied a strip ratio of approximately 1.1 to 1. We (Yorkton) completed our own internal resource estimate prior to the latest set of assays (initial 27 drill holes) and arrived at a figure of approximately 31 million tonnes grading 64 g/t silver and .20 g/t gold. Based on our review of the latest assay information, we expect our tonnage and grade figure to hold firm and probably increase. We also expect the strip ratio to remain low. All of this new assay data has been given to Mintec, Inc. who are expected to arrive at an upgraded resource estimate later in November. Based on our own interpretation of the assay sections we are convinced that there is some structural control to the distribution of mineralization. We expect more drilling (specifically core) on the main zone may be necessary to help clarify this and to move the resource base to a measured and mineable category. Initial metallurgical test work on composite samples of drill chips completed by Metcon Research, Inc. of Tucson indicates good recoveries can be achieved for silver and gold by leach techniques (averaging 70 per cent). It is on this basis that Corner Bay, when describing assay results, also makes reference to "silver equivalent". Based on current metal prices, .23 g/t gold is equivalent to approximately 12 g/t silver. Drilling of a series of large diameter core holes has just commenced within the zone of mineralization. The objective of this program is to collect a large (16-tonne) composite sample of the mineralization for test metallurgical work. This will include large-scale column leach tests. Initial results may be available prior to Christmas. The results of these metallurgical tests will be very important to the potential economics of Alamo Dorado. Upon the completion of a new resource estimate and receipt of results from the column tests, a new economic model of the deposit will be developed. This new data is expected to be sufficient for the completion of a "pre-feasibility study". In addition, there is at least one other potential drill target identified on the property (southeast of the current resource) which may be drilled early in the New Year. There are also indications that the known zone of mineralization may extend to the northwest. We have a positive view of this project and, based on our current level of understanding, feel Alamo Dorado has the potential of being developed into an economic silver-gold producer. Other important facts that enhance the viability of this project are its geometry, low strip ratio and location relative to infrastructure. These factors, combined with the recent strength in the silver and gold market, enhance the viability of this project. Currently the company has approximately $800,000 cash to advance this project. Based on our evaluation, we believe the Alamo Dorado "resource" is equivalent to more than one million ounces of gold and has the potential to increase in size. Therefore we believe the current market capitalization of Corner Bay (less than $15-million) makes it an excellent takeover candidate for those junior to mid-level producers wanting to expand their production profile. Alternatively, if a suitor is not found, we feel management of Corner Bay is capable of advancing the project toward economic production. Corner Bay is a buy for speculators wanting to participate in a silver resource with potential to be taken to production. Further information may be obtained at Corner Bay's Web site cornerbay.com. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com