Latest From Speculativestocks.com
"Our last years profile of IWA has moved up substantially this past week, hitting
a two year high of $0.84 before settling back at $0.74. Why the movement?
We reported approximately a month ago, they were continuing their drilling
program
on the BC vein, while at the same time they were moving forward on the mine
application
permit for the proposed open pit.
We do not think this is the whole story though. In reviewing last years BC Vein
results we noted that one hole, BC99-12 appeared to intersect gold bearing
material
that was totally outside the BC vein.
This intercept, from 360ft to 495ft, a 135ft intersection with grade of 85ft
of .154 in sludge and 0.202oz/tonne over the remaining 50ft, for an average
17 over entire length, seems to have been overlooked by everyone at the time,
and we understand it was never followed up by drilling in other locations.
Now the rest of this article is pure speculation, as we do not have any hard
information to support it, other than hole 99-12. However, with the ongoing
drilling,
and the strength of the stock, it would not surprise us to see assays come out
on the current round of drilling that confirms there is more mineralized
material
outside the BC vein that has never before been properly scrutinized. If this
is the case, there may be a lot more gold on the property than anyone has
believed.
We are aware the step out on the BC vein was approximately 1,500ft from last
years drill holes, which would bring the known length of the BC vein to a little
over 4,000ft. This vein has widths of up to 30ft and for a good portion of the
length is at least 900ft deep. They have a calculated resource on approximately
600ft in length, down to 120ft of 17,000oz. They have also stated that there
is a reasonable possibility the same grades can be extended to depth giving
approximately
another 90,000oz more.
Now assuming the grades are consistent along the entire BC Vein, this would
indicate
approximately 400,000 ounces ( in our original, table napkin calculations we
came up with 600,000oz ) This of course does not include any of the mineralized
material outside the BC vein that has shown up in hole 99-12, that may in fact
be able to increase the width of the mineralized zone and thus the available
ounces.
The inferred amount of ore grade material in the BC vein is almost, if not
enough,
for a mine in its own right, not taking into account the resource of 1
million/oz
in the proposed open pit, so any additional gold discovered in or around the
BC vein, makes this an even more attractive stock.
It is no secret that the senior producers are looking at all the juniors that
have been working through this downturn to see if there is a possibility there
are enough drilled out ounces to warrant adding them to their companies.
Especially
since they have been niggardly in their own exploration expenditures. Glamis
is a case in point. With $100 million earmarked for a possible takeover.
So here is even more speculation. We would suggest if there are any more gold
discoveries by IWA in the Cariboo camp, their stock will be the target of a
takeover
by one of the seniors. Who is working in BC right now? Homestake, we know
Kinross
has a piece of Wayside already from a private placement a couple of years ago,
Glamis has money in the bank burning a hole in their pocket. In fact if Glamis
wants to add to their current 250,000 or so oz annual production, they could
do worse than look at Wayside. IWA has the proposed open pit with a resource
of 1 million ounces and are proposing a 100,000oz/yr operation, so that will
be a large jump in Glamis's annual production if they take it on. Further to
that, the cost to get this project up and running will not break the bank.
Who else is there? Newmont has a piece of the adjacent property that IWA has
just joint ventured that has an adit that runs to within 400ft of the BC vein
shaft from the Barkerville side. Newmont has been moving out of the BC, but who
knows, since they used to own the Island Mountain Mine at one time, that IWA
has taken over in the consolidation of the Wells Gold camp and they are very
knowledgeable about the camp.
The one consideration that has not been taken into account this past year while
Wayside was languishing under $0.20, was the consolidation of the camp. This
gives any company taking over Wayside a very large property that has numerous
gold occurrences that have never been fully exploited due to the fractured
nature
of the prior ownership. Maybe this will also be a big consideration in the
economics
of taking IWA over.
From our profile of Wayside at $0.18, a little over sixteen months ago, we have
seen a fourfold increase. Not in the same leagues as some of the internet
stocks,
but as the price is a little more affordable, we consider this a very healthy
gain and we believe there is more gain to come in this stock. Of course there
is the commensurate risk that comes with buying a stock at $0.74 that has just
had a large run up rather than the $0.18 that we profiled it at, but that is
the risk of the game.
Which is also why there are no guarantees in the speculation game. And as
always,
while we believe the information is reliable, it is also very speculative in
nature, we cannot guarantee it does not have flaws in it and any action taken
on this information is at the sole risk of the reader."
Joe |
