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Gold/Mining/Energy : Sandstorm Gold -- Ignore unavailable to you. Want to Upgrade?

To: PaperPerson who wrote (299)	10/5/2010 12:33:22 PM
From: TheSlowLane	Respond to of 1133

Big volume today...

To: PaperPerson who wrote (299)	10/5/2010 4:58:50 PM
From: riversides	Respond to of 1133

roulston is also covering TKK,Takara Resources, Takara has two gold projects that were acquired earlier this year, one of which is moving quickly toward production. At a preliminary economic assessment is underway at the same time as the company is conducting an exploration drilling program that has shown that the deposit could be much larger than the market is currently giving it credit for. The two gold projects are located in Guyana. That South American nation has exceptional geological potential and is a very favorable place for mine development. Guyana sits in the middle of the Guyana Shield, a gold-Rich Greenstone belt that continues into Venezuela. Easier access to the Venezuela portion of the Greenstone belt saw intense exploration activity going back several decades. As a result, several large gold deposits have been outlined in Venezuela, including the 32 million ounce Las Christinas deposit. The Chavez government has made Venezuela an unpopular place for mine development. In sharp contrast, Guyana is a very favorable place for mining companies. The democratic government is very supportive of mining. That English speaking country offers secure title to mineral rights and favorable taxation. As road development and other infrastructure improvements open up more of the country, the mining industry is finding and expanding gold deposits in Guyana. Takara acquired the gold assets from Victoria gold (VIT-TSXV) after that company acquired StrataGold. Victoria was after StrataGold’s Nevada assets as a complement to its own project. They swapped the Guyana gold projects to Takara in return for 21 million shares of Takara, making it the largest shareholder. That move allowed Victoria to focus on its Nevada projects while retaining a stake in the upside of Guyana. Takara’s president and CEO Jennifer Boyle is a lawyer by background, with many years of experience in the organization and management of exploration companies. Chairman John McConnell is a mining engineer and the executive VP of Victoria Gold. Pamela Strand, executive VP of Takara, has 22 years of exploration experience. StrataGold discovered the Tasawini deposit and was intent on bringing it to production quickly. Drilling focused on a couple of areas where they outlined 499,000 ounces of gold, of which 437,000 ounces are classed as an indicated resource. Work by StrataGold included 110,000 meters of drilling, metallurgical test work, environmental baseline studies and construction of a permanent camp and airstrip. Roads on the property provide exploration access and tie the project to a barge loading facility on a river 10 km away. Since taking control of the project a couple of months ago, Takara began work on two aspects of the project in tandem. The first is to complete an economic evaluation of the existing resource. That study is being conducted with a view to ultimately developing a larger project than the present resource. In tandem with advancing a preliminary engineering work, the company is investigating the exploration upside. Numerous targets were identified by the previous operator, but not pursued as they focused on bringing the initial resource area to production. There are seven other defined target areas close to the resource area. There is wide-open potential beyond that for several kilometers along the trend on property now held by Takara. Field work by Takara geologists and further interpretation of the results of the prior work has led to an improved geological understanding of the known deposit and of the district around the deposit. Specifically, they now recognize that the geological model is a shear-hosted quartz carbonate deposit similar to other gold deposits in the Guyana Shield. Surface sampling (rocks and soil geochemistry) have identified 30 linear kilometers of prospective shear zone on property held by Takara. They recently collected 1,500 surface samples from along that trend. That work follows up on reconnaissance geochem sampling that was done earlier. The company notes that the recent samples provide encouraging results, based on visual examination. Of particular importance, at least three zones within a couple of kilometers of the present resource have yielded positive indicators. The recent results support management’s belief that the present resource could be expanded considerably. In fact, the improved geological understanding and the results of the sampling suggest that the property held by Takara has large-scale potential, consistent with the gold deposits in a similar geological setting. The present 499,000 ounce resource grades about 1.3 grams per tonne and is located at surface. Metallurgical testing showed good recoveries of gold by simple cyanide leaching. Investors have so far not put much value on a gold deposit that appeared to have limited upside. The preliminary economic evaluation now underway will support the economic viability of the present deposit, which should see a re-rating of the value of the company. Of far greater interest is the strong likelihood that more ounces will be outlined in drilling that will take place over the coming months, perhaps a great deal more. In fact, the project has the same multi-million ounce scope as other gold deposits in similar settings. In addition to Tasawini, Takara also acquired a 32% interest in a joint venture with Newmont. More than $25 million has been spent over the past five years on a 300 square kilometer area judged to be highly prospective for gold. That area, located west of Tasawini, is road accessible and hosts active alluvial and small scale hard rock mining. Results to date include a deposit with an initial estimate of 285,000 ounces, which remains open to expansion. Another target produced bonanza gold grades from initial drilling. A further 19 target areas remain to be tested by drilling. The valuation of Takara has been held back by the mistaken perception that Tasawini is no more than a half million ounce deposit. That project has excellent prospects for growing much larger, potentially a multiple of the initial estimate as high priority exploration targets are tested. Mine planning now underway considers the premise that the project will have a scope well beyond that initial figure. Over the next few months, Takara shareholders can expect results of the preliminary economic assessment and will begin to see results of the exploration program on the nearby targets. At the same time, investor appreciation for Guyana will certainly increase as several other companies operating in the country continue to expand and upgrade gold deposits that are already significant. Price September 16, 2010: C$0.155 Shares Outstanding: 55.2 million Shares Fully Diluted: 55.2 million Market Cap: C$8.55 million Contact: Investor Relations 647-430-0966 www.takararesources.com