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Gold/Mining/Energy : Gallery Resources (Alberta GYR) -- Ignore unavailable to you. Want to Upgrade?

To: Kent C. who wrote (1300)	7/2/1998 4:03:00 PM
From: Kent C.	Read Replies (1) \| Respond to of 1829

Dennis Birch's RESOURCE STOCK DIGEST JUNE, 1998 Gallery Resources Limited 1-800-565-7350 (GYR-Alberta) http://www.gallery-gold.com Gallery Resources on the other hand is preparing for their drill programs on their two world class targets that should be drilled in early July. The Okak Bay property has been worked over the past three seasons and this year's drill program should prove interesting and potentially extremely profitable. Finding the deposit at Okak is a classic "needle in the haystack" situation. You must realize that the Okak target was discovered strictly on various flyovers and ground survey work but no indication on surface of mineralization. Intersecting the 205' of mineralization last year in the OK-M1 Hole was an exploration success although not an economic or stock price success. Sub-economic grades of nickel and copper were relatively consistent throughout the 205'. However, keep in mind that this intersection started at 1605' under the ground surface with no mineral indicators. Lamontagne Geophysics ran a partially successful "down the hole probe" last November on this first drill hole and reported a "good quality" off hole conductor. Currently Lamontagne is completing a second, more sophisticated, "down the hole probe" (electromagnetic borehole UTEM 4 survey) and has now identified what appears to be a significant off hole electrical conductor rated as good quality. Lamontagne is expected to issue a final interpretation report to Gallery next week that will allow for assistance in selecting the best drill site. Lamontagne did advise that the conductor is immediately west of the hole drilled last year and has a vertical thickness of 853 feet. The conductor begins at 1377' deep and running to 2230' and appears to be an extension of the mineralization intersected last year ( read the same ore body with the same mineralization, i.e. nickel/copper). The conductivity of the lower 492' is better than the upper portion and that logically makes sense as the heavy conductive metals (nickel/copper) in these types of deposits typically tends to "sink to the bottom". Fast forwarding to the potential of this deposit on the "back of an envelop" calculation shows how large this deposit could be. The overall size of the current target is 660' by 1312' at surface by 853' deep. Crunching the numbers reveals a potential of some 55 million plus tons or potential total value of the deposit to some $16 billion. Cut the number in half and you still have a $8 billion deposit. This is not to say that they "have the goods" but they surely do have the potential for a massive deposit and all of the work to date makes this for a great speculation and with any luck we will see the results sooner rather than later. The other much shallower target at Harp Lake will begin a more detailed ground geophysical survey next week by geologist Vic French and Mort Verbiski (who played a significant role in the Diamond Fields Voisey Bay discovery). Drill targets will be selected based on the work for drilling this summer. Still a buy at current prices.