Gold Quartz Alaska
Two new properties in the Gold Region of Russian Premier to rule Golden Deal
By Doug Hadfield
September 28, 2007
To search the Golden Kingdom (TSXV: GRR) stock chart, the company appears to be a bargain or a wash out: It was trading at $ 0.40 in late 2006. Since then, GRR shares took a hammer to $ 0.15 per share. To me, this usually indicates a poorly managed company, but sometimes indicates something much juicier – An overlooked, value-priced junior. After a due diligence, including talking with company officials and the reading of two reports in NI43-101 50% two bids JV company, which bought it in a respectable position.
Why? It is a little much to think, to me. The company trading at $ 0.15 with two properties, which have shown a wide distribution of gold mineralization in an area with resources of more than 120 million ounces of gold infrastructure nearby, with excellent road and transport and the protection of an operator in the project which is a major Russian bank – State LLC. What more do you want of a young low price? Going no place but up.
Let's review the details. Firstly, why the company has been sinking in TSX risk? Simply put, they were shafted by local politics. After pouring $ 300,000 on exploration last year, the government could smell the gold property and gave it to a local company in the next land auction.
The temporal aspect of the land auction process in Russia ensures mineral properties are actually explored, which is a good thing. There are two types of permits available in auction: An exploration license for five years and a full mining license 20 years. Golden rule was the first, which left her vulnerable because when it came time to finish the 20-year mining permit from the property, the application of United Gold to participate was rejected.
This time, they have a strong partner and a senior 20-year mining permit already in place.
I spoke with both Evans CFO Kim and Larry Myles, who runs the corporate communications department Golden Reign. They were exuberant that the company slide down the TSX charts now poses a value opportunity for investors – who obviously agree.
"It's totally different this time," Myles said. "When we started in Russia, ranging from the base. In Russia, if you're working with a bank or government agency that is working from the roof down. You're protected. "
Golden Partner reign State LLC, is the mining division CentroCredit Commercial Joint Stock Bank, which is headquartered in Moscow with another branch in London. CentroCredit is a member of the Association Bank of Russia, Moscow, Union National Banking and Securities Association involved in Russian trade System (RTS), the Moscow Stock Exchange (MSE) and the Stock Values of St. Petersburg. From January 2006, was ranked the 38th largest in the equity capital of the top Russian banks. In other words, it's true business.
To earn its 50% of the new company, called simply Gold Mining Company LLC (GMC), Golden rule must pay $ 6 million in expenditures over the next three years – the company raised $ 4,000,000 last year in its IPO, another small private placement (PP) or funding debt is on the horizon.
Both of the two properties Gold Mining Company has in its portfolio have favorable NI43-101 reports, and both are posted on the website Kingdom of Gold: Goldenreignresources.com.
The property covers 8.8 km Dorozhni square in the center of the province of Magadan. The property is located along a all-weather road about 17 miles west of the community of Susume – the nearest service center.
According to the technical report 43-101, Previous exploration and mining gold deposits Dorozhni focused on shallow sub immersion gold quartz veins parallel. The veins are path lengths of 450 meters along strike and 380 meters down dip with veins ranging from 0.4 meters to 2.4 meters wide, sometimes extended up 17 meters (as Burovoya vein).
To date, the gold mineralization has been reported in five separate quartz veins. Historical reports indicate that Dorozhni Creek Placer Mine produced approximately 95,000 ounces of gold.
Despite the placer mining and hunting in high-grade vein in the area, the qualified person and author of the technical report considers that the property Dorozhni contains features that suggest the possibility that a large tonnage gold deposit. "The numbers High gold in quartz veins indicates that the average grade of this mineralization could be much greater than the standard large tonnage, low grade deposits, developed in the remote northern regions such as Alaska, "he wrote.
"The type of deposit for this project is intrusive hosted mineralization similar to many gold deposits hosted intrusion located in North America, including the Fort Knox deposit in Alaska. A series of sub parallel veins and veinlets carrying mineralization of high-grade gold. "
Since much of the gold found in alluvial Dorozhni in nature, seeds are often easy to find in the ownership of streams and riverbeds. "The grains vary in size from 0.5 to 3 mm, although, along vein selvages, gold grains occasionally grow to a few centimeters in size. One grain weighed 800 grams, "the report says." Distribution of the gold mineralization is extremely irregular, with a reported high level of 6322.2 g / t gold. "
The situation is similar to the license Butarni, covering 9.3 km square, roughly 310 km north of Magadan (the capital). While the veins are between 0.1 and 1.5 meters wide, the author of the technical report Butarni believes " wide extension of the mineralized zones and proximity to the surface provides the opportunity for the development of a large tonnage, open pittable deposit. This style of mineralization consisting of sheeted quartz veins and veinlets, and minor alteration of a granite rock wall host rock, is similar to known intrusive hosted gold mineralization in North America, including the deposit of gold in Fort Knox in Alaska. "
Historical grab and channel sampling returned values of 1 g / t to 334.4 g / t, with an average grade of 21.3 g / t gold from 45 samples and 29.6 g / t gold from 22 channel samples. In addition, a series of transactions placer gold within 20 miles of Butarni, including waste of pleasure within four miles of the project site.
Magadan region is known as Russia's most important gold mining territory. The region has some of the largest reserves of gold and silver in Russia. In addition, there are about 2000 placer gold, 100 gold ore deposits and 48 silver ore deposits in the territory. Total probable gold reserves in Magadan Region are estimated at 128 million ounces.
Thus, Golden Reign, we have a rosy picture for a junior trading $ 0.15 with only 26 million shares in the market:
• two properties with extensive trenching and drilling carried out
• Located in the Russian region's most prolific gold mining
• potential large tonnage, open pit mining of gold
• a well-funded, respected partner in the JV
• Mining license 20 years
And did I mention it was trading at $ 0.15?
This article is intended for information only and is not a recommendation to buy or sell shares of any company mentioned herein. It is based on sources considered reliable, but can not guarantee its accuracy is expressed or implied. The opinions expressed in this article are those of the author unless the statements are attributed to individuals other than the author, in which case the opinions are those of the person to whom they are attributed.
The author and are not shareholders ResourcexInvestor.com of the companies mentioned, and the author, as an employee of Resourcex Publishing Corp is expressly prohibited by the owner of any securities on which to write for a period of 30 days before and 30 days after the initial publication of the article in which the securities of any company mentioned.
About the Author
Doug Hadfield is the Chief Editor of the Resourcex Investor, an internationally distributed newsletter specializing in identifying as-yet-undiscovered resource companies representing the best in their class. For more information, visit the website www.resourcexinvestor.com.
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