May 12
18
Grandich Client Excelsior Mining
Excelsior Mining Corp – Keeping Their Eyes on the Prize
One of the things I look at when evaluating the management team behind a company is whether they do what they say they will, when they say they will. This is one of the reasons I speak so highly of Mark Morabito and his Forbes West team – they consistently lay out what and when they are going to do something and then they actually do it. This has been the hallmark of their success to date with Alderon Iron Ore Corp and I see a similar pattern emerging from Excelsior Mining Corp., another company in the Forbes West group, and its Gunnison Copper Project.
Stephen Twyerould, President and CEO of Excelsior, and his Phoenix-based team laid out a clear goal for 2012, complete a pre-feasibility study on Gunnison by year end. To achieve this goal, they designed their 2012 field program to capture the synergies and cost efficiencies of simultaneously advancing the project geologically, metallurgically and hydrologically. Based on their most recent news release, Excelsior is doing exactly what they said they would and staying within the timeframe they originally laid out.
Continuing to Advance Toward Pre-Feasibility
The metallurgical component of the on-going field program consisted of three holes, totaling 3,178 feet. This component has now been completed with samples sent to Metcon Research of Tucson, AZ for analysis. This analysis will involve running in-situ recovery simulation tests, conducted to support previous results indicating favorable metallurgical conditions.
The geological component of the program, designed to upgrade and expand the existing mineral resource, is approximately 50% complete with the first set of assay results expected by June. Approximately 19 holes, totaling 24,000 feet, are planned for this phase of the program with a new resource estimate anticipated later in the year.
Drilling has also begun on the hydrological test holes, which constitute the third and final component of this year’s drilling. Up to 10 hydrological test wells are planned with the goal of producing an initial hydrological model. Monitoring and observation wells will also be added later this year. Data collected from these wells will be required for the permitting process as the project continues to advance.
As I noted previously, the goal of this year’s field work is to complete a pre-feasibility study on Gunnison by the end of 2012. Accomplishing this will be an important step toward Excelsior’s ultimate goal of getting Gunnison into production by 2015. The data acquired from this current drilling program will be combined with the existing dataset for use in the pre-feasibility study to optimize wellfield design, leaching solution composition, as well as provide critical information for groundwater quality control and ultimately, project reclamation, all of which will be essential as the project moves forward.
Bottom Line
We already know that Gunnison has the metal – 3.21 billion pounds indicated (511 M tons at 0.31%) and 0.88 billion pounds inferred (159 M tons at 0.28%); more than enough metal to feed a 70-100 million pound operation for two decades or more. The key is for management to be able to get it out of the ground and to market profitably. Given the current state of the junior resource market, this is easier said than done.
Following Kipling’s line about “keeping your head when all about you are losing theirs…”, I remain confident that Excelsior is, indeed, keeping its head and their eyes focused on the prize of production. I anticipate continued good news and positive project advancement from Excelsior as 2012 unfolds.
I own a very large amount of shares and have added to that position in recent days.
“They’re giving it away” is how someone I know who influences large quantities of GIX shareholders described the current price of GIX. I couldn’t agree more. I find it near impossible to think given what appears to in front of GIX over the next several months that buying shares at today’s price of $.21 ends up a losing speculation. As a very large shareholder, my biggest fear now is not losing money but not getting the ultimate price I might have if not for the horrific junior resource market that has unfolded. That’s no fault of the company. And if I end up with just a tripling or quadrupling versus a five or ten bagger, I will just have to learn to live with that-lol.
Seriously, at just $.21 just about all highly speculative/gambling types need to have GIX in their portfolio before days end.
Please Note – After I posted this I purchased another 200,000 shares.
May 12
18
Grandich Client Cap-Ex Ventures
Forbes & Manhattan Gave birth to Another Promising Iron Ore Contender: Cap-Ex Ventures
Following in the footsteps of “big brothers” Consolidated Thompson and Alderon, Forbes & Manhattan now has a iron-ore contender operating in the Labrador Trough – Cap-Ex Ventures (TXV:CEV). The Region is historically known for its high grade direct shipping ores (DSO) and accounts for 99% of Canada’s Iron ore production. Seductive Iron Ore prices compounded by increasing demand for the hard asset have been the catalysts for reawakening the region.
Cap-Ex Ventures and Consolidated Thompson share fundamental parallels that can pave the way for Cap-Ex’s success. Francois Laurin, former CFO of Consolidated Thompson, has brought his experience in developing iron ore deposits in the region to Cap-Ex as the President and CEO. The Cap-Ex team is further strengthened by Brian Penney, Chairman of the Operations Committee. Brian is a professional mining engineer with a degree in Metallurgy. He has extensive experience in the iron ore industry as a former senior executive with the Iron Ore Company of Canada.
Cap-Ex holds several properties in the Labrador Trough. The most notable of these is Block 103, which lies within the Schefferville area and is supported by extensive infrastructure. Cap-Ex’s primary focus will be fast tracking exploration and production of Block 103, which is nestled in the epicenter of the Labrador Trough. It is purported to have some of the most intense positive magnetic responses in the iron ore belt. Block 103 has been divided into two zones, the “Greenbush Zone” and the “Northwest Zone”.
The Greenbush Zone
An 8 million dollar exploration program undertaken in 2011 has revealed that the deposit maintains an average thickness of 120 m and is in some areas up to 260 m thick. Drilling results indicate 30.5% iron and 68% iron concentrate.
The Northwest Zone
Drilling has indicated mostly near surface strike, all holes intersected mineralization between 30 and 148 m with average iron grades of 31%. The Northwest Zone is believed to be an extension of neighboring NML’s LabMag and KeMag deposits that boast drilling results of up to 32% Iron ore. New Millenium has recently released the following statement:
The Taconite formation occurring in this area is believed to be the strike extension of the LabMag deposit, connecting to the KeMag deposit, and is approximately 10 km long.
The current trends in the iron ore market may have carved out a space for Cap-Ex to enter the playing field but it is Cap-Ex’s strategic properties and sound management team that can lead them to ultimate success. Cap-Ex intends to release its NI 43-101 mineral resource estimate by the end of December 2012 and is projecting to have a Preliminary Economic Assessment out by the end of March 2013. Having recently announced that the company has gained approval from the Newfoundland and Labrador Department of Natural Resources for its 2012 exploration program on the Block 103 property, Cap-Ex is well on its way to meeting these milestones.
The horrific bear market in juniors has left its mark just about everywhere and in my highly bias view (compensated consultant and own a large amount of shares), has at today’s share price given the opportunity for a double or triple from here a legitimate possibility in just the next few months.
