Friday, September 27, 2013

Happy Creek drilling proves it

For those of you wondering what I see in Happy Creek, this is more of it. Their tungsten property just keeps growing. David Blann, CEO, does not seem in any hurry to develop it for a quick sale. He just keeps expanding and filling it in. They are well on their timeline (I gave two years last summer for them to take the first steps) towards achieving an operating mine.

Happy Creek drills 8.2 metres of 0.86% tungsten trioxide (W03) near surface in southward step out hole at Fox property

(via Thenewswire.ca)
September 25, 2013 - Vancouver, British Columbia. Happy Creek Minerals Ltd. (TSXV: HPY) (the "Company") is pleased to announce results from an additional four drill holes on its 100% owned, 165 square kilometre Fox tungsten property. The property is well situated approximately 25 km east of the past producing Boss Mountain molybdenum mine, and 75 km northeast of the town of 100 Mile House in the south-central Cariboo region of British Columbia, Canada.
The Company has explored the Fox property from an early stage returning positive values of tungsten in rock, stream sediment, soil and drill core in a 10 km by 3 km area. Positive to potentially economic values of tungsten occur in two areas located on the south and north sides of an granitic intrusive rock that is similar in age to the Boss Mountain mine.
In the northern area on the east side of Deception Mountain, four outcropping mineralized zones occur over a three kilometre distance: from south to north, the 708, BN, RC (Ridley Creek), and BK prospects. These prospects span a distance of three kilometres and have a lateral extent thought to be greater than one kilometre. Since the first drilling discovery in 2011, the Company has tested three of the prospects with encouraging results. The main focus of the 2011-2013 drilling was the RC zone.
Results
At the RC prospect, drilling continues to define and expand a new tungsten deposit that occurs at surface and dips shallowly westward. Drill holes F13-04 (vertical) and F13-05 (-50 degrees to the west) are located approximately 40.0 metres southwest of F13-3 (22 metres of 0.76% tungsten trioxide (W03). Refer to News Release dated September 9, 2013). F13-04 and 05 encountered the favorable geology from surface, with values of 0.01 to 0.03% tungsten trioxide starting at 6.0 metres. F13-04 ended at 50.9 metres, with the final 0.5 metres containing moderately strong pyroxene calc silicate thought to indicate potential for additional tungsten mineralized zone to occur at depth.
F13-06 (-55 degrees west) is located approximately 40 metres south east of F13-04/05, and starting from 14.0 metres returned 16.0 metres of 0.23% tungsten trioxide including 6.2 metres of 0.55% tungsten trioxide and 0.25% zinc.
F13-07 is located approximately 60 metres east of F13-04/05, and 35 metres south of F12-17 (20 metres of 0.63% tungsten trioxide). F13-07 (vertical) returned 22.0 metres of 0.36% tungsten trioxide starting at 12.0 metres below surface, including 8.2 metres of 0.86% tungsten trioxide.
David Blann, President and CEO of Happy Creek states: "F13-06 and 07 have expanded the near-surface zone southward with positive grades and it remains open in extent. The results fit within our target range for potentially economic near-surface mineralization, and compare favorably to other known tungsten mines. The RC prospect is just one of four prospects containing high tungsten grades at and near-surface and we continue to see tremendous potential in this new discovery over the three kilometre long target area."
Due to the flat-lying mineralized horizons, vertical drill hole intersections are very near true thickness, while angle drill hole intercepts are approximately 130-135% of true thickness. Drill highlights from discovery in 2011 and follow up in 2012 at the RC prospect include 7.35 metres of 1.22% tungsten trioxide, 19.4 metres of 0.82% tungsten trioxide, 11.0 metres of 0.80% tungsten trioxide, 20.0 metres of 0.63% tungsten trioxide and 24.7 metres of 0.68% tungsten trioxide. One kilometer south of the RC prospect, the BN prospect returned three intervals in hole F12-27: 4.1 metres of 1.78% tungsten trioxide at surface, 14.8 metres of 4.0% tungsten trioxide and 24.0 metres of 0.79% tungsten trioxide including 5.8 metres of 2.01% tungsten trioxide. One kilometre north of the RC prospect, drilling at the BK prospect returned 5.0 metres of 0.68% tungsten trioxide. (Refer to Press Release dated November 19, 2012). A review of drill results from the Fox property to date identified 25 intervals averaging 3.2 metres and 2.36% tungsten trioxide that comprise a portion of the favourable horizon thickness.
A grade of 2.4% tungsten trioxide contains 24.0 kg W03 per tonne of rock, and recent tungsten prices are around US$34.0/kg W03 in concentrates and US$42.0/kg W03 as APT (ammonium paratungstate) (1).
Tungsten is regarded by the British Geological Survey as a strategic and critical metal essential for industrialized countries. Over 50% is used in cemented tungsten carbide to make cutting tools for the construction, metalworking, mining, oil and gas drilling industries. The balance is used in applications requiring high temperature stability and density in electronic components, super-alloys, wear-resistant alloys and chemicals. Values of zinc, gold, silver and indium also occur with tungsten at the Fox property. Indium is a rare metal used in liquid crystal applications such as touch screens.
The proximity to infrastructure, near surface setting, large scale and presence of high grade tungsten are thought to make the Fox property a unique and attractive new exploration discovery in the global tungsten sector.

Friday, September 6, 2013

The Carnage continues at the TSX

Here's an example of a great mine bending over just to keep the forward momentum going.

VANCOUVERSept. 5, 2013 /CNW/ - Spanish Mountain Gold Ltd. ("Spanish Mountain" or the "Company") (TSX-V: SPA) is pleased to announce that it has engaged Secutor Capital Management Corporation to act as lead agent (the "Agent") on a commercially reasonable basis for a proposed private placement (the "Offering") to raise up to $3,000,000 through the issuance of up to $1,500,000 of common share units (the "Units") and of up to $1,500,000 of flow-through units (the "FT Units").
Each Unit will be sold at a price of $0.10 per Unit and will consist of one common share of the Company and one common share purchase warrant (a "Warrant"). Each FT Unit will be sold at a price of $0.12 per FT Unit and will consist of one common share of the Company which will be designated as a flow-through share (the "FT Shares") for the purposes of the Income Tax Act (Canada) (the "Tax Act") and one-half of a Warrant. Each full Warrant will entitle its holder to purchase one common share at a price of $0.15 per share for a period of two years following the closing of the Offering. The Company has also granted the Agent an over-allotment option, exercisable at any time prior to the closing of the Offering, to purchase an additional 15% of the total number of Units and FT Units sold pursuant to the Offering.

SPA is creeping up very slowly. Often during this month you see the bigger stocks showing volatility as people hunt for deals in the JR market. So far, no sign this is happening. I still expect movement in the bigger stocks but I don't expect to see anything spectacular in the JR market primarily because of the horrendous damage the TSX has done to it.

I won't be selling any dividends. Instead, I'll bargain hunt there. Until the new exchange shows life I suspect my predictions from the past will hold true. Cash will be king and the decimation will ramp up. You may still see a false euphoria designed to trick people into thinking a stock is taking off but it will be followed by a harsh decline. There are still a lot of people holding the TSX bag.

I still expect to see more development in the real deposits of Canada. The safe haven idea is becoming a fact. I plan to hold developing mines like Schaft Creek but I'm expanding the timelines. Previously I said 2 years but now I'm going to invest on a 5 year plan. Take HPY. They just got a former Teck geologist on board. Given the slowdown at Teck I expect David Blann will be doing a lot more infill this year and next. The idea behind obtaining the new face is to customize the plan to Teck's needs.

HPY still has that lovely tungsten deposit that's shaping up rather nicely. The last round of drilling was proof of the value. I find it funny the market has not caught on. Are the investors waiting for it to become more advanced? Watch as many get left out in the cold. They will be scrambling to determine fair market value and a deal will side swipe them. I'm expecting this one to come in out of the blue and you can't say I didn't warn you. At 15-16 cents it's an absurd bargain. The new results suggest a real value well over a buck. In this market, it might jump 60 cents. as it changes the nature of its development.

If I get time I'm going to delve in deeper on the market movements. I'm expecting to see some action in the bond market that might shake things up as the realization of shortages sets in and managers try to find a buck.