Solex Resources (SOX.V)

Well, I postd this report back in March 2007. Reading this report may be tacthe best way of comprehending what Solex Resources is all about, but in particular to understand that today's PR confirms that Macusani may in fact turn out to be a giant deposit containing uranium in excess of 50 million pounds.

http://www.stockhouse.com/news/news.asp?newsid=5625369&tick=SOX

http://research.dundeesecurities.com/Research/SOX122006.pdf

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12-month target price: N/A

> Solex is an exploration company focused on advancing
> its Macusani uranium and Pilunani zinc-lead±silver
> projects in southern Peru (Fig. 1).  The company
> also has the early stage Cullquimayo project which
> has numerous base and precious metals anomalies.
>
> Solex is listed on the TSX venture exchange under
> the symbol SOX.  The company had 42.2MM shares,
> 4.8MM warrants, and 3.3MM options outstanding, plus
> C$3.1MM in cash at the end of Q3/06 (Table 1).
>
> The Macusani uranium project is located in the
> Carabay province in southeast Peru and comprises
> Macusani East, Macusani West, and Picotani (Figs 1,
> 2, and 3).  The project covers an area of 912km2,
> and is accessible via gravel roads from the town of
> Macusani.  Macusani has a population of 10,000 and
> is located approximately 40km southwest of the
> Macusani East claims.  Solex is currently focused on
> the Macusani East project, which was optioned to
> Frontier Pacific (FRP-TSXV) in 2005.  Frontier
> Pacific is operator of Macusani East, and has the
> right to earn 50% in the project by spending US$4MM
> over five years, and the company should reach its
> earn-in commitment in 2007.  Solex owns 100% of
> Macusani West and Picotani and plans to complete an
> early stage exploration program on both properties
> in H1/07. 
>
> Macusani East uranium mineralization is hosted in
> ignimbrites and typically occurs as secondary
> coffinite and autinite coatings in fractures and
> breccias, and as disseminated grains proximal to
> these zones (Fig. 4).    The area was initially
> explored by the Peruvian Institute of Nuclear Energy
> (IPEN) in the late 1970s.  IPEN discovered more than
> 60 uranium showings via a combination of radiometric
> surveys and trenching.  These results were not
> followed up for two decades as the Peruvian
> government placed the area under an exploration
> moratorium from the late 1970s to mid 1990s.
>
> Recent exploration by Solex and Frontier Pacific has
> included: 1) detailed ground radiometric surveys on
> six known showings; 2) follow up mapping, rock chip
> sampling and trenching, 3) 1,780m reconnaissance
> drill program on four high priority targets (Sayana,
> Calvario, Puncopata, and Agaton; Fig. 3 and Table
> 2), which defined near surface uranium
> mineralization from surface to a maximum drill
> length depth of 42.52; and 4) initial heap leach
> tests that demonstrate up to 89.8% recovery in three
> days using a mild acid leach.  Solex and Frontier
> Pacific have begun a US$2.4MM, 20,000m drill program
> focused on defining an NI43-101 compliant resource
> on eight targets (Sayana, Sayana West, Calvario I,
> Calvario II Puncopata, Agaton, and Tantamaco).  The
> joint venture partners are currently drilling
> Macusani East with one drill rig, but expect to have
> two more on site in early 2007.  We expect that
> Solex will have initial drill results in late
> January 2007 and an NI43-101 compliant resource in
> early Q2/07. 
>
> The 100% owned Pilunani Belt project is located in
> the Azangaro province in southeast Peru and
> comprises the Princesa zinc-lead-silver, and
> Pilunani zinc-lead properties (Figs 1 and 5).  The
> project covers an area of 500km2, and is also
> accessible via gravel roads from the town of
> Macusani, which is located 70km to the northwest. 
> Pilunani Belt zinc-lead±silver mineralization is
> near surface, localized in strongly brecciated
> limestones associated with a number of major fault
> zones, and is similar to other 'manto-style' (or
> polymetallic replacement) deposits in Peru.  Solex'
> 2006 exploration focused on reconnaissance drill
> programs at both properties, and confirmed the
> presence of near surface zinc-lead±silver
> mineralization. 
>
> The Princesa 11-hole reconnaissance drill program
> tested a 900m x 700m target area, and intersected
> near surface zinc-lead-silver mineralization in each
> hole (Fig. 6; Table 3).  A number of holes
> intersected very high grade silver within broader
> zones of lower grade zinc-lead-silver mineralization
> e.g., 1,605g/t silver, 0.80% zinc, and 2.21% lead
> over 1.20m (from 42m drill depth) within a broader
> zone of 159.74g/t silver, 0.76% zinc, and 0.87% lead
> over 24.45m (from 34m drill depth; Table 3).  Solex
> has begun a Phase 2 4,000m drill program aimed at
> testing the mineralized zones along strike and down
> dip.  The company expects to complete this program
> in early 2007.
>
> 
>
> Dundee Securities Corporation has not initiated
> formal continuing coverage of Solex Resources
> Corporation and provides no ratings or target prices
> as per our normal disclosure at the back of this
> report.  Further, Dundee makes no undertaking
> whatsoever to provide continuing coverage on this
> stock. The recommendations contained within this
> report may be based on information and analysis that
> is incomplete or speculative. Stocks are rated Buy,
> Accumulate, Reduce, or Sell. As a result, the
> investment recommendations contained herein should
> be viewed as speculative. Dundee clients should
> consult their investment advisor as to the
> appropriateness of an investment in the securities
> mentioned.