Everything you need to know.......
READ, VIEW AND LISTEN TO EVERYTHING ON MY POST AND THEN YOU WILL KNOW WHY .20 IS LIKELY THE
NEW FLOOR TO THIS VERY WELL MANAGED 'LEGIT' RESOURCE COMPANY THAT IN MY OPINION IS GOING MUCH, MUCH HIGHER:
*** I HAVE INCLUDED A REPOST FROM OUR FELLOW BOARD MATE 'BULLMARKETRUN' FROM OCT 19TH.
HE HAS WRITTEN A VERY DETAILED, CONCISE AND ACCURATE TAKE ON THE KEX STORY + A LINK TO KEX WEBSITE + A LINK FROM A VIDEO INTERVIEW WITH THE KEX CEO:
WEBSITE :
https://www.kent-exploration.com/
VIDEO INTERVIEW WITH CEO;
https://www.investmentpitch.com/media/508/Kent_Exploration_Inc._TSX.V__KEX/
October 19, 2009 .BY BULLMARKETRUN (STOCKHOUSE BB POSTER)
We know this sounds almost too good to be true, but thanks to technical analyst Clive Maund- one of the best in the precious metals business - we have come acrossa junior exploration company that presents one of the most intriguing investment opportunities we’ve seen in this current cycle.Incredibly, it is trading at just 16 cents (Friday, Oct. 16 close) and has a market cap of only $5 million (but not for long).
We say “incredibly” because:
1.This company is very close to generating substantial cash flow from barite reserves of at least one million tons.In fact, as far as we know, it is the only publicly-traded company in that can produce high-grade barite;
3.This company has just recently acquired a gold property (a former producer) with an historical inferred resource of 643,000 ounces.
But wait….it gets even better!This company is progressing so well, it’s about to give its shareholders a dividend!Yes,a dividend in the form of shares in a publicly-traded spin-off thatwill hold and develop its very promising Australian and gold properties.
And for a little bonus, how about if we throw in some 600 square kilometers of coal permits in ; a grassroots gold/silver property in thatinterestinglyalso contains high quality bentonite; and bonzana gradesilver assaysfrom a past-producing silver-lead-zinc property insoutheastern …
Do we have your attention yet?Weshould, because the paltry $5 million market cap on this company isnotgoing to last much longer (by the way, our most recentselection,SeafieldResources (SFF), has more than tripled in value sinceweuncovered it just a few months ago, and could triple yet again)…
AND HERE IT IS…
The company we are referring tois Kent Exploration which trades on the TSX Venture Exchange under the symbol “KEX”.Investors are just beginning to discover this little gem, so the time is perfect to accumulate a position.Thestockwoke up out of a slumber and jumped over 50% last week on itshighestvolume of the year, and we have every reason to believe thismove isonly in its infancy and a major upside breakout is imminent.Everycompanyhas a story, but the story behind Kent Exploration is trulyfascinatingwith several moving parts as you’ll soon discover.
We had heard about this company before but it was not on our current radar screen until the very perceptive Clive Maund brought it to our attention on his web site last week.Cliveisan accomplished technical analyst in the precious metals andcommoditiesarena - truly one of the best in the business - and jumped out at him recently for its very intriguing and bullish chart.A stock chart can speak volumes about a company, and we do pay very close attention to technical indicators.But we also like to look at the fundamental factors behind a stock.With ,wehave the Perfect Storm - the technicals and the fundamentals areboth inagreement (strongly bullish) which confirms to us this stock islikelygoing to rocket much higher as Clive’s analysis suggests.
There’s a lot going in with at the moment, so let’s first look at the highlights and then we’ll get into a more detailed fundamental analysis of each area:
1.Excellent Chance of Significant Gold/Silver Discovery
An aggressive drill program is currently underway atKent’sFlagstaff Property in northeast Washington, 15 miles south ofRossland,BC, where geologists are following up on several outstandinghistoricaldrill holes (non-NI-43-101 compliant) including one thatreturned anamazing 1.3 ounces ofgold over 18 metres.hasdone a lot of homework with this particular property - high gradegoldand silver mineralization exists at fairly shallow depths (lessthan 75metres), and we believe there’s a high probability of anexplorationbreakthrough at this property and possibly a significantdiscovery.The market loves high grade, and this is exactly what could be drilling into at the moment;
2.Near-Term Cash Flow From Substantial High-Grade Barite Deposit:
At the same property in is sitting on high-grade, open-pit barite reserves of at least one million tons- a substantial deposit.Barite is currently selling for nearly $50 per ton, so it’s not hard to do the math here.Thecompanyhas already secured one buyer (Matovitch Mining Industries) inalong-term deal for 20,000 tons of barite annually, and is indiscussionswith others.Earlier this year received approval from the BLM (Bureau of Land Management) to mine up to 100,000 tons of barite per year from ;
3.More Gold…..Down Under:
has recently partnered with Teck on the highly prospective Gnaweeda gold project in which lies in an area that has produced over 3.5 million ounces of gold.Historically, Teck does not take on just any junior as a partner, so it’s obvious they have a high degree of confidence in ’s ability to advance the Gnaweeda project.
4.The Next OceanaGold In ?
has picked up three projects in a prolific mining camp in (Reefton),where Oceana is very active, including the Alexander Riverprospectwhich contains an inferred resource (non-compliant) of 643,000 ounces of gold. has secured Nancy Reardon, a very respected geologist, to manage its exploration programs in both and .
5.Shareholder Dividend – To Spin-Off NewZealand/Australian Properties
In a strategic move that should unlock the value of its and Australian assets, recently announced a proposed spin-off company - Archean Star Resources-which would trade on the TSX Venture Exchange and advance the company’s and Australian properties.,ineffect, is being split into two distinct geographical regions, andtheproposal is that existing shareholders will receive one share inthe newcompany for every four shares of currently held.
6.And Another Little Bonus!
offers exposure to the coalplay with permits covering approximately 600 square kilometres in closeproximity to North American Gem’s “Adamas” discovery.
In ,’s100%IvanhoeProject is a Midas-type gold-silver prospect located in theCarlint rendin very close proximity to Great Basin Gold's HollisterDevelopmentBlock.The property also contains a bentonite deposit of undetermined size.
IntheSlocan Mining District of Southeastern British Columbia, Kent holdstheSilver Hill silver-lead-zinc prospect, a small past producerthatyielded bonanza silver grades (167.4 opt) from a sampling program lastyear.Between 1899 and 1952, 70,000ounces of silver, 350,000 pounds of lead and 35,000 pounds ofzinc were reportedly recovered from Silver Hill with an average silver grade of 28.94 opt.
PROPERTY – HIGH-GRADE GOLD DISCOVERY POSSIBLE
Of immediate interest for usregarding is the drilling currently underway at the property.It has been proven that high grade gold and silver are both present at shallow depths (less than 75 metres) at Flagstaff, which up until now has never been systematically explored for precious metals.The story behind this property, which acquiredthrough a lease option with the vendors in 2006, is nothingshort ofamazing, and needless to say thei mplications of a high-gradediscoveryat on ’s share price are enormous indeed.On drill result speculation alone, should garner tremendous interest in the days and weeks ahead.
Whatparticularlyimpresses us, and the reason we believe Kent could verywell be on theverge of a discovery anytime now at Flagstaff, is thepainstaking workthis company has done following up on the historicaldrilling andexploration efforts of the Combustion Engineering Company(CE) fromnearly 30 years ago.
Whileexploringfor and proving reserves of barite, CE completed 19,000 feetofconventional circulation drilling (203 holes from 85 sites) atFlagstaffin 1981 along with the appropriate logging and mapping ofholes.They began actual mining of barite in thesummer of 1982 and that continued for two years until the market forbarite dropped off.
CE was an industrial minerals company and didn’t have a whole lot of interest or expertise in the area ofprecious metals.Their primary goal,obviously, was the definition of a barite orebody.What’s interesting is that many of their holes along the east side of the barite deposit, in particular, contained significant and consistent gold values.
Thegeologicmap for the area shows a fault along the east side of thebaritedeposit, and this fault is believed to be the controlling factorin aquartz vein that has been traced for a considerable distance.AdetailedSeptember, 2008, report on the Flagstaff Property stated, “Thecurrentknown strike length of the vein, from the prospect pit at thenorth endof the mine area to the intercept in CE Minerals drillhole54E, isapproximately 410 metres- certainly adequate strike length todevelop amineable orebody.The strike length ofthe veinremains open at both ends…the fact that the vein is of amineable width(>1 metre in most exposures) is also a definite plus.”
Therewerealso several CE gold intercepts that did not correlate with theveintrace (secondary mineralizedstructures that will requirefurthertesting), and high grade silver values that were encountered onthe south side of the barite deposit.
Some of CE’s drill results are as follows:
Hole 32B7metres0.40 ounces per ton
Hole 39C18.3 metres1.31 ounces per ton
Hole 506.1metres0.72 ounces per ton
5.8 metres0.28 ounces perton
Hole 52A18.29metres1.30 ounces per ton
Hole 54E9.1metres0.51 ounces per ton
Intotal,CE assayed 924 samples for gold and silver with verysignificantresults, indicating a real potential for the discovery of agold/silverorebody.
In 2008, Kent Exploration’s consulting geologists completed a painstaking and detailed process of trying toextrapolate the exact locationsofmost of CE Minerals’ drill holes that encountered significant goldandsilver values, and to get a better overall understanding oftheproperty’s structural controls in preparation for the drillprogramthat is currently underway. The September, 2008, report and can be viewed on the web site.This was an exhaustive and impressive effort- a necessary step for a successful drill campaign.
Given the historical drill results from this property, and the apparent success on the part of to accurately pinpoint those drill locations and gain a better overall understanding of the mineralizedsystem, we have a high degree of confidence that thecurrent drillprogram is going to yield positive and perhaps evendramatic results.
BARITE DEPOSIT MEANS CASH FLOW FOR
While is currently being explored for the possibility of hosting an economic gold/silver resource, ispreparingto begin to mine the estimated one million-plus tons ofhigh-gradebarite the property contains (CE Minerals defined anhistoric depositwhichthey estimated at 1.3 million tons of 4.2specific gravity (SG)barite).
In May of this year received approval from the Bureau of Land Management in to mine up to 100,000 tons per year of barite from the historic open-pit mine on the property.hasalso reported it has entered into a barite sales agreementwithMatovitch Mining Industries which will purchase approximately20,000tons per year of 4.1 specific gravity barite from at a price of $40 per ton ($800,000 per year incash flow for ).With one buyer already secured, seemstobe making excellent progress in advancing this project and no doubtisin discussions with other potential users (EEStor Inc. rumored to beoneof them - more on that in a moment).
stated in a July 17, 2008 newsrelease:“The Company is in possession of all of CE’s original 19,250 foot drill program data delineating the barite deposit.Thematerialincludes drill logs, barite intersection assay data,tonnagecalculations, drill sections and plans,a contour map showingthedeveloped barite thickness, as well as a complete physicaldepositmodel.The Company conducted a limited diamond drilling program in the fall of 2007, the results of which substantially compared with the CE original data (our emphasis).The deposit, which has been stripped and benched ready for mining, is accessible by good forest service roads.”
Becausebariteis heavy, soft, chemically inert and relatively inexpensive, itslargestuse is as a weighting agent in oil and gas drilling fluids. It’s also used in products such as paints, plastics and rubber., and the are the world’s largest producers of barite, but most North American use of barite has to be imported.There is clearly an opportunity for to serve the North American market with its high-grade resource.In 2006, as reported by the U.S. Geological Survey, 3.3 million tons of barite was used in and 2.75 million tons of that, or 83%, was imported.AdecliningU.S. dollar should help to increase the appetite fordomesticallyproduced barite as imports of all products become moreexpensive.As we mentioned earlier, there is no public company we are aware of, besides , that is sitting on production-ready high-grade barite.
Aninterestingangle to all of this surrounds EEStor, a Texas-basedstartup that hasgarnered considerable attention over its developmentof a breakthroughbattery technology which would require high-gradebarite and beextremely useful in electric cars.Therehas beenmuch controversy surrounding EEStor, but they have formed someveryinteresting partnerships with reputable groups so it’s a storyworthkeeping an eye on. If EEStor’s technology proves successful, the demand for high-grade barite could soar and become the next lithium craze.
’S EXCITING PLAYS IN AND
AND A DIVIDEND FOR SHAREHOLDERS
Over the past six months has astutely assembled a package of highlyprospective gold properties in and , including a former gold producer with an inferred resource of 643,000 ounces.We believe investors are just beginning to grasp the significance of what has put together.Tounlockthe true value of these projects, and to be better able toadvance them,Kent is proposing a spin-off - ArcheanStar Resources -which will holdand develop these properties while Kent focuses on itsNorth Americanassets.A special meeting ofshareholders toconsider the plan is proposed for November30, 2009, toapprove thecompany issuing one common share of Archean Star foreveryfour commonshares, warrants or options held by shareholders.Afterallthe necessary approvals it’s expected Archean Star will begintrading onthe TSX Venture Exchange sometime during the first quarterof 2010.
So let’s take a look at what has been busy assembling in and :
– Gnaweeda Gold Project
If you can partner with a company like Teck, you must have something going for you.Justfourmonths ago Kent and Teck executed an agreement whereby Kent canearn100% of Teck’s interest in the Gnaweeda gold project inWesternAustralia (Teck currently has the right to earn a minimum 70percentinterest in Gnaweeda from Australian-listed Chalice Gold Mines,andwill have the right to earn back 75% of Kent’s interest by fundingatleast $7.5 million in exploration and development expenditures).
hasaccess to all of Teck’s technical expertise with regard toGnaweeda, amajor project that covers a 28 kilometre strike length ofthe highlyprospectiveGnaweeda Greenstone Belt.Just20kilometres to the west is a district that has had a long history ofgoldmining, most notably from a number of major deposits intheMeekatharra-WydgeeGreenstone Belt.willbe the operator of the Gnaweeda project during the option periodunderthe watchful eye, as we mentioned earlier, of Nancy Reardon.
The Turnberry prospect is the most advanced in the Gnaweeda package.Teckhas conducted some limited reverse circulation drilling atTurnberry(less than 300 metres depth) and seven out of 10 holesintersectedsignificant mineralization including 4 metres of 17.77grams per ton, 3metres of 4.39 gpt, 3 metres of 11.88 gpt, one metreof 37.60 gpt, andone metre of 69.63 gpt.An NI 43-101 report was recently released on Gnaweeda and stated:“TheTurnberry Prospect is defined by an approximately 2.5kilometrelong, 500metre wide northeast trending drilled anomaly…thestyle of both themineralization and alteration suggests the Gnaweedaproperty could hostin-situ gold similar to the large Archean depositsmined in theneighboring Meekatharra-Wydgee Greenstone Belt.”
in - The Next Oceana Gold?
OceanaGold (OGC, TSX) is enjoying tremendous success in at the moment with four operating mines.Itsstockhas jumped from under20 cents at the beginning of the year toover$1.00, and the company now commands a market cap of nearly $250million.There is gold in - lots of it - and has positioned itself to possibly become the next OceanaGold through its upcoming spin-off, Archean Star Resources.
hasacquiredthree properties of merit in the historic Reefton Gold Belt,whereOceanahas succeeded so well, and the one property we are reallyexcited aboutis .Just20 kilometres south of Oceana’s Globe Progress Mine, the AlexanderRiverprospect permit area covers 26 square kilometers and is thelocation ofthe former-producing Alexander Mine (to date there havebeen over 100mines in the Reefton area, Alexander being one of them)which containsan inferred resource of 643,000 ounces of gold - yes,over half amillion ounces (non-compliant).That was the estimate given by Macraes Mining - the precursor to Oceana - in a filing with CrownMinerals NZ.
Macraesreportedthat anauriferous halo of sulphide-hosted mineralizationexists aroundthe early mined reefs (similar, by the way, to GlobeProgress) and thatthere was an inferred resource of approximately fourmillion tonsgrading more than five grams per ton (643,000 ounces) in ashallowdipping structure from surface to the level 6 workings.
TheAlexanderMine, with a strike of approximately two kilometers,reportedly producedabout 41,000 ounces of gold prior to closing in1943 when further minedevelopment was hampered by labour shortages.Macraesrehabilitatedthe No. 6 level adit, mapped and sampled the undergroundworkings anddrilled seven underground holes between 1993 and 1996.Onehole reportedly intersected a nine-metre zone of 3.85 grams perton,including 5.4 metres of 5.3 gpt, while another hole intersected1.9metres of9.8 gpt.
will be performing exploration work at before year-end and plans to conduct a drill campaign early next year.
It’sworthnoting that OceanaGold has recently applied to Crown Minerals NZtoextend the boundaries of themine permitted area at Globe Progress.The western boundary of the proposed extension is in close proximity tothe northeast boundary of ’s Reefton Project.
In addition to ,has two other promising Reefton properties to explore - the Lyell prospect andthe Paparoa prospect.These three properties give a combined 800 square kilometers of very prospective properties in a prolificgold mining region.
Conclusion
KentPresidentand CEO GraemeO’Neill, who is substantially invested in thiscompany,has to be given credit for getting aggressive and seizing somevaluableopportunities at the righttime over the last number of months- withoutcreating much shareholder dilution.madeits debut on the TSX Venture Exchange at the end of August, 2006,andcurrently has just 32 million shares outstanding for a market capofonly $5 million.If all warrants (12 million) and options (2.5million) were exercised, would add about $3 million to its treasury and have approximately 47 million shares outstanding.
Themarket,in our view, has clearly not factored in the good possibilityof agold/silver discovery at Flagstaff, nor has it fully graspedthesignificance of what Kent has assembled in Australia and New Zealand-a substantial package of high quality gold prospects in provengoldcamps, and a very advanced situation at Alexander River with ouncesinthe ground.
At its current price - only 16 cents - offers very significant upside potential and minimal downside risk, so therisk-reward ratio here is very attractive.The fundamentals should drive this stock to considerably higher levels,as the technicals also suggest in Clive Maund’s analysis.
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