Ubika Research- October 13, 2011Ubika Research, Research Bulletin October 13, 2011
GER adding to land position - acquires new prospective Phosphate project in Quebec:
Glen Eagle Resources Inc. (TSX VENTURE : GER) announced that is has signed an option agreement to acquire 100% of the Moose Lake phosphate property composed of 90 claims located approximately 150 km South of Lac Lisette (its current phosphate project). The property is adjacent the Mirepoix phosphate property of Arianne Resources (TSX VENTURE: DAN).
GER is stating that the property has an exposed showing of 1 kilometre long and 20 metres wide. The terrain is flat and hence ideal for exploration work. GER is currently analysing samples collected from this property. Ubika Research views this acquisition favourably. With this acquisition, the management of GER is proving that it has a strong industry network and the ability to identify and acquire highly prospective phosphate projects in Quebec, a mining friendly jurisdiction.
We have already seen that Arianne Resources’ (TSXV: DAN) stock had jumped over 1100% in the last year on the back of a successful exploration program and showing of a significant resource of 338 million tonnes (indicated + inferred) P2O5 resource estimate. This resource was established with a 10,000 metre drill program at Lac
Paul project that neighbours GER’s Lac Lisette phosphate project.
The Lac Lisette property is 40 kilometres away from Arianne Resources’ (TSX VENTURE: DAN) Lac à Paul property, and attached by the same main road.
GER is currently working on an active drill program. The early results from sampling and trenching work and the exposed phosphate showings are very encouraging.
GER has a market value of $18 Million while Arianne Resources Inc has a market value of $117 Million. This suggests GER offers a good entry point for investors looking to gain exposure to an early stage phosphate project. The fall drilling program should give plenty of news flow about the Lac Lisette phosphate project.
Ubika Model Price (UMP):
.96
Ubika Rating: Undervalued
Risk: High
Price:
.47
Gap to UMP: 104%
Share O/S: 39.6 Million
Market Capitalization: $18.6 Million