Lundin says buyStaccato Gold
(CAT.V; STCGF.PK)
(604-682-8789)
staccatogold.com
The latest batch of assays from
Staccato Gold’s South Eureka Project
lived up to management’s billing.
Three 1,000-foot core holes were
drilled to test the underground potential
in and around the Lookout
Mountain area, home to one of South
Eureka’s past-producing open pits.
The program went three-for-three,
with every hole hitting significant
gold mineralization.
The best results, from Hole 1, was
the last to be released. It cut 65 feet of
0.334 oz/ton gold (11.8 g/t) from 270
to 335 feet, including 25 feet of 0.64
oz/ton (21.94 g/t) from 275 to 300
feet.
Results like those are hard to beat,
but Hole 3 was no laggard. It intersected
two distinct zones of mineralization,
with a three-foot upper zone
of 2.25 oz/ton (69.98 g/t) gold and an
80-foot lower zone of 0.21 oz/ton
(6.53 g/t) gold.
When combined with two zones
of high-grade gold intersected by
Hole 2 — 10 feet of 0.17 oz/ton (5.29
g/t) and 25 feet of 0.20 oz/ton (6.22
g/t) — these results improve
Staccato’s chances of winning the
Nevada gold lottery.
Why do I say that? Because both
holes cut high-grade gold underneath
Lookout Mountain’s historic, lowgrade
resource (445,000 ounces based
on 13 million tonnes of 0.02 oz/ton, or
0.62 g/t, gold). In doing so, they provide
evidence of exactly the type of
high-grade feeder zones that every
company with claims in this section
of the Battle Mountain/Eureka Trend
is hoping to find.
Of course, we’ll need more
drilling to know for sure, but results
this good virtually guarantee the company’s
ability to find a joint
venture partner to fund that
work in 2006.
The strong move that
Staccato’s share price made
in the wake of this news is a
perfect example of what a
relatively tight share structure
and a choice piece of
news flow can do for a
grassroots play like this
one. Consider that, even
after essentially tripling following
our initial recommendation
in October, the
company still boasts a market
cap of under C$17 million.
The difference between
now and then is that Staccato
is on the trail of what could
be the next blockbuster
Nevada deposit.
Normally, I would recommend
taking profits after
a run like Staccato has made.
And investors without a
strong stomach for risk
should probably do so. But
I’ve got a feeling this play
could go much higher. So
I’m sticking around, and I
would advise anyone else
looking for a potential moon
shot to do the same.
https://www.staccatogold.com/i/pdf/2006-01-13_GNL.pdf