exciting timesThere is definitely accumulation going on here by a number of brokerage houses. It seems that the offers are thinning out and technically this is poised for a major breakout. This is no doubt an undervalued junior mining company. With trench results scheduled to be received any day now, and a major report being released soon, my guess is that we are headed for new highs. I am posting two old reports below that are currently apropos.
Bill
TAYLOR HARD MONEY ADVISORS, INC * Box 770871, Woodside, N.Y. 11377. * Tel.;(718) 457-1426 * Jan. 29, 2005
River Ross Minerals Inc.
Traded TSX-V: RRM
Initial Recommendation: 8/23/03–$0.28
Price 12/29/05: 0.363
Shares Outstanding: 29 Million
Market Capitalization: $10.5 Million
Progress Rating: “C”
Investing in junior resource stocks requires
patience, sometimes requiring a waiting period
of weeks and months before anything exciting is
announced by management. So I must confess
that there are times when, even though I know
there is a good reason for owning a stock, waiting for the next big press release my excitement level is
about equal to the excitement one derives from watching paint dry. Such has been the case with Ross
River, but when I sat down with management this past weekend in Vancouver, not only was there a
recollection as to why this stock should be owned but also a level of excitement that demanded I name
this my Top Stock Pick of the Week as we near the end of January 2005.
While Ross River has a property of merit in the
Yukon, namely the Tay- LP Property, the area of
most interest at this time—and perhaps for years
to come—is the company’s El Pulpo project
located 115 kilometers by road northeast of
Mazatlan, Mexico. The property covers an area
of over 200 square kilometers and is easily
accessible by paved road to San Ignacio then by
dirt road east to Vado Hondo, which is located in
the center of the concessions.
The El Pulpo property is within the belt of
porphyry copper occurrences which trends
northwest through Western Mexico and also
within the belt of gold-silver deposits of the
Sierra Madre. Work completed to date has identified four copper-gold porphyry targets, three high
TAYLOR HARD MONEY ADVISORS, INC. * Box 770871, Woodside, N.Y. 11377. * Tel. (718) 457-1426 * Jan. 29, 2005
Copyright @ 2005 TAYLOR HARD MONEY ADVISORS, INC. ALL RIGHTS RESERVED.
2
grade intrusive related gold-silver vein targets, and a stockwork gold-silver target. The latter
overlaps the Cerro Colorado copper porphyry target. The copper porphyry targets represent local
accumulations of copper that are part of the larger copper porphyry system. They are located in a
broad arc open to the south with higher molybdenum values from soil and rock sampling concentrated
closer to the center of the arc, forming a pattern typical of copper-molybdenum porphyry systems. The
only word that can aptly describe the scale of the company’s projects is “enormous.” Or as mining
speculators like to refer to monster deposits, El Pulpo appears to have the potential to host at least one if
not more daddy elephant.
The Cerro Colorado target is a copper-gold-silver porphyry target where surface disseminated copper
measures at least 2,000 meters long and 750 meters wide. Assays of up to 9.69 grams of gold, 296
grams/tonne silver, and 2.90% copper assays have been revealed from outcrop and trench sampling. My
friend and highly respected mine-exploration analyst David Coffin said of the Cerro Colorado that, “This
is very much the type of target with a large-scale potential for a bulk tonnage system.”
The Jocquistes Target is a copper- gold bearing porphyry structure, located about one kilometer east of
the La Cetolla prospect and measures at least 500 meters by 1,000 meters. Ten grab samples from
outcrops averaged 0.37% copper and contained up to 0.81 grams/tonne gold, 124.7 grams/tonne silver,
and 40.11 parts per million molybdenum.
The La Papaya Gold-Silver Vein
System is a generally north-trending
vein system with six major vein
clusters extending over a length of
about 8,000 meters and is
approximately 1,500 meters wide.
Within the system, three major goldsilver
targets have been identified,
including the Papaya, La Pitaya, and
El Sauz targets. Samples of up to
144.4 grams/tonne gold or 4.21 ounces
per tonne gold, and 4,737 grams silver
or 138 ounces of silver per tonne have
been taken from these seemingly rich
gold- and silver-bearing veins.
Individual veins reveal healthy widths
measuring up to 15 meters on surface.
The La Trucha Gold-Silver Vein
System extends northeast from the Papaya vein system over a strike length of at least 1,500 meters before
it disappears under younger volcanic cover. Here again some very high gold and silver values have been
discovered, with the highest value being 40.09 grams/tonne gold (1.17 ounces/ton) and 1,6144 grams
(47.08 oz.) silver per ton.
The El Tiburon Gold-Silver Vein Target is one kilometer north of the La Trucha target. Although it has
had limited prospecting carried out on it to date, it has returned values up to 60.94 grams gold/tonne (1.78
oz./ton) and 423 grams silver /tonne (12.35 oz./ton).
What should be clear from the above brief description is that the El Pulpo system is enormous and that a
properly systematic exploration program will take many, many millions of dollars to carry out and as such
is very appropriate for a major mining company. It is your editor’s belief in talking to management that
TAYLOR HARD MONEY ADVISORS, INC. * Box 770871, Woodside, N.Y. 11377. * Tel. (718) 457-1426 * Jan. 29, 2005
Copyright @ 2005 TAYLOR HARD MONEY ADVISORS, INC. ALL RIGHTS RESERVED.
3
Ross River should have little problem in attracting a major company joint venture partner to fund
exploration of this project, especially given the massive scale of these targets and the high values noted
above. With regard to the high assay values coming from this property in general, the company’s press
release of January 11 is particularly impressive. Of 174 rock samples, copper ranged from 0.97% to
46.48%. Seventy-seven samples or 44.26% of all samples graded 2% or higher for copper. Of 45
samples assayed for silver, results ranged from 20 grams to 828 grams per tonne. Gold values taken from
26 samples scored from 0.31 grams/tonne to 9.30 grams/tonne.
Heading into 2005, management has planned extensive fieldwork to include heavy silt sampling of the
streams draining the general area of the Cetolla and Jocquis tes prospects and east to southeast of Cerro
Colorado. Additional mapping and sampling in the Cerro Colorado, Cetolla, and Jocquistes prospects is
also scheduled to be undertaken. The existing grid is to be expanded eastward to tie together La Langosta
and La Cetolla and extend the Cerro Colorado mineralization. Soil geochemical sampling, magnetometer,
and induced polarization surveys are scheduled to be completed over the expanded grid. Trenching is also
planned for anomalous areas. All of this is to be fo llowed then with a major drill program within the La
Langosta and Cerro Colorado prospects.
But massive projects require massive expenditures. Marcus Foster told your editor that he would have no
trouble at all in efficiently spending $10 million on explo ration, but for a junior at this time with still low
stock prices, doing so would lead to considerable shareholder dilution. And so the news of December 22
looks like it should be very positive for the company. On that date, the company announced that it had
entered into an agreement with Almaden Minerals to acquire a 100% interest in the El Pulpo project.
Being the sole owner of this project paves the way for Ross River to bring in a major to move the project
along at a much more rapid clip. In other words, we could be seeing a much more aggressive exploration
program than would be carried out if Ross River retained a junior as a joint venture partner. And based on
my conversation with management, I would not be surprised if an announcement with a major might not
be coming fairly soon.
To gain that interest, Ross River will be required to issue Almaden 2.2 million shares upon closing, an
additional 1 million shares when exploration and development expenditures on the property meet or
exceed US$10 million, and an additional 1 million shares on the delivery of a positive feasibility study
recommending production on any part of the property. Almaden will retain a 2% NSR on production from
certain portions of the El Pulpo claims, although half of that NSR can be purchased from Almaden for fair
market value.
The Tay-LP Gold Property
This property is located within the Tintina Gold Belt and 50 kilometers south-southwest of the town of
Ross River in the Yukon Territory. The property is accessible from the South Canol Road via a good fourwheel-
drive trail that runs along the length of the property. Last summer some reasonably good drill
results were reported with values up to 16 grams/tonne over one meter. This year more drilling is planned.
While this property certainly has some potential, the real sizzler—the property that could make
shareholders wealthy at this time—would appear to be the El Pulpo.
Summary
The excitement of owning junior mining stocks is that you have a real chance at realizing gains equal to
many times your investment when companies produce successful exploration results and if you purchase
those shares before the market begins to find them attractive. The current lackluster environment for
junior gold exploration stocks allows you to buy what has to be considered one of the premier exploration
stocks at bargain basement prices. Never are there any guarantees in this business, which is why it is
doubly important that you limit the amount you allocate to any one stock to no more than 5% of your
TAYLOR HARD MONEY ADVISORS, INC. * Box 770871, Woodside, N.Y. 11377. * Tel. (718) 457-1426 * Jan. 29, 2005
Copyright @ 2005 TAYLOR HARD MONEY ADVISORS, INC. ALL RIGHTS RESERVED.
4
portfolio at time of purchase, for any of the stocks we recommend in this letter. If you do that, you will
sleep well, and when/if a company like Ross River stabs an “elephant” sized copper or gold deposit with
one of its drill holes, you should very quickly begin to understand just how powerful a 5% allocation can
be in enhancing your overall portfolio wealth. We have enjoyed the feeling several times over the past
few years and based on the discussion above, you should be able to tell that I think investors who buy this
stock at current price levels should have a real shot at another successful “10 bagger” with Ross River.
604-682-2770 and/or www.rossriverminerals.com.
HRA Dispatch…HRA Dispatch...HRA Dispatch
21 June 2004 Excerpted with permission - 1
Trip Report
El Pulpo copper project
Sinaloa Mexico
Earlier this month I made a quick visit to
Ross River Minerals’ (RRM-V; closing up 5
cents at $0.90 on 124,800 shares) main
project, El Pulpo, located an hour and half’s
drive northeast of Mazatlan on the landward
side of the Gulf of Cortez that separates
Baja California from the rest of Mexico. The
project is being earned from Almaden
Minerals (AMM-T; closing off 7 cents at
$1.88 on 42,700 shares).
Placer Dome discovered one porphyry
center here in the 70s just ahead of
changes to Mexican law that chased most
foreign explorers out of the country. RRM is
now conducting the first ever drill test of the
project, with an initial focus on high-grade
gold veins that look like they are on the
periphery of broader system. It may also
test one of three copper targets that have
now been identified in this round. I like the
look of this project, located near enough to
the coast to make shipping easy but still far
enough from a population center to take
advantage of its infrastructure without
getting in the way of its existing tourist
trade. We focused on the bulk tonnage
copper aspects of the project, but I will
begin with the high-grade gold system since
initial reporting will come from it.
Along the western edge of the property
package are a number of quartz-tourmaline
veins containing gold. This type of vein
often marks the outer / upper edge of these
systems. There has been a limited amount
of past mining from the oxidized nearsurface
portions of these veins, and they
have returned some spectacular results
including up to 144 g/t (+4 oz/ton) gold with
high silver and good copper results. They
are in fairly steep terrain, and there is
evidence faulting has displaced them in
areas. This round of drilling is being used to
sort out the structural setting for the veins
as well to test grade at shallow depths,
though enough holes have now been
completed that a fairly substantial
evaluation of the gold system is in the
offing. Included in this drilling should be
testing of some deeper targets within the
gold trend, including a large IP anomaly
below the highest surface gold assay of 144
g/t (4 oz/ton) that could be a feeder area for
the system.
Between the large sections opened to
geological mapping by the road building and
this series of drill holes it is likely RRM will
get a handle on the veins system, and
possibly its relationship to the broader
system. There is potential for some fairly
flashy numbers out this drill testing, and to
outline enough high-grade material to
indicate potential near surface for a
moderate scale gold producer. Deeper
testing could indicate potential for a larger
gold system. Beyond that, a second drill
phase will be needed to define the overall
high-grade potential.
This system is within the Sinaloa batholith, a
very large-scale intrusion of magma that
took place during the late Cretaceous
period. Portions of the project are covered
by younger volcanic rock that postdates the
mineralizing event. Within the batholith rock
is a younger and more felsic magma
intrusion associated with the metal bearing
fluids. It is not clear if this younger magma
was a late phase of the batholith itself, or a
separate event between the Sinaloa
intrusion and the volcanic eruptions. In
either case, it is the younger intrusive rock
that hosts the bulk of the alteration and
mineralization.
HRA Dispatch…HRA Dispatch...HRA Dispatch
21 June 2004 Excerpted with permission - 2
The zone discovered by Placer’s work is still
remote from road access and we did not
visit it on this trip. But two new zones have
now been located and opened up by road
building, and both show considerable
promise as copper-gold targets based on
the scale and intensity of the alteration, a
broad distribution of copper, and the results
of recent geophysical surveys.
The more advanced of these two new zones
is La Langosta target in the centre of the
project. Within a 1 x 2 km area there are a
series of altered younger intrusive zones
with sections of exposed copper and gold
mineralization. Road building that in this
steep terrain essentially acts as a trenching
program has opened up large sections of
the target. Our tour brought us along a
number of these new roads that expose
broad sections of fluids alteration, with
sections of secondary copper mineralization
resulting from more recent surface
alteration. Induced Polarization surveys
indicate up to 300 metre breadths of high
chargeability typical of disseminated
sulphide minerals. The high chargeability
areas are broken by sections of fresh
looking Sinaloa batholith that is either
portions of the older rock trapped within the
younger mineralized magma or simply
indicates there were a series of dyke like
flows of the younger magma. When this
target is drilled there should be a good
potential to outline a blanket of secondary
copper mineralization in addition to testing
for deeper primary sulphide minerals.
The more recently discovered Cerro
Colorado target is still early in its definition,
but at this point appears to be more
extensive and possibly more pervasively
mineralized than La Langosta. During the
tour we saw a section of fairly fresh looking
(that is, unaltered by later fluids) Sinaloa
batholith rock that actually contained a
strong density of fractures containing
copper mineralization. In this type of
system fracture density is used as a basic
key to potential since the fractures
determine how much of the rock is available
to provide space for fluids to carry metals
into the host. Strong and persistent high
chargeability has been recorded at Cerro
Colorado over trend lengths of almost 2 km
and across 300 metres. This is
accompanied by high copper-silver-gold
results in soil sampling as well as sections
with high copper and gold numbers in
outcrops. This is very much the type of
target with a large scale potential for a bulk
tonnage system. And the market has
responded by bringing volume into the stock
on announcement of results from it.
This never-been-drilled system has a strong
potential to produce results that can move
the market. The current drill program
testing the gold bearing portion of the
system will be curtailed soon by the summer
rainy season. The company does have a
second project, the Tay-LP gold system in
the Yukon that has returned several good
intersections in previous work. This project
is in the southern extension of the orogenic
gold belt that includes the Fort Knox Mine in
Fairbanks Alaska, the high-grade Pogo
deposit, and a number of other bulk tonnage
deposits. Tay-LP could excite further
interest in the company later in the year, but
it is El Pulpo that is making the company’s
market at present.
See https://www.rossriverminerals.com/ or
contact 1-877-682-2770. The web site
needs updated to the new results, but can
get you started.