Talk on the StreetI am hearing many good things about Clines, Edward & Cline Lake property.
The talk on the street is that Cline is very similar old Exall Resources. That, the Edward Cline Lake gold property is similar in many ways to Exalls Golden Eagle Mine.
The Golden Eagle Mine sat on Exall shelf for over 60 years. During this period, Exall tried to develop many other assets such as the Glimmer gold mine and Oil & Gas properties in Alberta. Unbeknown to Exall, they had a $billion dollar gold mine sitting on its shelf for over 60 years.
In regard to the Exall, Golden Eagle Mine; Exall (EXL) did a JV with Southern Star Res.(SSR). Both stocks were trading at 25c and they shot up to over $7 per share. In 2006 both companies merged to form Golden Eagle Mines (GEA) today it has a Market cap of nearly $1 Billion dollars.
The Gold Eagle mine operated as a high grade gold mine from 1937 to 1941 and produced a small amount gold. This is similar to the Edward Cline Lake gold mine.
When Southern Star started drilling the Golden Eagle Property, they hit high grade intercepts at depth. The market was slow to understand the first drill results, but the smart people got in right at step one. The Edward Cline Lake property also has some very high grade intercepts as noted by the following record from issued reports.
Some of Cline Drill Reports
As a result of a technical review by Mr. Dale Hendrick P.Eng, of the full Phase I project assay results, he notes that in hole CL 07-8 on section 2225E, infill sampling has extended a zone at 1,400 feet vertical depth that averages 0.186 opt gold over 25.9 feet (core length) including 0.773 opt over 4.3 feet. At 1,460 feet vertical depth, a second zone assayed 0.250 opt gold over 6.6 feet (core length). Hole CL 07-2 on section 3500E, returned numerous intersections highlighted by 0.105 opt gold over 52.2 feet (core length) including 0.530 opt over 8.5 feet at a vertical depth of 700 feet. A value of 2.173 opt gold over 2.3 feet was returned at a vertical depth of 1,700 feet. These wide spaced deep intercepts showing higher grades and core lengths are very encouraging as to increasing commercial potential in depth and strike length.
The Edward Cline Lake property has declines with 4 shafts, the deepest to 1,165 feet with eight development headings. The combined drilling over many years is probably in access of 25,000 meters. The cost of this work in todays dollars is probably $20 million dollars. It would also take 2 to 3 years to do this amount of developement work.
Recent Private Placement
Cline recent private placement of 4 million shares at 25c with Dale M. Hendrick, PEng, a director of Cline, subscribing for approximately 1.8 million shares, representing approximately 45 per cent of the private placement or $450,000. This was very interesting, because this was above the market price over the last 30 days of December. This is very similar to what happened with Southern Star.
The Edward / Cline Lake property has great potential and it will be good to see some 3D modeling of the all the drill results with the proximity to shafts, declines and development levels.
The Edward / Cline Lake property may not be as high grade as Golden Eagle, but with so much drilling and development completed it could turn into a profitable cash flowing mine quicker and catch the present gold cycle.
Maybe this is why Dale Hendrick stepped up and put 1/2 Million dollars of his own money on the table. This can be taken as a huge vote of confidence and part of your risk management assessment.
With 78 million shares out and a price of 25c gives a Mcap of $19.5 Million. With $8 million working cap gives net Mcap of only $12 Million.
We will probably see this stock go above $1.20 this year, based on the gold property alone.
Mine Professor