Morning Notes monday 8/16 Michael A Berry, Ph.Dre: nieves
"....We believe that Quaterra will now execute another drill program of 20 to 30 holes to
increase the resource significantly based upon these IP results. Therefore, given the current
resource, we think there is a possibility for an open pit silver resource of up to 200 million
ounces of silver and perhaps 250,000 ounces of gold. The gold credit will be significant in
the economics of a mine. Please note that this resource analysis does not include the
Santa Rita vein system to the south or the California vein system to the north of the
Concordia / San Gregorio. Nor does it include deeper and higher grade ore potential and
several other areas on the property that have not yet been explored. The company believes
that more drilling will increase the size of the system."
"....
In conclusion Nieves has significant potential to increase in size and grade. As has been the case we do not think of Quaterra as a mining company. The business model here is to build
an exploration and development pipeline and then monetize each property. That process is
well underway. Freeport McMoRan is drilling the company’s Tintic properties in Utah and
others in Arizona on very good deals. Goldcorp has already optioned one of the company’s
properties in Mexico and is funding all Quaterra’s exploration in that country. Grand Portage
will drill Quaterra’s Herbert Glacier gold property this month and Copper Ridge is drilling
the polymetallic nickel, copper, PGE target at Duke Island Alaska.
That CEO Patton has two of the biggest and best mining companies in the world, and four
companies in all, drilling his properties attests to the value of the QMM property pipeline.
Monetization is next and we think Nieves could be sold to parties interested in near term
production from an open pit silver mine. There are plenty of those companies around. If this
occurs it will be the first of several deals that will make QMM shareholders very happy."