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YALE RESOURCES LTD V.YLL



TSXV:YLL - Post by User

Post by mallgirlon Feb 18, 2011 9:21pm
671 Views
Post# 18162562

Greatly Undervalued

Greatly UndervaluedHi, janvier.  Below please find a copy of my blog entry regarding Yale.  I've updated some of the results where applicable.  I originally wrote this when YLL was 0.125.  It's down over 25% since then, making it that much more attractive.  Hope this helps.  Fell free to inbox me with any further questions.

Yale Resources separates itself from many of its peers for its "project generator model" employed as well as its small recurring revenue stream.  Essentially the company's mission statement is to acquire promising properties, with a focus in Mexico, with the intent of optioning them to partners for staged payments and exploration expenditures, while remaining the operator.  This allows the company to increase the chances of success with a portfolio of properties while decreasing exploration expenses and limiting share dilution. 

The effect this has is evident in its latest financials.  The company reported mineral acquisition and exploration expenditures of $226,000, but had exploration cost recoveries and option proceeds of $367,000.  It's also worth noting that the company also owns a 3% interest in a couple oil wells in the U.S which also generates a small revenue stream for YLL.

Yale Resources currently holds 9 Mexican properties in its portfolio.  All properties have produced very encouraging drill, underground or surface sample results to date.  Most of these properties have small, historic, shallow mines or workings.  Please see below for a list of Yale's properties and select results from each.

Guadalupe - recently reported drill results including 11.5 m of 2.09 g gold and 382.7 g silver; 2 historic mines on  property

Urique - sampling in Rosario tunnel yielded assays up to 1, 640 g silver and 9.74 g gold 

Orofino - 11 mineralized zones; 6 open pit workings, 3.19 g gold, 83 g silver over 30 m

Tenorida - 4.8 g gold, 64 g silver over 10.2 m

Carol - 24 m of 2.24 % zinc, 1.2 % copper; 10m of 2.19% copper1.07 % zinc, 18.26 g silver/tonne, 0.91 g gold/tonne
           - recently optioned to El Condor

Los Amoles - over 40 historic workings in 1100 m wide zone; recent surface assays up to 2m of 699 g silver/t, 6 m of 226.6 g silver, grab samples up to 1027 g silver/t, 1.06% lead, 451 g silver, optioned to Nature's Call

Apache - 30 km from Timmins Gold; Chip/grab samples up to 2.99% copper, 2.96% zinc and 75.7 g silver

Dos Nachiones - several small historic mines/pits; assays up to 4.45 % lead, 256 g silver

La Verde - samples average 3% copper and 190 g silver over 50 m

With 9 quality Mexican projects, all of which have produced significant results, and their willingness to option properties to share risks and costs while operating  (and also limiting dilution), I feel Yale Resources at current prices (0.125) offers great potential with limited downside risk for an explration company.

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