From the Gold Newsletter
• like rodney dangerfield, Seafield Resources (SFF.V; c
.32)
can’t get no respect. That’s a shame — and an opportunity —
because the company released some very nice drill results recently.
Seafield was also hounded by a negative news report on its
company manager, ian park, whose past securities problems really
aren’t relevant to his expertise and abilities in columbia. The
report was issued on Valentine’s day, so Seafield ain’t getting’
much love either. But that’s not the case from me.
i stand by my earlier long-term recommendations, at last
year’s New Orleans investment conference and in the November
issue of this newsletter, to buy in anticipation of the then-upcoming
drill results from the Miraflores deposit at its Quinchia gold
project in colombia. And by my call in the december/January
issue to ignore the hype and take quick profits after the stock price
ran up on these results. (As is often the case, i chose to ignore my
own advice to sell, preferring to hold for the long term.)
Getting back to the most recent drill results...Seafield released
assays from three holes drilled to test the dos Quebradas North
geochemical anomaly that returned remarkable trench results of
94 meters grading 1.75 g/t gold. The anomaly measures 700
meters by 550 meters and is part of porphyry system, discovered
on an adjacent property by Anglogold, that has a non-compliant
resource of 1.75 million ounces. About 800,000 of those ounces
are projected to lie on Seafield ground.
The highlight of the Seafield batch of holes was Hole 2, which
was drilled to test the extension of mineralization outlined in the
trench. it returned 511.5 meters grading 0.58 g/t gold, 0.05% copper,
including 199.9 meters grading 0.98 g/t gold, 0.09% copper
from 122 to 322 meters down-hole. plus, the hole terminated in
mineralization.
Two other holes were drilled from the same platform. Hole 1
cut 268.80 meters of 0.37 g/t gold and 0.03% copper. And Hole 3,
drilled outwards from the soil anomaly, intersected basalt country
rocks with weaker alteration and low gold values up to 0.75 g/t in
the top 105 meters, but not much else.
So, encouraging results for the potential of a second deposit at
Quinchia, with more news expected. Seafield has drilled about
3,500 meters in nine holes out of an 11-hole, 5,000-meter program.
Bottom line: Seafield is building significant gold resources in
columbia, and is once again a bargain based on what it has and
should end up with.