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Hy Lake Gold Inc. C.HYL



CSE:HYL - Post by User

Post by scissors14on Nov 05, 2011 10:45am
412 Views
Post# 19212262

Hy Lake Featured in Gold Report Interview

Hy Lake Featured in Gold Report InterviewTGR: Tell us about Hy Lake Gold.

VR: Hy Lake is a smaller-size company in the Red Lake district. It has a market cap of about $7–8 million (M). Not many people know Hy Lake, which I hope will change in coming months.

Hy Lake's flagship project, called Rowan, is a joint venture with Goldcorp. Hy Lake is the operator and owns 60% of the project; Goldcorp is a 40% owner. We understand that Goldcorp is fully committed to participating in ongoing exploration there. For every dollar Hy Lake spends, Goldcorp will kick in
.40. If I am correct, Hy Lake is the only junior company in that region with a fully earned option with Goldcorp.

Confederation Minerals Ltd. (CFM:TSX.V) is another junior in the area. One end of Hy Lake's Rowan project adjoins its property, in what is called the Rowan-NT zone. A research report on the company from the investment bank Fraser Mackenzie reported that the resource potential on the Confederation side of the Rowan-NT zone was about 1.7 Moz. Confederation only has 1.6 kilometers (km) strike length on that zone. Hy Lake has more than 2 km. On that zone alone, Hy Lake probably has the potential for more than 2 Moz gold resource. It also just discovered a new breccia corridor on the Rowan Property apart from the main zone.

Rowan alone could be a multimillion-ounce deposit. Hy Lake also has three other properties that it thinks are linked as a structure. Its drill results so far are very high grade. Based on the past exploration, we believe it could easily be sitting on 500–600 Koz resource right now, and the exploration potential is very strong.

TGR: Goldcorp's Red Lake mine goes down close to 7,000 meters (m), I believe.

VR: That's correct. Hy Lake has gone down only to 400m. In the last couple of years, Hy Lake spent time getting to know the structure, doing focused drilling. It understands where to go and what to drill. On Rowan, for example, the mineralization has an open-pit opportunity, with a 4–5 km strike length. That's a multimillion-ounce deposit potential.

Hy Lake continues to acquire strategic land positions in the area. Last year, it picked up a very strategic claim from Rubicon Minerals Corp. (RBY:NYSE.A; RMX:TSX). It is pushing ahead with the consolidation strategy and is looking for strategic opportunities to acquire land and expand its exploration potential.

TGR: Hy Lake trades on the Canadian National Stock Exchange (CSNX) and not the TSX Venture exchange. When will it graduate to the big board?

VR: Yes, it is listed on the CSNX, which is one of the reasons not too many people know about it. We have an
.81 model share price on Hy Lake and it is trading around
.20. Liquidity is one of the challenges of the CSNX. We believe that the company has plans to move to a bigger stock exchange and we wouldn't be surprised to see it listed on a bigger board soon.
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