We are coming up on some exciting times for the three mining companies that Technical Buy Investment Newsletter follows. Beaufield Resources Inc. (TSX: V.BFD, Stock Forum) is focusing on its Tortigny property in Quebec with the whole area catching fire as a result of the monster intercept discussed in the last update.
Melkior Resources Inc. (TSX: V.MKR, Stock Forum) is in the process of identifying drill targets on its Timmins, Ont., gold property. The start of the deeper hole drilling is expected to commence in early November. SamaResources Inc. (TSX: V.SME, Stock Forum) has cashed up and is ready to drill the Cote d'Ivoire deposit in order to establish the NI 43-101 compliant resource.
Beaufield Resources
Starting in mid-November Beaufield will resume drilling of the Tortigny copper-zinc-silver deposit. Drilling objective will be to expand the current resource through extensions, as well as through further examination of several high grade poly-metallic zones that were encountered in the 322metre monster hole intercept.
The outcome of this drilling campaign should be exciting as we already know that grades in some of the poly-metallic zones are staggering. At least one interval of 25m had grades of 10.91% Zn, 5.47% Cu, 150g/t Ag, 0.90g/t Au. It goes without saying that further extensions of the current deposit would be a boon to Beaufield's shareholders.
As exciting as this property is, traders need to brace themselves for a rocky road ahead in case we don't see significant intercepts. The bar has been set very high and there might be some unrealistic expectations out there.
Getting lost in the Tortigny excitement is the development around Beaufield's other projects. Recently the Airborne Gravity Gradiometer (AGG) survey was completed at Schefferville, Quebec, property.
This project borders an iron ore deposit which is owned by Millennium and Tata Steel JV. Tata had invested $300million into the project recently. Schefferville and Labrador areas are the premier iron mining districts of Canada.
There is a potential for other significant mineral occurrences and deposits in the region including zinc, rare earths, gold and base metals (copper-zinc). This property can easily become an enticing take-over target for players in the region.
Jiminex Inc. (TSX: V.JIM, Stock Forum), Beaufield's JV partner on the Northern Eagle Gold Project, had recently announced discovery of drill targets following completion of the ground geophysical survey. Project is located near Barrick's Hemlo 21 million ounce gold mine.
The hope is that it could be another Hemlo style gold deposit. Major drilling campaign is in the works.
With $9million in cash, three exciting projects and a wide following, Beaufield is an exciting story to watch. I will start accumulating on pullbacks as it looks like the share price is finally settling down.
There is a lot of speculation with this play and I think that even before the drilling starts the excitement will push the stock price higher.
Sama Resources
Sama commenced a 9,000m drilling program on their Samapleu Ni/Cu/PGM property in Cote d'Ivoire. The objective of the current drill program is to establish NI43-101 compliant mineral resources for the main Samapleu deposit as well as the newly discovered Extension 1 zone.
"It is Sama's objective to proceed with a scoping study on the viability of an open-pit mining operation at the Samapleu main deposit and the newly discovered Extension1 zone, before the end of 2011.
It is the intention of the Company and its partner SODEMI, a division of the Cote d'Ivoire government, to become the first poly-metallic producer in West Africa," stated Dr. Marc-Antoine Audet, President and CEO of the Company.
Sama just raised $4million in financing with quality investors. This is a great development because the company now has enough cash to drill until the resource is proven.
With no more dilution on the horizon, an excellent prospective property and an active drill program, Sama is looking like an excellent resource story. The potential here is for a ten bagger if the company proves up the deposit. The next set of results could attract a lot more attention to the story. This is a speculative buy at these levels.
Melkior Resources
Following the interpretation of results from the down-hole IP survey, the drilling is set to start in early November on Melkior's Carscallen gold property located in West Timmins, Ontario.
This round of drilling will be closely watched by many as it is expected that new depths of the property will be explored. So far exploring was limited to a depth of no more then 500m. It is widely believed that richer targets are to be found below the 500m.
Melkior's price has appreciated in the few weeks buoyed by the success of its sister company, Beaufield Resources. There might be more price appreciation in anticipation of drill results from the new drill campaign. This is a speculative buy on pullbacks.