These
core samples are from the first hole drilled at the Captain deposit. For
more, click here.
On a
number of occasions, I
have provided personal comments about Stratabound
Minerals Corp. in this blog. To make my own
position clear, I am a director and officer of that company, and I do not
have any credentials as a broker or investment advisor (see disclaimer
below). Encouraged by a news release that came out yesterday,
this column summarizes my year-end thoughts on the company.
“Oil is found in the minds of men” (and women) is an expression
that used to be common parlance among petroleum geologists. The notion is
that, without good geological understanding of a potential play the explorer
is likely to drill in the wrong spot or to the wrong depth, and consequently
have nothing to show from an exploration budget.
Today, the concept is so ingrained in geological thought that I rarely even
hear the expression used. This doesn’t mean it isn’t true,
though. The idea applies to all kinds of geological activity – whether
in the search for oil or the search for gold. But as potential resource plays
become smaller, it is important to think differently. That’s why I like
Stratabound’s exploration slogan: “New
ideas at play.” Mineral resources are still the result of geological
thinking, but new technology and new market conditions call for new thinking.
Stratabound’s 2008 exploration program will
be a busy one – a reality confirmed by the fact that the company
recently closed a $2.5 million financing. That’s a lot of money for the
company’s exploration war chest. If you are a minerals exploration
company with new ideas at play, exploration funding is just what you need.
Elmtree: What will the New Year bring
for Stratabound? Given the company’s
well-stocked treasury and 2007’s exploration successes, there will
probably be a continuation of the good exploration news. That news
essentially doubled the stock’s price during 2007.
Stratabound has been drilling two projects in New Brunswick, a
small Canadian province. One, known as Elmtree, has
shown consistently interesting gold and silver assays, but has also tested
positive for lead and zinc and the less common elements antimony and indium. While
Elmtree is primarily a precious metals discovery,
the other elements discovered down hole are sweeteners that could improve the
property’s economics.
The company has sent numerous samples from the 41 holes it has drilled at Elmtree to a lab for analysis. The resulting assays are
being used to prepare an initial resource estimate of the property. These
geological reports can only be prepared by licensed geological consulting
firms, and preparation is governed by strict regulatory controls. Commonly
known as “43-101 technical reports” after the regulation that
defines them, Stratabound’s 43-101 will give
investors a sense of whether Stratabound’sElmtree discoveries are commercial. This report is likely
to be released early in the New Year. Stay tuned.
Captain:Stratabound’s Captain deposit is
at least as exciting as the Elmtree discovery. Captain
is located 40
kilometres to the south of Elmtree
within New Brunswick’s world-class Bathurst Camp, a major base-metals
mining region. The most recent news release focused on the discovery’s
copper, cobalt and bismuth potential. These metals have outperformed even
gold and silver on world markets in recent years; the recent copper price is
around $2.90 per pound; cobalt is $43.00 per pound; bismuth is $14.50 per
pound.
Here is a summary of the first three holes in the company’s exploration
program.
• Hole 1: 57.5
metres grading 1.0 per cent copper and 0.05 per cent
cobalt, including 7.5
metres of 3.2 per cent copper and 0.07 per cent
cobalt.
• Hole 2: 47.5 metres grading
1.1 per cent copper and 0.04 per cent cobalt, including 6.5 metres grading 3.7
per cent copper, 0.12 per cent bismuth and 0.07 per cent cobalt.
• Hole 3: 58
metres grading 1.2 per cent copper, 0.07 per cent
cobalt, including 8.5
metres grading 2.3 per cent copper and 0.10 per cent
cobalt, plus 8.0 metres
of 2.3 per cent copper and 0.04 per cent cobalt.
Interestingly, you have to study the tables in the news release to learn
about the play’s gold and silver assays, which are appreciable.
Technical
Analysis: On an earlier occasion, I
wrote an explanation of technical analysis, using Stratabound
Minerals Corp. for purposes of illustration. In that study, I explained the
lines in this chart as rising resistance (the blue line) and the trading
channel (the green and red lines.) My last comment on this came out just as
the stock rose through the red line, possibly representing a significant
breakout – what technicians look for when they are buying stocks.
The market had other ideas, and the stock soon dropped back into the trading
range, but with a difference. You will note that for the most part since last
September the stock has been trading above the blue line, suggesting that
“rising resistance” has become “rising support.” Put
another way, this means that when Stratabound
touches the blue line in the future, it will be signaling
a buying opportunity. That’s the technical side of the story. For a
current view of this chart, please click here.
Although the writer is a director and officer of Stratabound, the thoughts and views herein are mine only
and not those of Stratabound. I am not registered
in any jurisdiction as a broker or investment adviser, so nothing herein
should be construed as advice on whether to buy, sell or hold shares of Stratabound or any other company mentioned herein.
Information
contained herein is obtained from sources believed to be reliable, but its accuracy
cannot be guaranteed. It is not intended to constitute individual investment
advice and is not designed to meet your personal financial situation. The
opinions expressed herein are those of the author
and are subject to change without notice. The information herein may become
outdated and there is no obligation to update any such information. The author, 24hGold, entities in which they have an
interest, family and associates may from time to time have positions in the
securities or commodities discussed. No part of this publication can be
reproduced without the written consent of the author.
