BALTIMORE, MD-Uranium and zinc remain my top base metal picks for investors in 2007, despite a recent 15% decline in zinc prices on rising inventories. And I believe that it's a good thing we've established an early position in Firestone Ventures (TSX-V: FV), because they have both.
Firestone Ventures has completed the first 21 core drill holes of the winter 2006/2007 drill campaign at their Torlon Hill zinc project.
A total of 938 meters in 21 vertical holes were drilled during November and December, with hole depths ranging from 21.3 meters to 96.0 meters. So far, the drill core mineralogy encountered is consistent with mineralized zones defined during the previous drill campaign, which averaged about 8% zinc over various depths.
A drill hole location map showing the new drill holes can seen by clicking on the image below.
Highlights of the drilling to date include:
- Ten of the completed holes (TH06-25, 26, 29 through TH06-36) are step-out holes, drilled at 25 to 50 meter spacing and extending 150 meters northwest of previous drilling
- Nine drill holes (TH06-24, 27, 28, 37 through 42) are in-fill holes within the area of high-grade zinc mineralization defined by the previous drill campaign. Previous holes in this area include TH06-02 (33.0 meters of 22% zinc, including 17.1 meters of 31.9% zinc) and TH06-05 (39.5 meters of 5.7% zinc)
- Drill holes TH06-23 and TH06-43 are step-out holes 25 meters east of Hole TH06-02 and 40 meters east of TH06-13
The drill program is still on hiatus for the holidays but should resume any day now. The next phase will consist of in-fill and step-out drilling to the southwest to test a newly identified zone of lead, zinc and silver within the Cinco Hermanos underground workings. The last phase of drilling will consist of step-out holes towards the west, targeting reported zinc mineralization at the La Canada adits.
Firestone Ventures is currently reviewing the 2,200 meter program and says it is considering expanding it to further define the mineralization.
Over 3,000 miles away, Firestone recently signed a letter of intent with Marum Resources Inc. (TSX-V: MMU) to acquire all of Marum's metallic and industrial minerals permits in southwestern Alberta. The four permits cover 249,872 acres of uranium property near the town of Fort Macleod and bring Firestone's total land package in the area to 354,735 acres-over 24 times the size of Manhattan.
Upon signing of a formal agreement, Marum will retain a 10% carried interest in the acquired permits for ten years. But get this . . .
Firestone acquired these permits for a mere $3,000!
Now, you might be thinking that because Firestone picked up the permits for next to nothing, the mineralization on the property must be substandard. But that's just not the case.
During the early 80s, rock samples collected south of Fort Macleod were found to contain ore-grade uranium concentrations (up to 0.2% U3O8, or approximately 4 pounds per ton) in the same type of rocks and in the same roll-front form that characterize the major deposits of Wyoming that have produced over 200 million pounds of uranium.
In the event that an economic deposit is developed, the southern Alberta roll-front uranium appears to occur in a form that can be processed by in-situ leaching (ISL). This means that the uranium can be solution-mined using injection and production wells rather than being excavated with open pits or underground mining. The ISL process is simple, uses local groundwater that is naturally enriched in uranium and returns purified, less-radioactive water to the environment, meaning the fish in the area are not likely to grow a third eye. In fact, there is virtually no land disturbance and the process does not require waste or tailings facilities.
Firestone Ventures (TSX-V: FV) remains listed as a buy on weakness on the Gold World portfolio. I recommend waiting for a slip below $0.50 before adding to or establishing a position.
Until next time,
Luke Burgess
GoldWorld.com
