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Drilling for DollarsBob Moriarty This may come as a total shock to anyone who hasn’t read Nobody Knows Anything or my latest best seller, Basic Investing in Resource Stocks, but guys running junior resource companies lie a lot. They either flat out make up porkies or they forget to tell you the SEC is going through their books or something else just as interesting. Last year I read the most interesting press release I have read in twenty years of reading mining press releases. In it the president of the company bragged about the discovery of 30 veins of quartz including some with amethyst. He sort of failed to mention that 99% of quartz veins even in Mexico don’t have a lick of gold in them. I happen to know the idiot who wrote the press release so I already knew that he was a liar but announcing quartz veins is a new low (or is it a high?) in lying. He must be firmly convinced his shareholders are dumber than bricks. He may have a point there. But the drills can’t lie. They are called the “Truth Detectors” for a reason. You either have the goods or not. Aurania plugged the truth detector into the ground in Ecuador on Sunday March 3rd. Keith Barron plans on doing 6-8 holes in the initial scout drilling. I’m told the holes will average 350 meters. It should take three weeks to do three holes and an additional three weeks to have results. The company anticipates announcing assays half way through the program. So we should be looking for results around the end of April. The most advanced drill target is on Crunchy Hill. Should the truth detector screw up and not find anything, I can see Keith singing, “I left my heart on Crunchy Hill” at the next gold conference. Actually he has an excellent chance of hitting something good in the first program but investors should understand that the purpose of drilling and assays is to add to the knowledge database. Don’t look for the first hole to be a home run but at the least he should be getting strong sniffs as the number of holes increase. To say the area is target rich is to understand the potential. Keith Barron knows Ecuador as a geologist better than probably anyone on earth. If you look at the numbers from this press release you will realize just how big this could be. I have no problem reminding readers that I was the first person to identify SolGold as a home run when the shares were 3.7 pence apiece before heading to 46.75 pence a year later. As of today Aurania has a market cap of about $81 million CAD strictly based on Keith Barron’s reputation and not a single hole in the ground. When they hit, it will go a lot higher. You have been warned. Three months ago Miramont Resources shares got down to $.13 apiece. Even though I’ve been in a couple of PPs and bought shares in the open market, I picked some up. Since then the stock is up 200% on anticipation of drilling. Well guys, the day is here. Miramont announced drills turning on the 22nd of January. This first scout drill program is targeting three different zones in the Cerro Hermoso project in Southern Peru. It’s a diatreme volcanic pipe similar to that found at Penasquito. To date the company has completed three holes in the stockworks zone. Those went off for assay a couple of weeks ago and should be out in two to three weeks from now. They have also finished three holes in the central breccia and those have been sent off. Look for those assay in a little over a month or so. Currently Miramont is drilling another three holes in the carbonate replacement zone looking for a CRD . With a tiny $24 million market cap and cash in the bank of about $3 million the company is cashed up and well positioned to continue the drill program after the Phase 1 program is complete and analyzed. Any or all of the three targets could hit big. Again I’d be happy with some serious sniffs of mineralized rock. Nobody hits a home run on their first at bat. Quinton Hennigh is Chairman of the Board, William Pincus the brains and brawn technically as President. A really barn burning drill program could lift this stock into orbit. You have been warned. Both companies are advertisers. I have participated in PPs with both and also bought positions in the open market. I suspect either or both will fund my retirement in the style to which I would like to be accustomed. I have reminded both Keith Barron and Bill Pincus to think of the assays as an American Express card. Don’t come home without it. Due your own due diligence. Aurania Resources Miramont Resources ### Bob Moriarty 321gold Ltd |
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