Horse racing is an exciting pastime for many people for a variety of reasons. Have you ever bet a few dollars at the track? Standing at the betting window wondering which horse will finish in the money? I did once at the track in Calgary, Alberta. A Quinella wager and I won $110.00 from a $10.00 bet. I quit while I was ahead. Another type of bet one can make is a "Trifecta". A Trifecta is a bet when you pick the first three horses in the order they finish. In a "Box Trifecta" you only pick 3 to win, place and show. Personally I'd rather bet on a more controlled form of gambling like Jr mining stocks, where one can do his/her own extensive due diligence and research before taking the financial plunge. Slot machines? Yes, I've tried them briefly also and hit 3 bars a time or two, but again "No Control" over the end result. With a large measure of due diligence on a mining property and the relative mining company management, I do have a certain amount of control with stock picks and thus the end results are very much more in my favor. Over the course of the last eighteen months of consulting for one man's group of Jr mining companies I have seen some great successes unfolding w/ each one and it is very evident that there is much more to come. Three companies, hence the term Trifecta, each of which is involved in one or more of the three most active metals, Molybdenum, Gold & Silver.
This Miners Trifecta I'm writing about here today is a group of three companies; Adanac Moly Corp, Goldrea Resources Corp and Molycor Gold Corp., all founded and chaired by Larry Reaugh who interestingly enough can actually claim a few mines to his credit in past years, which is not even near the norm for most Jr explorationists. As I have written about Adanac and Goldrea in previous editorials I'll dwell first on the number three horse "Molycor Gold" (MOR-V), before giving a brief update on AUA-V & GOR-V.
Molycor previously has been very active over the last year on its Gold/Platinum project, as well as a Silver exploration project and a Molybdenum property, all in central British Columbia. Now with Molycor news out on Friday last week we see a major coup unfolding in Nevada's Gold rich Battle Mtn Eureka Trend. Molycor already has two other high potential Gold/Silver projects nearby in the Ely area. (Hot Dog Ridge & the TKO projects). My personal expectations for excitement are at an especially high note currently for a few reasons with regards to MOR-V. Number one is the fact that the Carlin Trend (Battle Mtn Eureka) is North America's most prolific Gold producing area and is known to host the second largest Gold reserves in the world next to S Africa. At present more than 107 M Oz of Gold are in the known 'Proven & Probable' reserve base of the Carlin trend alone and it is expected there could be well over 180 M Oz before the fat lady sings.
Secondly, the new claim blocks (169 claims) that Molycor has just acquired cover 'Silverado Mountain', an area which has given much to Nevada's mining history back in the 1800's and early 1900's. I noted on a USGS map I viewed the other day that Silverado Mtn is riddled with notations of old mine workings and shafts. Recently when I spoke with the two gentlemen who did the claim staking they spoke of these many old shafts, adits and ore dumps that they had frequently seen. The pictures they showed me gave credence to the fact that on Silverado Mountain there are 17 known historical mines listed on the Nevada historical ghost towns and minesites webpage. Some of the ore waste dumps sampled by the stakers this spring returned values of Silver as high as 23 oz/t with significant Gold, Lead and Zinc values as well. Below are two pictures recently taken by the staker/prospectors: picture #1 is a waste dump at the mouth of one such old mine adit (behind and above the prospector) and picture #2 is one of the many exposed bedrock outcrop pictures I've been shown that shows a very high level of mineralization.
Without getting into the technical aspects of the Carlin trend geology it should be noted that it is the correlation between the upper and lower tectonic plate (mantel) levels and the massive thrust faulting and intrusions in this area that has created this trend of high mineralization. There are existing mines today, in and throughout this area to testify to the potential of this area and property such as the Barrick 'Archimedes Ruby Hill' mine (12 mi away) and the newly discovered deposit of Staccato Gold Resources (11.8 grams Au over 65 ft) (8 mi away). Just S of MOR's new claim block Molycor owns the old Griffin open pit Gold Mine claims which will be subject to extensive drilling at depth this summer. This as I say, is an area of extensive mine history and very high potential, especially at depth. I like that word "depth" when it comes to mineral exploration largely because almost all old mining areas from yesteryear only saw exploration at depth if the mining of the ore led them to those deeper levels. Many of the Carlin and Cortez trend discoveries so far have been found by drilling much deeper than they had attempted or were able to do in the old days. Some of the major Gold discoveries in the Nevada trends have come at depth under old Gold & Silver mine workings as well, where they saw little Gold near surface in the original mines. Within the Pinto District where Silverado Mtn is located, (a historical area of Silver/Lead mines) there occurs a geological similarity to the Eureka district nearby. From 1885 to present day Pinto district has had a recorded production of over 56 tonnes of Gold (1.65 M Oz), 1,200 M tonnes Silver (39 M Oz) and 65 M tonnes of Lead. With approximatelly $1 M in the bank, MOR-V is well funded for the spring & summer drill program soon to be underway on multiple fronts in Nevada and BC. MOR is one horse that could race up the backstretch very soon. *See website noted below for in depth reviews of MOR properties etc.
With Adanac Moly on track having just released their Bankable Final Feasibility study and a "Green Light" given to the Ruby Creek multi Billion dollar Moly deposit as well as all the mine permits now having been submitted to the Gov't for mine construction, Adanac is past the clubhouse turn and clearly the leader of the 3 horses. (news).
Goldrea Resources with its Daye Gold Mine acquisition (LOI) in Shandong Province, China, is running a close second and soon to be in the home stretch as well. Current a NI 43-101 assessment, environmental studies, trenching, drilling, permits for the first shaft (1st of 3 bulk sample declines expected) and decline to start the first 150T bulk sample are among the things underway for GOR-V at present. (news).
This is one "Trifecta" that is not a race between the Tortoise and the Hare, but a dedicated and well executed plan of acquisition, exploration and hard work by a guy who's been involved in almost every aspect of the mining game for over 40 years. From my point of view things could not be going any better for Mr. Larry Reaugh and his entire (rather large) staff and crew of experts. I have seen AUA go from $0.50 to $2.74, GOR from $0.18 to $0.85, and MOR from $0.08 to $0.35 over the last year. It is very clear and evident to myself that there is much more upside to all three of these companies not only in the short term, but rather more importantly for the long haul, which is where the real money is made by those with the fortitude for the buy and hold strategy. Buying and holding shares in these three companies, having spent time in their offices and listening to the quiet resolve and now knowing L Reaugh with his past history fairly well leads me to believe my "Trifecta" is one to watch and hold for the long haul. To the many who phone and write with thanks for my editorial tips, I can only say "you ain't seen nothing yet." Let's see where we are in 6 months. Stay tuned as I may have a "Superfecta" (4th horse bet) for you in the very near future.
The mother of all Bull Markets in metals is well underway and the penny stock market will make race track or any other type of gambling appear very dull and insignificant in the months/years ahead.
As always thanks for reading and responding w/your phone calls and emails.
April 9, 2006
Disclaimer: As a paid Consultant for Research, Corporate Development and Public Relations to all three of the aforementioned companies, I may at times own shares or hold Options in these companies. As I am not an accredited financial advisor, this editorial cannot be construed as advice to buy or sell shares in these or any other public companies. I strongly advise any and all prospective shareholders to do their own due diligence and research as I have done. (KR)