The Hat Trick Newsletter adds Animas Resources (TSX: ANI, US: ANIMF) to their Portfolio

Add Animas Resources (ANI.V = ANIMF in US)

Jim Willie CB
Jim Willie CB is the editor of the "Hat Trick Letter"
Jul 21, 2008

Animas Resources came public in July 2007 at 50 cents a share. It is one of the best performing junior stocks over the past 12 months. The Phase I drilling campaign has just begun on their historic San Teresa district of gold mines that they consolidated in Mexico, covering a massive area totaling 200 square miles. Early drilling is going very well, and the team is enthusiastic. San Teresa has the infrastructure. Water rights are secured. Electrical power is only one kilometer away. Adequate access exists 15 km away to road systems, tying together all prospects within this vast district originally exploited by Phelps Dodge and Campbell Resources. Analysts and writers who have covered ANI since before drilling commencement uniformly have had glowing praise for management and the property potential. There are 26 million shares outstanding, cash of C$7.5 million in the bank, and a historic property that produced gold in the 1990 decade at an average of 2.0 to 2.5 grams per tonne. The cash on hand will take the company through 3Q2009. The potential for a quantum leap improvement discovery in the entire district is very high, given the property history, the quality of management, and the assembled geologist team. At current share price, the valuation is under C$37 million, rendering the upside as significant. With any reasonable success, a potential exists for significant capital gains for shareholders, like over 5-fold by the time ANI reaches Phase IV and Phase V. ANI is likely also to pursue an AMEX listing later this autumn, and has recently filed their 20-F documentation. Check their corporate website and see a complete presentation in MSPowerpoint made available.

The ANI geology team has worked the past 12 months on the ground to analyze over 1200 prior historic holes, maps, IP surveys, magnetic surveys, and airborne surveys to determine the Phase I drilling program strategy. Team members include Odin Christensen, former world head geologist and of Carlin Trend fame from his work at Newmont Mining. CEO Greg McKelvey was formerly a top executive with Phelps Dodge. He was so jazzed up by the property that he came out of retirement. Steven Reynolds is one of the world's top structural geologists. Kathleen McLeod Seltzer serves as advisor and lends credibility from her experience as a mining entrepreneur and "Explorer's League" hall of fame inductee. ANI hopes to prove that there are significant gold feeder zones on the historic district, that there is "Carlin-like" mineralization at depth. They plan to add to known ounces at both the oxide and sulphide levels. The hope is that the feeder zones expand in width and yield at increasing depth. The reserves and geological structure resemble to date the Carlin Trend. An independent study commissioned in 1997 by Campbell Resources was completed by Behre-Dolbear. In this study, they indicated that this property had the same potential and characteristics as the Gold Strike property that made Barrick Gold famous in the Carlin Trend. Complexity is implied by the hidden underground structure, but atop the surface the geologists have never seen so much gold on display in many years of experience. Management prefers to maintain conservative estimates on deposit size, dimensions, and gold yield. They have put in place a bonus book for the technical team of up to two million shares, provided they discover and prove subject to NI 43-101 first 1.7 million ounces, second 2.7 moz. They also have only a 10% option pool for executives, low in size by standards.

Management has outlined over six separate mineable drill zones to pursue, such as the Amelia mine. ANI believes there at least six more beyond this. The grand plan is to quickly add to the known estimated 700k gold ounces non 43-101 compliant in phase I drilling. In addition, ANI plans to test for deeper sulphide ore zones believed to be present, never tested over the long history of the district. Viviana is one historic mined region thought to be 1km x 1km in scope, with some historic holes of 10 gm/T over 25 meters previously mined.

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Jul 17, 2008
Jim Willie CB

Jim Willie CB is the editor of the "HAT TRICK LETTER"
email: jimwilliecb@aol.com
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