Vol. 52 - THE PROSPECTOR RESOURCES INTRODUCTION


| Sector: | Mining |
| Share Price: | $0.04 |
Dear Member,
After three months of late hours and countless meetings at the office, we have selected our first Featured Company of 2008; a company we are putting our name behind. This company is operating within two extremely hot markets right now, tungsten and gold. As we stated two weeks ago, our team believes every investor should have at least one gold stock in their portfolio for 2008: Prospector Consolidated Resources (PRR:TSX-V) is ours (current price $0.22). In fact, we like their story so much, we recently purchased stock at $0.30 in the company's private placement offering; this is a 35% premium to their current market value.
In this report we will break down their tungsten and gold properties and give reason as to why Prospector Consolidated Resources (PRR:TSXV) is our first Featured Company of 2008.
The Kalzas Tungsten Project
Two weeks ago we discussed what you need to know about tungsten and its current demand and production levels. Let's recap. China accounts for close to 90% of the production of global tungsten annually and has recently implemented a 15% tax on any and all exportation of the metal. 300 million Chinese citizens are expected to move to coastal cities within the next 15 years; this will create an extreme level of demand for tungsten which is used in the construction of hard metals and alloy steels. It is obvious China does not want tungsten leaving their country. What's more apparent is that China can barely service their own demand, never mind the rest of the world. It is this demand which has sent tungsten from $50 to roughly $250 a metric tonne. Our team firmly believes demand for tungsten will remain strong over the next 5 to 10 years.
Key Fact: There is only one producing tungsten mine in North America. It is the Cantung mine located in the Yukon within the famous Selwyn Tungsten Belt. The Mactung deposit is roughly 100km to the south and both are owned by North American Tungsten.
Why are we explaining this information to you?
Enter: Prospector's Kalzas Project
The Kalzas property is also located within the Selwyn Tungsten Belt and is roughly 200km from Cantung and 300km from Mactung. As an investor you can count the pure tungsten plays (companies operating or mining in the tungsten industry) in North America on one hand. Not a single one is producing, except North American Tungsten - through their Cantung Mine. If North American Tungsten wishes to increase their total tonnage and production of tungsten in order to capitalize on this super cycle of tungsten demand, they will have to search for buy-out opportunities near their mill and production site; Prospector's Kalzas Property is not far away.
Key Fact: Currently Prospector Resources' entire market cap is just over 6 million dollars; this is a major reason why we have selected them, as a small market cap is crucial in our selection process.
The information below was taken from the Copper Ridge Exploration website
Kalzas Project: Prospector has the right to acquire a 100% interest in the Kalzas project from Copper Ridge Exploration Inc., subject to a 2% NSR, on terms previously announced by Prospector.
Union Carbide discovered the Kalzas deposit in the late 1970's and carried out initial exploration in the early 1980's. Material in public files indicate that Union Carbide felt Kalzas had the potential to host a world class wolframite deposit and Copper Ridge feels there is also significant potential for a large tungsten discovery. Prospector shares that belief and has commissioned a NI 43-101 Geological Report as a starting point for its 2008 program.
Background technical information on the Kalzas project is available through the links below: (we recommend all readers view)
The TSX Venture Exchange has accepted Prospector's filing in respect of the Kalzas project, subject to filing of the NI 43-101 Report, and that Report is expected very shortly. Accordingly, Prospector is poised to start on this project almost immediately.You can see why we are telling you about their story now.
Key Players:
Let's talk about Prospector's lead geologist, consultant and expert at the Kalzas Project and why he is of great importance to this story.
His name is Charles N. Forster, P.Geo., and he is the same man who discovered Kalzas when he was working with Union Carbide back in 1975. In 1980 he was named the manager for tungsten exploration across Canada. Mr. Forster was responsible for the drill program that discovered the Skukom Creek gold and silver deposit for Omni Gold. He is currently the Senior Vice President of Exploration at Oyu Tolgoi, for Ivanhoe Mines in Mongolia. Forster discovered Oyu Tolgoi and for this he was recognized by the Prospectors and Developers Association of Canada, which named him a co-recipient of the first Thayer Lindsley Medal awarded for the International Discovery of the Year in 2003. Mr. Forster is working diligently with Prospector on the Kalzas property and will be integral to its development over the coming months.
In a news release titled "Field Update on the Kalzas Tungsten Deposit, Yukon" dated September 4, 2007, Henry Neugebauer Prospector's President and CEO states, "the mineralized zone is as large as it was described in the original Union Carbide reports. After reviewing the historical data of Union Carbide with Charlie Forester, it is evident that they (Union Carbide) had already done an immense amount of work on the property that included geological mapping, geophysics, trenching, sampling and had put in a couple of drill holes. They had built a campsite with an airstrip too. We intend to take full advantage of the previous work to advance the Kalzas Project to the next level."
Prospector has a major drill program planned at Kalzas for the spring and summer of 2008 (refer to their news release of September 4th 2007).
Prospector's Candamena Gold Project
Prospector very quietly acquired rights to the Candamena Gold Project to take advantage of current gold prices. As economic turmoil grows and the U.S. dollar continues to erode, our team believes gold is heading to new record highs, above $1,000.00 an ounce.
First Majestic Silver Corp. has granted Prospector Resources the right to earn up to a 100% interest in the Candamena Gold Project subject to a 2% NSR, on terms previously announced by Prospector.
The Candamena Mining District covers 5,215 hectares and is located 250km from the city of Chihuahua in Mexico. The Candamena Mining District has had a very active mining history prior to 1989 at the hands of Manhattan Minerals Corp. Manhattan completed 60 diamond drill holes for a total of 11,475 m of drilling along with other exploration work including mapping and rock chip sampling. Manhattan Minerals Corp. optioned the area in 1996 and left Mexico and the property in 1997 due to legal reasons. It is well known that Manhattan tested only a small part of the property.
The area which saw the most drilling and exploration was the Nuevo Dolores zone. To understand the magnitude of this zone you must visit the link below as First Majestic's site describes it in detail.
It is critical to note that this mineralized structure remains open (can be extended) at depth and to the south and was known to extend off the past property boundaries. For that reason, Prospector Resources has now arranged to acquire rights to the entire district. To acquire 100% of the Candamena Gold Project, Prospector Resources must issue 2 million shares to First Majestic and take over property payments to underlying property owners.
Prospector has also commissioned a National Instrument 43-101 Report on the Candamena project, and the TSX Venture Exchange has accepted Prospector's filing in respect of the Candamena project subject to filing of that Report. As the Report is expected shortly, Prospector is ready to start on this project.
Key Players:
The President of Prospector Resources is Henry Neugebauer, P. Eng and he was a big reason why we chose to feature this company. Henry is an experienced exploration geologist with some 40 years experience in base metal, gold and uranium exploration and development. He was directly involved in the discovery and eventual sale of Mar West's San Martin gold deposit in Honduras. In 1998, Henry helped sell the San Martin Gold Deposit. It was a million ounce deposit grading 1 gram per tonne and was sold to Glamis Gold for $45 million dollars. Keep in mind, this was during a very depressed gold market. We believe his experience in this region to be unmatched.
Our team will be covering Prospector's story over the long-term and will be relaying all of their updates directly to you. Be sure to stay active with our "Weekly Volumes" as we have several updates planned throughout the coming months.
All the best with your investments,
PinnacleDigest.com
This is a paid advertisement. This material is not an offer to sell or a solicitation of an offer to buy any securities.PinnacleDigest.com is an online financial newsletter focused on researching small-cap and large-cap public companies. Information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete. Prospector Resources has not yet acquired the rights to the Candamena and Kalzas properties. PinnacleDigest.com and its employees and affiliates are shareholders in Prospector Consolidated Resources at the time this report was written. Please read our Privacy Policy and Disclaimer for more information.
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