We took a simple approach to finding our next investment opportunity in the junior gold space: Find a management team with a track record of having assets bought out at significant premiums.
For an explorer, reaching production or making a historic discovery are great achievements in the mining sector; however, developing assets to a point majors launch a takeover bid tends to provide profitable exits for shareholders. For us, buyouts, or the potential for one, are the driving force behind our fascination with the junior gold space.
With that in mind, knowing how to advance an asset and position a company to be acquired carries with it a very rare and specific skill-set.
We believe our newest featured company’s management team has among the best track record for buyouts in the Canadian junior gold sector over the past ten years – making them a junior miner virtually impossible for us to ignore…
Northern Empire | Ran by Leaders With a Buyout Track Record
Northern Empire (NM: TSXV) is led, in our opinion, by a team more experienced in successful mining exits than perhaps any other on the TSX Venture. For that reason, we have selected them as our featured gold company.
To begin to understand the opportunity presented by Northern Empire, one must learn about its Executive Chairman, Mr. Douglas Hurst. He is coming off two successful exits in the mining sector this decade. First, as a founding Executive and Director of International Royalty Corp. sold to Royal Gold in a deal valued at roughly C$700 million. Second, he was a co-founder of Newmarket Gold which was acquired by Kirkland Lake in a deal valued at roughly C$1 billion in late 2016.
Key fact: Northern Empire has a market cap of roughly C$80 million as of Friday’s close, and last traded for C$1.20 (market cap sourced from Bloomberg).
Northern Empire directors include John Robins, Founder and former Chairman of Kaminak Gold. Kaminak was acquired by Goldcorp in 2016 in a deal valued at roughly C$520 million. The Yukon-based explorer created value in a place where dozens have failed. Mr. Robins was also a former Director of Grayd Resources, a Mexican-based explorer acquired by Agnico in a deal valued at roughly C$275 million.
Next up is director Raymond Threlkeld, President, CEO & Director of Newgold (approx. C$1.78 billion market cap). In addition to being the former CEO of Rainy River Resources, which was acquired by Newgold in a deal valued at roughly C$310 million, Mr. Threlkeld helped put several million ounces of gold into production as a senior executive with Barrick.
Northern Empire director James Paterson is currently the CEO of Kivalliq Energy Corporation and was a driving force behind more than $60 million in equity financings, one of the largest uranium exploration programs on the globe, and a 200% increase in mineral resources at the Lac 50 deposit. Paterson has 20 years of corporate finance, acquisition, joint-venture, spin-out, RTO and IPO experience. Mr. Paterson founded, was President & CEO, and Director of Corsa Capital Ltd., a company which acquired and capitalized coal mining assets in the United States.
Another director for Northern Empire, Adrian Fleming, is the former President of Underworld Resources. Underworld kicked off the gold rush in the Yukon’s White Gold District back in the summer of 2009, and was acquired by Kinross in a deal valued at roughly C$138 million.
From our more than a decade of experience covering this sector, it is extremely rare for numerous directors of one junior explorer to have had combined assets, worth billions, bought out in this decade.
Notably, Northern Empire’s President and CEO is Michael Allen, a professional geologist with nearly 20 years of experience with the likes of De Beers, Taseko and Rubicon- all major mining outfits. Mr. Allen has spent nearly a decade in Nevada, working on exploration and development projects. He has critical experience, given Northern Empire’s asset package rests wholly within Nevada.
Northern Empire’s team is world-class. They are a group adept at creating shareholder value. What’s more, the company’s shares have corrected roughly 25% from their high on April 10th, hence the timing of this report.
Northern Empire Six Month Stock Chart
Optionality Equals Upside Potential at Northern Empire’s Nevada Assets
Northern Empire is taking a somewhat unconventional approach in Nevada. The company is targeting historic producing heap-leach gold deposits that, in their opinion, were either not explored properly or shut down during a period of weak gold prices. The heap-leach process of separating gold from rock is as simple as it gets in the mining business. Many of the lowest cost producers in the world are heap-leach operations.
We traveled down to Northern Empire’s claim block late last month to meet with management and better our understanding of the company’s goals. Its projects are a two-hour drive from Las Vegas on a newly upgraded highway. Located in southern Nevada, the claim blocks contain, and are in close proximity to, numerous past producing gold mines. Click on the video below to watch our exclusive ‘backstage’ coverage on Northern Empire…
Click above to watch our exclusive coverage
Northern Empire (“NM”) Controls the Sterling Mine, Secret Pass, Daisy and SNA Deposits
In speaking with Douglas Hurst, Northern Empire’s Executive Chairman, one word kept coming up: Optionality. What he meant by this word in respect to Northern Empire’s portfolio of assets was this:
NM owns the permitted Sterling Mine – one of the highest grade past producers in Nevada. The mine is ready for restart, but is currently in a state of care and maintenance. As part of the reclamation process, the Company is offsetting its cost by producing a small amount of gold each day from this mine (see our exclusive site visit video for further details).
N.B. Total gold production from the Sterling Mine between 1980 and 2000 was 194,996 ounces of gold from 853,984 tonnes of ore, with an average gold grade of 7.44 g/t.
NM has been releasing strong drill results from Sterling for months, and believes the mine’s best days may be ahead of it. More on that shortly…
Aggressive Work Season Underway
A quick drive north of the Sterling Mine, Northern Empire controls three past producing deposits which make up the previously permitted Crown Block. These deposits were in production between 1997 and 2001. They were taken offline when gold prices collapsed to roughly US$260 per ounce.
The company is targeting a resource expansion for all three deposits in 2018. It has recently increased its exploration program to 18,000 meters and has three drills working around the clock. Finally, NM owns a greenfield prospect, bordering the Crown Block, which has four common constituents associated with Carlin Trend deposits. Northern Empire is prepping for the first ever drill program on this highly prospective ground.
Douglas Hurst outlines these critical Carlin Trend constituents, which include structure and the right chemistry (mercury, arsenic and antimony) in our exclusive interview and property visit from April.
Click image above to watch
The Optionality of Northern Empire
“Optionality” is a critical piece to the company’s story, given Northern Empire can deploy capital to whichever part of its asset mix is currently being rewarded by the market. Few juniors have such a multi-pronged asset base, never mind the capital to develop and explore them. NM has about C$13 million in its treasury and a market cap of roughly C$80 million (market cap sourced from Bloomberg).
Northern Empire’s Three-Pronged Approach to Create Shareholder Value:
Northern Empire’s Sterling Gold Mine
Northern Empire acquired the Sterling Gold Project from Imperial Metals Corporation in May of 2017. Most anyone who follows the mining sector remembers the devastating Mount Polley mine disaster in British Columbia. Today, Imperial Metals’ share price trades below C$2 per share, having been above $16 before the Mount Polley incident in 2014. NM acquired the Sterling Gold Project as Imperial divested its gold interests in Nevada.
According to Northern Empire, the Sterling Mine hosts a pit-constrained, inferred resource of 254,000oz at 2.57 g/t gold at a 0.3 g/t cut-off*.
* Please refer to the technical report on the Sterling Project dated July 12, 2017, found on Northern Empire’s website and SEDAR.
The Sterling Mine operated historically as three separate open pits and two underground mines. Total gold production from the Sterling Mine between 1980 and 2000 was 194,996 ounces of gold from 853,984 tonnes of ore, with an average gold grade of 7.44g/t.
Nearly 200,000 ounces over 20 years is not a huge operation, but it’s the grade that has Northern Empire interested…
“Production at the Sterling Mine has shown, through historical operations, that the ore body is amenable to heap leaching. Ore was mined from open pit and underground sources and was placed run-of-mine on heap leach pads where gold recoveries averaged 88%.”
Northern Empire has the four major permits required to restart and operate the Sterling Mine: The amended Plan of Operations, the Water Pollution Control Permit, the Nevada Reclamation Permit and the Air Quality Operating Permit.
No Place Like Nevada
The advantages to exploring, permitting and developing an asset in a state like Nevada are blatant. It’s as mining-friendly of a jurisdiction as you’re going to find…
Just last week, Bloomberg reported in an article titled, “Goldcorp Says Peru and Nevada Would Make Portfolio Perfect” that,
“Goldcorp Inc. Chief Executive Officer David Garofalo says he’s happy with his company’s portfolio of assets, but that doesn’t mean he doesn’t have a wish list.
In an ideal world, the company would have an asset in Nevada’s Carlin Trend. “If you’re an Americas-based gold company, you should be there. Barrick and Newmont are there and we should be there,” he said in an interview in Toronto, adding he’d also like to acquire something in Peru. “Those are the two holes in our portfolio geopolitically I’d love to be able to fill in due course.”
More Gold Found at Surface of Sterling
In 2017, NM set out to drill 49 holes to confirm and expand the Sterling Mine. The company explained,
“Part of that work identified a zone of potential shallow mineralization associated with a mapped structure that exits the Ambrose pit and was intercepted by drilling on Water Tank Hill. Holes into this structure, now referred to as the “Sterling Connector”, include STR17-010C which returned 8.66 g/t Au over 9.05 meters at a depth of 1.34 meters, STR17-039C, which returned 6.07 g/t Au over 7.92 meters starting at a depth of 0.61 meters and STR17-049C, which returned 3.90 meters grading 2.44 g/t Au starting at a depth of 25.21 meters.”
Drilling at Sterling in 2018 will consist of approximately 25 new holes, totaling about 2,100 meters. To our earlier point, Northern Empire confirmed,
“Upon completion of this program, and the receipt of pertinent assay results, Northern Empire will initiate a resource estimate revision at the Sterling Mine to incorporate the drilling success to date.”
* Please refer to the technical report on the Sterling Project dated July 12, 2017, found on the Company’s website and SEDAR.
Northern Empire Turns to Crown Block for Exploration Upside
With a recently expanded 18,000-meter drill program budgeted and underway for 2018, the vast majority of exploration drilling will be on the Crown Block, not at Sterling. The reason for this is that NM believes it may be able to connect three past producing deposits (Daisy, SNA and Secret Pass) into one potentially large structure…
President and CEO, Michael Allen explained the focus of Northern Empire’s drill program in our interview with him last month. Allen stated,
“So, what we see there is the potential for a linkage in the geology of what drives mineralization for all three deposits. And if we are able to prove that out through our drilling, there is the potential there for a very significant discovery within Nevada which [could] lead to the rerating of the Northern Empire share price.”
Click video above to watch
Northern Empire’s ‘Big Picture’ goal: To find a superstructure of gold mineralization in mining-friendly Nevada. On top of that, these previously mined deposits are heap leachable and host a combined inferred resource of 693,000 ounces at 1.06 g/t gold.
Without question, there is built-in value at these deposits, along with exploration upside potential – a nice combination by any measure.
*Link to resource calculations news release here.
The Crown Block lies across the highway from Barrick’s past producing Bullfrog Mine, which produced some 2.3 million ounces at a grade of 3.2 grams per ton.
What’s more, recent drilling by Northern Empire indicated the Mother Lode discovery (controlled by Corvus Gold) extends onto the Crown Block… According to a recent Cormack Securities report, “The Corvus Mother Lode claims (15.9 km2) are essentially “land locked” by Northern Empire’s large and commanding land package.”
The results to date underscore the growing confidence of Northern Empire’s collective brain trust.
To summarize, Northern Empire controls three deposits with NI 43-101 resource estimates within the Fluorspar Canyon Trend: Daisy, Secret Pass, and SNA.
They are a part of the ‘Crown Block’ of claims within the company’s 141-square-kilometer holdings. With a third drill rig arriving to the area in early-April, news flow has been steady and we anticipate it will continue to be into the summer.
Results from Daisy Deposit
On February 26th, Northern Empire reports drilling 123.93 meters of 1.41 g/t Gold at the Daisy Deposit.
Michael G. Allen, President and CEO, stated,
“D18-003C is the first of at least 10 exploratory, resource expansion, and infill holes that we plan to drill into the Daisy Deposit as part of our 15,000-meter program. The exceptional grade of these results is very encouraging. All of the mineralization from 67.88 to 173.22 meters down the hole was oxidized, as was the final 2.87 meters of mineralization. For the high-grade core of the deposit, where we cut 38.25 meters of 3.09 g/t gold, cyanide solubility assays averaged 90% of fire assay, indicating that the Daisy deposit may be amenable to open pit mining with heap leach recovery of gold.”
That was the first hole reported from the ten hole program at Daisy.
About one month later, on March 20th, Northern Empire reported drilling 70.07 m of 1.79 g/t gold at the Secret Pass Deposit. NM’s President Michael Allen commented,
“This hole was designed to test for structural controls of mineralization within the deposit. We’re pleased to note the exceptionally high cyanide solubility assays which averaged 95% of fire assays in the upper oxide portion of the hole. Exploration potential in this area is excellent and Northern Empire’s recent acquisition of the Rosie Claims directly adjacent to the south of Secret Pass Deposit gives our team access to highly prospective drill targets.”
“SP18-003C is the first of approximately 13 holes that we plan to drill into the Secret Pass Deposit as part of our 15,000-meter program.”
With drills turning and an 18,000 metre drill program underway, we expect news flow and drill results to be steady into the summer.
Last, but not least is NM’s SNA deposit…
Another Carlin Trend in Southern Nevada?
“The SNA Deposit is the easternmost of the known deposits within the Fluorspar Canyon Trend. It is a sediment-hosted gold deposit with a Carlin-type geochemical signature and is hosted in Devonian Carbonates. The SNA Deposit contains an inferred resource of 126,000 oz of gold at an average grade of 1.03 g/t Au, using a 0.3 g/t cut-off and is open for expansion.”
Since its discovery back in the early 1960s, more than 80 million ounces of gold has been mined from the Carlin Trend of Nevada. It hosts the second-largest known gold resources in the world, next to the Witwatersrand Basin of South Africa.
The title of NM’s April 17th press release was, “Northern Empire confirms Mother Lode mineralization extends south toward SNA deposit.”
The SNA deposit and exploration claims hosts Carlin-type gold mineralization and, excluding the historic deposit, represent much of Northern Empire’s greenfield exploration upside potential.
Michael Allen, President and CEO, spoke to the ongoing drill program at SNA,
“In addition, exploration drilling beneath the historic Telluride Mercury Mine is returning significant gold grades in structures that cut favourable host rocks for Carlin-type gold mineralization. One of our drills is currently working between the historic Mother Lode deposit and our SNA deposit, which lies approximately 500 meters to the south, with the hopes of outlining new gold mineralization between the two deposits.”
Doug Hurst, Northern Empire’s Chairman explains the similar geology between the host rock at SNA and Carlin-style deposits,
“The Carlin deposits have four common constituents, they have structure which we have here, we have the right chemistry, which tends to be mercury, arsenic, antimony and in fact, there is an old mercury mine, the remnants of one, right behind me.”
He went on to explain that,
“And then the host rock is a dolomite and a limestone. And the units in Carlin are called Roberts Mountain Formation and Lone Mountain Dolomite and we have both of those windows here at the SNA.”
To watch our entire site visit and interview at the SNA exploration project, and to get a bird’s eye view of Northern Empire’s assets, click the image below.
Click image to watch
On April 25th, Northern Empire provided a regional update and identified several new exploration targets.
In that press release, the company reiterates its focus on developing and exploring for gold deposits in Nevada with low technical risk. We asked Michael Allen what qualifies as ‘low technical risk?’
“For me, low technical risk means that the questions regarding the resource, metallurgy and geotechnical issues have been answered. -Given that we’re actively exploring around past producing mines, those risks have largely been reduced. Essentially, all the questions were answered by the previous operators.”
The company reported in that April 25th press release,
“With the existing data, several highly prospective, near-surface targets for new discoveries have been identified and will begin to be tested in the Company’s recently expanded 18,000-meter drill program. Permitting for a more significant 50,000-meter program has already begun and will focus not only on upgrading resources at the Crown, but also testing more of these exciting new regional targets.”
Step-Out Drilling by Northern Empire Demonstrates Resource Expansion and New Discovery Potential
The above was the title of Northern Empire’s May 2nd, press release. The subtitles add more colour to the potential:
- Daisy Deposit: Step-out hole returns 108.2 meters grading 0.80 g/t Au
- Secret Pass Deposit: Step-out Hole returns 38.10 meters grading 0.95 g/t Au
In looking at Northern Empire’s expanding exploration program and drill targets, a potential connection emerges. The company is working to see if it can discover a connection with the below deposits.
With its Sterling Mine already fully permitted, and a resource calculation in place, Northern Empire has a baseline of value established. Given its Crown Block hosts three past producing pits, and in mining-friendly Nevada of all places, the infrastructure surrounding NM’s 141 square kilometre land package is virtually as good as it gets. The company is hoping that by potentially exposing the exploration upside at these deposits and possibly adding ounces, the market will respond.
Northern Empire has approved an 18,000 metre program for this year; and with approximately C$13 million in its treasury, the Company is working on permitting approval for a 50,000 metre drill program – a relatively massive exploration endeavour.
Recognize that we are biased in regard to Northern Empire as the company is an advertiser client. Also, we intend to purchase shares of the company in the open market following the release of this report for our own investment purposes. Please take responsibility for practicing your own thorough and independent due diligence. Learn about the risks associated with investing in exploration companies of this nature. Pick your spots…
Northern Empire owns one of Nevada’s highest grade, past-producing, permitted gold mines in the Sterling Gold Mine. It has the additional upside potential of brownfield exploration at its Crown Block where three past producing pits have produced new high-grade drill results. Finally, with sections of the SNA target never before drilled, with stark similarities to the geology associated with world-class mines in Nevada’s Carlin Trend, the upside potential is most certainly there in Northern Empire.
Together, these components don’t just provide unparalleled ‘optionality’ for a junior gold explorer, but a compelling speculation. In other words, this is exactly what we look for in a junior on the TSX Venture. From our perspective, the risk/reward makes sense. Lastly, with the majority of the key members of Northern Empire’s board and management having been instrumental in at least one significant exit this decade, our confidence is very high that capital will be deployed strategically and efficiently.
Expect an update from us on Northern Empire in the near future…
All the best with your investments,
Northern Empire Stock Information
Northern Empire’s Corporate Presentation
Disclosure, Risks Involved and Information on Forward Looking Statements: Read carefully before proceeding.
THIS IS NOT INVESTMENT ADVICE. All statements in this report are to be checked and verified by the reader.
This report may contain technical or other inaccuracies, omissions, or typographical errors, for which Maximus Strategic Consulting Inc., owner of PinnacleDigest.com (“Pinnacle Digest”), assumes no responsibility. We cannot warrant the information contained in this report to be exhaustive, complete or sufficient.
Important: Our disclosure for this report on Northern Empire Resources Corp. applies to the date this report was released to our subscribers (May 26, 2018) and posted on our website. This disclaimer will never be updated, even after we buy or sell shares of Northern Empire Resources Corp.
In all cases, interested parties should conduct their own investigation and analysis of Northern Empire Resources Corp. (“the Company” or “Northern Empire”), its assets and the information provided in this report. Prospective investors not willing and able to risk a loss of their entire invested capital must not consider purchasing shares of Northern Empire.
For readers to understand some of the information in this report, they should read Northern Empire’s technical report (available at www.sedar.com) in its entirety (the “Technical Report”). The Technical Report (can also be viewed by clicking here) is intended to be read as a whole, and sections or summaries should not be read or relied upon out of context.
While the information contained in this report has been prepared in good faith, Maximus Strategic Consulting Inc., nor any of its employees, consultants or clients give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this report (all such information being referred to as “Information”) and liability therefore is expressly disclaimed to the fullest extent permitted by law. Accordingly, neither Maximus Strategic Consulting Inc., nor any of its employees, consultants or clients take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained in this report or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this report.
This report contains “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). All statements, other than statements of historical fact, that address activities, events or developments that Northern Empire or Maximus Strategic Consulting Inc. believe, expect or anticipate will or may occur in the future including, without limitation: estimates of the Sterling Gold Project economics, proposed production timelines and rates; funding availability; resource estimates; future exploration and operating plans; and estimates of future gold prices are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of Northern Empire and/or Maximus Strategic Consulting Inc. and are based on information currently available to them and often use words such as “expects”, “plans”, “anticipates”, “estimates”, “intends”, “may” or variations thereof or the negative of any of these terms.
All forward-looking statements are made based on Maximus Strategic Consulting’s or Northern Empire’s current beliefs as well as various assumptions made by them and information currently available to them. Generally, these assumptions include, among others: the presence of and continuity of metals at the Sterling Gold Project at estimated grades; the availability of personnel, machinery and equipment at estimated prices and within estimated delivery times; currency exchange rates; metals sales prices and exchange rates assumed; tax rates and royalty rates applicable to the proposed mining operation; the availability of acceptable financing; anticipated mining losses and dilution and success in realizing proposed operations.
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Northern Empire to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Northern Empire. Factors that could cause actual results or events to differ materially from current expectations include, among other things: risks and uncertainties related to timing and amount of production and total costs of production; risks and uncertainties related to ability to obtain or maintain necessary licenses, permits, or surface rights; risks associated with technical difficulties in connection with mining development activities; risks and uncertainties related to the accuracy of mineral resource estimates and estimates of future production, future cash flow, total costs of production and diminishing quantities or grades of mineral resources; the possibility that future exploration, development or mining results will not be consistent with Northern Empire’s expectations; risks relating to variations in the mineral content within the mineral identified as mineral resources from that predicted; variations in rates of recovery and extraction; developments in world metals markets; and risks related to fluctuations in currency exchange rates.
Any forward-looking statement speaks only as of the date on which it was made, and except as may be required by applicable securities laws, Maximus Strategic Consulting Inc. and Northern Empire disclaim any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
Although Maximus Strategic Consulting Inc. and Northern Empire believe that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty.
We caution all readers that past historical production on any of Northern Empire’s deposits or projects, or current production in the general region of which these projects are located, is not necessarily indicative of future production potential for Northern Empire.
Risks and uncertainties respecting mineral exploration companies are generally disclosed in the annual financial or other filing documents of those and similar companies as filed with the relevant securities commissions, and should be reviewed by any reader of this report. In addition, with respect to any particular company, a number of risks relate to any statement of projection or forward statement.
Investors are cautioned not to consider investing in any company without looking at said company’s regulatory filings and financial statements. Every reader of this report should review Northern Empire’s regulatory filings and financial statements (found at SEDAR).
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Disclosure of Compensation:
Set forth below is our disclosure of compensation received from Northern Empire Resources Corp. as of May 26, 2018:
Maximus Strategic Consulting Inc., owner of PinnacleDigest.com, has been paid CAD$80,000 plus gst to provide online advertisement coverage for Northern Empire for a pre-paid twelve month online marketing agreement. The Company (Northern Empire) has paid for this coverage. The coverage includes, but is not limited to, the creation and distribution of reports authored by PinnacleDigest.com about Northern Empire (reports such as this one), as well as display advertisements and news distribution about the Company on our website and in our newsletter. We (Maximus Strategic Consulting Inc.) intend to purchase shares of Northern Empire in the future. If we purchase shares of Northern Empire we will do so with the intent to sell them for our own profit and without notice to our subscribers. Please recognize that we benefit from price and trading volume increases in Northern Empire. Please recognize that we are extremely biased when it comes to Northern Empire.
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The past success of members of Northern Empire’s management team, board of directors and advisory team are not indicative of future results for the Company.
All information regarding Northern Empire’s stock price, trading activity and market cap was sourced from Bloomberg and/or the Company’s website. There are no guarantees that these figures are accurate or complete. All currencies are in Canadian dollars unless stated otherwise.
Compliance with NI 43-101:
Certain information in this report is derived from the results of a mineral resource estimate of the Sterling Gold Project effective March 29, 2017 prepared in accordance with NI 43-101, the results of which are disclosed in the Company’s press release dated April 3, 2017 titled “Northern Empire Announces Resource Estimate on Sterling Properties 709,000 oz Gold”. A copy of the press release is available on the SEDAR website under the Company’s profile at www.sedar.com and by clicking here.
Cautionary Note Concerning Estimates of Inferred Resources:
This report and supportive documents used in the research process of this report use the term “Inferred Resources”. U.S. investors are advised that while this term is recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize it. “Inferred Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of “Inferred Resources” may not form the basis of feasibility or other economic studies. U.S. investors are also cautioned not to assume that all or any part of an “Inferred Mineral Resource” exists, or is economically or legally mineable.
Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution.
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