It’s a fact in the mining world that most discoveries are made by a) junior mining companies and b) old time individual prospectors.
Why are the juniors so successful at making discoveries and finding mines?
Well, the good ones are lean mean boots on the ground exploration and development companies run by people who have been out there and know what it takes.
A junior resource company’s job description would be; acquire a project, explore it, define drill targets, drill it. If the drill assays come back positive they have made a discovery and can hopefully build a 43-101 compliant resource.
Many think that projects or even share structure are more important than management. Don’t believe it, this is a people game long before it becomes a geological one. Everything flows from management, the acquiring of good projects, the timely cost efficient exploration and development of the project, raising money and avoiding excessive dilution to telling the story to retail who drive the share price.
People, the management team running the company, the people that are driving events described in company news releases are the most important aspect in a junior company’s success or failure.
Planet Exploration Inc. TSX.V – PXI
Management
Christopher Taylor, M.Sc. P. Geo, President & Director. Chris has extensive experience with porphyry copper/gold, epithermal gold, VMS and rare earth element (REE) exploration projects. Mr. Taylor holds a Bachelor of Science (Honors) degree in Earth Science and a Master of Science degree in Structural Geology from Carleton University.
Tony M. Ricci, Chief Financial Officer, Director. Tony is a Chartered Accountant with over 20 years experience in public companies. Mr. Ricci is the current Corporate Secretary and Executive Vice President of Keegan Resources Inc and a former director and CFO of Norsemont Mining Inc. and CFO of both Petaquilla Minerals Ltd. and Petaquilla Copper Ltd., companies with a combined market capitalization approaching $2 billion. Mr. Ricci was formerly with KPMG and AMEC Engineering Inc.
Patrick McAndless, B.Sc.(Geology), P. Geo, Director. Pat has been involved in mineral exploration for forty years. He is currently Vice President of Exploration for Imperial Metals Corp. where he oversees the company’s exploration and development programs, property evaluations, and land management. Mr. McAndless is the recipient of the prestigious BC and Yukon Chamber of Mines H. H. “Spud” Huestis Award for excellence in prospecting and mineral exploration.
Golden Loon
The Golden Loon property is eight kilometers west of Little Fort, British Columbia (north of Kamloops). The property hosts two multi-kilometer gold and copper-in-soil bedrock anomalies.
In April 2011, widespread elevated levels of gold was discovered within a plus 2,000 meter long soil anomaly – doubling the area of previously reported gold in soils – suggesting that a broad, widely gold mineralized structural network underlies the property.
On October 14, 2011 Planet Exploration commenced Phase 1 diamond drilling at its Golden Loon property. The Phase 1 program will consist of 2000 meters of diamond drilling to test a 1.5km x 1km area containing multiple drill targets with coincident geochemical and geophysical signatures.
Targets were defined by over 2000 geochemical soil and grab samples, ground based induced polarization (IP) geophysics and extensive geological mapping. The target area includes drill confirmed historic gold mineralization in two locations and has returned grab samples of up to 37 g/t gold.
Sidace Lake
The Sidace Lake property comprises 63 unpatented contiguous mining claims covering an area of 12,224 Ha, located 25 km northeast of Balmertown, Red Lake Mining Division, Ontario.
The property is owned 40% by Planet and 60% by Goldcorp Red Lake Gold Mines, an affiliate of Goldcorp Inc.
Only 10% of the property has been actively explored with only a fraction drill-tested.
The Sidace Lake property hosts an indicated and inferred resource of 360,000 ounces of gold with an average grade of three grams per tonne gold in two of five successfully drill tested targets. This resource does not yet include two new gold discoveries from recently drilled targets that still remain open to expansion.
Share Structure
Issued & Outstanding 36,939,190
Warrants 9,850,000
Options 2,470,000
Full 49,259,190
Market Cap $5,540,879
Fully Diluted Market Cap $7,388,879
Cash $5,600,000
Conclusion
The most upside (and by far the greatest risk) comes from buying a junior when they are exploring and make an initial discovery. Great drill assay results can send a juniors share price skyrocketing. The reverse can also be true.
Junior explorers, the green field plays, are the riskiest plays by far. Strike out on assay results and it could be goodbye to a share price rise
for a very long time – till the company finds another project they can work on – so make sure the company you’re investing in has another project in its portfolio.
It’s this author’s belief that Planet is being given nothing from the market for the potential of its Golden Loon property – the current share price is back-stopped by its Sidace Lake joint venture with Goldcorp and the cash in its treasury, which means investors are being given a free shot at what could be a new gold discovery in British Columbia, Canada.
Every deposit currently being mined today has been worked up to the drill ready stage, most often by a junior resource company. Every deposit currently being mined today was, at one point, exactly where Planet Exploration’s Golden Loon property is today – being drilled for discovery.
There is no guarantee of success in the exploration business, fishing doesn’t mean catching and exploration, despite the quality of your targets, doesn’t mean finding, but gold discoveries are being well rewarded in the market place. Because of this Planet Exploration’s Golden Loon drill program should be on every resource investors radar screen. Is it on yours?
Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.
Richard Mills does not own any shares of Planet Exploration Inc. TSX.V – PXI
Planet Exploration Inc. TSX.V – PXI is an advertiser on Richards website aheadoftheherd.com