The Hard Rock AnalystExcerpts relating to Samex Mining Corp. |
Recommended January 31 @ $1.90 Current Price: $2.85
After bottoming near $2.00 the shares moved up again after announcement of a private placement of 1 million shares @ $2.00. At month end a re-start to drilling at Santa Isabel in early September. Still no results from Yarentani, or other acquisitions that the company is apparently working on. Still on hold in this price range, but watch for further plans.
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17.4 MM shares outstanding; $1.5 million cash
Samex has been very hard hit. The news that it had failed to close on its $15 million placement combined with non-arrival of expected drill results caused investors to desert the stock. Santa Isabel is looking more like a straight base metal deposit of the Butte, Montana variety. The trenching HRA was hoping to see earlier has now been done at Yaretani. Results from this work should be reported in the next couple of weeks. Hold for now.
Recommended January 31 @ $1.90 Current Price $3.85
Samex also had a very tough month. Further results were announced from the Santa Isabel project mid-month. The new holes continued to display near economic to economic zinc-silver grades but investors were obviously disappointed by the lack of copper-gold results they were hoping for. The company will probably wait to release results from several holes at once at this point. Some of these holes are bound to be disappointing since this is a very large target with thick overburden cover. Prospecting with a drill can be a slow and arduous process. This property looks good but it will require a little patience on the part of investors. Samex announced at month end that they have failed to close the $15 million financing announced last month which should create greater weakness in the stock until a good drill release. If you still like betting on this one try to catch a low over the next week or two.
Recommended January 31 @ $1.90 Current Price: $6.80
Samex released results from their first drill hole at the Santa Isabel project near month end. The entire 335 metre length of the hole contained zinc mineralization with an average grade of 1.57% zinc, with higher grade intersections of 173 metres @ 2.56% Zn and 11.9 metres @ 11.8% Zn and 2.75% lead. These results are significant sine a "classic" porphyry deposit usually exhibits a zinc rich halo surrounding the central copper bearing core. Samex is drilling a fence of holes across the main target. Two other holes have been completed and drilling is ongoing. At the same time, the company announced a private placement of 3 million special Warrants at $5.00. Although there is no proven direct relationship between zinc grades surrounding a copper porphyry and the copper grades themselves, this is still a very good drill results. Samex will need good copper grades to justify a $130 million market value, but it definitely has a shot at Santa Isabel. Take some profits here, but it's worth holding on to some to wait for results from holes 2 and 3 which should be out mid-month.
Recommended January 31 @ $1.90 Current Price $3.85
Drilling and trenching at Yarentani has indicated the targeted shale/siltite horizon sits in undulating folds near surface rather than the steep folds postulated from earlier mapping. Preliminary surface sampling of layers with disseminated sulphides averaged 1.78 g/t gold. Holes 4 and 5 testing Induced Polarization results have cut similar material for which assays are awaited; the IP anomalies extend for 3 Km of strike. The market responded with surprising strength to the news. The results appear to indicate the gold is in a "shale hosted" (specifically diagenetic) deposit model, which SXG describes as similar to the Carlin trend, that is the subject of disagreements in the deposit modeling community. HRA agrees the results look like diagenetic shale model deposits described elsewhere, which can produce very large tonnages. The results due out in mid-April will indicate the scope and potential of the deposits here. Drilling will also start at the Santa Isabel porphyry property. More to follow.
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David Coffin and Eric Coffin, editors.