Sunday, September 16, 2012

Temex: Abitibi 90210

Temex: Abitibi 90210
Temex Announces Initial NI 43-101 Resources of Measured and Indicated & inferred resource of 1,031,000 oz Gold at Upper Hallnor, Whitney Gold Project, Ontario
Temex Resources Corp. (TSX.V:TME) announced "an initial National Instrument   43-101 ("NI 43-101") compliant mineral resource estimate on the Upper Hallnor portion (top 550 metres) of the Whitney Gold Property located in Timmins, Ontario. Temex holds 60% and Goldcorp Canada Ltd. holds 40%...

... Mineral Resource Upper Hallnor In-pit at 0.30 g/t Au cut-off grade
  • Measured ("M"): 232,100 ounces contained in 2,964,000 tonnes at a grade of 2.44 g/t gold
  • Indicated ("I"): 544,000 ounces contained in 8,664,000 tonnes at a grade of 1.95 g/t gold
  • TOTAL M+I: 776,100 ounces Measured and Indicated at a grade of 2.07 g/t gold
  • Inferred: 231,900 ounces contained in 4,024,000 tonnes at a grade of 1.79 g/t gold
  • Wide open for expansion
"...We are particularly pleased with the high gold grade of the resources, amenable to open pit mining, which exceeds those that have been recently mined directly along strike to the east at lower gold prices. Furthermore, excellent potential for expansion of the resource has been demonstrated by our drilling along a 1.5 kilometre strike length to the west including the Upper Broulan Reef Mine where we have intersected gold mineralization with drill results up to 37.90 g/t gold over 8.80 metres...."
--- Ian Campbell, President & CEO of Temex Resources Corp.
Please click on image to enlarge 3 year chart - TME.V

Ian Gordon
"Every now and again, one is lucky enough to discover a precious metals company with outstanding assets that has been overlooked by the investment community. Temex Resources is, in my opinion, one such company.

The company’s most prospective properties are all situated in Northern Ontario along the prolific Abitibi greenstone belt which has already produced more than 150 million ounces of gold.
Juby Lease Property-Gowganda NE Ontario. Temex 100%
The Juby Main Zone has an indicated resource of 14.1 Mt grading 1.36 g/t gold (614,000 oz) and an inferred resource of 18.3 Mt grading 1.14 g/t gold (602,000 oz). The total is, therefore, in excess of 1.2 million oz gold. These grades are similar to the grades at Detour Gold’s massive Detour Lake gold deposit (17.7 million ounces gold). The indicated resource exists above 350 metres and feasible to open pit operation.

There is an excellent opportunity to grow this resource in newly discovered gold zones along strike and in parallel structures.

Juby Joint Venture Property. Temex 60%, Goldeye 40% (Temex is the operator)

This joint venture property surrounds the Juby Lease Property and Temex is the operator. The company recently announced that multiple new priority targets have been identified as a result of ongoing and expanded surface work.

According to Ian Campbell, Temex’s President and CEO, "our intent is to discover new gold zones that will add to the gold resources already established on our 100% owned Juby main zone deposit where we are currently drilling." Oct 19th, 2010.

The Shining Tree area, where these two properties are situated, is highly prospective as evidenced by increased exploration activity that is currently proceeding throughout the area.

Whitney Joint Venture Property, Timmins, Ontario. Temex 60%, Goldcorp 40% (Temex is the operator)

This property historically produced 2.3 million gold oz with 1.7 million ounces of that production coming from the Hallnor mine with an average grade of 0.40 oz per ton. This was the highest grade from the 1 million plus oz gold producers in the Timmins camp. These past mines included the Hollinger mine, which produced gold for 59 years, the McIntyre mine with a production life of 77 years, the Dome mine which is in its 100th year of operation and the Pamour mine which produced gold for 64 years. The production life of the Hallnor mine was 32 years. Gold production from the Timmins camp has already produced in excess of 70 million ounces.

The lower Hallnor Mine is wide open at depth and the joint venture partners have determined to work aggressively to advance the exploration around and at the depth of the old mine workings.

In addition to the Hallnor Mine, there are another two past producing mines on the Whitney property. These are the Broulan Reef and the Bonetal mines and the joint venture partners expect to aggressively conduct exploration in these two locales as well.

Gowganda Silver Property, situated between Timmins and the Juby property. Temex 100%
This property historically produced 41 million ounces of silver at an average grade of 22 opt and has a pre-NI 43-101 inferred 2.6 million ounces of silver in the tailings. There is excellent exploration potential for additional vein discoveries in several areas of the property; one drill hole completed by Temex intersected 12,541 g/t (403 opt) over 0.3 metres while others reported up to 32,316 g/t (1,039 opt) over 0.30 m.

The current market cap of Temex is about $40 million (CAD), which effectively values the gold in the ground on the Juby property at about $33 per ounce and gives no added value for any of the other outstanding properties. We have recently noted a report from a major Canadian brokerage firm that values gold in the ground at $100 per ounce. By that measure alone Temex’s current share price is trading at about one-third of its value and that doesn’t take into consideration any value for the other excellent properties.

 Please click on the image to veiw Temex Corporate Video
Ian Gordon

Temex Resources (TSX.V:TME) Closing price Thursday September 6th. – $0.215. Market cap equals $27 million (CAD).

"On Wednesday September 5, 2012 Temex Resources released a NI 43 101 resource for the upper Hallnor deposit on the Timmins, Whitney property, of which it owns 60% and Goldcorp 40%. This is an open- pit deposit and reaches to a depth of 550 meters. In the measured and indicated category the resource totaled 776,100 au ounces grading 2.07 grams and in the inferred category there are an additional 231,900 ounces grading 1.79 grams. Ian Campbell, President and CEO commented, "This is an important milestone for the company since it is the initial resource estimate based on our exploration efforts on this highly prospective property. The high-grade near surface gold resource announced today is just from the upper Hallnor Mine area, the portion of the property acquired in July 2010 and validates our thesis that Temex controls a very attractive asset strategically located in Canada’s most prolific gold mining district. We are particularly pleased with the high grade gold of the resource amenable to open pit mining, which exceeds those that have been recently mined directly along strike to the east at lower gold prices. Furthermore, excellent potential for expansion of the resource has been demonstrated by our drilling along a 1.5 kilometre strike length to the west, including the Upper Broulan Reef Mine where we have intersected gold mineralization with drill results up to 37.90 g/t gold over 8.8 metres." Wow, that’s great, but would you believe it the stock price fell $0.05 following the news announcement. Anyway, with the 600,000 gold ounce which Temex owns on the Whitney property (60% of 1 million ounces) and its 100% owned 1.8 million ounces on the Juby property, Temex has a combined gold inventory of 2.4 million ounces. The market is assessing Temex a value of just $11.25 (U.S.) per ounce in the ground. In other words, the stock price is very cheap. I own shares in Temex Resources."

Please click to enlarge 6 month chart - TME.V

Johnston-Sequoia Commentary:

"The secret of success is to know something nobody else knows"
I have been following TME for quite some time now.  I was first introduced to the story at the Cambridge House Pheonix Silver Summit in 2010.  I've always been impressed at the entire property portfolio that even at present (+190% in the past 4 months) seems to be heavily undervalued by the market. 
The closest comparison in terms of assets alone that I can draw for our readers is Midway Gold Corp. (AMEX: MDW).  In fact Temex it is essentially the Canadian version of Midway.  Like MDW Temex has an embarrassment of riches in terms of its ounces in the ground vs. its share price.  Although, unlike MDW Temex is the operator on the Whitney Joint Venture.  This is of course positive because they own 60% of the project vs. MDW's 40% (Barrick 60%) of Spring Valley, however the financing for advancing the project at the current 122,388,760 shares issued & outstanding (139,354,189 fully diluted) may be the only concern I have with TME at the moment.

It's been accurately stated that "you're only as strong as your shareholders" -  Sprott Asset Management owns 11.83% of TME (14,482,780 shares) along with a gentlemen that (as many of our readers know) I have a tremendous amount of respect for Mr. Ian Gordon.

Timmins Gold Project:

Whitney Joint Venture with Goldcorp. Summary

Temex holds a 60% interest in a joint venture with Goldcorp in the Whitney Property. The property includes the past producing Hallnor, Broulan Reef and Bonetal mines. The Hallnor Mine was the highest grade gold mine in the Timmins gold camp, having produced 1.7 million ounces of gold at an average grade of 0.40 opt (13.71 g/t). The Whitney Property is located on a 4 kilometre long, 10 million ounce mine trend. 

Drilling Highlights:

Broulan Reef

  • TW08-67: 33.46 g/t gold over 5.40 metres including 204.00 g/t gold over 0.70 metres

Hugh Pam

  • TW05-11: 8.41 g/t gold over 27.50 metres including 17.17 g/t gold over 12.00 metres and 141.28 g/t gold over 1.00 metre

Lower Hallnor 19 Vein

  • TW08-77: 21.10 g/t gold over 6.55 metres including 270.62 g/t gold over 0.50 metres

Q Zone

  • TW09-78: 17.71 g/t gold over 2.90 metres including 90.35 g/t gold over 0.50 metres
  • TW10-94: 180.00 g/t gold over 0.50 metres
  • TW11-154: 122.85 g/t gold over 0.50 metres
I've made the choice to "initiate coverage" on Temex Resources Corp. at this time - simply because I would like to begin to add to my portfolio of Canadian based Assets.  In my opinion TME  is the best Gold exploration and development story in Canada's prolific Abitibi Greenstone Belt from a pure value investors standpoint.

I do not currently own shares of Temex Resources Corp. & I am not an advisor of the company - however I reserve the right to buy TME  on weakness below $0.26.  As always please do your own due diligence.