FOLLOW-UP NO. 4 / MARCH 4, 2009
| WEST TIMMINS MINING INC.: RETURN ON CAD 10,000 INVESTMENT | |||||
| Purchase Date | No. of Shares | Purchase Price | Cost (CAD) | Price Today | Value Today |
| November 7, 2006 | 25'000 | 0.40 | 10'000.00 | ||
| Total | 25'000 | 0.40 | 10'000.00 | 0.41 | 10'250.00 |
| Profit | 250.00 | ||||
| Profit (in %) | 3% | ||||
| SHARES OUTSTANDING / FULLY DILUTED | MARKET CAP |
| 119,836,528 / 134,691,144 | CAD 51.5 Million |
| 52 WEEK LOW / HIGH | TSX |
| CAD 0.13 to 0.86 | 92,500 (200-day) |
| RECOMMENDATION | RISK RATING |
| BUY | HIGHEST |
LARGEST LAND HOLDER IN WEST TIMMINS AND EXPLORATION IN THE SIERRA MADRE, MEXICO
Business Summary
West Timmins Mining Inc is a publicly traded gold exploration company focused on district scale discovery and development opportunities in two of the world's great gold camps: the Timmins Gold Camp in northern Ontario and the Sierra Madre Gold Belt in Mexico.
The world's great gold deposits are clustered into a few select camps where gold production is measured in the tens of millions of ounces. These rare stretches of the earth's crust are among the most sought after prizes in the global exploration business. WTM has built major land positions in two of these world class districts and has recently announced important new discoveries in each.
Recent discoveries on both fronts highlight WTM's potential. In Timmins, Ontario the recent high-grade Rusk gold discovery on our Thunder Creek joint venture shares a number of similarities with the nearby 1.3 million ounce Timmins West deposit which is currently undergoing development. In Mexico new discoveries on the high-grade Lluvia de Oro gold-silver, Universo gold and Montana de Oro Projects highlight the exciting potential of the Sierra Madre Belt which has emerged as one of the fastest growing gold camps on the planet.
The Projects in North America
The West Timmins Project
Founded by prospecting discoveries in the early 1900's the gold mineralization in the Timmins Camp is home to over 35 current and former producers typically developed around moderate to steeply plunging high-grade quartz vein systems which have been mined to depths of up to 2,500 metres.
Historically mining has focussed on high-grade (7-10 g/t gold), underground deposits located along or in close proximity to major fault systems which run to tens of kilometers through the entire Timmins District. More recently large open pits have been developed along these major fault systems and around the former underground producers. The large Pamour open pit project, which has resulted in the moving of a portion of the Trans-Canada highway in Timmins, is developed along a gold-bearing fault/shear system and averages slighlty under 2.0 g/t gold.
Goldcorp operates the Dome, Hoyle Pond and Pamour mines in Timmins and is undertaking a re-evaluation of the historic Hollinger/McIntyre system which has produced over 32 million ounces of gold since being placed into production in 1910.
The West Timmins District is the western extension of the Timmins Camp and has increasingly become the focus of exploration and discovery activities in the Camp.
"Geologically, the area has long been considered favourable for the finding of gold deposits, as it lies directly along the strike of formations exposed in the Porcupine fields, in which the famous Hollinger and McIntyre mines are located." - J. E. Hawley, 1926 describing the geology of the West Timmins Camp.
80 years after Hawley's prophetic statement the West Timmins District is emerging as the new discovery frontier in Timmins. Commencing with the discovery of the Company's Golden River Trend in 1996 there have been a series of significant gold discoveries in the West Timmins District.
Most recently the discovery of the million plus ounce Timmins West Deposit and the discovery of the high-grade Rusk Zone on the Company's Thunder Creek Joint Venture have focused considerable investor and industry attention on the West Timmins District. WTM has also recently intersected a new gold zone on it's 100% owned Hwy 144 Property located along the same trend as the Timmins West and Rusk gold zones.
Spanning over 114 square kilometres, hosting an existing 400,000 ounce inferred gold resource (4.0 mT @ 3.00 g/t) and including over 30 known occurrences of gold mineralization WTM's West Timmins Gold Project makes WTM the dominant land-holder and a major player in the development of the West Timmins Gold District.
Mexico
The Company's flagship project in Mexico, the Montaña de Oro Project, is located at the junction of the states of Sonora, Sinaloa and Chihuahua in northwestern Mexico. Encompassing over 600 square kilometres at the heart of the Three State Precious and Base Metal District, Montaña is located within 50 kilometres of three newly developed mining projects, two active resource definition stage deposits, two recent takeovers and one additional gold-silver project nearing commercial production.
The Three States District hosts a variety of styles of economic mineralization including Goldcorp's lowest cost gold producer at El Sauzal (high-sulphidation epithermal gold), Pan American Silver's Alamo Dorado deposit (high sulphidation epithermal silver), Frontera Copper's Piedras Verde (oxide copper), Coeur D'Alene mines Palmarejo Project (low sulphidation epithermal) and Tyler Resource Bahuerachi Cu deposit (copper skarn).
The core of the Montaña de Oro Project (roughly 100 square kilometres) was formerly part of the National Mineral Reserve of Mexico. Initially placed into the National Reserve on the basis of its gold exploration and development potential the Montaña de Oro Project covers the headwaters (source area) to the largest placer gold deposits in northern Mexico. The government of Mexico began auctioning the National Mineral Reserve blocks to mineral exploration interests in 2003. The Company was the successful bidder and acquired the right to purchase a 100% interest, subject only to a 1% royalty payable to the government of Mexico, in late 2004.
Based on the success of the Company's initial exploration efforts, the Montaña de Oro project has been expanded to cover over 600 square kilometres. The Project now hosts 17 zones of gold (+/- silver) mineralization and 4 zones of base metal/polymetallic mineralization while much of the current property position has yet to see even initial prospecting and mapping.
La Dura Project
The recent discovery of the polymetallic La Dura system and a number of gold-silver vein systems highlight the discovery potential of the Montaña de Oro project and make it the primary focus of WTM's exploration activities in Mexico.
The Lluvia de Oro Project, acquired in 2007, covers one of the highest grade historic mining districts in Mexico. The Lluvia de Oro deposit produced between 1898 and 1915 and again in the early 1950's and produced approximately 100,000 tonnes at an average production grade of 95 g/t gold and 865 g/t silver.
The Lluvia de Oro District was placed into the national mineral reserve of Mexico in the early 1980's and was acquired by the Company, directly from the Mexican government, in early 2007.
Lluvia de Oro is located in the Three States Mining District of Chihuahua, Mexico 30 kilometres east of the Company's Montaña de Oro Property and 20 kilometres west of Goldcorp's El Sauzal gold mine.
Highlights and Advantages:
- Historic production grades of 95.0 g/t gold and 865 g/t silver
- District in National Mineral Reserve of Mexico since the early 1980s and excluded from exploration
- Accessible underground workings provide good access for future exploration
- Work by the Mexican geological survey is reported to have returned intervals of 35 metres grading 4.0 g/t gold and 29 g/t silver and 20 metres grading 5.6 g/t gold and 51 g/t silver from trench samples assayed by an independent assay lab.
- Road accessible project which is close enough to share logistical support with the Montaña de Oro project
Developing Projects
In addition to our core and active projects in Canada and Mexico West Timmins Mining controls a number of other exploration projects throughout North America.
Recent News: WTM Discovers Large New Gold System on Hwy 144 Property, Timmins, Ontario
West Timmins Mining Inc. announced the discovery of a new gold mineralized system on its 100% owned Hwy 144 Property in Timmins, Ontario. Drilling has intersected a new, 16.10 metre wide zone of gold mineralization grading 1.11 g/t gold in hole Hwy 08-05.
This new gold discovery is located along the same trend which hosts the Company's high grade Rusk Gold Zone and the 1.3 million ounce Timmins West gold deposit.
The new discovery, intersected at a vertical depth of only 28 metres, is hosted by a porphyritic syenite intrusion, similar to the one which hosts the high-grade gold mineralization recently intersected at a depth of 550 metres in the Rusk Zone (11.20 g/t gold over 10.40 metres; NR08-33) Initial shallow drill testing of the Rusk Gold Zone returned similar grades and thicknesses (0.82 g/t gold over 25.8 metres; hole TC03-06) to those reported here from the Hwy 144 Property.
The new 144 Syenite discovery is located proximal to the same sediment-ultramafic contact along which the Timmins West gold deposit and the Company's high-grade Rusk Gold Zone, 1800 metres to the northwest, are centred. Anomalous gold mineralization was also intersected in hole Hwy 08-03, collared 450 metres to the northwest of hole -05, again in association with a porphyritic syenite intrusion. Nine additional drill holes have now been completed in the vicinity of the new discovery and are in the process of being logged, sampled and assayed.
"We are very encouraged by the width of this newly discovered gold system, it's location along the key sediment-ultramafic contact and the obvious comparisons to the nearby Rusk Gold Zone and Timmins West deposit," said Darin Wagner, President and CEO of West Timmins Mining Inc. "These results indicate that the syenite body related to the recent high-grade results at Rusk, and the new discovery on our 100% owned Hwy 144 Property, may be much more extensive than initially thought opening up a great deal of additional exploration potential in the West Timmins District."
Fundamental Considerations
West Timmins Mining is the largest land holder in the West Timmins Gold Camp, where the holdings surround the newest million plus ounce gold discovery in the 70 million ounce Timmins Gold Camp in Ontario, Canada.
West Timmins is exploring aggressively on a number of gold occurrences in this area looking to expand the high-grade mineralization.
West Timmins is also active in the Sierra Madre Gold Belt, where West Timmins has a number of large projects under exploration, including the head waters of the largest placer gold district in Mexico.
Technical Considerations
THE TIMELESS PRECIOUS METAL FUND & THE SIERRA MADRE GOLD & SILVER VENTURE FUND are a shareholders in the company and will benefit from any increase in the company's share price.
Disclosure: The author has not been paid to write this article, nor has he received any other inducement to do so.
Disclaimer: The author's objective in writing this article is to invoke an interest on the part of potential investors in this stock to the point where they are encouraged to conduct their own further diligent research. Neither the information nor the opinions expressed should be construed as a solicitation to buy or sell this stock.
Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions in the stock or use their own brain.
In our opinion, the best approach is to buy a diversified portfolio of stocks like THE TIMELESS PRECIOUS METAL FUND or THE SIERRA MADRE GOLD & SILVER VENTURE FUND instead of shares of only a small number of companies.
