10:55 am Pacific
Trueclaim Exploration (TRM, TSX-V) has delivered an impressive near-surface result of 15.78 metres grading 5.36 g/t Au in hole #10 from the South Zone at its Scadding Gold Property near Sudbury. The stock has been displaying good technical strength over the past two weeks and is currently up 2 pennies at 21 cents on strong volume of 1.1 million shares, overcoming some resistance which opens up the possibility of a breakout.
Several other holes intersected significant mineralization including 19 metres grading 2.46 g/t Au in hole #3. All 10 holes drilled in the South Zone intersected chlorite zones which may suggest continuity between the South Zone and the Central Zone.
This is an interesting property that is worthy of considerable additional drilling. The current phase of drilling will consist of 8,000 metres, so many more results will be flowing in over the coming months.
Well done Jon on the timing of your interview with John Carter. As John made clear Scadding is a very interesting property and if they can connect the south and central zone it could really be game on for Trueclaim.
Comment by Patrick — March 4, 2011 @ 11:20 am
Jon
Will this news have any spillover effect for Currie Rose? And if so how? I’ve read over the joint venture agreement off the Trueclaim website and was looking for a little clarity on how something like this would benefit Currie Rose.
Thanks
Comment by Mclatch — March 4, 2011 @ 1:54 pm
Yes, very good point…success at Scadding WILL spill over into Currie Rose. Here’s the deal between the two:
In order to acquire a 51-per-cent interest in the Scadding gold property, Trueclaim is required to maintain the Scadding gold property in good standing, spend an aggregate of $2-million on the Scadding gold property over a period of three years and issue aggregate of 450,000 common shares in the capital of Trueclaim to Currie Rose, in equal instalments of 150,000 shares over a period of three years, and pay $110,000 to Currie Rose on closing. Trueclaim will be the operator of the project during the period of the option.
Trueclaim can increase its interest in the Scadding gold property from 51 per cent to 100 per cent upon commencement of a mine production plan by paying an aggregate of $2-million to Currie Rose and a 3-per-cent net smelter return royalty.
Comment by Jon - BMR — March 4, 2011 @ 7:14 pm
Thanks Jon
So by my calculations, and correct me if I’m wrong, spending $2,000,000 on the Scadding property plus 450,000 shares even at a value of $1 per Trueclaim share adds $2,450,000 to the value of Currie Rose? Which with 87,167,532 shares of Currie Rose is about .028 per share? This doesn’t include any of the value if Trueclaim goes to 100 per cent interest in Scadding down the road. Or am I looking at this wrong? Just trying to figure out how to put a value on this.
Comment by Mclatch — March 5, 2011 @ 12:17 am
HiMcIatch
I have held CUI for over three years now and the way I interpret this deal is Trueclaim is paying us for the right to drill our property. That is, they must spend 2 million on drilling and give us 450K shares in their company for the right to explore and develop the resource. We (CUI shareholders) still maintain 50% ownership of the property. I see this as a huge benefit to CUI (and in no way tied to their expenditures) as we are getting information and a potential resource, but do not have to commit to any expenses at this time. The value will come with the future potential resource calculation rather than the dollars spent at this time. I will be holding CUI for future benefit of this property and other (African) fronts.
Comment by Steve — March 5, 2011 @ 5:42 pm
Hi Steve thanks for the comment
Ya I didn’t know how to figure in the free information on the resources that might be there. I thought from reading the agreement if Trueclaim wanted to take this property through to production all we would get is increased value in the stock we got from them $2,000,000 and 3% smelter royalty. I know the focus with Currie Rose and the excitement is over their Sekenke and Mabale Hills projects and I can get my head around speculating on that, just not sure how to figure in a JV with someone else and how to speculate on that.
Comment by Mclatch — March 6, 2011 @ 9:54 am