Kent Exploration (KEX, TSX-V) is ready for an imminent upside move with a reversal in its 20-day moving average and drill programs commencing soon at two highly prospective properties – Gnaweeda in Australia and Alexander River in New Zealand. This morning’s article briefly reviews Alexander River which we believe could become a company-maker for Kent. Like Gold Bullion Development’s Granada Property, Alexander River is a former producer. Quite often, as we have seen with GBB’s Granada, the best place to find a new mine is near an old mine. Kent’s strategy, we believe, is going to pay off tremendously for Kent shareholders in the same way that Gold Bullion’s strategy has paid off for its shareholders.
Folks, the market has yet to fully appreciate the significance of this particular property, which quite possibly could eventually rival OceanaGoldâs (OGC, TSX) very successful Globe Progress Mine located just 20 kilometres to the north. Ironically, Oceana gave up Alexander as a result of the 2008 market meltdown when it had to cut costs and go into survival mode.
The Alexander Prospect, which includes the old Alexander Mine that produced about 40,000 ounces of gold prior to closing in 1943, was estimated by Macraes Mining (the precursor to OceanaGold) to contain an inferred (non-compliant) resource of 643,000 ounces of gold. Macraes reported that an auriferous halo of sulphide hosted mineralization exists around the early mined reefs (similar, by the way, to Globe Progress) and that there is an inferred resource of approximately four million tons grading more than five grams per ton.
A significant portion of the Alexander Prospect has yet to be systematically explored, however, and that has Kent President/CEO Graeme OâNeill thinking this property may have one million-plus ounce potential. âFrom what weâre seeing here, this could go on for 2.5 kilometres (double the Macraesâ figure),” O’Neill told us in an exclusive interview.  ” While we were reviewing some of the historic data, Nancy (Nancy Reardon, Kent geologist) noted that there was a pan concentrate taken about three quarters of a kilometer away that ran 30 grams. Thatâs a pretty significant pan concentrate, and itâs in another watershedâŚthere appears to be least two parallel structures. The whole gold belt stretches something like 40 or 50 kilometres north to south and over 100 small mines have been in operation.â
âThe New Zealand government is good to deal with, very professional people,â explained OâNeill. âAfter many years of unfriendly governments, they changed their whole mindset. Theyâve made a big commitment. Itâs a supportive environment, similar to Saskatchewan. What I like to do, I like to go into an area and have someone say, âHow can I help youâ, and that is what I got there. I was very impressed.â
Kent completed some trench sampling at Alexander River late last year and in January reported impressive results including 24.6 g/t Au over 3.2 metres, 6.4 metres grading 6.87 g/t Au, 8 metres of 10.56 g/t Au, and 12.8 metres grading 4.5 g/t Au. Significantly, these numbers confirmed historical numbers from Alexander River – even better in some cases.
Given how resources at other mines in the area have often been doubled by a fresh exploration approach, there’s no question Alexander River could become a huge winner for Kent which in turn could become very appealing for OceanaGold.
Kent’s market cap of just under $6 million is stuningly palty for the potential that exists here. The stock closed yesterday at 17 cents.
