Waymar Resources Could be the Next Ventana

By James West
MidasLetter.com
January 9, 2011

Waymar Resources (TSX.V:WYM) is another contender for the next Ventana – in terms of shareholder win, not geology – in Colombia. The Anzá project, which is the main focus of Waymar’s considerable expertise, has an active gypsum mine on it. As luck would have it, a massive sulphide lens was discovered under the gypsum deposit, and samples of this lens have yielded assays as high as 20 grams per tonne gold and 20% zinc.

The exploration focus for Waymar at Anzá is for base metals mineralization with associated precious metals. Their initial focus will be on identifying Volcanogenic Massive Sulphide style mineralization.

There are small artisanal gold mines 10 kilometres to the west of the Exman gypsum deposit, and these are not part of the Anzá project concession. However, the presence of these mines bodes well for possible hardrock and placer gold sources.

This company was brought to my attention by Ari Sussman, CEO of both Continental Gold Ltd. (TSX:CNL) and Colossus Minerals Ltd. (TSX:CSI), both of which were very fast and significant wins for Midas subscribers. When Ari tells me he thinks this is a good idea, I’m all ears. And sure enough, my research over the last week suggests we may be on to something.

Ari’s interest in this is that his Continental Gold optioned a100% interest in certain other parts of the Anzá project, to Waymar, covering approximately 21,080 hectares and comprising concessions, exploration licenses, study areas and applications.

The consideration for this acquisition consisted of 1,000,000 common shares of Waymar and share purchase warrants to purchase 500,000 common shares at an exercise price of $0.75 per share and exercisable until June 29, 2012.

The Anzá property is comprised of approximately 6,738 hectares of mineral rights located on the eastern-most margin of Colombia’s Western Cordillera, 50km west of Medellin. In order to exercise its option, the Company is required to make cash payments to the optionors aggregating US$3.8 million over a three year period (of which US$300,000 has been paid in terms of the definitive agreement), issue 3,800,000 common shares to the optionors over a three year period (of which 300,000 common shares have been issued on execution of a definitive agreement) and make expenditures on the property aggregating US$4 million over a three year period (of which US$500,000 must be expended in the first year). The optionors will retain a 2% net smelter return royalty on the property, 50% of which may be purchased by the Company for US$1,000,000.

The CEO of the company is Pablo Marcet, who has has over 20 years of experience in mining, exploration and project development. He participated in the start-up of the giant Escondida copper mine in Chile and held various managerial positions for BHP Billiton in East Africa and in South America. From 2003 to 2007 he was president of Northern Orion’s Minera Agua Rica. Northern Orion was sold to Yamana Gold in 2007 for a fully diluted amount of $1.6 Billion.

Drill targets have been identified as a result of a ground geophysical survey completed in August of last year, and drilling is expected to commence during Q1 of 2011.Anzá is a massive sulphide deposit with high base and precious metal grades discovered in an operating gypsum mine. The project is located in a district of historic mine production and excellent infrastructure.

A technical 43-101 study completed by Snowden in May 2010 yielded verification samples from two geological units ranging 4.39-16.26% Zn and 0.21-7.43 g/t Au (massive sulphide), and 0.41-14.74% Zn and 0.27-28.73 g/t Au (disseminated sulphide) in thicknesses of 5-15 metres with lateral continuity. The sulphide units at Anzá are exposed in the operating gypsum mine but have not yet been tested by drilling. These are very high grades on the high ened

Snowden feels the Anzá project has good exploration potential for both gold and base metals. Three areas of exploration potential were identified in their 43-101 report during their site visit, which relied on results from a stream sediment sampling program undertaken in 1987.

MidasLetter Premium Edition Subscribers first learned of Waymar Resources on January 2 in the January edition, when the stock was at $0.65. Subscribe now for $49 per month, or $499 for one year, at http://www.midasletter.com/subscribe.php.