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Drillers Invest in Albanian Metals District
By Eric Pratt
MidasLetter.com
Wednesday, March 25, 2009
When small cap mining exploration stocks make a run-up in price just prior to the announcement of successful drilling results, it is often the drilling contractors and their employees and consultants who are drive buying. They’ve got an eye on the core as it comes out of the ground, and so have a better-than-average access to geological data. You’d be surprised how many bush whacking millionaire drillers there are manning rigs in remote locations.
The other way that contractors involve themselves with clients in whom they see great promise is to invest by way of private placement. This is both the more ethical approach, and demonstrates to the market a serious commitment to the success of the program it is undertaking on behalf of its client.
Last week, Energold Corporation (TSX Venture: EGD) made a CA$750,000 investment in a Canadian company who is developing a huge polymetallic Vulcanogenic Massive Sulphide (VMS) district in Albania, and who also happens to be Energold’s client.
The company is Tirex Resources Inc., (TSX Venture: TXX), an extremely well-funded junior exploration company that has attracted substantial institutional investment in the past by way of a CA$9 million loan from the $20 billion European Bank for Reconstruction and Development.
Tirex is using the funds to continue drilling the company's district-scale Mirdita Project in Albania. To date, Tirex has drilled wide widths of gold-rich VMS mineralization in three separate areas in the 344 sq km District.
In 2009, Tirex will conduct expansion and definition drilling in these three areas as well as drilling extensions of other known zones of mineralization and previously untested geophysical targets. This intense drill program will run concurrently with large, District-scale ground geophysical, geochemical and mapping work. The loan bears interest at LIBOR plus 3%.
According to Bryan Slusarchuck, Tirex’s president and CEO, It (the loan) not only puts us in a much stronger position financially as we advance Mirdita, but also indicates the EBRD's level of commitment and support for this project. In today's difficult environment in the capital markets, it is wonderful to know that the EBRD continues to be such a positive force for Tirex as a financial backer. When we first announced the financial involvement of the EBRD with Tirex Resources, we described the bank as an ideal partner. I think today's announcement proves that we were correct in this assessment."
The EBRD was established in 1991 to nurture private sector business in emerging economies in eastern Europe and central Asia and is the largest single investor in this region. EBRD is owned by 61 different countries and two intergovernmental organizations and invests mainly in private enterprises, usually in conjunction with commercial partners. The EBRD's prudent operational and financial policies along with its strong capital position has resulted in a credit rating of AAA from Standard & Poors, Aaa from Moody's and AAA from Fitch. EBRD has a subscribed capital totaling €20 billion.
VMS deposits represent true "company-maker" targets. Districts such as Noranda, Kuroko and Flin Flon, rich deposits like Eskay Creek and Buchans and giant deposits such as Kidd Creek and Manitouwadge are just some of the well known VMS deposits that have created incredible amounts of wealth and prosperity. Noranda-type VMS deposits are the largest and highest grade deposits known on or near the Mirdita property. The copper, zinc, gold, and silver mineralization takes several forms. The Tirex team consists of knowledgeable and experienced VMS experts who will be targeting these Noranda-type VMS deposits using the first ever large-scale modern exploration techniques employed within the district.
Albania is a Mediterranean country with unique geographical and geological features. The country is located on the Adriatic and Ionian seas, 82 kilometres across the Strait of Otranto from Italy. On its southern border lies Greece. While a Mediterranean country, Albania is unique with a variety of landscapes including fine sandy and pebble beaches along the picturesque coast, mountains in the north (the Albanian Alps) and inland lakes and rivers. The 450km of gorgeous coastline is one of the country's great assets and is the main attraction for a rapidly growing tourist sector. The climate of Albania is very agreeable with generally mild winters and dry summers.
Albania is a stable Parliamentary Democracy with a democratically elected government. The Prime Minister is the head of government in a pluriform multi-party system. Albania is a candidate country for admittance to the European Union (EU). The government has adopted EU integration as the strategic goal of the country and on April 13th, 2007 signed a bilateral agreement with the EU which included eased visa facilitations for Albanian citizens. Albania is making great strides towards EU admittance and has been a strong ally of Western Europe. A new mining law was passed in 1994 designed to attract foreign investment. In January 2008, corporate taxes are set to drop to 10%, among the lowest in the world. The progressive investment climate is attracting much new foreign investment across many fields into the country.
The company’s more impressive drill highlights include:
- 65 metres grading 2.7 grams per tonne gold and 48.4 grams per tonne silver, with 9% zinc and 0.6% copper;
- 60.4 metres grading 1.6 grams per tonne gold and 17.7 grams per tonne silver, with 6.7% zinc and 1.1% copper.
Expansion and in-fill drilling will continue throughout 2009 across the entire district. Continued success in exploration drilling will likely have a value-accretive effect on the company’s share price.
SOURCE: http://www.midasletter.com/news/09032506_Drillers-invest-in-Albanian-Metals-District.php
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