Journey Resources (TSX.V: JNY) is one of those juniors that has an insurance policy against such unpredictability: The company is diversified in both commodity and locale.
Canada (Press Release) February 4, 2008 --
When the ancient Roman scholar Publilius Syrus said, “No pleasure endures unseasoned by variety,” he could well have been referring to mining companies. One trick ponies, as recent events are sure to prove again, live and die the by price of a single commodity, and as such, are more vulnerable to sudden or unexpected market movements than are polymetallic companies.
Just a year ago, you could have been in copper, precious metals, zinc, uranium or nickel, and you would have represented a safe exploration investment – all were quite bullish and each looked solid for the near future. Now base metals are under pressure with the threat of sluggish US economic growth, the price of uranium has taken a reality check, and gold, well, gold is better than ever.
Journey Resources (TSX.V: JNY) is one of those juniors that has an insurance policy against such unpredictability: The company is diversified in both commodity and locale.
At the top of Journey’s project list is a JV operation with Grenville Gold (TSX.V: GVG) known as the Silveria Mine, a past producer located in Peru.
I spoke with Journey’s President and CEO, Jack Bal, who described the project with superlatives, “Silveria, I believe, is one of the biggest silver deposits in Peru,” he said. “It’s the closest to production. It’s permitted. And we have a stockpile of ore. We’ve also secured a mill, which should be ready by October of 2008.”
To Bal, being near term on all his projects is a priority.
“We have three near term production stories, and we believe that to be successful in this market you have to go into production quickly. If you do too much exploration when the market’s not doing well, you’re going to dilute yourself in the long run.”
The Silveria JV deal stipulates that Journey can earn a 50% interest by spending no less than $6 million before December 1, 2008.
“All the money will go into the ground and take the project within the next 12 to 15 months into production at 500 tonnes per day,” Bal said. “We think it should generate significant cash flow – which we’ll get half of. We also have the opportunity to earn up to 75% by spending another 6 million on the project if Grenville Gold decides not to match funding with us.”
The joint venture indicates that Silveria will enjoy an injection of new cash, an increased pace of exploration, and a hastened move to production. A drill program is slated to begin by mid-February to see what mineralization remains within, around and under the old mine workings at the four existing past producing mines on the 10,000 acre property.
Full Release: http://www.resourcexinvestor.com/news.php?id=4242
Just a year ago, you could have been in copper, precious metals, zinc, uranium or nickel, and you would have represented a safe exploration investment – all were quite bullish and each looked solid for the near future. Now base metals are under pressure with the threat of sluggish US economic growth, the price of uranium has taken a reality check, and gold, well, gold is better than ever.
Journey Resources (TSX.V: JNY) is one of those juniors that has an insurance policy against such unpredictability: The company is diversified in both commodity and locale.
At the top of Journey’s project list is a JV operation with Grenville Gold (TSX.V: GVG) known as the Silveria Mine, a past producer located in Peru.
I spoke with Journey’s President and CEO, Jack Bal, who described the project with superlatives, “Silveria, I believe, is one of the biggest silver deposits in Peru,” he said. “It’s the closest to production. It’s permitted. And we have a stockpile of ore. We’ve also secured a mill, which should be ready by October of 2008.”
To Bal, being near term on all his projects is a priority.
“We have three near term production stories, and we believe that to be successful in this market you have to go into production quickly. If you do too much exploration when the market’s not doing well, you’re going to dilute yourself in the long run.”
The Silveria JV deal stipulates that Journey can earn a 50% interest by spending no less than $6 million before December 1, 2008.
“All the money will go into the ground and take the project within the next 12 to 15 months into production at 500 tonnes per day,” Bal said. “We think it should generate significant cash flow – which we’ll get half of. We also have the opportunity to earn up to 75% by spending another 6 million on the project if Grenville Gold decides not to match funding with us.”
The joint venture indicates that Silveria will enjoy an injection of new cash, an increased pace of exploration, and a hastened move to production. A drill program is slated to begin by mid-February to see what mineralization remains within, around and under the old mine workings at the four existing past producing mines on the 10,000 acre property.
Full Release: http://www.resourcexinvestor.com/news.php?id=4242
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