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Company Spotlight
Seafield Resources Ltd. (TSXV: SFF)
Seafield Resources (TSXV: SFF) is an advanced stage gold exploration company with a focus in + Read More
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The Ubika Research Junior Resource stock watchlist (Week of July 12, 2010)
| St. Elias Mines Ltd.(Symbol: V.SLI) |
| Company Name: |
St. Elias Mines Ltd. |
| HQ Location: |
Vancouver, Canada |
| Company Website: |
http://www.steliasmines.com/ |
| Shares Outstanding |
128.9 Million |
| Closing Price (July 14, 2010) |
$1.32 |
| 52 Week ( Low - High ) |
$0.1 - $2.4 |
| Market Cap: |
$128.9 Million |
| Average Daily Volume |
83,000 |
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The Ubika Research Resource Stock Watchlist is a feature that profiles junior mining stocks. Visitors will discover high potential Canadian mining stocks, the best gold stocks, small cap energy stocks and junior gold companies through this very popular feature.
Share Highlight / 1-Year Stock Chart
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Business Overview
St. Elias Mines Ltd (SLI) is an exploration company with properties in British Columbia (Canada) and Peru. The flagship project for the company is the 100% owned Tesoro Gold property in the attractive Nazca-Ocoño gold belt in South Western Peru.
+ More info
What is interesting?
Peru is among the top 10 gold producing countries in the world and the leading gold producing country in South America. It has a mining friendly economic, political and legal regime and hence is seeing its fair share of exploration dollars going into the country commensurate with its status as a major gold producer.
- Nazca-Ocoño gold belt is sitting on a prolific region with over 70 gold deposits having been discovered already (some as early as 17th century).
- Tesoro property covers 5,000 acres. The mesothermal veins within the Tesoro Project tend to be narrow, but the grades are good and can extend several kilometers and can run deep up to 1 kilometre.
- The Nazca-Ocoño gold belt is a 300km (200 mile) x 30km (20 mile) belt paralleling the Pacific coast of southwestern Peru. Gold is associated with disseminated sulfides that seeped into quartz veins or rock fractures within the intrusive body.
- Dynacor Gold Mines (TSX:DNG) with a high grade gold mine is situated to the North of the Tesoro property. This mine had an inferred gold resource of 606,611 ounces at 16.4g/t (on only 3 of 10 veins discovered to date)
- The veins located immediately south of the Property have been in continuous production since the 1970’s and have produced over 700,000 ounces to date. These veins have been mined over a 2,000m strike length to a depth of 1,000m. Barrick Gold (TSX:ABX) has acquired some of the claims that adjoin Tesoro on the Southern side.
- The company has done a fair bit of work on the property since it was acquired in 2004. Since then it has completed phase 1 of the exploration program. The phase 2 of the exploration program is currently underway. The phase 1 program enhanced the geological understanding of the property and also delivered good assay results. Phase 1 returned assay values from the 143 rock samples collected, ranging from 0.03 to 97.1g/t gold (>0.01 to 3.12 ounces) with an average grade of 14.14g/t gold (0.41 oz/Ton) and a mean grade of 14.44g/t gold (0.42 ounces).
- Phase 2 of the exploration program underway. Company is currently conducting geophysical survey on the property.
- There are some pre-existing tunnel structures in the property which may help in exploring to depth without significant expense
- Strong management team in place with experience in resource companies and corporate finance - essential to advance any exploration project
- Company is well capitalized to fulfill its 2010 drill program as it recently raised $8 million in April 2010.
Risks
St. Elias Mines is still an exploration stage company. The commercialization risks associated with gold mineral exploration and development are high and its prospects for discovering and mining economically viable gold resources are uncertain. Gold prices can fluctuate and a decline in the gold prices could impact the share price of the company adversely. Exploration companies typically need significant amount of capital and although currently well financed, St. Elias Mines may still require additional financing. This could result in shareholders’ equity dilution.
While stable now, operating in a country like Peru also brings unknown political and legal risks which are hard to quantify.
St. Elias Mines Ltd. News
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