 Investor Info
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 |   Thu Feb 8, 2007
Gold Mining Stock Report
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| | Bitterroot Resources (BTT.TSXV/$0.61) - Bitterroot delivered an update on several of its projects last Thursday, and of greatest interest were the comments on the company's joint-venture with Cameco: seven holes were drilled, the unconformity being targeted was intersected in all holes, and graphitic conductors were intersected in four of five target areas. Logging and sampling are to continue and analytical results are not expected until late April.
For now, these brief comments appear to confirm everything one could hope for in such a drill program. The necessary environment for uranium deposition has been confirmed, and based on this, it is difficult to imagine Cameco walking away from this project. The presence of uranium is the wild card that will have to wait for an answer, but given what we did learn in the 1/31 release, Bitterroot and Cameco need not have found uranium in this first program. They've confirmed the geological setting and that is more important than getting the immediate gratification of uranium mineralization in this initial drill program (and we may learn they have done that as well).
While it is BTT's uranium project that has garnered most of the market's attention, the company also provided updates on four other projects, three of them with drills turning or where assays are awaited. The Mineral Creek project, I suspect, continues to be viewed as a narrow, high-grade gold system, and thus not of much interest to the market. More results from last year's program are in the pipeline, but of greater interest, the company announced that permit applications for an underground bulk sampling program are pending. On the south side of the Mineral Creek ground, BTT has been drilling the Big Southeaster gold project, and 1,270 meters of core drilling (five holes) are being prepared for assay. A favorable geological environment has been encountered and drilling continues on this project.
Elsewhere in the company's portfolio, a drill was mobilized to the North Brenda project last week and four holes (minimum 1,200 meters) are planned to test four geochemical and geophysical targets, in the same geological setting that hosts the Brenda copper-molybdenum deposit. This is a good place to be drilling holes, and these are solid exploration targets. Lastly, another project in British Columbia, the GK, has yielded a gold anomaly measuring 450 meters by 175 meters, and this will see a drill program in the second half of 2007. The maximum gold-in-soil values was 5.8 g/tonne, and a quartz vein grab sample averaged 16.2 g/tonne gold. This anomaly also contains high copper and silver values, and is located approximately 5 km away from the site of an earlier Bitterroot drill program.
Bitterroot at $0.60 suggests to me that the market is focused almost exclusively on the still inconclusive results from the company's uranium project, but I think the more appropriate focus is on a low-market cap. company that is going to deliver exploration news on multiple fronts over the next few months. Having spent some time with company president Mike Carr last week, and having followed the company for over a decade, I have never seen him so enthused about the prospects for the company. He may never be accused of being a promoter in the classic sense of the term, but he and his team have assembled an array of projects that seem likely to deliver on one or more fronts in 2007. The uranium project is already more than a technical success, and lottery tickets will also play out on several solid exploration properties. Based on the uranium play alone, Bitterroot can arguably support its modest C$30 million market capitalization. In light of that, and mindful of the amount of news flow in the next few months, BTT should be purchased by those who don't own it. Those who do may wish to own some more. |
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