 Investor Info
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 |   Mon Aug 6, 2007
Hard Rock Analyst
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| | Bitterroot Resources (BTT-V; off 2 cents on 150,000 shares at $0.51) invited me to look at the Mineral Creek gold project on Vancouver Island last year, and though the main market focus for BTT is its uranium prospects in Michigan the start of bulk sampling at the Linda Vein is a good opportunity to touch on this story. The Linda is part of one of a series of high-grade gold vein systems on southern Vancouver Island, and we have some work history on several of these as consultants. While these systems can, like Linda, have very impressive grades they do tend to have small overall scale. The bulk sampling being done by Bitterroot's partner is the right way to go at them, and has the potential to demonstrate a workable idea that might then be expanded to a scale the market can bank on. At any rate the sampling program would also generate a small gain if it works out, which is not something most exploration programs can do.
The company's exploration ground in south central British Columbia is also within our old work areas. Sticking with the gold theme, several targets have been generated within the GK project that we like. This region has a history of gold mining from veins and some related deposit types, and it looks like the Hornet and Blue Jay targets at GK fall into this camp. At the separate Brenda North project the grid based geochemical and geophysical surveys BTT has done indicate a strong potential that it holds the extension of the trend hosting the adjacent past producing Brenda molybdenum mine. Any or all of these projects could be tested before year's end, and we think any of them could be sleepers with a potential to excite the market.
We went over these and the uranium targets in Michigan with Mike Carr last week. It is still too early for a proper gauge of the uranium potential in Michigan, but the initial drilling did locate several targets that show promise and demonstrate that this is a valid target area for high-grade uranium deposits. The broader speculative market for uranium stories has taken a beating, in no small measure because there are too many of these stories offering gains ahead of actual results, and the strong gains in uranium's unofficial spot price had become equally heady and needed to correct. A uranium shortage will be with us for some years yet, and the market for its explorers will settle in to a more focused affair that generates gains on results.
We will have more to say on the uranium projects as the round of drill testing is getting underway. In the mean time one of the BC targets could surprise to the upside. For the moment our outlook on BTT is accumulate on weakness. http://www.bitterrootresources.com/s/Home.asp |
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