Yale Resources Takes a Rock Solid Approach in Mexico
Posted on 28. Mar, 2010 by kingreal in general
Yale Resources Takes a Rock Solid Approach in Mexico
Packard Richardson
The management team of Yale Resources Ltd. (TSXV: YLL) has a sound strategy that continues to place them in attractive positions. The team focuses on countries whose governments are mining friendly. They consider existing infrastructure or feasibility of bringing in infrastructure at new sites. One of their key strategies, however, is to explore areas near producing or past producing mines. Many companies have had much success with this strategy (a prime example is Incoâ??s 777 mine in Manitoba). To this end, Yaleâ??s properties in Mexico have already begun to turn up exquisite results.
For example, Yaleâ??s Carol property 20 km north of Alamos, Mexico is well positioned to take advantage of significant finds in the area. Frontera Copper Corp. has a reported proven and probable reserve of 191 million tonnes grading 0.36% copper. The Carol property is located 6 kilometres north of their property and has excellent infrastructure to work with, as well as a road to the core of the property. Three zones make up the Carol property, yielding copper, zinc, silver and gold. The Carol property has six claims over a total area of approximately 750 hectares.
Precious metal prices are still on the rise, and with the current state of the US economy they continue to remain a good hedge against inflation. Gold has gone up approximately 12% in the past year, and has been rising steadily since 2001. Silver is also in bull mode with a 27% increase in the past 12 months. As Canada increases interest rates later in the year, we will see increased movement by investors towards precious metals. Yale Resources has capitalized on these bull markets in precious metals and has put itself in a position to benefit from the commoditiesâ?? increasing value. One property that really stands to benefit from silverâ??s upward movement, is Yaleâ??s Zacatecas property.
The Zacatecas District is one of the largest historic silver districts in the world, with past production estimated at 1.2 billion ounces. Yaleâ??s property here has shown excellent results so far. The area has a run of mine dumps from historic work on the site. The samples from the mine dumps have yielded on average above 300 g/t silver. Select samples from the San Jose area of the project have shown very high grades, with the highest being 4,970 g/t silver, 6.74 g/t gold, 1.67 % lead, and 2.98 % zinc. Significant exploration potential remains on the San Jose project as well.
Yale Resources has partnered with IMPACT Silver Corp (TSXV: IPT) on the properties in Zacatecas District: Mina San Jose, Salvador, and Zacatecas. They stand to earn a 80% interest on each of the claims. Yale and IMPACT are in the process of investigating the option of processing the mineralized dumps at the nearby Veta Grande Mill. Processing the dumps will act as a bulk sample and may generate cash flow. With the processing plant, established infrastructure and a producing mine nearby, the ingredients for Yale Resourcesâ?? success here are already in place.
Recent drilling results have been promising, especially on the Mina San Jose property which yielded a significant intercept of 1,340 grams per tonne of silver at a vertical depth of approximately 75 metres below surface. Their next drill program is scheduled for the fall. Further work will go towards expanding their knowledge of the high-grade mineralization.
Additional projects for Yale Resources include a large claim on the historic Sierra Madre gold belt of northern Mexico. Titled the Urique project, it is 290 square kilometers in size and covers ten mineralized targets, a number of which have previously been in production.
Utilizing the strategy of exploring near proven resources, the Urique claims lie forty kilometers north of Goldcorpâ??s El Sauzal mine, which hosts over two million ounces of gold. After recent sample work, Yale has advanced their target to the drill ready stage. Yale has the right to earn a 75% interest in the Urique Project from EXMIN Resources Inc. Other producing mines in the area factor into this propertyâ??s appeal. These include Mulatos (Alamos Gold), Dolores (Minefinders), Ocampo (Gammon Lake), as well as the El Sauzal mine (Glamis Goldcorp).
Yale Resources is in a strong position in Mexico and is making significant progress on its properties. With the added value of existing infrastructure and proven resources surrounding the claims, Yale Resourcesâ?? strategies are taking effect. Since President and CEO Ian Foreman began launching Yaleâ??s exploration programs in Mexico and gathering around him a seasoned management team, volume trading has tripled, the companyâ??s stock price has doubled and still Yale has only issued 26 million shares, which represents good value for a junior exploration company.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.