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Shining Through
Dark Times: King’s Bay Gold Corp. (TSX-Venture: KBG)
By: Glenn Wilkins - AllPennyStocks.com News Reporter
July 7, 2008 (AllPennyStocks.com Media, Inc.) – More moderate
events precipitate for a moderation in gold prices; the
current $900-U.S.-plus readings for the shiny yellow metal
mark this era as one under the Chinese curse: “May you live in
interesting times.”
Winnipeg-based King’s Bay Gold Corp.
(TSX-Venture: KBG) aims to profit from these
interesting times by helping its investors find value in its
more interesting finds. The company is in an advantageous
position over some of its rivals in that it owns most of the
equipment required to carry out the various phases of its
exploration – diamond drills, bulldozers, etc. – which enables
KBG to adjust work programs quickly, as exploration results
are realized and as company strategies change.
King’s Bay was incorporated in Canada in the spring of 1998 and has traded on
the TSX Venture Exchange since April 2002. Since then, the company has completed
several prospective offerings and private placement offerings, with net capital
used to fund its varied exploration projects.
One of those sites is located in northwestern Ontario near the town of Red Lake.
The Bobjo mine is one on which KBG upgraded its claim units to more than 259
last fall, and is situated between the former South Bay Zinc/Copper Mine and
Uchi Lake God Mine. King’s Bay splits ownership of this property 50-50 with
Mainstream Minerals, the operator of the projects. Recent finds from Bobjo, seen
as particularly rich, have been to the labs for analysis of gold and 32 other
elements.
King’s Bay along with its partner, Mainstream Minerals Corp.
(TSX-Venture: MJO) announced on July 7th that numerous significant zones
of rare earth elements and other minerals and metals were intersected when they
received additional drill results. The drill results were for Hole # 23, with
depths of between 162.0 to 262.5 metres and from 162.0 to 177.5 metres.
Intersections included 15.5 metres (50.1 ft) grading 34.57 g/t Sc (Scandium),
16.42 g/t Rb (Rubidium), 17.72 g/t Nd (Neodymium), 33.20 g/t Ce (Cerium), 33.46
g/t Li (Lithium), 8.46 g/t Cd (Cadmium), 6.26 g/t Sm (Samarium), 14.07 g/t Y
(Yttrium), 15.53 g/t Ba (Barium), 45.67 g/t B (Boron), 4.83 g/t Hf (Hafnium),
5.14 g/t Yb (Ytterbium), 1.22 g/t Th (Thorium), 1.37 g/t Tb (Terbium), 12.35 g/t
La (Lanthanum), 2.05 g/t Eu (Europium), 171.71 g/t Cr (Chromium), 160.84 g/t V
(Vanadium), 157.30 g/t Sr (Strontium); and 0.0230 % Zn (Zinc), 0.188 % Ti
(Titanium), 0.179 % P (Phosphorus), 0.196 % Mn (Manganese), 2.994 % Mg
(Magnesium), 6.300 % Ca (Calcium), and 10.960 % Fe (Iron). For all of the
results,
click here to read the full press release announced by both companies.
All these minerals and metals have significant economic and strategic value.
Some of these metals like Rubidium, which is not actively traded, has recently
sold for as much as $100.00 US per gram. Recent selling prices for rare metals
and rare earth elements can be seen at
http://www.elementsales.com/.
Demand for rare metals and rare earth elements is soaring because of consumer
demand for more fuel-efficient cars, alternative energy technologies such as
fuel cells, the nuclear power industry for both practical and experimental
utilization, rechargeable batteries, lasers, hydrogen storage, superalloys as
used in the aerospace industry, televisions, computer screens, permanent magnets
as used in electric-hybrid vehicles and in the conductor industry for many of
the new "Green" technologies, etc. Currently, 97% of the world supply of the
Rare Earth Materials (REM) comes from China. China recently announced a
reduction in the exports of REMs coming out of their mines. This decision will
considerably reduce the supply for buyers outside of China while world demand is
in full growth.
The main consumers of rare earth materials are in South-East Asia (Japan, Korea,
Thailand, and China) and in the USA.
It is reported that 77% of world production is currently coming from one mine in
China. The United States used to produce approximately 6% of the world's supply
from one of the only in-situ rare earth mines in the world, at Mountain Pass,
California. However, Mountain Pass — the only producing mine in North America —
ceased operations several years ago, creating a situation where there is no Rare
Earth Elements production taking place in North America, or anywhere significant
outside of China. Therefore prices and demand are expected to continue to rise
drastically.
The additional results were very promising to both of the property partners. A
15,000 metre Phase 2 drilling program, as announced on March 3rd, 2008, is
ongoing and additional results should be released shortly.
Elsewhere in northwestern Ontario, King’s Bay and Mainstream announced in
mid-June they’d collaborate on a purchase of the Phyllis Mine, home to 64
unpatented claim units for 2,560 acres. The area is rich in a variety of
materials, not the least of them Molybdenum, gold, silver, copper, cobalt,
nickel, zinc, palladium and platinum.
King’s Bay is the operator of this project. On Phyllis, a stripping program
carried out by heavy equipment has recently uncovered large zones with
impressive widths and strike lengths. Surface samplings have also yielded
high-grade results that both companies believe could possibly be the beginning
of a large mineral discovery on a new project that has never been explored
before.
Surface sampling for the Phyllis project has yielded past results such as 0.690%
Molybdenum (Mo), 2.192% Copper (Cu), 0.415% Cobalt (Co), 0.393% Nickel (Ni),
0.100% Zinc (Zn), 9.60 g/t Silver (Ag), 2.81 g/t Gold (Au), 2.50 g/t Palladium
(Pd) and 1.20 g/t Platinum (Pt).
Some of the above mentioned metals are very valuable, for example, and in US
dollars:
-
Moly is currently trading at over $33.00 per pound (lb)
-
Cobalt at over $48.00/lb
-
Nickel at over $9.90/lb
-
Copper at approximately $3.70/lb
-
Zinc at approximately 0.82/lb
-
Gold at approximately $900.00 per ounce
-
Silver at over $17.00 per ounce
-
Palladium at over $470.00 per ounce
-
Platinum at over $2,000.00 per ounce
Also in the Red Lake Gold Camp lies the Headway project, on which may be found
six patented claims and one unpatented claim for approximately 320 acres. Gold
is the targeted metal on the project; 75-per-cent owned by King’s Bay, the
remainder shared by two other companies.
Headway has the distinction of being one of the best-positioned exploration land
packages within the entire Red Lake gold camp. The project neighbours two
high-grade world-class gold mines, the Campbell and the Red Lake Mines (both
owned by Goldcorp Inc., formerly Placer Dome). GoldCorp’s new headframe is
located 400 metres to the northwest of the Headway Project.
KBG’s shorter-term goals are to advance its projects to the feasibility stage,
with the intent of becoming a small- to medium-tier minerals producer. The
management team is confident its makeup, the quality of the company’s projects,
its aggressive acquisitions strategy (focused on buying properties near present
and past producers) that will enable King’s Bay to become an emerging leader in
the Canadian mining industry.
A non-brokered private placement of 2.5 million units was closed in mid-June,
units Ontario subscribers could buy up at 30 cents each Canadian. Proceeds
totaling $750,000 Canadian would finance ongoing drilling programs.
King’s Bay President and CEO Richard Rivet has led the company since its
foundation 10 years ago, prior to which he was a big wheel in the auto industry,
winning several sales achievement awards. He has 17 years experience in a
leadership role in the business world.
Chief Financial Officer Raymond Prefontaine served 20 years in managerial and
directorship roles in the financial services industry. He serves as the Chief
Financial Officer of both King’s Bay Gold Corporation and Mainstream Minerals
Corporation. He serves, as does Rivet, as a director of Mainstream Minerals.
Both companies are based in Winnipeg.
Director Lawrence Shewchuk, a resident of Red Lake, has owned and operated a
number of companies, including ones involved in the acquisition and disposition
of mining claims. Mr. Shewchuk recently became a director of Mainstream Minerals
Corporation.
King’s Bay’s stock may arouse interest from small penny investors with its
bargain basement appearance. KBG sizzled last summer at a 52-week summit of 64
cents Canadian before cooling with the winter weather to 21 cents Canadian, a
range in which it currently finds itself. But the optimism of management is
being fed by the frequency of new developments on King’s Bay properties, which
the company is confident will lead to better fortunes, and for investors, better
returns.
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Although the majority of
AllPennyStocks.com reports are independent, it has received
compensation for carrying the report on King's Bay Gold Corp.,
the compensation is eleven thousand five hundred dollars by
the company for its efforts in presenting the KBG profile on
its web site and distributing it to its database of
subscribers as well as other services. This creates an inherent
conflict of interest and readers are encouraged to view the
main disclaimer at
http://www.allpennystocks.com/aps_ca/company_spotlights/archives/kbg.asp
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