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Journey Resources Corp.:
Results in North and Central America
by Glenn Wilkins - AllPennyStocks.com News Reporter
July 18,2006 (AllPennyStocks.com Media, Inc.) - Digging into
the ground to uncover a treasure can be lucrative, but also
fraught with risk. How does one know that breaking ground,
delving into mud and rock, will not leave the digger with
nothing but… mud and rock. Even the largest mining company
need a hand to make sure they can make back their development
costs, which often means establishing aggressive production
expectations to see an early return on investments from a
property.
That's where Journey Resources Corporation
(TSX Venture:JNY) -headquartered in Vancouver -
comes into the picture. The company analyzes results from the
exploration and drilling work done by other companies on
already established properties. Journey's management team then
brings its business skills and geological expertise to bring
these properties fully into production.
Journey is a growth-oriented company engaged in the
acquisition, exploration, development and operation of
late-stage projects not only in North America, but Central
America and other emerging markets, aimed at maximizing
shareholder value.
Journey Resources boasts one of the most astute and
experienced geological teams in the industry, with a business
management contingent with proven track records. The Company's
main focus these days centres on three major properties.
Journey owns a 50-per-cent share in a lease on 300 hectares in
Custer County, Idaho known as the Empire Mine, which appears
rich in copper, zinc, gold and silver. Empire has undergone a
number of drilling campaigns by a number of major mining
companies since the 1960s. A drilling program by Trio Gold was
successful in 2004 at improving the thickness of
mineralization and confirming the grades of copper and the
presence of gold and silver.
(Pardon the pun, but Trio became a duo with Journey at the end
of May 2006 to develop the Empire Mine. Journey announced at
that time it would absorb up to $1.5 million U.S. in
exploration costs up to the end of August 2007.) A second
major property is situated elsewhere in Idaho, in the Cobalt
Mining District. The Musgrove deposit is estimated to contain
about eight million tonnes at 1.22 grams per ton of gold
(g/t).
Still a third shifts our attention to Mexico, where the Vianey
Mine Silver Project consists of concessions totaling more than
5,000 hectares in Guerrero State, just west of Mexico City. In
June, Journey entered into an option agreement with Wits Basin
Precious Minerals Inc., whereby Journey has granted Wits Basin
the exclusive option to acquire up to a 50% interest in and to
certain mining claims comprising the Vianey Mine Concession.
Journey concluded a private placement last December that
raised $1.1 million Canadian at 30 cents per unit, each unit
consisting of one common share and one warrant. The warrant
would enable each holder to buy another common shares at about
38 cents per share.
The Company's management team is led by President and CEO
Jatinder (Jack) Bal, an executive with years of experience in
the resource industry and public markets. As a founding member
of Apparo Software, Bal helped to guide successfully this
software company to its CDNX listing in 2000. Among Journey's
distinguished directors is William H. Bird, a 35-year veteran
in the mining industry and also CEO of two publicly traded
exploration companies, for whom he has guided both the
technical and financial programs. Two of his exploration
discoveries and acquisitions became significant gold
producers.
Ontario-based RM Communications was brought on board in April
to perform investor relations services with the Company, in a
deal that included stock options besides its monthly fee.
This aggressive pattern of acquisition has led to a net loss
of around $850,000 Canadian for fiscal 2005, but its financing
program to set some of these projects in motion has managed to
boost its cash position by the end of last year to more than
$290,000 Canadian.
Share price remains in a fairly narrow range for the stock,
which trades on the TSX Venture Exchange under the symbol JNY,
from a 52-week peak of 44 cents Canadian last November to a
gully of less than 16 cents Canadian last August. Mid-July of
this year saw the price around 25 cents Canadian.
This is a company with definite strengths and a world of
experience at management level, capable of finding and
bringing along the more lucrative developments in gold and
silver reserves worldwide and boosting shareholder value. JNY
bears closer scrutiny.
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