Indeed, SmallCapMedia is suitably impressed with Spire’s resolute focus on aggressively developing its one advanced-stage 100%-owned B.C. gold project while also keeping a tight leash on its exploration budget elsewhere.

 

This strategy offers optimum leverage for those many shareholders (including some of the mining sector’s more renowned stock pundits) who regard Spire’s home-grown gold discovery as a potential ‘company maker.’ 

 

Spire’s pragmatism is a breath of fresh air when compared to legions of other mining juniors that so often overreach by juggling too many ambitious exploration programs at any one time.  Especially since so many of these expensive ‘elephant hunting’ projects are scattered among far-flung mineral outposts all over the world.  Such exploration forays, therefore, tend to be logistically difficult and fraught with geopolitical risks.

 

In stark contrast, Spire has managed to very cost-effectively run two drill rigs around-the-clock for the whole summer near Merritt, B.C. This is one of the logistically best places to work –- not just in B.C. –- but in the whole of Canada.

 

Most importantly, the recently-released spring/summer exploration highlights clearly demonstrate that a sizeable bulk tonnage, epithermal-style gold deposit is fast emerging… one that exhibits an ideal geological footprint for a prospective low-cost, open pit (quarry-like) mining operation at the heart of the Spences Bridge Gold Belt.

 

Now the Company is shifting its focus during the winter months to the development of a joint ventured, early-stage gold project in southern Mexico.  This is where Spire can work virtually all year round, which offers the prospect of uninterrupted news flow.

 

Impressive Drill Results Attest to a Prolific Gold Deposit in the Making  

There has been no shortage of highly encouraging news in recent months from Spire’s wholly-owned 107.9-square-kilometre (10,796 hectares) Prospect Valley gold property, situated approximately 35 kilometres from the city of Merritt.  This is because the Company’s summer drill program was successful in capitalizing on nearly five years of geological sleuthing at the heart of the Spences Bridge Gold Belt.

 

Highlights include a total of 3,734 metres of drilling in the RM/RMX Zone which confirmed an epithermal quartz-vein gold system that extends for at least 1.5 kilometres.  Furthermore, mineralization is “open” (continuous) to the northeast and southwest.  A total of 23 drill holes intersected meaningful amounts of gold and silver values –- much of which is near surface and is amenable to open pit mining.

 

Most of the holes probed depths of 100 to 300 metres.  This includes hole RM2006-21 which returned a very impressive 45.7 metres of 1.57 g/t gold including an intercept of 9.54 g/t gold over 1.5 metres.

 

This hole was drilled in the vicinity of a key, largely-untested area of interest (known as the south extension of the RM/RMX Gold Zone) which will be the subject of an upcoming field program in 2007.  This is where gold-in-soil and geophysical surveying suggest the continuation of significant gold mineralization.

 

RM/RMX Zones: The Big Picture 

As the literal and figurative centerpiece of the property, the RM and RMX Zones have also been probed by way of extensive trench sampling which has consistently revealed near-surface vein-and-breccia-hosted gold mineralization.

 

Some of the more interesting results include 1.38 grams per tonne (g/t) over 5.7 metres, 0.85 g/t over 4.9 metres, 0.5 g/t over 10 metres and 0.22 g/t over 20 metres.  Meanwhile, individual rock samples have returned up to 5.48 g/t across 1 metre.

 

Of equal importance, a 2005 geophysical survey (a usually reliable indicator of the vertical parameters of sub-surface mineralized systems) has outlined a strong anomaly that overlies the three-and-a-half kilometer long, gold-in-soil geological footprint.

 

Such corroborative findings, matched with the presence of anomalous gold showings in the bedrock, are about as good as it gets, at least in terms of identifying an ideal target area for drilling.

 

Also, an increasingly strong geophysical signature at depth at the southern margins of the RMX Zone also suggests that an emerging mineralized system may yet yield much richer gold grades at depths of 250 metres or greater.  It further suggests that such a prolific vein system may extend beyond its known southern strike length further to the southeast, dipping in an easterly direction.

 

Spire’s management is, therefore, confident that the RM and RMX Zones exhibit the potential for a sizeable bulk tonnage gold system.  One that SmallCapMedia believes has all the right ingredients to potentially host up to two or three million ounces of gold in the RM and RMX Zones alone. 

 

More Gold Systems at the PV and NIC Zones? 

Meanwhile, further drill holes are scheduled to test both the adjacent NIC and PV target areas.  The latter prospect has returned rock sample values of up to 43.3 g/t of gold and 130.7 g/t of silver (likely surface fragments of gold-laced quartz veins and breccias).

 

In fact, the PV Zone may even prove to be the southern extension of the RMX Zone, which is situated a mere 1,000 metres along a projected strike to the south.  However, the presence of overburden between these adjacent anomalies makes gold-in-soil sampling largely ineffective, thereby making it impossible to provide any credence to this theory –- as yet.

 

At the NIC area, a grab sample program consisting of 40 rocks dispersed over a large area averaged 1.63 g/t of gold.  They include individual samples that have assayed as high as 27.3 g/t of gold and 209.1 g/t of silver.

 

Perhaps of greater significance is the fact that shallow trench channel sampling highlights include 9.24 g/t of gold over 0.5 metres, 3.72 g/t over 0.70 metres and 2.7 g/t over 1.4 metres.  All of this falls favourably within a large 2,600 metre by 900 metre gold-in-soil anomaly.  Hence, this target area may yet prove to be a stand-alone mineralized system that is unrelated to the emerging RM and RMX structure.

 

New Target Areas Discovered This Summer

Following the success of the 2006 spring/summer drilling program, Spire initiated a fall fieldwork program to extend the size of the RM/RMX surface gold anomaly and to provide more data to extend the known 1.5 kilometre-long epithermal gold zone.  Two new areas of interest emerged from this work, which are described below: 

The North West Zone is a geophysical target to the north of the RM/RMX Gold Zone and appears as a one-kilometre-in-diameter circular structure interpreted to be a possible large dome structure.  The NW Zone could represent a significant northern extension of the RM Mineral Zone.  Further fieldwork, including drilling, is planned to better define the size and character of this structure.

The South East Zone is a geophysical target to the southeast of the RM/RMX Gold Zone and represents a possible significant parallel structure to the Zone.  It appears as a large anomaly running north-south for approximately 500 metres.  This zone is open to the north and south for expansion.  Further fieldwork is planned to outline the size and gold potential of this zone.

Proven Mine Finder, Almaden Minerals, Spearheads Development of Spire’s Key Projects   

By way of a little background, the Prospect Valley Property came into being in 2001 following a regional prospecting program in what was then virgin territory for mineral finds. It was soon revealed to be part of a newly-discovered epithermal gold-silver district –- now referred to as the Spences Bridge Gold Belt.  The property now sits at the heart of what has evolved into a 100-kilometre-plus northwest to southeast trending mineralized trend.

 

The company that is credited with this important new discovery is AMEX-and-TSX-listed Almaden Minerals.  This is significant as Almaden is a well-renowned mining junior that has an impressive track record for making epithermal gold-silver finds.

 

They include the discovery of the La Trinidad Gold Mine in Mexico and the development of the Elk gold deposit in B.C. (which is located about 100 kilometres to the east of Merritt). Of equal importance is the fact that Almaden is also working hand-in-hand at the previously mentioned early-stage Mexican gold project. (More on this later).

 

Meanwhile, Spire has now fully earned-in on the Prospect Valley Property to buy-out Almaden’s interest by expending approximately $3 million in work commitments.  Notably, this was achieved on an expedited basis about two years ahead of Spire’s contractual commitment.  

 

Excellent Infrastructure is Already in Place, as Well as Attractive Project Economics

From a logistical standpoint, the Prospect Valley Property also benefits from excellent infrastructure which makes the project economics all the more robust.  For instance, the property is located approximately 35 kilometres from the fully-serviced city of Merritt.

 

It also has the advantage of the close proximity of a power grid, ample water and a network of roads that connect with several nearby highways.  Meanwhile, the major port city of Vancouver is only a three-hour-drive due west.  Additionally, a rail line passes near the property. 

 

Value-oriented investors will also take heart from the fact that the excavation of well-mineralized, bulk tonnage ore from an open pit deposit typically offers tremendous cost savings, especially when compared to underground mining operations.

 

In other words, this scenario dramatically improves the odds in favour of the realization of a commercially viable ore deposit should drilling prove successful in the coming months and beyond.  On this note, SmallCapMedia believes that a one to three million ounce deposit is a very realistic target based on all the exploration results to date.

 

Much of the appeal to Spire’s business model is that it is scalable.  That is to say that the company’s B.C. and Mexican joint ventured projects have been nurtured from a very early exploration stage in a cost-effective fashion.

 

By comparison, many other juniors opt to earn-in on logistically expensive projects that require large ongoing expenditures that can quickly deplete treasuries.  And which still may not produce the desired results – especially if someone else is the project operator.

 

Zeroing in on New Mexican Gold Discoveries

In Mexico, Spire is carefully examining a number of very geologically prospective properties with a view to increasing its exposure to this emerging gold and silver rich nation.  Meanwhile, Spire’s inaugural foray into Mexico involves an option to earn, from Almaden, up to a 60% interest in the Campanario Property where Spire is the project operator.  Located in southern Mexico, this expansive 10,003-hectare property is considered a bulk tonnage epithermal gold prospect.

 

First discovered by Almaden, this virgin prospect has produced some very encouraging results in recent months. Spire’s field team has already completed some preliminary geological mapping, a soil sampling program, as well as rock sampling and trenching.

 

This will be followed-up in summer 2007 with a ground-based geophysics program, as well as more soil and rock sampling, including trenching, all of which is aimed at defining targets for an anticipated fall drill program.  This will initially focus on the Hilltop zone, where mineralization can be traced at surface for at least 700 metres along strike. Grab samples from this exposed epithermal vein system run as high as 3.59 g/t.

 

There is also a strong likelihood that this emerging vein system may actually extend a further 1,000 metres to another geologically favourable area known as the Ridge Zone. Indeed, the close proximity of a near-surface gold-laced vein that can be traced about 550 metres along strike, measuring up to two metres wide, offers a clear indication of the overall potential of this area of interest.

 

There is even evidence that this vein was mined as far back as the time of the Spanish Conquistadors. This is particularly relevant in that only the presence of high-grade gold intercepts would have made it worthwhile to work this vein structure with only the benefit of primitive hand tools.  

 

The terms of the option agreement with Almaden dictate that Spire must incur $3 million in exploration expenditures to earn its 60% interest over a four and a half year period, as well as making share payments.

 

Investment Summary

On a corporate note, the analysts at SmallCapMedia have always found strong management to be the greatest value driver for junior exploration natural resource and energy companies.

 

To this end, shareholders of Spire are being well-served, especially since management had no difficulty in raising well in excess of $3 million to finance the spring/summer work program.  The Company is technically strong, too, with a geological team that benefits from decades of experience in mineral exploration.  

 

From a structural perspective, Spire has 38,661,756 million shares outstanding.  Such a relatively tight share structure, matched with positive news flow, typically acts as a potent catalyst for higher share price multiples.  The stage has already been set for such a news-driven breakout, especially since the Company’s share price is distinctly undervalued at this time (due largely to the onset of the winter doldrums that affect so many mining juniors).  

 

Hence, SmallCapMedia believes that the ongoing success of the Company’s drilling at Prospect Valley and its prospects in Mexico will ensure that it is a very strong performer in 2007.  This is based on the assumption that Consolidated Spire Ventures will be in the enviable position of building upon a soon-to-be-realized emerging gold asset base, one that could eventually reach several million ounces of gold.  We, therefore, intend to keep our readers closely apprised of this Company’s rising star.