First of all, Portal benefits from a highly accomplished management team with impeccable credentials. More on this later. Next, Portal has amassed a vast 800-square-mile-plus land positioned in Argentina – a geologically fertile nation with largely untapped regional-scale potential for world-class discoveries. Already, Portal has aggressively advanced two key properties. One of which has yielded excellent early-stage drill results, while both have revealed numerous other compelling drill-ready targets.

 

Additionally, the presence of both large porphyry systems and major geophysical anomalies attest to the potential for finding ‘home run’ gold-silver deposits. And to date only a small portion of Portal’s sprawling land holdings have seen any meaningful exploration. Also, the Company has a more than adequate war chest exceeding U.S. $3,000,000 to fund its 2006 activities.

 

From a technical perspective, Portal was incorporated in 2004 and therefore still benefits from a tight share structure, as well as a low and arguably undervalued market capitalization. Currently, there are approximately 17.37 million shares outstanding (about 22.06 million fully diluted). Such a scenario, matched with plenty of positive news flow, typically acts as a potent catalyst to higher share price multiples.

 

These are therefore the key reasons why SmallCapMedia believes that Portal is poised to be a strong performer during 2006 and beyond. Let’s also not overlook the fact that we are in the early stages of an unprecedented secular bull market for precious and base metals alike. Hence, Portal offers investors ample exposure to this extraordinary phenomenon by way of the anticipated development of a large mineral inventory.

 

Yet, before we go off on a tangent about the emergence of what renowned stock market analyst and newsletter writer John Kaiser recently proclaimed as “the mother of all resource sector bull markets,” we should focus on Portal’s specific role in the ‘big picture.’

 

Strong Management – Invariably the Key to Success

First of all, Portal’s directors and management have considerable experience in beating the odds by finding and developing gold deposits and developing them into mines. Consequently, they are renowned for building highly successful mining companies. This has invariably provided patient shareholders of such stand-out success stories as Bema Gold Corporation and Eldorado Gold Corporation with handsome rewards.

 

All told, Portal’s key people have been instrumental in the discovery and/or development of approximately eight million ounces of gold and no less than seven operating gold mines. Underscoring these eye-catching figures is the fact that much of this has been accomplished in Latin America, where Portal’s management and directors have collectively amassed decades of experience in all areas of the mining business. This also includes the raising of approximately $300 million in venture capital financings.

 

Astute readers will therefore appreciate that this powerhouse team has the vision, the drive, the geological expertise and experience, as well as the financial backing to fully maximize Portal’s opportunities for one or more ‘home run’ discoveries. Accordingly, the final component in this high-octane formula for success is the caliber of the properties involved, which is what we will now discuss.

 

Arroyo Verde: An Early-Stage Discovery that Compares Favourably with Several Recent Rich Gold Finds in the Same Mineral Belt

Certainly the most advanced project to date is the 100%-owned Arroyo Verde Project, which is located in Argentina’s underdeveloped Patagonia region in the eastern part of Chubut Province. Encompassing 155-square miles or 40,000 hectares, this expansive property is situated within a prolifically mineralized geological territory or mining camp that also includes the neighbouring Santa Cruz Province.

 

This is where several advanced-stage, high-grade gold-silver deposits have already been discovered by other companies in prolific vein systems. Most notably, they include the newly-discovered Navidad Deposit, which is also evolving into a world-class silver-lead-zinc ore body. And only a short distance away from the Arroyo Verde Project can be found the Esquel Gold Deposit, where an estimated three million ounces of high-grade gold have been found.

 

Most importantly, however, is the fact that mineralization in this ideal geological environment offers the prospect for not only high-grade epithermal gold-silver deposits but also ‘elephant sized’ silver-lead and copper-gold porphyry discoveries. Indeed, the exploration potential of rhyolite dome structures – which are often related to large intrusive ore bodies – has been repeatedly demonstrated to be excellent throughout Patagonia.

 

Readers, take note that the Arroyo Verde Project area is largely made up of rhyolite domes that have already demonstrated a tendency to be well-mineralized, at least in near surface vein structures. Furthermore, mineralization on the property occurs within major structurally controlled faults i.e. cracks in the earth’s crust that are the result of shifting tectonic plates. This certainly bodes well for the prospect of finding at least one large disseminated ore body, such as a porphyry intrusive.

Previous exploration on the property has in fact only focused on targeting bulk tonnage near surface mineralization, culminating in the drilling of 35 holes totaling 3,268 meters. This drilling intersected four significant, well-defined epithermal gold-silver veins, all hosted by an outcropping rhyolite dome complex measuring one kilometre in diameter.

This shallow drilling of up to 50 meters in depth has defined these veins over strike lengths of up to 400 meters. Multiple mineralized sections included intervals of up to 18.3 g/t (grams per tonne) of gold and 70 g/t of silver over two metres in the Northwest Vein and 7.5 g/t of gold and 279 g/t of silver over two metres in the Principal Vein.

A summer 2005 drill program consisting of seven holes spanning 2,644 metres that targeted the Principal Vein succeeded in intersecting consistently strong gold-silver mineralization over 600 metres in length and to a vertical depth of 150 metres. And at least 1,000 metres of the vein’s known strike length can now be traced along surface.

 

Some of the best drill intercepts even returned bonanza grades with values improving at depths of greater than 100 metres. Notably, these results were encountered in two distinct ‘shoots’ that may represent ‘feeder zones’ to a deeper-seated, major intrusive-style  porphyry deposit. By way of explanation, shoots are transporters for what is often rich mineralization that is injected into the overlying vein systems.

 

Hence, epithermal vein systems sometimes exhibit anomalously high grade zones of gold and silver. And this phenomenon can be interpreted as a compelling indication that these rich structures are genetically related to porphyry intrusives at much greater depths. Notably, porphyry deposits often host up to half a billion tonnes of ore.

 

This geological model or hypothesis bodes particularly well for future drilling as the known veins are all still ‘open’ (continuous) at depth. Drill highlights to date include intercepts along the western shoot that varied from 1 to 4 metres grading 8.02 g/t to 85 g/t in gold equivalent with an impressively weighted average of 13 g/t of gold equivalent over a true width of 1.75 metres and over 350 metres of strike length.

 

The Principal vein is not just open at depth but also laterally to the west, as well as to the east – where a 300-metre extension has been mapped on surface. Such a development offers considerable encouragement for the eventual outlining of a significantly sized epithermal gold-silver deposit and quite possibly even a large porphyry system, too.

 

More Porphyry ‘Elephant Deposits’ at Depth?

Additionally, a 2005 geophysical survey identified two large anomalous zones within the parameters of a 4 by 5 kilometre field of rhyolite domes, now referred to as the South Dome prospect. These geophysical signatures compare favourably with the ones that overlie the high-grade vein systems at the exposed dome a few hundred metres to the north. Only these ones are significantly larger, measuring up to 2,000 metres in length and 500 metres wide.

 

Hence, a number of high-priority drill targets at the South Dome prospect have been identified for drilling in early 2006 with a view to adding impressively-sized epithermal vein hosted gold and silver resources to Arroyo Verde’s yet-to-be-delineated mineral inventory.

 

The same survey also discovered a very large single anomaly measuring over 2 by 4 kilometres in size about 12 kilometres to the south of the Principal Vein system. Preliminary sampling of this anomaly, now known as the El-Refugio-El Porvenir prospect, has revealed strong lead-zinc-silver stockwork (bulk tonnage veinlets) mineralization at surface.

 

Also, the structures appear to exhibit surface leakage, indicating a similar geological footprint to the celebrated Navidad silver-lead deposit, where in excess of 250 million ounces of silver have recently been discovered some 300 kilometres to the west of the property. A number of compelling drill targets have therefore been selected for drilling in early 2006.

 

Notably, neither this expansive new prospect, nor the impressively-sized South Dome anomalies, has yet been exposed to any systematic exploration. The opportunity to drill test these exciting prospects in early 2006 therefore offers to provide Portal with a steady flow of much-anticipated drill results in the coming months.

 

Excellent Location and Infrastructure

The property is well located with easy access to a major paved coastal highway which is within three kilometres. And it is situated within 30 kilometres of the Atlantic Ocean, giving it ready access to deep-water ports. Also there is robust infrastructure in the form of a ready supply of power, water and fully-serviced towns in the area. Furthermore, the climate is very arid, making for the opportunity to work year-round.

 

District-Scale Exploration Progress in a Land of Largely-Untapped, World-Class Opportunities

The 100%-owned San Rafael Project area is a huge district-scale group of contiguous claims measuring 150 kilometers north-south by 10 to 40 kilometers east-west totaling over 700 square miles or 181,353 hectares. The presence of a series of major northwest trending faults or tectonic fissures is conducive to the migration of mineralization towards the earth’s surface.

 

This therefore represents a geological environment which is highly prospective for epithermal gold deposits and major copper-gold porphyry ore bodies (which as previously mentioned often measure between 200 and 500 million tonnes in size).

 

For instance, the same northwest trending structures host the world’s largest underground copper deposit, El Teniente (hosting three billion tons, grading 1.5% copper), some 200 kilometres to the west of the boundary of the San Rafael Project area. Being situated along this geological ‘corridor’ therefore offers Portal a key competitive advantage for one or more significant discoveries. Likewise for the 361-million-tonne San Jorge copper-gold porphyry deposit located 200 kilometers to the north of the project area.

 

Again, the other key type of mineralization that occurs within the project area is found in epithermal gold-silver epithermal veins systems. This is illustrated by the La Cabeza deposit that was recently discovered by Exeter Resources a mere 15 kilometers south of the southern border of Portal's project area. Notably, Exeter has announced an inferred mineral resource of nearly 12 million tonnes grading 1.83 g/t gold, representing 718,000 ounces gold.

 

As for the San Rafael project area’s copper-gold porphyry potential, this is typified by Portal's Anchoris property in the central part of the claim group. Historic exploration conducted by Argentina Mineral Development in the 1990’s included satellite imagery interpretation, structural studies and geological reconnaissance. This work actually led to the discovery of Portal's large Anchoris copper-gold porphyry system.

 

Consequently, Portal has completed processing of a new generation of satellite images for the whole San Rafael group of claims. This work has shown that both the epithermal and copper-gold porphyry systems have distinctive alteration signatures.

 

Thus, by following up with corroborative findings from regional-scale sampling programs, Portal has identified over 40 potentially mineralized target areas – all of which exhibit excellent potential to host porphyry deposits and even large epithermal-style ore bodies. Theses anomalous areas are currently being assessed through a systematic program of initial geological mapping, follow-up ground-based geophysical programs, and sampling including trenching. All of this is aimed at prioritized targets.

 

Anchoris Property Offers Near-Term Potential for a Major Discovery

The Anchoris property encompasses a large copper-gold porphyry system located at the heart of the San Rafael group of claims in south central Mendoza Province, Argentina. Geologically speaking, it consists of five distinct copper-gold porphyry zones of mineralization along a major northwest striking structural ‘corridor’ or trend that extends over 15 kilometres and is at least 500 metres wide.

 

Not unlike the Arroro Verde Project, the property is also highly prospective for epithermal gold deposits as well – ones that may be associated with much deeper intrusive copper-gold porphyry systems. Portions of the property were in the past operated by mining heavyweights BHP-Billiton and Rio Tinto Zinc who carried out limited drilling in the Anchoris and San Pedro zones. This work led to the discovery at Anchoris of well-developed copper-gold zones over broad widths, both on surface and in drill holes.

 

Mineralization is most intense within the La Totora zone where a near-surface porphyry structure has been outlined. It benefits from at least 3,000 metres of strike length, including 500 metres along surface, with widths of between 200-400 metres. Notably, more recent trenching across its strike length has revealed as much as 37.7 metres of 1% copper and 0.14 g/t of gold. And some historic channel sampling over 45 metres also encountered gold grades of more than double the latest figures.

 

Meanwhile, field work at the equally prospective San Pedro, Sand Pedro Norte and La Julia zones is still at a more preliminary stage. However, an ongoing program of geological mapping, geophysical surveying, trench and rock chip sampling is expeditiously advancing these key zones to the point that drill targets are already being identified.

 

This is with a view to the commencement of an imminent winter/spring program consisting of 3000-4,000 metres of drilling. Its main focus will be the La Torota Zone. This is where a preliminary multi-dimensional geological model may soon emerge to outline the size and scope of a prospectively large, richly mineralized system.

 

Good Location and Robust Infrastructure

Much of the key San Rafael Project areas of interest are located within a 20-80 kilometre radius of San Rafael, a fully-serviced town of over 200,000 inhabitants. With a predominantly dry climate and mild winters, exploration is possible throughout the year. Infrastructure is excellent with a series of state-maintained paved and gravel roads providing easy access. Power and water are also available in the project area, which is topographically moderate with elevations in the range of 2,000 metres.

Geopolitical Overview

Until recently, Argentina suffered from a lack of foreign investment due to protectionism-related restrictions on foreign ownership of mining properties. However, the advent of sweeping legislation providing legal and economic safeguards for foreign investors has set the stage for a mining boom that is already opening up Argentina's vast untapped mineral wealth.

 

Hence, Portal Resources is one of a vanguard of intrepid North American players that have been quick to capitalize on this landmark development. This will assuredly help propel Argentina’s emergence as a Latin American mining powerhouse.

 

Investment Summary

The Company benefits from a dynamic management team with a much-envied track record for successfully commercializing lucrative gold finds in Latin America. And the near-term prospect of advancing several key discoveries is excellent.

 

They include epithermal vein systems with high-grade gold-silver values, as well as new porphyry prospects, all with ‘blue sky’ potential. Also, the advent of a lengthy 2006 drill season (beginning this winter) is likely to continue to offer impressive results by way of the careful selection of numerous low-medium risk drill targets.

 

In anticipation of the commencement of these drill programs, the Company’s stock has already established a pronounced upward trend since the start of the year. Accordingly, SmallCapMedia firmly believes that there will be no shortage of drill-bit driven positive news flow to fuel the stock’s trajectory. This scenario therefore clearly makes Portal Resources one of our favourite investment selections for 2006.