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| Send Page To a Friend | Thursday November 20, 2008 |
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Corporate Overview Mansfield Minerals Inc. (TSX.V-MDR) has struck the geological jackpot with a major gold discovery in This ideal scenario is based on a sound supposition. It is that Furthermore, These twin turbo-charged value drivers give Hence, SmallCapMedia considers Mansfield an exceptional investment situation – one that we have been closely following for the last three years. Indeed, its high performance share price has made it a clear favourite of many of SmallCapMedia’s readers, as well as numerous other shrewd resource stock investors. During the last two years in particular the Company’s two main emerging exploration projects have gone from strength to strength, building considerable drill-bit-driven intrinsic value into By way of explanation, shareholders now enjoy the benefits of value-based ownership in the Lindero Deposit. This is where a landmark development is fast approaching. It concerns the Company’s belief that as much as three million ounces of gold resources (or perhaps more) will likely be revealed within the next 12 months or sooner. Already, as much as two million ounces of gold have been systematically outlined by way of extensive drilling. Much of which is not yet National Instrument 43-101 compliant i.e. it does not meet Canadian federal government recognized guidelines for a “measured resource”. However, ongoing developmental work will soon rectify this situation. Furthermore, shareholders also enjoy considerable “blue sky” investment leverage to the Lindero Deposit: A Brief Background The Lindero Deposit is no overnight success story in the making. Since then, the Company has steadily delineated an ever-increasing gold resource that appears to be well on its way to becoming an approximately $2 billion-plus “in-situ” (before recovery costs) mineral asset. (Please refer to The World’s Largest Mining Company Validates Lindero’s Prospects for Success). It is surely a testament to Mansfield’s shrewd business acumen and enviable gold hunting prowess that the Company has taken such great strides in one of the world’s last great “elephant hunting” mineral frontiers – northwestern Argentina. Hence, as an early market entrant, This enterprising business model has developed against a backdrop of an increasingly friendly business environment for foreign investors in a nation that also has relatively little mining history. In fact, the reform and restructuring of Argentina's previously problematic mining laws – which began in the early 90’s – has allowed Mansfield to be well positioned to unlock the key to revealing what may yet prove to be a whole new mining district. This emerging mining district has the potential for the discovery of as many as several economic gold and copper deposits. In support of this compelling argument, we need look no further than the emergence of both the Lindero and Indeed, this region’s largely untapped potential represents a rich vein of opportunity. Especially considering the fact that its geology exhibits structural and tectonic similarities to the Great Basin in the western Building a Several-Million-Ounce Gold Resource An upgrading and an accompanying expansion of the deposit’s mineral inventory should not prove too challenging. Especially in light of the stellar results from an earlier round of drilling that catapulted the Company’s share price into a new price band (in the $2.50-$3.00 range) in the spring of this year. This led to a 250%-plus share price appreciation on heavy volume, while also attracting the investment dollars of sophisticated, resource-industry-savvy market participants. We’re talking about the intersection in Hole #19 of 1.65 grams per tonne (g/t) of gold over a thickness of 274 metres. This hole also included intercepts of 74 metres grading 3.17 g/t of gold, as well as 178 metres grading 2.10 g/t of gold. These results offer a resounding testament to the homogeneous and prolific nature of ore-grade gold throughout much of the deposit. The latest phase of drilling consists of at least 20,000 metres, spanning 70-plus holes (of which around 43 holes have already been completed). Much of this involves grid-based in-fill delineation drilling over 50-metre spacings in known gold zones. This is intended to form the basis of a pre-feasibility study (an initial blueprint for a mine). At the same time, expansion drilling at depth and along a lateral plane is also ongoing where the deposit’s mineralization remains “open” (continuous) in several directions. This is aimed at further expanding the parameters of the deposit, particularly in terms of outlining additional near-surface open-pittable resources (where some of the deposit’s better grades are concentrated). On this note, 5,400 metres of step-out drilling has been added to the program to evaluate a new 300-metre long mineralized discovery zone in the northwest sector of the property. Trenching results from this new prospect have returned very encouraging values including 0.98 g/t over 22 metres. As these are comparable results to portions of the deposit that have already been geologically modeled and well-understood, management believes there is a high probability that this new gold zone extends to some depth. All told, this emerging new mineralized discovery zone is believed to have the potential to add as much as a further one million ounces of gold to the Lindero Deposit – thereby bolstering its projected overall size to as much as three million ounces (or more). This is all pure speculation at this juncture. But the latest round of drilling is certainly expected to go a long way towards validating the existence of important new gold resources at Lindero. Setting the Stage for a Lucrative Mine-in-the-Making The bulk of the entire ongoing 20,000-metre-plus drill program is expected to be completed by early summer of next year. Not only will this provide a much better insight into Lindero’s overall size; it will also give Again, this development will allow a future mine operator to initially zero-in on the areas with the highest concentrations of gold (many of which are near surface). This includes some sweet spots where mineralization runs as high as 10 g/t of gold over two metres. All of this provides further evidence that the deposit appears to be very amenable to low-cost, heap leachable processing of open-pittable bulk tonnage ore. This translates into a prospective mining operation that would be among the most cost-effective and inexpensive in These various key logistics paint an especially favourable picture in support of the emergence of an economically viable mining operation at Lindero. To this end, the Company has already initiated an environmental baseline study necessary for the implementation of a full-scale mining operation. The deposit also benefits from the availability of reasonable infrastructure by way of a nearby rail line (within 60 kilometres) and ready access to power and water. There is even a nearby small airstrip. This benchmark/milestone development would in essence facilitate the upgrading of the Lindero Deposit’s mineral inventory from an “inferred” category to a “measured and indicated” status. This means that the drill-delineated measurements are spaced so closely and the geologic character of the mineralization is so well defined by way of size, shape, depth and mineral content that the estimated resource will be very well established. The World’s Largest Mining Company Validates Lindero’s Prospects for Success Since the Lindero Deposit’s initial discovery seven years ago, it has been extensively explored and developed. And much of the credit for proving the existence of a prospectively economic three-million-ounce-plus gold resource is owed to Rio Tinto Mining and Exploration Limited – the world’s largest mining multinational. Realizing the property’s potential in 2002, Rio Tinto struck a deal with A total of ten holes comprising 3,278 metres were drilled. Then Rio Tinto undertook a costly reverse economic study. This included the design of a three-dimensional model of the deposit that provided an early-stage indication of its size and scope. In short, it allowed Rio Tinto to outline an “inferred” resource estimate of approximately 109 million tonnes of 0.57 g/t of gold. (Inferred resources may be supported by approximate estimations deduced from limited drilling). This resource figure includes 29.95 million tones grading 1.08 g/t. All told, this now-outdated resource estimate suggested the presence of a 1,000,036 ounce mineral inventory that is National Instrument 43-101 compliant. It includes a 0.6 g/t cut-off grade (the lowest grade for which mineralization can be economically extracted) which was established at a time when gold prices were significantly lower than current levels. That number may have impressed So Rio Tinto returned the property to the Company in March 2003. But Accordingly, Moreover, the widely disseminated nature of the gold has been demonstrated to be ideal for an optimal recovery rate by way of an inexpensive heap leaching gold extraction methodology. Investment Summary On a corporate note, Moreover, Gordon Leask has presided over the Company for about 12 years, during which time he and his geological team have demonstrated an unwavering commitment to developing top-tier projects in one of the world's last under-explored mineral belts. The Leasks are also joined by Dr. Murray Hitzman, a director and technical advisor, whose distinguished career includes serving as an Advisor to the White House Office of Science and Technology Policy in As an exploration geologist, Dr. Hitzman also played a leading role in the discovery of the Lisheen zinc-lead-silver deposit in From a technical perspective, Such a situation, matched with positive news flow, typically acts a catalyst to significantly higher share price valuations. This is a situation which has already been very well demonstrated earlier this year with the market’s response to a sizzling set of drill results at Lindero. Consequently, the Company’s share price has established a pronounced upwards trend since February of this year. One that is underpinned by strong enough fundamentals to almost assuredly propel Mansfield’s share price to greater heights as the Company’s ongoing drilling sets the stage for the successful completion of a positive pre-feasibility study. Accordingly, SmallCapMedia is confident that Mansfield Minerals is on course to successfully develop a richly-mineralized gold deposit – one that may yet reveal up to three to four million ounces of gold. Hence, it will likely be sold for a handsome profit in the near future, thereby providing patient shareholders with a “home run” return on their investments. Likewise, there are compelling odds in favour of a similar scenario unfolding over the next couple of years at the much larger Needless to say, we will be watching Mansfield’s rising star very closely over the next few months as both deposits promise to keep the Company very much in the investment limelight.
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