Crescent Resources (CRC-TSX-V $.21 ) is an early stage exploration company and they have now become a second player in the emerging Rattlesnake Hills Gold District in Wyoming. Crescent announced (I participated in the private placement) that they have concluded the deal on their Rattlesnake Hills Project, a highly prospective gold project that has tremendous upside potential. The property is adjacent to another company that I like – Evolving Gold - and I believe that they have potentially found a very large gold deposit in Wyoming.
Since late in 2008, Evolving Gold has been drilling their property and reported some spectacular high grade intercepts, but more importantly, very long lower grade intercepts where they should be able to build a large gold resource. These results have driven their share price and market cap. But there still appears room for movement as they’re currently drilling with 6 drill rigs and this should create a steady flow of drill results that should likely be reported between now and well into 2010.
Crescent Highlights:
- Acquisition of key claims (4,000 acres) adjacent to and in same geological environment as Evolving Gold’s Rattlesnake Hill’s property.
- Neighbor Evolving gold has made major gold discovery on their property and has reported areas of high grade gold (10.8 grams per tonne over 67.1 meters) within a much larger envelope containing broad areas of lower grade material.
- Many geological features including phonolite intrusions and breccia diatremesare found on Crescent’s land position, which are considered to be the focus of local gold mineralization at Rattlesnake Hills.
- Strong geological comparisons between Rattlesnake Hills and Cripple Creek Gold District in Colorado where over 25 million ounces have been mined over the years.
- Evolving Gold is current drilling with 6 drills. Crescent beginning ground work.
The Rattlesnake Hills gold mineralization appear to be an alkalic gold system and similar to the Cripple Creek Gold District in Colorado where over 25 million ounces have been mined to date. There is a string of other similar deposits through a belt going from Montana, Wyoming, Colorado, and New Mexico, which include the Zortman-Lundusky and Ortiz gold mines.
Crescent can now be considered a significant player in the Rattlesnake Hills as their 4000 acre property is located right next door and in the same geological system as Evolving Gold’s property.
Crescent’s exploration work has now started with the objective of finding drill targets as quickly as possible. The initial field work should consist of ground geological work and geophysics. They have staked additional claims and details of which should be forthcoming.
Management
I am a firm believer in following the flow of people, and the Crescent management team have had key roles in the past (and present) of exploration, discovery, and development of several well known companies that have gone from early stage exploration through to become developing mines. Michael Hopley, President and CEO, has proved himself with companies such as Bema Gold, Sunridge Gold, and Tournigan Gold. Earlier in his career, Mike held the position of exploration manager for Gold Fields at Cripple Creek, which is a very similar geological environment to Rattlesnake Hills. Also in the management team are Don Halliday, Executive Vice President and Greg Davis, VP Business Development who have been involved in Bema Gold, Nevsun Resources, Crosshair Exploration, and Sunridge Gold.
The share structure in Crescent is favorable as there are currently only 30.6 million shares outstanding and there will be less than 40 million after the company closes the current private placement financing.
What to Expect?
From now until well into 2010 we can expect to see drill results from Evolving Gold. Now that the definitive agreement is complete, Crescent can fully begin field work on its’ property and can begin to generate news of their own. Crescent offers a chance to get in early on a highly promising gold district with tremendous upside potential.
Please note I presently own a very large equity position in CRC in addition to the compensation received.
i havnt bought any yet but this sounds eerily similar to a nevsun/sunridge play. same idea where one is smaller and up coming. same management. just a different safer location. i think i might have to scrounge up some cash.
Ryan – While I own a ton of shares and they’re a client, please be fully aware this is especially high-risk/high-reward. What I’m speculating/gambling on is Evolving Gold continuing to drill up at least 3-5 million ounces of gold, by doing so they attract a ever-increasing larger following, causing players to look at who else is in the area. In addition, we of course have high hopes CRC can have good fortune on the drill bit in 2010. CRC will have to do at least another financing. I don’t like to give buy and sells on clients but I would limit purchases now to under $.30 unless EVG takes off on new great drill results.
KMK info – Most of you already know about the info in the first paragraph below but thought the 2nd paragraph might contain additional info for those interested. Also, THANKS PETER, for responding to Ryan and providing additional info to your readers.
“Zijin Mining (2899 HK – HK$7.61) announced to subscribe for 21.1m shares (or 12.80% of enlarged total share capital) of Continental Minerals (KMK CN – CAD1.15) with a consideration of CAD22.6m (~CAD1.07/share). Continental Minerals’ principal resources are located in Xietongmen, Tibet Autonomous Region, China. Xietongmen deposit has gold resources of 4.31m oz and copper resources of 2,092m lbs, while Newtongmen deposit has indicated gold resources of 2.30m oz and copper resources of 2,770m lbs. Compared with Zijin’s current gold resources of 704.3 tonnes (~22.6m oz) and copper resources of 9.67m tonnes (~21,319m lbs), the acquired equity interest (12.80%) represented 3.7% of current gold resources and 2.9% of current copper resources.
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China now hopes that Shetongmon will be a model for future mining projects in the TAR, thus encouraging more foreign investment. Already it has offered substantial incentives to Continental, including the agreement to pay for, and build, the railroad lines between Shetongmon and the nearest smelter in Gansu Province, as well as providing hydropower to the copper concentrator. The Chinese authorities say they will also accept just half the advertised freight rate for the copper concentrate which Continental will send to the smelter, and will exempt Continental from paying any kind of tax to Beijing during its more profitable early years of operation.*”
* ‘The Campaign to “Open Up the West”:National, Provincial-level and Local Perspectives’, David S.G. Goodman, China Quarterly,Volume 178, June 2004, pp 317–334
Susan You’re the salt of the earth. I may live to eat these words but I will personally be shocked if KMK is still around as a public company much longer. You’ve uncovered some important information that combined with other factors regarding this play and why a Chinese company needs these deposits badly should make my expectations turn into reality. I can tell you management has gone to China for several reasons, all of which I believe are very positive for shareholders. Stay Tuned!
thank you for your response peter. very much appreciated and susan great article again. its people like both of u that are the reason i have started reading and posting in this blog and learning many things along the way.
best regards,
Ryan
But will you love me in the morning Ryan-LOL
well if not i will see u in Vancouver and tell u about it lol
“…I would limit purchases now to under $.30 unless EVG takes off on new great drill results.”
That’s the caveat for sure – and it looks as though EVG is trading a little heavier today with a nice move to the upside. “New great drill results” may be in the cards here.
Cheers.
Michael Pento CNBC video – remember guys/gals how Peter said he was in line with the approach taken at times by Michael Pento? Well take a look at this video and see how the CNBC commentator cuts Michael off when he says what they don’t want to hear……then look at Michael’s face.
http://www.cnbc.com/id/15840232?video=1293423532&play=1
Good one Susan, you amost have to feel sorry for anyone who has a idea of what is going on.
Gary…thanks…..I feel sorry for myself too as so many of my friends go through life oblivious to the tempest we now find ourselves in! (lol – but not really) Anyhow, I hit a low point in January and since then just try to do the best I can to muddle through knowing that in the end, hope springs eternal. This blog helps me alot and hope it does that for you as well.
AAUK/XSTRATA merger a no go – Ok bloggers, here’s an interesting question. Unfortunately I missed the cut off time for Peter/George’s show so I’m posting it here. So does anyone see any impact on NAK positive or negative given yesterday’s news that Xstrata dropped its bid for Anglo American? Remember that AAUK holds a large position in NAK?NDM. Will this free them up to focus more on NAK – thoughts anyone?
bnn vid on nsu go to 4.55 min in…nice comment
http://watch.bnn.ca/clip224429#clip224428
Susan thanks for the KMK post…really does re-inforce the fact KMK is still a bargain even at $1.40.