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.
