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The gold industry is a speculative endeavor & very capital
intensive.
An incredible amount of drilling & effort must go into proving
a gold deposit before even the first ounce of gold is ever sent
to the refiner. One element to me that
helps to substantiate a property’s value is whether a large major
is involved as a joint venture partner. If I see a noteworthy
major working closely with a junior then I attach a tremendous
amount of significance & validity to the project.
We do this because the majors do not generally waste their time
working with a junior unless that junior represents the potential
of a very significant & profitable deposit. Today the large
intermediate & senior gold companies are in a mad rush to increase
their reserves. When I see a major gold
company with a tight relationship with a junior I breathe
a sigh of relief because I know the majors do not waste their
time nor resources with a project unless the payoff has the potential
to be substantial.
And this is what brings me now to Teryl Resources. Kinross is involved
in a very big way with this small junior. And let me cut right to
the chase on this one. The reasoning behind this being a must own
stock is because of the work Kinross is involved in with this project.
What I like about this gold play is the tight relationship between
a senior gold producer (Kinross) & a small junior (Teryl).
For the uninitiated who is Kinross? Kinross
Gold Corporation is the 4th largest North American based
gold producer with annualized gold production estimated at more
than 1,000,000 ounces. Kinross is a well-financed senior gold producer
with estimated cash costs in the lower quartile of world production.
http://courses.dsu.edu/mcom351_01/web_projects/final_projects/RYDBERG/fkcorp.html
Now let’s look at Teryl Resources.
Teryl Resources (TRC.V)
Teryl Resources has excellent
gold prospects that are nearing production in the
Fairbanks Mining Division, Alaska. The properties are located within
6 miles of the famous Kinross Gold - Fort Knox & True North
deposits. And the Fort Knox Deposit is a major 4 million plus deposit
producing close to half a million gold ounces a year. http://www.kinross.com/op/min/fkx.htm
Teryl's main asset is their
Gil Property joint venture with Kinross in Alaska.
Let’s talk about this relationship between Kinross & Teryl.
The Gil Project is a joint venture between Kinross (80%) and Teryl
Resources (20%) located 12 kilometres east of the Fort Knox open
pit. Exploration is focused on two zones,
the Main Gil and the North Gil. Gold mineralization in the Main
Gil is strata-bound and hosted in strongly altered calc-silicate
horizons. North Gil mineralization is associated with high density
quartz veining within strongly altered felsic schist. The exploration
group is concentrating on step-out and delineation drilling on both
zones. An expansion of metallurgical test work has confirmed good
recovery and grinding characteristics of the ore.
The current resource estimate for
the Gil deposit show approximately 400,000
ounces of gold average grade of 1.37 grams per tonne.
The deposit remains open along strike and there are several targets
to be tested, indicated by strong gold-in-soil anomalies and geophysics.
Kinross expects
ADDITIONAL mineralization will be discovered at Gil
that will become part of the Fort Knox production schedule in the
future.
And what are the expectations of both Teryl
& Kinross?
Teryl Resources & Kinross believes these
properties in Alaska could contain significant
deposits of ore similar to that found at Fort Knox
& True North. These deposits, once defined, could be readily
put into production & processed at Kinross' Fort Knox mill.
Well, we’ve covered very briefly what both
parties are excited about. What else has been said by others about
Teryl Resources "the company"?
The company is already sitting
on several highly developed claims in the Northwest with excellent
gold, silver and diamond prospects, and
is ripe for being acquired by its partner Kinross Gold.
More importantly shares
of this company are being quietly, yet rapidly accumulated by insiders
who see its enormous profit potential with its stock ready to explode.
Teryl has 4 gold properties
in Alaska within 6 miles of Kinross Gold's famous Fort Knox and
True North deposits. Teryl's main asset, the Gil, is made up of
4 sub-properties and is a 20%Teryl - 80%Kinross joint venture that
already contains nearly 11 million tons of drill indicated reserves
grading 0.04 ounces of gold per ton, or 433,000 ounces.
Teryl geologists are confident
that current drill programs could hit new mineralizations with grades
higher than at Fort Knox. Clif Droke 12-12-2002
www.clifdroke.com
I like & respect Cliff Droke’s work. I cut
my teethe on Cliff’s earlier work years ago. Cliff centers most
of his research on technical analysis which studies the chart history
of a stock. While I personally do not believe technical analysis
is perfect it does provide one more tool in the analysis of stocks.
Let’s read another report prepared about Teryl
Resources.
Teryl Resources Corp. (TSX:
TRC.V) -- -- is a gold exploration company that is very close to
making the jump to becoming a gold producer with the help of its
joint venture partner, Kinross Gold Corp.
What Teryl has are some very
promising gold properties
that are adjacent to the producing Fort Knox Mine and will benefit
from existing operational infrastructure roads, power, skilled workers
and an operating mill within 20 miles from Fairbanks. The Fort Knox
is the largest operating gold mine in Alaska and is reported to
contain 4 million ounces of gold.
To date, exploration efforts
on Teryl properties headed by Kinross have yielded significant
gold values and suggest the properties may host the "mother
lode" source of the area's historically rich placer mines.
So far, the partners (Teryl
& Kinross) have defined
a 400,000-ounce gold resource… Drilling on the Gil Properties
continues to produce
encouraging results.
Both Teryl & Kinross…believe
the source of the area's rich placer deposits may be found on either
the Gil or the Fish Creek claims. Historically, the
placer creeks running through the properties have produced some
five million ounces of gold… The
partners are looking for the source of that placer gold. … "We have
three zones now that have economic gold values. If either property
is the source of the gold, it will be a big win for Teryl…
"We have excellent gold properties,"…any
one of the properties could contain significant gold deposits similar
in scale to those at Kinross' Fort Knox and True North. "We are
in an ideal situation for a junior mining company. We have a proven
resource & the support of a major partner… The Bull & Bear
Financial Reporter 2003 Teryl Resources
Let’s look at the last excellent
drilling results of the Gil Property
to show why Kinross is excited about Teryl Resources:
Teryl Resources Corp.
Announces Additional Encouraging Gold Assays Received on Joint Venture
Tuesday January 7, 9:45 am ET
FAIRBANKS, Alaska
- (BUSINESS WIRE) - Jan. 7, 2003 -Teryl Resources Corp. wishes to
announce receipt from our partner Kinross Gold Corporationof additional
encouraging
drilling results
at the Gil
Joint Venture property in the Fairbanks Mining District, Alaska.
- Infill drilling
on the Main Gil deposit area in hole # 02-264 intercepted
220' of economic
mineralization including 80' of 0.06 opt gold.
- Infill drilling
at the North Gil deposit area succeeded in intercepting
SIGNIFICANT GRADES
& thickness
in the southwestern portion of the North Gil resource area where
previous drilling has been limited.
Table 1: Results
from the 2002 Gil JV drilling program. All analytical work done
by ALS Chemex.
Hole / Trench Prospect
From (ft) To (ft) Thick Gold
Gold
(ft)
(Au) (Au)
opt gpt
------------------------------------------------------------
GVC02-262 North
Gil 65 80 15 0.095
3.26
------------------------------------------------------------
and North Gil 200
210 10 0.087
2.98
------------------------------------------------------------
GVC02-263 North
Gil 75 90 15 0.040
1.36
------------------------------------------------------------
and North Gil 375
385 10 0.073
2.49
------------------------------------------------------------
and North Gil 500
525 25 0.072
2.48
------------------------------------------------------------
and North Gil 720
725 5 0.105
3.59
------------------------------------------------------------
and North Gil 920
975 55 0.046
1.56
------------------------------------------------------------
GVC02-264 Main Gil
20 175 155 0.046
1.57
------------------------------------------------------------
including Main
Gil 20 100 80 0.060
2.04
------------------------------------------------------------
and Main Gil 110
175 65 0.035
1.20
------------------------------------------------------------
GVC02-265 Sourdough
Ridge 420 430 10 0.033
1.13
------------------------------------------------------------
GVC02-266 Slippery
Creek 20 40 20 0.078
2.67
------------------------------------------------------------
Teryl Resources
John Robertson
President
(800) 665-4616
ir@terylresources.com
Teryl Resources Website
http://www.terylresources.com/
Oh, by the way! Teryl Resources is a STRONG
supporter of GATA!!!
Summary
The Teryl Resources Gil Property continues to
grow in gold reserves & will only grow in importance to Kinross
as Kinross needs those gold reserves to feed its mill.
Teryl has 24.5 million issued shares. Friday,
1-24-2003, Teryl closed at .35 Canadian with a closing market cap
around 5.5 US million dollars. Of that sum approximately half is
held tight by insiders. That leaves an adjusted market cap of just
under 3 million US dollars for an asset with a 400,000 ounce reserve
estimate that is GROWING.
Just 400,000 ounces at 360 represents 144 million
US dollars. The
question is does Kinross & the market only ascribe a 3 million
US dollar price tag to this property?
I don’t think so.
Teryl Resources remains in my opinion an excellent
addition to a gold investor’s portfolio who is wanting as close
to a sure thing as possible. And with both the reserve growing &
the price of gold stabilizing & growing Teryl Resources share
price should also grow in strength.
A number of geologists who
worked on the Fish Creek claims believe that an intrusive potential
which is similar to the 4,000,000 ounce gold deposit (Fort
Knox mine) may occur on these claims.
Drilling is planned next month.
Remember that Kinross already owns
a significant share of Teryl's gold property & the
word on the street is that Kinross will in all probability EVENTUALLY
buy out Teryl!!!
Teryl Resources (TRC.V)
Do many of you like to fly or have the occasion to fly often because
of the business you’re in? I hate to fly & personally dread
every flight. My philosophy is to travel by ground & stay out
of the air when the opportunity presents itself, but unfortunately
it just never does.
Do you know you cannot get peanuts on a plane anymore? To me this
one fact has taken whatever joy there was when flying. I suppose
the only joy now in flying left to me is when I am in Quebec flying
& listening to the stewardesses speak in French explaining how
to operate your seatbelt.
I do love to fly in those small turbo prop planes that shake &
bounce when they come within a hundred yards of a flock of geese.
Yes, those small little planes are what I consider real flying.
If you ever have the chance to fly in a chartered flight between
Miami & Key West do it! I flew on Eastern when they still existed
in an old DC 10 (WWII leftover) & the pilot flies only a couple
thousand feet over the water in route to the Keyes. Now that was
beautiful & fun! Of course that was in the days when they still
gave you a bag of peanuts.
The following email we received from a geologist in the field:
David:
Yes, you may use
whatever of my e-mail you find useful.
Actually, much of
the work I have done in the past has involved early stage exploration
and I know just how difficult it is…
More to the point
of placing valuations on early stage exploration properties and
companies with such properties, I will say it is an especially
difficult task given the long odds. Placing a valuation on
a public company based on the public information the company has
released is even more difficult.
As an exploration
geologist , the odds I usually hear quoted are of every 2000 prospects
examined, perhaps 200 warrant further work; of those 200
100 deserve to be drill tested, of those 100 prospects drilled,
perhaps 50 host significant mineralization & on 20 a mineral
resource of potentially economic size will be developed; of those
20, 2 will have a large enough resource of high enough grade
with favorable metallurgical characteristics to warrant
being placed into production & of those 2, 1 will be profitable.
Ken Shonk, Geologist
Kenneth N. Shonk
RPG #3098 Wyoming
"I have discovered over the years that the emotions of
hate, anger, jealousy & envy are far, far more powerful than
the emotions that seek out the pursuit of capital gain, prosperity
& wealth," Editor.
What concerns me now is the ever looming picture of a possible
war in the Middle East between the US & the "bad guys".
I have a feeling within the pit of my stomach that the resolution
to this conflict is not going to be the simple won victory &
glory that all of Western Society believes it will be. The press
has already defined a post Saddam Iraq where the US military is
happily securing the Iraqi oil wells & all of this victory achieved
with minimal casualties or loss to the US. I am not un American
nor am I lacking in patriotic fervor but I just am brought to remembrance
of the pages of history & all the civilizations that became
over confidant in their ability to always achieve quick, simple
& easily won victories. The US perceives itself today as
the most dominant power & considers itself invulnerable because
of the might of its military power.
I don’t know. Maybe things will turn out & we’ll soon have
Texaco Service Stations scattered all along the heartland of Iraq
& all Iraqi oil wells will have the US flag flying over head.
Maybe, but I just am not sure.
Getty saw the depression
as a great OPPORTUNITY…
While most other investors & businessmen were cutting back &
running for shelter, (J. Paul) Getty had the
VISION to go against the grain of economic disaster.
It was perhaps his greatest stroke of courage & genius.
… 200 million in assets…
…net profits were nearly 5 million… Tide Water Shares had fallen
some 90% in value & were selling for less than 3 a share. Getty
could not help but notice that all of Tide Water, some 5,790,000
shares of common stock, were worth only 14.5 million.
The above statement sounds like some gold companies
I know of. Editor
"Buy when everyone else
is selling, & hold on until everyone else is buying," was
Getty’s credo, a simple formula few others had the patience or the
nerve to follow. The Great Getty, Robert Lenzner
Special Note:
I have just acquired a copy of the Canadian
Mines Handbook 1981-1982 edition. The president of a gold company
had this specially printed & made available for me. The edition
lists the 5 year low & eventual high that gold mining shares
rose to at the height of the gold bull in 1980.
This information is amazing!!! It
shows the fantastic highs that gold mining shares rose to in the
last major gold bull of the late 1970s. Some gold stocks then rose
as high as 285 times & many, many rose 100 to 150 times!
Let’s see, that means a 5,000 US dollar investment rising 285 times
growing to a sum of 1,425,000 dollars!!!
And this is documented &
proven!!!
I will eventually be making the entire copy
of this data available to all subscribers who subscribe to Gold
Letter Email Update Alerts. What this data CONFIRMS to me is how
important information is for those who seriously want to make money
in the new gold bull. Paying the subscription fee of 149 dollars
just to access this information only is worth the money.
An appreciation of 50 times was met by many,
many gold stocks. Queenston rose from .18 to a high of 8.85 (49
times!!!). Glamis Gold rose from a low of .22 humble cents to a
high of 5.90 (27 times). A
company called Carolin rose from .20 pennies to a high of 57 dollars
(285 times!!!). And this gold company,
Carolin, had ony a 100,000 ounce deposit!!!
FOR THOSE
SERIOUS ABOUT GOLD!!!
When I began my adventure into the gold market I was solely an
outsider. I have never even been to New York City. What I have attempted
to build within this gold market are honest & sincere relationships
with various gold market participants, gold mining company executives,
CEOs, Presidents, Directors & basically anyone who has an insight
into this gold industry & can share relevant information.
In writing an article on just 2 or so gold companies a month I
do not have the opportunity to share much of the additional information
I would like to pass on to those interested in the gold market &
gold mining companies. I make every attempt to follow the
BEST & TOP gold analysts & their research. While
some of the gold analysts are top notch some require a little more
careful discernment before following blindly their recommendations.
It is my intent & purpose to disseminate all of this data &
to develop an objective appraisal of what company to pursue &
whose research to follow. This we shall do & share with our
subscribers.
Subscribe to Gold Letter’s subscription service & we will attempt
to share with you the cream of our analysis as it becomes available.
Also, subscribers to Gold Letter Alert
Service will receive gold company reports BEFORE their
Internet publication. Receive information BEFORE it hits
the streets.
This subscription offer is different from others in that the price
you pay is only a one time charge good for the life of your email
address (or my life).
Check it
out!
http://goldletterdv.com/subscription.htm
NEVER GIVE
UP YOUR DREAMS
David N. Vaughn
Gold Letter, Inc.
David4054@charter.net
January 29, 2003
Exercise your freedom to express your personal opinion by
emailing this writer your feedback & observations.
Author/publisher does NOT
trade stock of the company being followed for 30 days BEFORE & 30
days AFTER an article is published.
It is the author/publisher’s goal of this letter that the reader
may have his or her interest piqued in such a manner that will compel
the individual to do their own further diligent research on the
topic, issue or company discussed herein. All forecasts and recommendations
are based on opinion. Markets change direction with consensus beliefs,
which may change at any time and without notice. The author/publisher
of this publication has taken every precaution to provide the most
accurate information possible. The information & data were obtained
from sources believed to be reliable, but because the information
& data source are beyond the author’s control, no representation
or guarantee is made that it is complete or accurate. The reader
accepts information on the condition that errors or omissions shall
not be made the basis for any claim, demand or cause for action.
Because of the ever-changing nature of information & statistics
the author/publisher strongly encourages the reader to communicate
directly with the company and/or with their personal investment
advisor to obtain up to date information. Past results are not necessarily
indicative of future results. Any statements non-factual in nature
constitute only current opinions, which are subject to change. The
author/publisher may or may not have a position in the securities
and/or options relating thereto, & may make purchases and/or
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the open market or otherwise. Any compensation that may be received
goes toward the rights to reprint, publish & distribute write
up. Authors of articles or special reports contained herein may
have been compensated for their services in preparing such articles.
Neither the information, nor opinions expressed, shall be construed
as a solicitation to buy or sell any stock, futures or options contract
mentioned herein. The author/publisher of this letter is not a qualified
financial advisor & is not acting as such in this publication.
Gold Letter, Inc. is not a registered financial advisory. Subscribers
should not view this publication as offering personalized legal,
tax, accounting or investment related advice. Investors are advised
to obtain the advice of a qualified financial & investment advisor
before entering any financial transaction.
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