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To acquire high potential mineral and oil &
gas properties |
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To enhance shareholder and property value by
conducting exploration programs |
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Share risk through joint venture partners |
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Gold: |
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Widow Point, Nova Scotia |
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2.
TAGISH 025 Gold Silver Project, BC |
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BASE
METALS: |
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Haskins Mountain, BC molybdenum, silver, lead, zinc, tin,
bismuth |
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The company has an option to gain a 100%
interest on the Widow Point gold deposit in Nova Scotia |
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The deposit is shale-hosted, similar to the
world famous Bendigo-Ballrat district of Australia, which has produced over
10 million oz’s of gold |
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Grades up to 15 oz/t Gold |
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A wide spaced drill program carried out in the
mid 1980’s hit a multitude of high grade gold intersections |
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In-fill and step out drilling of 1800m is
planned for 2005 |
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High Degree of Cross Faulting |
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Well Folded Strata |
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Multi-phase Felsic Plutons |
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Au, Ag, As, Sb and Te Association |
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Bonanza Style Epithermial Gold-Silver |
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Sediment Hosted Gold |
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The company has acquired an option on the
diamond property near Hinton, Alberta |
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It adjoins a property where 26 diamonds have
been discovered |
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The company plans to explore this ground in the
near future |
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Molybdenum, silver, lead and zinc |
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Inferred resources of 726,000 tons 5% zinc, 2%
lead and 1 oz silver per ton |
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Drill Indicated resource of 13,482,000 tons of
molybdenum grading 0.09% |
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Over the last two years, molybdenum has climbed
from $3.50 per pound to over $34 per pound |
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Our maximum offering is $325,000 |
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Our offering memorandum is offering two types of
investments |
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“A” and
“B” units |
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500 000 “A” units at a price of 20¢ per unit |
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“A”
units consist of one non-flow through share at 20¢ and one warrant at 40¢
per share exercised by the earlier of 2 years after the date of issue or 1
year after the date the corporation becomes a reporting issuer |
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minimum investment for “A” units is $300 (1 500
shares) |
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500 000 “B” units at a price of 45¢ per unit |
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“B”
units consist of one flow through share (25¢), one non-flow through share
(20¢) and one warrant at 40¢ per share exercised by the earlier of 2 years
after the date of issue or 1 year after the date the corporation becomes a
reporting issuer |
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minimum investment for “B” units is $2 250 (10
000 shares) |
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What are they? |
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A little bit of math |
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What advantages do they offer? |
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What are the disadvantages? |
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Special shares issued by oil and gas and mining
exploration companies |
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Tax shelter with special tax incentives |
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A way for the federal government to encourage
resource exploration and development on properties in Canada |
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Canadian exploration expenses are fully
deductible from your income |
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Capital gains are taxed at 50% of your marginal
tax rate |
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If you’re in the 50% tax bracket, your marginal
tax rate on these proceeds would be 50% x 50% = 25% |
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Taxes – immediate deduction and long term
deferral |
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Share prices are linked to commodity prices, and
may hedge against inflation |
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When the stocks do well, there is a very high
return |
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If you pay $10,000 or more in income tax |
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By diversifying your portfolio with exposure to
the junior mining sector |
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Flow through dollars raised are put into the
ground, not into administrative costs |
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Offers a substantial reduction in the actual
cost of shares purchased |
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Stock prices of all companies, not just juniors,
are very volatile anyway because of the ups and downs of energy and mineral
prices |
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These shares are generally issued at a higher
price than the company’s regular shares, this reflects the tax benefits |
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4.3% - Percentage of G.D.P. contributed by
mining |
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350,000 - People employed in mining and mineral
processing |
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15.2% - Percentage of total exports provided by
minerals and mineral processing |
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80% - Percentage of mineral and metal production
exported |
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2nd – World rank of Canada in
exploration investments |
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115 – Number of Canadian communities for which
mining is the major source of economic activity |
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19% - Percentage of stocks traded on the TSE
that are issued by mining companies |
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We are in the early stage of one of the great
market Runs, fortunes are going to be made on this one. |
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“Mass fear caused by an event such as a
terrorist attack could drive the gold price over $1,000/oz.” |
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“The big money will be made by people who invest
in mid-tier and small-capitalization gold stocks.” |
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- Jim
Dines, gold analyst, publisher of The Dines Letter, and often called the
original gold bug. |
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- Ian Gordon, one of the largest individual
financiers of junior mining exploration in North America |
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Notes