Redcliffe Gold Project Update Released to the ASX on 7th. August
“The drilling which consisted of 22 holes has confirmed the existence of substantial gold mineralisation.”
Comment:
From just an initial 22 holes there was an amazing strike rate with 11 intersections of 10 metres or greater including 34m @ 3.83g/t, 24m @ 12.04 g/t and 21m @ 3.38 g/t.
“The Golden Terrace South prospect occurs on the Mertondale Shear Zone and forms part of Pacrim Energy’s Redcliffe Gold Project. The prospect is one of numerous targets on the 885 square kilometre Redcliffe Gold Project.”
Comment:
Located right next to NAV which looks well on the way to proving up a great multi million ounce resource, (already nearly a million ounces) in the same underexplored Mertondale Shear Zone, PRE looks to be an early stage NAV with possibly even greater gold upside potential!
On p3 of PRE's June quarterly there is a map showing PRE's leases and those of NAV. The pink are PRE’s leases. The green are NAV’s. Check it out and you will then realise why PRE has so much exploration upside potential.
"Work by previous explorers has focused on ... mineralisation exploitable by shallow open pits. In addition to seeking near surface gold deposits, Pacrim’s exploration philosophy for the area is based on the potential for the grades of the extensive gold mineralised systems to increase significantly at depth in association with sulphides. Further support for this has been afforded by Pacrim’s positive exploration results and those of a neighbouring explorer."
Comment: PRE is an early stage NAV with vast underexploraed acreage. NAV has described their exploration results as a "1980's story." The early results from PRE are just as positive.
For those who look at charts technically PRE looks set to go ...
After a significant downtrend, PRE entered a basing consolidation from June last year to April this year briefly touching 1.5c and meeting resistance at 2.5c.
In April this year PRE decisively broke above 2.5c and hit a high of 4.5c. at the end of May. In the recent severe market correction PRE hit a low of 2.1c on the 16th. August, but importantly closed at 2.7c.
The 2.5c level has been been tested since, and held firm. So 2.5c. which had acted as resistance has now become support.
In addition MACD has now become bullish.
PRE looks close to a significant break to the upside (possibly on the release of more exciting drilling results or with another move up in gold.)
Summary:
1. Huge exploration upside ... Early drilling results for an exploration campaign that only started in April are exceptional.
2. PRE is well funded at this stage with several million dollars in cash and raising additional cash from their energy interests.
3. Based on what NAV is doing combined with the great results already released by PRE we could well be looking down the track at a multi million ounces resources story.
4. The shares are only around 3c, meaning they will be very attractive to investors looking for “cheap” gold plays. Can you imagine PRE shares being anywhere near these levels with gold at even just US$750?
5. The PRE chart looks outstanding.
6. Importantly, despite the Dow getting smashed on Friday night gold shares performed overseas and did well in Australia. Some investors are clearly starting to get the message. With a strong gold price the flight to quality is by investing in gold and gold shares, NOT paper issued by the US government. Gold is currently $705.00.
7. I have not looked at PRE's other goodies here, such as its joint venture with Gold Fields!
