A Review of 2008 and our Strategy for 2009
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Greenstone Belt - The richest in Canada per km²
Exploration & Development of zinc, copper & gold assets in Canada.
Message: Closing of 7.3-million-FT-share private placement
At the end of 2008, the world markets were systematically mauled with a particular ferociousness directed at the resource sector. At the same time, base metal companies across the board lost between 75% and 95% of their value. Here is how Murgor weathered the storm of 2008 and what the future has in store for us.
MURGOR A REVIEW OF 2008:
In 2008, Murgor remained focused on its option properties with HudBay Minerals in the prospective Flin Flon belt of Manitoba and Saskatchewan. Meanwhile, our joint venture partner and operator, Noront Resources advanced its underground exploration program at the high-grade Windfall Gold property in Quebec.
Murgor’s Options with HudBay Minerals:
In 2008, Murgor completed its work commitments at the Hudvam gold-copper-zinc and Wim copper-gold deposits thus securing these assets from HudBay. The emphasis in 2008 was to accelerate exploration and development work at the Hudvam and Wim deposits. On that front Murgor had a very successful year.
Our exploration activities at Wim and Hudvam resulted in an increased mineral resource of 127% in contained gold and 91% in contained copper. Furthermore, 85% and 63% of the respective new resource at the Wim and Hudvam, is now in the Indicated category. This represents a step that is necessary to bring the deposits to feasibility and production.
Metallurgical work on the ore at the Wim and Hudvam deposits was also completed in 2008. The independent study, carried-out using the specifics of HudBay Minerals’ Flin Flon Mill has shown that all metal recoveries are excellent, produce a high quality copper concentrate with high grade copper and gold. The mineralization could therefore be milled at the HudBay facility.
At the Fon property, a thick, mineralized zone was identified sitting from surface to a depth of 150 metres, with grades ranging from 1.4% Zn to 3.6% Zn. The new zone would be amenable to low-cost open-pit mining and an economic evaluation of the new zone is underway.
Murgor’s current, 43-101 compliant resource in the Flin Flon belt stands at an aggregate of 9,123,000 metric tonnes of ore, containing 186,581,000 pounds of copper, 444,469,000 pounds of zinc, 356,000 ounces of gold and 2,990,000 ounces of silver.
The table below shows the total 43-101 compliant resource for Murgor’s Hudvam, Wim and Fon deposits*.
For statement of resources, see Murgor Press Releases: Feb 20, 2007 for Fon, Aug 28, 2008 for Hudvam and Sep 09, 2008 for Wim
*All resources are NI 43-101 compliant.
Windfall JV with Noront Resources
At the Windfall gold JV Property (25% Murgor, 25% Freewest, 50% Noront) in Quebec, our joint venture partner Noront Resources completed 1,119 meters of underground development in 2008. Noront’s objective is to bulk sample around a drill hole intercept of 42.8 oz/t gold over 4.80 meters on Noront claims, within 200 meters of Murgor JV property boundary.
To further test the mineralized zones on Murgor’s JV property, Noront completed 32.5 meters of drifting in our F-11 Gold Zone and 102 meters of drifting in our F-17 Gold Zone. Noront reported muck samples at the F-11 Gold Zone averaging 3.95 g/t gold while muck samples over a 20 meter length of the F-17 Gold Zone averaged 2.34 g/t gold. Due to the free gold nature, the next step is to bulk sample the mineralization to determine the true grades of the visible-gold mineralization at the F-11 & F-17.
MURGOR STRATEGY AND EXPLORATION IN 2009.
In 2009, Murgor will concentrate its efforts on exploration work, with an emphasis on properties where Murgor has a 100% ownership or on projects where joint venture partners can share exploration expenditures.
Furthermore, with gold prices soaring, Murgor is preparing to investigate a number of high priority exploration targets at the Windfall Gold Property in Quebec with its joint venture partners Freewest Resources Canada Inc. Murgor identified several new, high priority exploration targets combining structural and geochemical traps for gold mineralization along the structure where a drill hole intersected 42.8 oz/ton gold over a 4.8 meter interval within 200 meters of Murgor’s southern property boundary.
On Murgor’s 100% owned Wim Extension Gold-Copper Property in Manitoba, a drill program is planned for the fall of 2009 to test five (5) new high-priority VTEM targets were identified in early 2009. VTEM is a helicopter borne electro-magnetic geophysical method that led to the discovery of the Reed Lake copper deposit by VMS Ventures in 2007 in the Flin Flon belt. Two of the new targets identified are located on the same horizon that hosts the Wim deposit mineralization.
At the Hudvam Gold-Copper-Zinc Property in Manitoba, Murgor made a new discovery in 2008 when it intercepted massive sulphides grading 2.43 g/t Au, 1.60% Cu, 1.12% Zn and 19.00 g/t Ag over 3.87 metres. The mineralization is more than 275 meters away from any known mineralization. Our near-term follow-up work at Hudvam will include a drill program to better define the potential new lens.
THE NEW HUDBAY FROM MURGOR’S PERSPECTIVE:
Hudbay is undergoing management change with the re-appointment of its CEO Peter Jones at the helm. Murgor originally signed its agreement with Mr. Jones in 2006. Mr. Jones has repeatedly emphasized the importance of exploration and development in the Flin Flon belt and we look forward to advancing our properties with Hudbay’s renewed interest in the belt.
MURGOR AND THE FINANCIAL CRISIS:
Despite the poor market conditions, Murgor is in an enviable position amongst junior exploration companies of similar size. Murgor has a light share structure with 41 million shares outstanding and started 2009 with $1.4M in the treasury.
Management has taken measures to preserve cash. Murgor has downgraded its least promising and most expensive grassroots exploration projects and is seeking partners to advance the feasibility studies at the Wim and Hudvam deposits. Murgor has also reduced its administrative expenses by closing its Montreal office and by reducing workforce.
The company has no debt and is sufficiently funded to continue its activities until 2010. With Murgor’s advanced copper and gold assets, the company is well positioned to emerge from this economic crisis with the goal of near term production either independently or through a joint partnership.
IN CLOSING
The long-term fundamentals for gold, copper and zinc remain very positive. There are just not enough projects worldwide, advancing to production, to feed the growing demand from countries such as China, India and other BRIC countries.
There is a wave of optimism in the air at the end of this first quarter of 2009. Copper and Zinc prices are staging a comeback while gold prices are holding above the $900 US mark. Meanwhile China has started stockpiling base metals and indicated to the world that it will continue to be a buyer of base metals.
Murgor is in a great position to ride this new wave. Our Hudvam and Wim Gold-Copper deposits are close to existing infrastructure and near surface, which will allow for the fast-track development of the projects with a minimal environmental footprint and low capital expenditures. The Hudvam deposit has a 250-metre ramp that can be quickly rehabilitated. We are also looking forward to rekindling our friendly relationship with Hudbay under their new management.
The Corporation is financially secure, has no debt, has a light share structure and possesses gold-copper-zinc assets in stable, mining friendly jurisdiction.
Each share of Murgor currently represents over 0.25 grams of Gold, 4.5 pounds of copper and 10.8 pounds of zinc in situ. At current low share price, Murgor represents exceptional value. There has probably never been a better time to go long!
Sincerely,
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At the Windfall gold JV Property (25% Murgor, 25% Freewest, 50% Noront) in Quebec, our joint venture partner Noront Resources completed 1,119 meters of underground development in 2008. Noront’s objective is to bulk sample around a drill hole intercept of 42.8 oz/t gold over 4.80 meters on Noront claims, within 200 meters of Murgor JV property boundary.
To further test the mineralized zones on Murgor’s JV property, Noront completed 32.5 meters of drifting in our F-11 Gold Zone and 102 meters of drifting in our F-17 Gold Zone. Noront reported muck samples at the F-11 Gold Zone averaging 3.95 g/t gold while muck samples over a 20 meter length of the F-17 Gold Zone averaged 2.34 g/t gold. Due to the free gold nature, the next step is to bulk sample the mineralization to determine the true grades of the visible-gold mineralization at the F-11 & F-17.
In 2009, Murgor will concentrate its efforts on exploration work, with an emphasis on properties where Murgor has a 100% ownership or on projects where joint venture partners can share exploration expenditures.
Furthermore, with gold prices soaring, Murgor is preparing to investigate a number of high priority exploration targets at the Windfall Gold Property in Quebec with its joint venture partners Freewest Resources Canada Inc. Murgor identified several new, high priority exploration targets combining structural and geochemical traps for gold mineralization along the structure where a drill hole intersected 42.8 oz/ton gold over a 4.8 meter interval within 200 meters of Murgor’s southern property boundary.
On Murgor’s 100% owned Wim Extension Gold-Copper Property in Manitoba, a drill program is planned for the fall of 2009 to test five (5) new high-priority VTEM targets were identified in early 2009. VTEM is a helicopter borne electro-magnetic geophysical method that led to the discovery of the Reed Lake copper deposit by VMS Ventures in 2007 in the Flin Flon belt. Two of the new targets identified are located on the same horizon that hosts the Wim deposit mineralization.
At the Hudvam Gold-Copper-Zinc Property in Manitoba, Murgor made a new discovery in 2008 when it intercepted massive sulphides grading 2.43 g/t Au, 1.60% Cu, 1.12% Zn and 19.00 g/t Ag over 3.87 metres. The mineralization is more than 275 meters away from any known mineralization. Our near-term follow-up work at Hudvam will include a drill program to better define the potential new lens.
THE NEW HUDBAY FROM MURGOR’S PERSPECTIVE:
Hudbay is undergoing management change with the re-appointment of its CEO Peter Jones at the helm. Murgor originally signed its agreement with Mr. Jones in 2006. Mr. Jones has repeatedly emphasized the importance of exploration and development in the Flin Flon belt and we look forward to advancing our properties with Hudbay’s renewed interest in the belt.
MURGOR AND THE FINANCIAL CRISIS:
Despite the poor market conditions, Murgor is in an enviable position amongst junior exploration companies of similar size. Murgor has a light share structure with 41 million shares outstanding and started 2009 with $1.4M in the treasury.
Management has taken measures to preserve cash. Murgor has downgraded its least promising and most expensive grassroots exploration projects and is seeking partners to advance the feasibility studies at the Wim and Hudvam deposits. Murgor has also reduced its administrative expenses by closing its Montreal office and by reducing workforce.
The company has no debt and is sufficiently funded to continue its activities until 2010. With Murgor’s advanced copper and gold assets, the company is well positioned to emerge from this economic crisis with the goal of near term production either independently or through a joint partnership.
IN CLOSING
The long-term fundamentals for gold, copper and zinc remain very positive. There are just not enough projects worldwide, advancing to production, to feed the growing demand from countries such as China, India and other BRIC countries.
There is a wave of optimism in the air at the end of this first quarter of 2009. Copper and Zinc prices are staging a comeback while gold prices are holding above the $900 US mark. Meanwhile China has started stockpiling base metals and indicated to the world that it will continue to be a buyer of base metals.
Murgor is in a great position to ride this new wave. Our Hudvam and Wim Gold-Copper deposits are close to existing infrastructure and near surface, which will allow for the fast-track development of the projects with a minimal environmental footprint and low capital expenditures. The Hudvam deposit has a 250-metre ramp that can be quickly rehabilitated. We are also looking forward to rekindling our friendly relationship with Hudbay under their new management.
The Corporation is financially secure, has no debt, has a light share structure and possesses gold-copper-zinc assets in stable, mining friendly jurisdiction.
Each share of Murgor currently represents over 0.25 grams of Gold, 4.5 pounds of copper and 10.8 pounds of zinc in situ. At current low share price, Murgor represents exceptional value. There has probably never been a better time to go long!
Sincerely,
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