Welcome To The SLAM Exploration HUB On AGORACOM
Gold and Base Metal Projects (Ontario and New Brunswick)
Message: eResearch Report 4/6/11
SLAM EXPLORATION LTD. TSX-V: SXL Price (April 6):
$0.16
52-Week Range:
$0.265-$0.05
Shares Outstanding:
129.5 million
Market Cap:
$20.72 million
Recommendation:
Speculative Buy (No Change)
12-Month Target Price:
$0.33 (No Change)
PROFILE:
Exploration and development company, active in Ontario and New Brunswick.
Source: www.bigcharts.com
ASSAY RESULTS AT NASH CREEK IN NEW BRUNSWICK
SLAM Exploration Ltd. has published assay results from a January 2011 drilling program at the Company’s wholly owned
Nash Creek project in New Brunswick. The Nash Creek drilling program consisted of one deep hole (NC11-220) for a total of 583 metres.
The Company reported a 145.5-metre interval grading 16.90 g/t silver (Ag) and 3.9% lead-zinc (Pb-Zn), starting at a depth of 144 metres. Individual samples ranged up to 90.00 g/t Ag and 15.5% Pb-Zn over 1.5 metres, with these being included in a 309-metre core interval from 117 metres to 426 metres grading 12.71 g/t Ag and 2.3% Pb-Zn.
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This broad zone also includes a 17.1-metre interval, from 252.0 metres to 269.1 metres, grading 21.54 g/t Ag and 4.58% Pb-Zn beneath the Nash Creek deposit. COMMENT The zone is open at depth and along strike, and shows significant potential for an increase in tonnage.
Highlights of the assay results are shown in the table below: Highlights of Nash Creek Assay Results DMS Results Awaited
SLAM is also awaiting results from Dense Media Separation (DMS) tests on core samples. The tests may show whether the Nash Creek ore can be upgraded with a DMS process before milling. At production, the process would increase the grade being milled.
Further details on the Nash Creek drilling are contained in SLAM’s April 5, 2011 news release, available on SEDAR at www.sedar.com.
COMMENT:
While the grade results from this most recent set of Nash Creek property drilling results are roughly in line with those reported in the Company's NI 43-101 technical report on the property, they nevertheless support thev iew that Nash Creek has the potential to be a much larger deposit than the 9 million tonnes of Indicated and Inferred Resource reported in the NI 43-101.
Earlier drilling results at the adjacent Silverjack property (see the Company’s March 25, 2011 News Release) revealed comparable zinc, but significantly higher lead and silver grades. The combined ore tonnage of both properties could exceed 20 million tonnes. This would make it larger than the 18 million tonnes (Indicated and Inferred) at the nearby Halfmile/Stratmat deposit controlled by Kria Resources, but with roughly half the Pb-Zn grade. On March 31, 2011,
Kria announced that it is subject to an acquisition offer by Trevali Resources.
This development is indicative of the potential for further acquisitions in the Pb-Zn space, owing to rising global demand. The testing that is now underway, to determine whether mill recovery rates can be improved for Nash Creek, also has the potential to further improve the perceived value of the resource.
SLAM Exploration Ltd. is a Canadian mineral exploration and development company with properties in two miningfriendly jurisdictions: (a) Ontario (gold); and (b) New Brunswick (zinc-lead-silver). The Company’s activities include acquiring mineral properties for its own account, and conducting exploration
For further information on SLAM Exploration Ltd., see series of publications
from June 3, 2010 to March 4, 2011. All of these reports are available at:
. THE COMPANY
RECENT SHARE PRICE ACTION
In line with many junior mining exploration companies, after recording significant price appreciation throughout 2010, the shares of SLAM Exploration have been in a downward funk through most of 2011 to date. However, the encouraging results from Nash Creek seemed to spark renewed investor interest as the stock rose 23% yesterday (April 5) on above-average volume. The shares look ready to begin a recovery, and additional positive news like this could be the catalyst to even higher prices. RECOMMENDATION
We continue to recommend the shares of SLAM Exploration Ltd. as a Speculative Buy for long-term, risk-toleranti nvestors. Our 12-month Target Price, set at the time of our May 28, 2010 Initiating Report, remains $0.33 per share.
Last year, the stock hit a high of $0.26
eResearch Analysts:
Eugene Bukoveczky, MBA, CFA, and Bob Weir, B.Sc., B.Comm, CFA
Analyst Affirmation: I, Eugene Bukoveczky, and I, Bob Weir, hereby state that, at the time of issuance of this research report, I do not own, directly or indirectly, any shares of SLAM Exploration Ltd
eResearch Corporation
eResearch was established in 2000 as Canada's first equity issuer-sponsored research organization. Our variousr esearch packages allow corporate management to choose the form of research coverage that best meets their company’s nee
ds.We are a primary source for professional investment research, focused primarily on small- and mid-cap companies. Our research and analysis is of institutional quality, and has the potential to reach millions of global investors through our extensive electronic distribution network.
NOTE:
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institutions or other third parties. The purpose of this policy is to defray the cost of researching small and medium capitalization stocks which otherwise receive little or no research coverage. SLAM Exploration Ltd. paid eResearch a fee of $15,000 + GST to conduct research on the Company on an Annual Continual Basis. To ensure complete independence and editorial control over its research, eResearch follows certain business practices and compliance procedures. Fees from Covered Companies are due and payable prior to the commencement of research. In keeping with the policies of eResearch concerning its strict independence, all of the opinions expressed in this report, including any determination of a 12-month Target Price or selection of a Recommendation (Buy-Hold-Sell) for the Company’s shares, are strictly
those of eResearch, and are free from any influence or interference from any person or persons at the Company
1 Recommendations
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