Hard rock assets special delivery

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In the May 7, 2012 edition of Hard Rock Assets - Special Delivery, Eric Coffin discusses the most recent results from Prosperity Goldfields' spring program at the Kiyuk Lake gold project in Nunavut.

"While the geological model for Kiyuk is still something of a mystery, the important takeaway from this release (Prosperity Goldfields News Release, May 6, 2012) is that the zone that produced the best intercept last year clearly has some legs. Of potentially equal importance, Prosperity Goldfields has established a spatial relationship between gold grades and magnetic accessory minerals."

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Hard rock assets special delivery

  1. 1. Reprinted with Permission from: HRA - Special Delivery #483 – 7 May 2012Prosperity Goldfields (PPG-V; off 5 cents on 187k shares at $0.59) just released the first drill resultsfrom its spring program at the Kiyuk Lake gold project in Nunavut. PPG battled some pretty awful weatherconditions to complete a 12 hole drill program before spring break up. Fuel is in for a summer program thatcan begin once the melt is over and things dry out. Prosperity tested several targets during this phase,notably the Rusty target where a single hole last year encountered 157 metres grading 1.7 g/t. It was animpressive hole but, as we noted in our January review, one hole doesn’t tell you very much about thegeometry of the zone and more holes would be required to gauge the dip and true thickness of Rusty.The first three holes of the 2012 program were drilled at Rusty and all encountered multiple gold intercepts.While there are still not enough intercepts on single section to have a firm handle on the geometry of thezone it’s clear that last year’s hole was not a one shot wonder. Hole 12-01, drilled with a 50 degreeeastward dip to cross the plane of last year’s hole produced seven separate intercepts including 23metres grading 1.5 g/t, 10.5 metres grading 3.87 g/t, 10.5 metres grading 4.56 g/t and 8.9 metresgrading 5.6 g/t gold. With two holes only on this section it’s still difficult to interpret the true dip and hencetrue width but the overall zone looks like it’s over 50 metres thick with a couple of sections of internal wasteand this does not include the strong outlying intercepts. More impressive still was Hole 12-03, a step outof nearly 200 metres to the south of Hole 1 that returned intercepts of 19.5 metres grading 3.49 g/tand 10.5 metres grading 7.17 g/t and 61.5 metres grading 3.34 g/t gold. Hole 3, slightly south of holetwo, was the weakest of the set but not really weak with several intercepts including 9 metres grading 5.4 g/tand 18 metres grading 3.47, a hole most explorers would have been happy to have on its own.While the geological model for Kiyuk is still something of a mystery, the important takeaway from this releaseis that the zone that produced the best intercept last year clearly has some legs. Of potentially equalimportance, PPG has established a spatial relationship between gold grades and magnetic accessoryminerals. This could be an important development that could improve targeting substantially which is whythe next phase of work will have both airborne and ground magnetic surveys at its start. The markets lookedpretty scary before the opening which probably held many people back from bidding on this news. Theremay have been some that hoped for another 150 metre intercept. That would have been nice, but if youlook at the cumulative grade times thickness (a measure I don’t like personally but which many others use)for Hole 3 you get a total of 349, as compared to the grade times thickness for last year’s Hole 1 of 267. Inshort, the strong gold content has been replicated and Rusty, only one of several known zones, has beenshown to have a strike of at least 200 metres and a thickness of 50 metres or more at good grade. This isthe kind of zone that can build real tonnage and there are still 9 holes from other areas on the way beforethe next phase of work starts. The market is not paying up for PPG today but I think it will later. This looksgood enough to move PPG to a Strong Spec Buy rating in this price range.http://www.prosperitygoldfields.com Regards for now – Eric CoffinHRA - Special Delivery is an independent publication produced and distributed by Stockwork Consulting Ltd, which is committed toproviding timely and factual analysis of junior mining and other venture capital companies. Companies are chosen on the basis of aspeculative potential for significant upside gains resulting from asset-base expansion. These are generally high-risk securities, andopinions contained herein are time and market sensitive. No statement or expression of opinion, or any other matter herein, directlyor indirectly, is an offer, solicitation or recommendation to buy or sell any securities mentioned. While we believe all sources ofinformation to be factual and reliable we in no way represent or guarantee the accuracy thereof, nor of the statements made herein.We do not receive or request compensation in any form in order to feature companies in this publication. We may, or may not, ownsecurities and/or warrants to acquire securities of the companies mentioned herein This document is protected by the copyright lawsof Canada and the U.S. and may not be reproduced in any form for other than personal use without the prior written consent of thepublisher. This document may be quoted, in context, provided proper credit is given. Published by Stockwork Consulting Ltd. Box 85909, Phoenix AZ, 85071. hra@publishers-mgmt.com http://www.hraadvisory.com/contact.html Subscriptions/Customer Service 1-877-528-3958

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