First Narrows Sept 07


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First Narrows Sept 07

  1. 1. A Junior with Near Term Production & Exploration Potential for Multiple “Home-Runs” By Doug Beiers – The Simple Investor Ltd. September 25, 2007 First Narrows has: - two near-term production projects, in Mexico and Canada - multiple exploration programs that have the appearance of tremendous, perhaps “home-run” potential - lab results pending for drill core on 2 separate properties that have us shareholders on the edge of our seats in anticipation - a steady flow of news for the foreseeable future. I am not aware of another junior with so many positives that is flying below the radar of newsletter writers, and most investors. First Narrows – UNO.V Chester Project – New Brunswick, Canada Copper/Zinc/Lead and Byproduct Metals Rapidly Progressing towards a Production Decision The 100% owned Chester project in New Brunswick has a near surface high-grade copper polymetallic feeder zone adjoining a rich zinc/lead VMS zone. A typical grade and width of the copper would be 1.5 to 6% copper over 5 to 20+ metres. Lab results from a drill hole on the adjacent zinc/lead zone announced on August 30 ‘07 showed combined lead/zinc grades exceeding 10% over 10 metres (+$300/t rock based on Friday September 21/07 spot prices). Core photos and associated results can be viewed here. The Chester feeder zone is an east-west trending mineralized structure >800 meters in length, which lies close to surface at the east end and plunges to 400 meters below surface at the known western extent. The eastern portion of the feeder zone is currently being drilled off to 43-101 standards with drill hole spacings of 12.5 – 25 metres. Once the “initial” 43-101 mineral resource estimate is completed (mid-fall) the feasibility study is expected
  2. 2. First Narrows cont’d. 2 to commence. If the study is positive (due approximately May 2008) this will be followed by a Mining Plan and the acquisition and placement of mining infrastructure. From the June 30/07 MD&A… ”The completion of the initial Feeder Deposit resource estimate, coupled with favourable results from the final metallurgical and environmental programs, will enable the Company to realize its objective of a mining and milling operation at Chester. The ability to internally generate working capital from operations at Chester will offset the Company’s dependence on equity financings to provide future working capital.” The Company also owns the surrounding 289 claims that Teck Cominco has 60% back-in rights to, or a 1.5% NSR royalty. The Company has been favored with a string of recent upside surprises. They were doing condemnation drilling (2 drill holes) on a possible site to locate mine/mill infrastructure for their anticipated future copper/zinc/lead Chester Mine. They are now looking for a different location as they announced this on July 6 ’07 (emphasis mine)… ”Both holes intersected disseminated red sphalerite and galena beneath the western extent of the soil geochemical anomaly from surface to a depth of up to 150 meters. This suggests the sulphide zone is thick and flat to gently inclined, and would therefore be amenable to open pit mining methods. Sampling and assaying are pending.” Not being a geologist I did a bit of research. It seems that galena is the natural mineral form of lead sulfide and is the most important lead ore mineral. Galena deposits often contain significant amounts of silver (source). I am told that red sphalerite indicates the presence of zinc and iron, with zinc dominating. Emphasis mine… “The Company plans to conduct follow-up IP geophysical and soil geochemical surveys, followed by drilling, to fully delineate the extent of the new discovery. Although the size and grade of the discovery are not presently known, the magnitude of the Ag-Zn-Pb-Cu soil geochemical anomaly (>600 meters by >400 meters), coupled with the Company’s early drill hole and analytical results, suggest the resource potential may be very large.” As bullish as the above statements appear, lab results are the “truth machine” so all we can do for now is wait. The Company is researching alternative locations for the mine infrastructure. September 14/07 the company announced the awarding of a contract to enter a historical 470 meter decline that is expected to be used to access the high grade Feeder Deposit…
  3. 3. First Narrows cont’d. 3 “First Narrows … is pleased to report that the Company has awarded Chaleur Shotcrete Inc., of Bathurst, New Brunswick, for the Stage I underground program at the Chester Feeder Deposit. Re-entry of the decline will commence during the last week in September, and will involve water quality sampling, surveying and an engineering- geological inspection. The decline, a gently inclined 3-meter by 5-meter (10 ft. x 16.5 ft.) diameter tunnel driven 470 meters (1,542 ft.) into the Feeder Deposit by a previous operator in 1974-75, will be used to provide immediate access to a near surface portion of the Feeder Deposit.” The decline mentioned above will reduce the time to reach the copper mineralization by 4-6 months and save the Company several million dollars. Byproduct metals include: Silver, bismuth, cobalt, gold and indium. Metallurgy studies have not yet been done to determine the value that byproduct metals will contribute to future anticipated earnings. The Company expects to have the metallurgy studies completed before Christmas. Susana D’Oro: Gold/Copper – Sonora District, Mexico On the Fast-Track to Small Scale Production I have been following First Narrows for over one year now and building my share position since November 2006. In April this year I had the opportunity to visit their Mexico property and it was a most reassuring trip. It gave me the opportunity to get to know several of the people involved and see the properties first-hand. The overview to me from this trip is that there is an obvious history of very active small scale mining in and around the property, but it seems that this area has not received any attention for the past 40 - 50 years. I think First Narrows has found a “diamond in the rough”. The Susana D’Oro property is a high grade gold/copper past producer (small scale) with (historical) veins including: - 144 ft. of 11gpt Au & 7.5% Cu over 5 ft.; - 245 ft. of 8gpt Au & 4.5% Cu over 4.8 ft.; - 58 ft. of 26gpt Au & .5% Cu over 5.3 ft. Approximately 4-6,000 tonnes of old tailings from past production “waste” dumps are likely rich enough to profitably truck to the future planned production facility. Grades from the old tailings average 2-4 gpt gold and 1-2% copper. The next steps for Susana will likely be underground drilling in the old workings to the flooded level, where the drill will be able to access its water. The original 433 acre property was expanded by 2,717 acres in March ’07 to include…
  4. 4. First Narrows cont’d. 4 “A gold mineralized breccia system <that> occurs proximal to the historical underground workings, and unsourced eluvial and placer gold occurrences <which> are widespread on the property.” This additional property would appear to be extremely prospective as the company has hand-panned a substantial amount of gold from a hillside as announced August 29 ’07 (emphasis mine)… “A total of 298 grains of gold have been recovered from the eluvium to date from < 0.34 cubic meters of eluvium. The continued recovery of large leaf-like gold grains strongly suggests the nearby presence of a significant bedrock gold zone. Outcrop occurs approximately 0.3 to 0.7 meters (1 to 2.3 ft.) below the eluvium and angular chips and fist-size boulders of weathered rusty granodiorite, quartzite, magnetite, and quartz are present in the eluvial material.” I visited the property at the end of April and personally bagged 2 x 2kg bags from the hillside. Of a total of 5 bags we collected that day, 4 contained visible gold when panned back at the office. The Susana D’Oro project area which includes “Lupita” is easily accessed with relatively flat topography mixed with low lying mountains and hills. Road access is quite good with access rights secured and power nearby. “Tecoripa West” Property Acquired On August 14, 2007 First Narrows announced 24,205 acres were staked after study of an ASTER satellite image. The discovered anomaly is “a discrete, Fe-Oxide-silica-clay mineral alteration anomaly” over more than 4km long.
  5. 5. First Narrows cont’d. 5 “The Property covers a larger Fe-Oxide–silica bloom that extends kms beyond the anomaly on an alluvial and colluvial plain where outcrop is scarce. Nevertheless, colluvial remnants of bedrock occur randomly across the plain providing the opportunity to prospect, map and sample various mineralizing events.” Tecoripa West is 15 miles from Susana D’Oro and is intersected by paved highway. “Tecoripa East” Property Acquired News on August 21/07 announced the company acquired a large block of land (44,906 acres) approximately 12 miles from Susana D’Oro, the “Tecoripa East” property which adjoins the 24,205 acre “Tecoripa West” staked on August 14/07. This is a gold mineralized Porphyry… ”Crushing and panning confirms the presence of fine free gold in the porphyry”. - and - “The Company has commenced mapping, prospecting, and trenching of the area surrounding the discovery outcrop where an extensive iron-oxide color bloom is present over more than 100 hectares (247 acres), coinciding with an iron-oxide--silica--smectite- -montmorillonite--pyrophyllite--kaolinite ASTER anomaly.” The “Tecoripa East” and “Tecoripa West” properties are intersected by paved highway and located 3-4 miles from the town of Tecoripa and 12-15 miles from Susana D’Oro. This should result in a very economical exploration program with all 3 of these projects very close together. First Narrows now has the rights to 100% interest in 3 properties (+97,000 acres) in Mexico, and I would not be surprised to see additional ground added to their land package over the next couple months. I also expect a drill program to commence on the Susana D’Oro property this fall, subject to drill availability. Secondary Projects in New Brunswick, Canada First Narrows “Secondary Projects” would attract the attention of many exploration companies. Whether they should be labeled as “secondary” is certainly subject to debate. In my opinion only Hubbards Pond fits this description. Middle River: Gold & Base Metal, New Brunswick The 9,456 hectare Middle River property is located 23kms from a sea port and accessible by a paved all-weather road. From the website (emphasis mine)… “The property is proximal to Falconbridge's Brunswick#12 mine to the south and the northerly extension of the favourable mine horizon underlies the eastern portion of the
  6. 6. First Narrows cont’d. 6 property. Brunswick#12 is a super-class volcanogenic massive sulphide deposit and the largest underground zinc mine in the world.” - and - ”The discovery potential for economic orogenic gold deposits on the Middle River property is considered high.” A deep hole “has been planned for some time on a geological/geochemical CuZnPbAg VMS target – the MR1 anomaly – the company has identified the buried blind extension of the BMS#12 hanging wall stratigraphy on Middle River (MR1) and it is planned to drill thru these lithologies to intersect the favourable VMS horizon that should lie immediately beneath.” First Narrows has also defined an OG (Orogenic Gold) mineralizing event that holds considerable promise. Comments by Professor David Lents, P. Geo., Economic Geology Chairman, Dept. of Geology, University of New Brunswick… “After reviewing the assay results and examining the drill core from the Middle River Gold Property with the project geologist, a very significant Orogenic Gold Deposit is potentially being defined. The mineable widths identified are associated with impressive gold grades in an intense hydrothermal alteration system. This region is the classic environment typically associated with this style of gold mineralization; preliminary geological, geochemical, and structural features in the area together with other significant gold finds in this region reveals a new gold district emerging in the the backyard of a major base-metal mining camp” The best drill hole intersection to date is 17 meters (57 ft.) averaging 3.4 gpt gold with high grade narrow veins of 7.44 gpt over 8.5 meters (21 ft.) and 30 gpt over .85 meters (2.8 ft.). First Narrows believes that this gold system is zoned and the gold should get richer with depth. Hubbards Pond – New Brunswick An early stage exploration project totaling 2,144 hectares. “The property has not been extensively explored since the mid-1970's. The geological setting is an extension of the gently dipping volcanic-sedimentary stratigraphy that hosts the Chester copper-polymetallic feeder, or stringer, deposit approximately 7 kms to the south. Unsourced historical copper-lead-zinc stream sediment geochemical anomalies occur on the property.” Falls Creek: Tungsten/Molybdenum/Tin, New Brunswick The 100% owned Falls Creek project is located 40km from the Chester property. This recently acquired project has generated considerable excitement in the market as a result of the first drill program from just the core “visuals”. Lab results are expected to be released shortly. Photos of the drill core posted on the company website are responsible for some very bullish chatter on discussion boards. Surface grab and boulder samples
  7. 7. First Narrows cont’d. 7 along a +4km trend show grades of up to +5% tungsten, 0.23% tin and 1.26% moly. Quotes from the July 17 ’07 news release (underlines mine)… “First Narrows Discovers Thick Zone of Tungsten-Molybdenum Mineralization on Falls Creek Property, New Brunswick - 112 meters (367.5 ft.) of disseminated W-Mo mineralization in drill core; hole collared and ended in mineralization – continues – “Drill hole 4717-07-004 (5,178,587N, 688,860E; -60°, bearing 075°) was collared to test the east contact of the Dungarvon Granite that is covered by a thick blanket of till including W-Mo mineralized boulders. Disseminated wolframite, scheelite and molybdenite (the main economic minerals of W and Mo) as well as sporadic pyrite are visible in the drill core from 9.0 to 121.0 meters (29.5 to 397 ft.) in fine to coarse grained massive to altered facies of biotite and muscovite granite. Larger splashes of molybdenite are present locally.” - and – “A uranium showing is reported in outcrop in granite in the southern part of the property.” Falls Creek resembles Geodex’s “Sisson Brook” tungsten-moly deposit containing 167 million tones inferred open-pit resource grading .021% moly & .059% tungsten.,1&GID=41&linkid=11 Falls Creek is on trend and approximately 50 miles from Sisson Brook. The Falls Creek property has since been expanded to 10,003 acres to cover a tin/moly discovery. Expect a further drilling program later this year. SUMMARY First Narrows is rapidly developing into a “mutual fund” of metals and precious metals discovery with 4 projects in New Brunswick, Canada and 3 in Sonora, Mexico. Two projects are being fast-tracked to production; the Chester and Susana D’Oro properties. The recent positive news flow has been nothing short of amazing, and is shaping up to continue for an unlimited time into the future. President Peter Gummer would appear to have the “Midas Touch” lately. President Peter Gummer’s own words dated June 30/07…” The Company is focused on advancing Chester and Susana D’Oro to production decisions in 2008. At the same time the new discoveries on the Falls Creek and Susana D’Oro properties are indicative of a solid and successful exploration program. Drill programs are being planned to further evaluate the Falls Creek W-Mo,, Chester North Zn-Pb-Ag, Lupita Au (+/-Cu) and Luisa (Au) discoveries. The Lupita and Luisa discoveries offer potential for significant gold resources.” The website is excellent and up-to-date. If the above information interests you, I suggest you spend considerable time continuing your research there - First Narrows Corporate Communications Consultant Greg Lytle is extremely well informed, so a phone call or email to him with any questions should be fruitful. First Narrows is still well under the radar with almost NIL media coverage, but I do not expect this to be the
  8. 8. First Narrows cont’d. 8 case for very much longer. First Narrows is my largest holding by far, so I am obviously biased and a believer. The company has approximately $1 million cash on hand, 69,601,963 shares fully diluted (full dilution would add considerable cash to the treasury), excellent management with very competent people on the ground. A $2 million financing is currently underway @ $0.45 to enable accelerated advancement on multiple properties. Corporate, Investor, and Media Inquiries: Greg Lytle, Communications Manager First Narrows Resources Corp. 402-1228 Hamilton Street Vancouver, BC, Canada V6B 6L2 Toll free: 1-866-285-5817 Vancouver Direct: 604-839-6946 Fax: (604) 677-4702 Doug Beiers The Simple Investor Ltd. Email: Disclaimer: The information presented in this article is drawn from sources believed to be reliable, however the accuracy or completeness of this information is not guaranteed. The Simple Investor Ltd. was not paid or requested to write this article. Doug Beiers & The Simple Investor Ltd. may hold, buy, sell, positions in some of the securities of featured companies. The Simple Investor Ltd. and Doug Beiers is not a qualified investment advisor; those seeking specific investment advice should consider a qualified investment professional.