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."

1. Reprinted with Permission from:
HRA - Special Delivery
#483 – 7 May 2012
Prosperity Goldfields (PPG-V; off 5 cents on 187k shares at $0.59) just released the first drill results
from its spring program at the Kiyuk Lake gold project in Nunavut. PPG battled some pretty awful weather
conditions to complete a 12 hole drill program before spring break up. Fuel is in for a summer program that
can 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 an
impressive hole but, as we noted in our January review, one hole doesn’t tell you very much about the
geometry 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 the
zone it’s clear that last year’s hole was not a one shot wonder. Hole 12-01, drilled with a 50 degree
eastward dip to cross the plane of last year’s hole produced seven separate intercepts including 23
metres grading 1.5 g/t, 10.5 metres grading 3.87 g/t, 10.5 metres grading 4.56 g/t and 8.9 metres
grading 5.6 g/t gold. With two holes only on this section it’s still difficult to interpret the true dip and hence
true width but the overall zone looks like it’s over 50 metres thick with a couple of sections of internal waste
and this does not include the strong outlying intercepts. More impressive still was Hole 12-03, a step out
of nearly 200 metres to the south of Hole 1 that returned intercepts of 19.5 metres grading 3.49 g/t
and 10.5 metres grading 7.17 g/t and 61.5 metres grading 3.34 g/t gold. Hole 3, slightly south of hole
two, was the weakest of the set but not really weak with several intercepts including 9 metres grading 5.4 g/t
and 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 release
is that the zone that produced the best intercept last year clearly has some legs. Of potentially equal
importance, PPG has established a spatial relationship between gold grades and magnetic accessory
minerals. This could be an important development that could improve targeting substantially which is why
the next phase of work will have both airborne and ground magnetic surveys at its start. The markets looked
pretty scary before the opening which probably held many people back from bidding on this news. There
may have been some that hoped for another 150 metre intercept. That would have been nice, but if you
look 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. In
short, the strong gold content has been replicated and Rusty, only one of several known zones, has been
shown to have a strike of at least 200 metres and a thickness of 50 metres or more at good grade. This is
the kind of zone that can build real tonnage and there are still 9 holes from other areas on the way before
the next phase of work starts. The market is not paying up for PPG today but I think it will later. This looks
good enough to move PPG to a Strong Spec Buy rating in this price range.
http://www.prosperitygoldfields.com
Regards for now – Eric Coffin
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