Bayfield Ventures Cruises in Rainy River Resources" Wake
Bayfield Ventures Cruises in Rainy River Resources' Wake
By Rob Staianno
June 25, 2007
What Rainy River Resources (TSX.V:RR) is doing at the Rainy River district near Kenora, Ontario, so its junior counterpart, Bayfield Ventures (TSX.V:BYV) is also doing. Rainy River has land holdings; Bayfield does too. In fact, Bayfield, which has three properties Claim Blocks A, B and C, borders Rainy Rivers Resources' (RR) properties on their east boundary, and adjoins the RR properties on its south and southwest boundaries as well. The Bayfield properties areof a mile from where RR is currently drilling - a stone's throw in geological terms.
Another thing Bayfield has in common with RR is geology. Bayfield President Don Huston explains, "We are on either end of them on-strike. We're in the same major volcanic greenstone belt. We are following up on what we think are very similar structures that Rainy River Resources and their precursor, Nuinsco has seen. So, we think that we have as much opportunity as they do."
Opportunity in this case would also include potentially hitting the same or similar drill results as RR. For RR, this has meant doubling the company's share price to over $5 per share in about 12 months.
Bayfield began its present exploration program on its Claim Block B property this spring and has been using the same methodology that RR employed in discovering the ore body on its adjacent property. Huston says, "The overburden drilling that we did is the same methodology used by Rainy River Resources, and before them Nuinsco over the last 8 years of development looking for their discovery of what they call their 17 zone or the ODM zone."
Bayfield will move a diamond drill onto Claim Block A, B and C this summer sometime shortly after the July 1 long weekend. The company expects a 10,000m to 12,000m program consisting of 12-14 holes, going after targets delineated in the winter exploration program.
Why imitate Rainy River? RR's May 29 press release reported assay results from its ODM zone, which included highlights of 55.7m grading 4.01 g/t gold, including 27.8m of 7.2 g/t gold. On May 17, RR reported assay results of 28.9m of 5.19 g/t gold from the ODM zone. Previously, on December 4, 2006 the company reported 9m of 81.52 g/t gold. The upward pressure these results, and RR's large landholdings in the area, have had on RR's market cap is clear; compare RR's $225 million market cap with Bayfield's market cap of less than $10 million.
Prior to RR, Nuinsco did extensive exploration on these concessions. RR's website explains the potential value of the property as outlined by a Nuinsco geologist. "In 1998, while under contract for Nuinsco, Dr. Lorne Ayers, a noted volcanologist and Dr. James Franklin, former head of the Geological Survey of Canada concluded that the 6 square kilometer gold anomaly was associated with a Caldera Structure and that the polymetallic mineralization was deposited as a gold-rich, shallow water VMS deposit. As well, Dr. Franklin observed that, geologically and geochemically, the Caldera Structure was similar to the Bousquet, Noranda and Sturgeon Lake deposits. Although considered to be base metal deposits, the Noranda and Bousquet area deposits collectively host over 25 million ounces of gold. The Bousquet area deposits alone are estimated to have a gross metal value exceeding $30 Billion."
An initial resource estimate on the RR property is expected shortly with an anticipated 2 million ounces of gold. Based on a gold price of US $150/oz, which is well below current gold spot prices fluctuating around US $650/oz, RR shares have a target value of $7.00.
So far, Bayfield is encountering the smooth waters they expected from sailing behind RR. Having completed grids, electromagnetic surveys and overburden drilling this winter, Huston says, "We are very, very pleased with the gold grain counts that have been seen in our assaying in many locations on our Rainy River Properties. It's not just one little assay or anything like that...we have gold green counts in the tills and they are coincidental with the geophysical targets which indicates geological structures and cross-cutting faults in the same places that the gold grain counts are found. And I'm talking about high gold grain counts--plus 1000 ppm and that's quite substantial numbers. We have very bonafide, very real drill targets to look after on Blocks A, B and C." Drilling has begun. If he labs return confirmation of Rainy River style mineralization, Bayfield's course for the foreseeable future will be set.
Bayfield is looking healthy financially as well. Huston said in an interview, "We have enough money in the bank, as you know we're just doing a private placement here right now to raise about $1 million. There's about $600,000 flow through that must be spent and I've got a couple hundred thousand flow through in the bank right now that must be spent. I've got 6 to 800,000 that must be spent here in Canada very shortly. So I'm aggressive at getting at it. We're going to work now."
Bayfield Ventures has 16,154,649 shares outstanding and a share price that has been fluctuating around the $0.60 range. Bayfield also has other properties in Ontario and Saskatchewan.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.
By Rob Staianno
June 25, 2007
What Rainy River Resources (TSX.V:RR) is doing at the Rainy River district near Kenora, Ontario, so its junior counterpart, Bayfield Ventures (TSX.V:BYV) is also doing. Rainy River has land holdings; Bayfield does too. In fact, Bayfield, which has three properties Claim Blocks A, B and C, borders Rainy Rivers Resources' (RR) properties on their east boundary, and adjoins the RR properties on its south and southwest boundaries as well. The Bayfield properties areof a mile from where RR is currently drilling - a stone's throw in geological terms.
Another thing Bayfield has in common with RR is geology. Bayfield President Don Huston explains, "We are on either end of them on-strike. We're in the same major volcanic greenstone belt. We are following up on what we think are very similar structures that Rainy River Resources and their precursor, Nuinsco has seen. So, we think that we have as much opportunity as they do."
Opportunity in this case would also include potentially hitting the same or similar drill results as RR. For RR, this has meant doubling the company's share price to over $5 per share in about 12 months.
Bayfield began its present exploration program on its Claim Block B property this spring and has been using the same methodology that RR employed in discovering the ore body on its adjacent property. Huston says, "The overburden drilling that we did is the same methodology used by Rainy River Resources, and before them Nuinsco over the last 8 years of development looking for their discovery of what they call their 17 zone or the ODM zone."
Bayfield will move a diamond drill onto Claim Block A, B and C this summer sometime shortly after the July 1 long weekend. The company expects a 10,000m to 12,000m program consisting of 12-14 holes, going after targets delineated in the winter exploration program.
Why imitate Rainy River? RR's May 29 press release reported assay results from its ODM zone, which included highlights of 55.7m grading 4.01 g/t gold, including 27.8m of 7.2 g/t gold. On May 17, RR reported assay results of 28.9m of 5.19 g/t gold from the ODM zone. Previously, on December 4, 2006 the company reported 9m of 81.52 g/t gold. The upward pressure these results, and RR's large landholdings in the area, have had on RR's market cap is clear; compare RR's $225 million market cap with Bayfield's market cap of less than $10 million.
Prior to RR, Nuinsco did extensive exploration on these concessions. RR's website explains the potential value of the property as outlined by a Nuinsco geologist. "In 1998, while under contract for Nuinsco, Dr. Lorne Ayers, a noted volcanologist and Dr. James Franklin, former head of the Geological Survey of Canada concluded that the 6 square kilometer gold anomaly was associated with a Caldera Structure and that the polymetallic mineralization was deposited as a gold-rich, shallow water VMS deposit. As well, Dr. Franklin observed that, geologically and geochemically, the Caldera Structure was similar to the Bousquet, Noranda and Sturgeon Lake deposits. Although considered to be base metal deposits, the Noranda and Bousquet area deposits collectively host over 25 million ounces of gold. The Bousquet area deposits alone are estimated to have a gross metal value exceeding $30 Billion."
An initial resource estimate on the RR property is expected shortly with an anticipated 2 million ounces of gold. Based on a gold price of US $150/oz, which is well below current gold spot prices fluctuating around US $650/oz, RR shares have a target value of $7.00.
So far, Bayfield is encountering the smooth waters they expected from sailing behind RR. Having completed grids, electromagnetic surveys and overburden drilling this winter, Huston says, "We are very, very pleased with the gold grain counts that have been seen in our assaying in many locations on our Rainy River Properties. It's not just one little assay or anything like that...we have gold green counts in the tills and they are coincidental with the geophysical targets which indicates geological structures and cross-cutting faults in the same places that the gold grain counts are found. And I'm talking about high gold grain counts--plus 1000 ppm and that's quite substantial numbers. We have very bonafide, very real drill targets to look after on Blocks A, B and C." Drilling has begun. If he labs return confirmation of Rainy River style mineralization, Bayfield's course for the foreseeable future will be set.
Bayfield is looking healthy financially as well. Huston said in an interview, "We have enough money in the bank, as you know we're just doing a private placement here right now to raise about $1 million. There's about $600,000 flow through that must be spent and I've got a couple hundred thousand flow through in the bank right now that must be spent. I've got 6 to 800,000 that must be spent here in Canada very shortly. So I'm aggressive at getting at it. We're going to work now."
Bayfield Ventures has 16,154,649 shares outstanding and a share price that has been fluctuating around the $0.60 range. Bayfield also has other properties in Ontario and Saskatchewan.
This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.
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