The Konkin Silver Property
Silver Stock Report
by Jason Hommel, October 9, 2007
Last time I bought Sabina, it was $1.70 or so, and I sold at about $3.36 for nearly 100% profits, it's currently trading at $2.04 Cdn today. (I don't own any, and they don't pay me.) -- I sold Sabina because Sabina's main project is relatively low grade. It looks like a good decision, given where the stock is today.
Sabina Silver has two main projects, and various investors have told me that they excited by either one or the other project, either of which could be a "company maker":
1. Sabina's Hackett River project is a low grade project that is 5% zinc, 5 oz/tonne silver, which is low grade, and is located in the arctic. With nearly 4.3 billion pounds of zinc, and over 200 million ounces of silver in measured and indicated resources, that is quite impressive. But the low grades and remote location cast doubt on the viability of the project; and the market awaits the feasibility study.
2. Sabina's second main project is the high grade Del Norte project in B.C. Canada, near
the Konkin Silver Property. I'm sorry, did I say "high grade"? It's
more like bonanza grade, or super high grade. 110 oz. per ton silver
and 2 oz. per ton gold!
The second project has "Eskay Creek-like" mineralization, and Eskay Creek is the 5th largest and most productive and profitable silver and gold mine in the world, once owned by Homestake mining, now owned by Barrick gold. There are a legion of explorers nearby, looking for the next Eskay Creek in the area.
So, which is the "company maker"? The low grade project, or the high grade project? I don't know, and I don't know if the market knows. But Sabina also has $55 million in cash!
Here's why I mention Sabina:
There is another company nearby Sabina's Del Norte project that has something interesting, the Konkin Silver property jointly owned by Silver Grail and Teuton.
I own over $1 million worth of Silver Grail, which is over 10% of Silver Grail, about 1.7 million shares, which trades only about 28,000 shares per day.
Silver Grail has a market cap of only $7.9 million at $.58/share.
Contrast that to Sabina's $182 million market cap!
The Konkin property's TEM anomoly is larger than Sabina's Del Norte property!
See here for the area map, comparing the two:
On September 17th, Silver Grail announced that they are drilling this property now. After over a year of waiting!
Last year, Silver Grail was on target to drill at least 4 properties, but did not succeed due to weather, and difficulty getting drills. I'm glad to see that they are finally drilling the Konkin, which they did not get a chance to drill last year.
Will the Konkin silver property show us the goods? Will the drilling reveal high grade results? I don't know.
But Silver Grail's stock moved up nearly 29% today, and I wanted to bring this opportunity to your attention before it moves up much further. It typically trades in a range between $.50 and $.75/share, which is a large range, but typical of the very thinly traded, small market cap stocks.
I have not been in contact with Dino Cremonese, P.Eng, (director of Silver Grail), in about 5 months, so I have no inside information about this company.
I believe the Konkin silver property is also 50% owned by Teuton Resources, which has a market cap of $16 million fully diluted, therefore you should also research Teuton here:
I believe that Dino is more excited by Silver Grail's prospects near
the Homestake Ridge Property of Bravo Ventures, (BVG.V)