Last week, I was reminded of a past pick, Fjordland Exploration (FEX.V), when I read a letter to shareholder's from its CEO. It was very well written, nicely laying out the historical work, their work last season, and their plans for the future.
They are looking for elephants (big deposits) near where they have been found in the past. Using a compilation of decades worth of geological data, to comb through to try to find another massive deposit or two.
Since Diamond Fields Resources made the world-class discoveries of base metals at Voisey's Bay, plenty of money was spent looking for more. But, none were found and it has confounded many for a long time.
These kind of deposits, tend to come in clusters, but no more big ones have been found. To make the challenge more difficult, they are looking for buried treasures, not something that comes to surface.
The discovery at Voisey's Bay, caused one of the largest staking rushes in Canadian mining history. Everybody and their dog was trying to stake land, and tons of money was raised for exploration.
Of course all the bears on the story will say, look at all the money that was raised and spent looking for more deposits around Voisey's Bay.
Well then let's look a little closer, I agree there was tons of money raised and spent, which most assume all went into actual exploration. Unfortunately, a lot of that money went into paying high wages and for promotion.
That assumption is as silly as the concept of Trickle Down Economics, it doesn't work because it doesn't trickle down from the top very well. Much like the money raised during a heated discovery play in Canada. Not as much as folks imagined trickled its way into the ground.
This surely doesn't mean all of it got lost on the way to the ground, and the Fjordland team were able to pick up those pieces of geological data for the area. This work was enough to get Robert Friedland, who lead Diamond Fields through its discovery and to its big score in a heated takeover battle.
I 'm a fan of the work they did to compile all of this geological data and start using it to produce drill targets. They are looking for deep targets, it isn't going to be easy but I like their chances.
Have a look at the letter from the CEO to shareholders, read for yourself, it is so important to them, it is posted on the home page of their website. While on their website, have a look around, it is a good time to do your homework on the Fjordland.
I like what I read, it says to me they know what they are doing, that they have a strong team, focused on exploration, and have a good shot of success with the truth machine.
That’s all for now,
Allan Barry Laboucan
Allan Barry Reports
Advance Gold (AAX.V)
P.S. my reports are for information purposes only, before making any investment decisions it is important to do your homework and speak with your financial advisers.
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