Dear Alphastox Subscribers,
I wanted to profile Cyprium Mining (FRA.V) here on Alphastox because I think the company is set for a positive year. Although it is still a little too early for me to take it on and introduce it to my network, I do think it is a good one to keep on the radar screen and watch the company grow. Management is working hard towards adding real value for its shareholders and once I feel it is ready to be showcased to my subscribers, I will take it on as a client- so definitely stay tuned! Here is brief overview of the company and I encourage all of you to take a look.
Freyja Resources (FRA.V) is a publicly-traded mineral exploration company which targets the acquisition and development of mining assets in Northern Mexico. The company’s business approach to mining calls for establishing production in the short-term and maximizing the potential of projects by funding exploration through the cash generated by production not equity financings, thus limiting shareholder dilution. The company’s mining operations are conducted through its wholly-owned subsidiary Cyprium Mining Corporation. At the next shareholders meeting to be held in Q1 of 2014, Freyja Resources will change its name to Cyprium Mining Corporation.
Freyja Resources (FRA.V) focuses on projects that have the following characteristics:
•Short-term open pit production potential;
•High exploration potential;
•Precious or base metal; and
•Located alongside well-maintained roads and/or railway systems.
Freyja Resources flagship project is the Las Cristinas cooper/silver project and related processing plant assets located approximately 200 kilometers to the northeast of Chihuahua City, Mexico.
By favouring cash generation over shareholder dilution to fund the development of projects, Freyja Resources’ goal over the long-term is to minimize shareholder dilution. Any cash generated by operations will be used according to the following priorities:
•Ensure sufficient operating working capital at all times
•Make investments to further increase production
•Fund continuous exploration campaigns
•Generate and acquire new projects
Cyprium Mining’s flagship project is the Las Cristinas cooper/silver project and related processing plant assets located approximately 200 kilometers to the northeast of Chihuahua City, Mexico
The Las Cristinas Project is located in the Basin and Range Belt of northen Mexico, 200 km northeast of the town of Chihuahua. The Project is in the centre of the Chorreras mineralised region, an area that contains numerous concentrations of iron, gold, silver, copper and zinc in epithermal / mesothermal vein deposits and in skarn deposits. The Las Cristinas Project is easily accessible from Chihuahua and takes roughly two hours by automobile. There is a National Instrument 43-101-compliant preliminary report on the project dated August 6th, 2013, prepared by Jacques Marchand, P. Eng, Geo, a qualified person as defined in NI 43-101 (the “Author”). The report is available here. In the 43-101 report on the Las Cristinas property filed on SEDAR the Author recommended an exploration program which is currently under way. This program is taking place primarily in the area south of the shaft located on the Las Cristinas concession along the copper hydrothermal system and focuses on the definition of a shallow economical copper body. More specifically, the Author of the report recommended: a geological survey covering of the entire property with an emphasis on the structure and alteration, and with detail work in the Las Cristinas area; completion of core drilling on a 100-metre-by-50-metre grid (surface and deep) to structurally outline the mineralized body; and preliminary metallurgical tests. Although the property is seven kilometres long with significant exploration potential, the company will focus initially on the first one km from the south of the property (with a width of 300 m), where most evidence of mineralization has been identified to date, including an outcrop with an elevation of 60 m, shaft, adits and several old workings.
Mark Lackey talks about Freyja Resources TSX-V:FRA as one of his favorite SmallCap 2014 picks in the copper industry.
Large Exploration Potential
The exploration focuses on the following priorities:
- Complete mapping and systematic sampling on surface and underground of the copper oxide ore on the Las Cristinas area in order to better delineate the company’s one km long initial exploration target;
- Detailed topography of the Las Cristinas area to support the mapping and sampling activities, and the preparation of environmental permitting;
- File two distinct permit applications, namely one to obtain a drilling permit, and one to obtain an exploitation and heap leaching permit;
- Preparation of the 1,000 m drilling campaign;
- The drilling campaign will begin immediately following receipt of the drilling permit, which is expected to begin in February 2014. The drilling campaign will target the oxide copper ore mineralized section of Las Cristinas as well as to test the underground sulphide copper ore;
- Analysis of over 200 samples taken from the mineralized zone to the south of the project;
- Metallurgic tests are currently continuing to determine the recovery rates of copper and silver, as well as providing indication of costs. Lixiviation tests are also currently being conducted;
- Following the drilling campaign and subject to drilling results, the company intends to build on-site a heap-leach pad planned for the summer of 2014 to test and fine-tune the heap-leach system;
- Investors should note that a feasibility study has not been completed and there is no certainty that the proposed operation will be economically viable.
Shares Outstanding: 22,969,400
Market Cap: 2,986,000 (@ $0.13)
For more information on Freyja Resources (TSXV:FRA), please do not hesitate to get in touch with me anytime at email@example.com. I look forward to hearing from you.