SOURCE: VantageWire.com - A new batch of results from its South American Kaburi PL Gold Project are boosting Tajiri Resources' [TSX.V:TAJ] confidence. Keeping in stride with results announced earlier this year by its neighbor, Troy Resources [ASX:TRY/TSX:TRY] and its West Omai Project, Tajiri is encouraged by the first ever results from its Kaburi PL drill campaign initiated in April.
In particular, the company is celebrating the discovery of a significant new lode gold system encountered during the program. Among the results, were some very optimistic grades, including hole KRC-13-13 with 22 metres at 2.69 g/t Au from 5 metres with the top 10 metres returning a solid 5.13 g/t Au.
While KRC-13-13 showed a long, strongly mineralized 22m intersection, hole KRC13-25 had bonanza-like numbers at the top. The hole returned 8 metres at 6.48 g/t Au, with the top two metres at 25.50 g/t Au.
A third hole, 32 also appears to have intersected economic gold mineralization in two separate intervals both of which intersected over 1 g/t Au from 2 metres and 38 metres respectively. Additional economic grades of greater than 1 g/t over more than were encountered in several holes and would suggest a larger lower grade shell surrounding a substantial and high grade epithermal core.
It's important to note that all three of these holes came spaced approximately 100 metres apart, strongly indicating a mineralized strike covering more than 300 metres that remains open in all directions.
These were the first results on the Kaburi PL project for Tajiri, and it's got a lot more work required ahead. But it's helping Tajiri get noticed, especially by its surrounding neighbors.
THE GUYANA ECONOMIC ADVANTAGE
As costs and margins are tight in some of the world's other gold districts, Tajiri has found a loophole into South America through its position in Guyana. Exploration and development costs are reduced thanks to a healthy exchange rate, and affordable labour.
For an example of the savings, one must not look further than Guyana Goldfield's [TSX:GUY] Aurora Gold project, and its recent feasibility study update. Earlier estimates pegged the project's cap-ex at around $500 million, but a later revision would drastically reduce that number down to $200 million. At prices like this, profitability in the region is significantly boosted.
The 100%-owned Kaburi project covers over 6,400 acres, and is surrounded on all sides by the West Omai project that was recently taken over through Troy Resources' acquisition of Azimuth Resources for A$188 million.
"Ultimately we expect West Omai to be the next gold mine, for Troy, in South America," said Paul Benson, President and CEO of Troy Resources in a Corporate and Operational Update this week.
Management tasked with building the mine for Troy are currently dispatched around the world, looking for the appropriate equipment needed for the operation. Upon their return, Troy will have the flow sheet it needs to determine the feasibility study and move into the next stage on the project.
If all goes according to plan for Troy, they will have a feasibility study ready for early 2014.
What this means for Tajiri is there will be more news coming out all around them. Meanwhile, they'll continue to keep their focus on drilling Kaburi, and repeating the successes of this recent program.
THE BOTTOM LINE
Given the current market conditions, Tajiri is benefiting from its low cost operations. If the Kaburi Project were located in the Yukon, the entire operation would be a lot more difficult financially.
But overall, Tajiri is one of the few companies exploring in South America right now that can confidently say that they have hit all of their targets. With these results, the Tajiri team has delivered what they set out to do, easing their ability to raise more capital in the future.
The company also has a small program on deck for its OGK Copper-Gold Project in British Columbia, which should help to add value to the stock. However, anyone following the company's story will be transfixed on what happens next at Kaburi.
With Guyana Goldfields' upcoming Aurora mine, and Troy Resources going full steam ahead on West Omai, Tajiri seems to have nestled itself within an whirlwind of new mine activity.
Kaburi's first results prove that Tajiri will not just be surfing in the wake of its neighbors' news flow. The company legitimately took Kaburi from a grassroots, greenfield exploration asset a year ago, into a significant gold discovery, and a first pass drill discovery at that.
Management has likened the discovery's intersections to be consistent with the Smarts Deposit, that's under 2.5 km away to the south-east. That is the discovery that West Omai is backed by, with over 1 million ounce of gold inferred, at an impressive 4.02 g/t Au.
Coming back with 22 metres of 2.69 g/t Au is quite the start for a company that won't have to do much to get attention from prospective buyers in the future. When Troy surrounds you to all sides, and has already stated openly that they see their next South American mine right there in that location, a better potential exit opportunity couldn't be more apparent.
All Tajiri has to do now is keep drilling Kaburi to continue boosting optimal value for all of its stakeholders. This is a great way to start.
G. Joel Chury
for the Bottom Line Report
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