Three Advanced Stage Projects with One Standing Out by Being Outstanding.
(www.journeyresources.com)I first brought Journey Resources (JNY.V) to your attention back on May 10th of 2006, about seven months ago. It was a rather extensive article and as I recently reviewed it, I thought the facts were well presented and the substantial potential was amply demonstrated. The title was The Longest Journey Begins with the First Step, the price was around $.28 Canadian, and I related to you that this was a company directed by a skilled and committed CEO. Today, December 1, 2006 the price touched $.51 (fifty one cents Canadian) and clearly these past seven months have not been the best of times for the junior mining exploration industry.
Journey has clearly bucked the trend and that tells me that someone is doing something right. I think that someone is Jack Bal, the CEO of Journey.
The question in my mind was whether or not he could pull all the various elements of this complex exploration equation together. The answer clearly demonstrated to date is yes he can.
The one single dynamic that is so difficult to portray to investors and to the readers of this column is the sixth sense one develops after talking with the principals of these many exploration companies over extended periods of time. Often it is easy to figure out who has the skill set to make a company successful and other times you have to wait and wait and contemplate. But as in a game of chess, inevitably a move will be made that gives one insights as to the ultimate outcome of the game. Some brilliant moves have been made in this particular game.
Some of the intangibles that I now look for are accountability, responsibility, commitment, respect, hard work, and the ability to communicate. I know it sounds all so simple and easy, but it truly is not. Every company has an agenda and so in the beginning the best foot is put forward until familiarity sets in and a more relaxed setting ensues. During these interludes is when it becomes possible to know the real person or persons behind the agenda and running the company.
Of course the quality projects have to be present and management should possess the skill sets necessary to move those projects ahead with viable programs both in the field and in the promotional arena. A skilled CEO will be able to construct and execute such plans for the company and do it in a timely basis.
I can think of any number of the companies I represent where the people are simply exceptional. Ultimately, I look forward to speaking with them on a regular basis, and even though they have extraordinarily busy schedules, they will take the time to answer my questions or make time when it is more convenient. It is all about “feel” and the intangibles. The people at Journey Resources have demonstrated to me that they are willing to go the extra mile to create shareholder value and the share price clearly reflects that hard work and those intangibles in action.
Jack Bal has continually demonstrated a substantial level of commitment to his shareholders and that hard work has manifested in a doubling of the share price in less than 12 months. It matters not what business or what sector in which you are investing; 75-100% return in seven months is quite attractive. Now here is the good news. I honestly believe—or in the vernacular designated by the guidelines of the SEC and Sarbanes Oxley—it is my current personal opinion that the best is yet to come!
Planning the Work and Working the Plan
During the past six months, Jack Bal and his team have been doing exactly what they said they were going to do—build company value. I told you that if a company takes care of business and creates shareholder value, the business will take care of the company.
That is exactly what has been happening. However, as usual, I encourage you to visit their website, www.journeyresources.com and discover for yourself why this company is on the move. Review the press releases, the projects, and my past commentaries.
FYI, below are a few of their most recent accomplishments:
- 11.07.06 On November 7, 2006 they added Leonard (Len) De Melt to their board of Directors. Mr. DeMelt is well versed in the world of commodities and exploration and adds a new and valuable dimension to the board and to the company. He has held management positions with 12 mining companies internationally and is well known within the mining industry. He brings nearly 30 years of project management and mine development experience to the company.
- 2 11/28/06
JOURNEY IS APPROVED FOR TRADING ON THIRD SEGMENT OF THE FRANKFURT STOCK EXCHANGEVANCOUVER, BRITISH COLUMBIA–(CCNMatthews - Nov. 28, 2006) - Journey Resources Corp. (”Journey”) (TSX VENTURE:JNY - News) is pleased to announce today that it has been granted permission to trade its shares on the Third Market Segment of the Frankfurt Stock Exchange. The German trading symbol for Journey is “JL4″ and the German securities code: (WKN) is A0HNM9. - 3 11/16/06
2006 EXPLORATION DRILL PROGRAM RESULTS ON THE EMPIRE MINE PROJECTVANCOUVER, BRITISH COLUMBIA–(CCNMatthews - Nov. 16, 2006) - Journey Resources Corp. (”Journey”)(TSX VENTURE:JNY) and Trio Gold Corp. (”Trio”)(TSX VENTURE:TGK; PINK SHEETS:TROOF) are pleased to announce further results from the 2006 exploration program on the Empire Mine Project (the “Property”). The primary objective of the 2006 work program on the Empire Mine Project is to complete a feasibility study by the end of 2006. - Journey Resources starts drilling Vianey property
2006-11-14 11:18 ET - News Release
www.journeyresourcescorp.com/properties.php?page=vianey
JOURNEY COMMENCES CORE DRILLING ON THE VIANEY CONSESSION MINE
I want to spend just a moment on this news because it truly is significant.
As we move forward in this precious metals bull market, the companies with advanced stage projects, and the ones that are close to completing feasibility studies, and the ones that are close to reopening previously operating mines are the ones that are going to be attracting the attention of the investing public. Production is going to become very important in 2007 and 2008.
Yes, any company with a significant discovery in either base or precious metals will begin to attract attention but those that are close to any kind of production are going to receive additional credits.
JNY is hot on the heels of all these scenarios. In addition, JNY has begun core drilling on its wholly owned Vianey property in north-central Guerrero state, Mexico. Drilling is being conducted from the surface, for a total of approximately 3,000 metres.
I’ve posted the link to this press release just above and might I suggest that you take the opportunity to review it as it might prove to be an important development in the company’s history.
The drill program is ongoing and of course the results haven’t been assayed.
However, part of that Press Release read: VANCOUVER, BRITISH COLUMBIA - Journey Resources Corp. (“Journey”) (TSX: JNY) is pleased to report that core drilling has commenced at its 100% owned Vianey Property in north-central Guerrero State, Mexico. Drilling is being conducted from the surface, for a total of approximately 3,000 metres.
On June 28, 2006, Journey entered into an option agreement with Wits Basin Precious Minerals Inc., whereby Journey granted Wits Basin an exclusive option to acquire up to a 50% interest in certain mining claims comprising the Vianey Mine Concession.
The Vianey property covers 5,022 hectares (approximately 12,400 acres) and has a silver-lead-zinc mineralization production history.
Two Important Considerations: Wits Basin is well on their way to completing their “earn in” interest for this year. I believe that the total $$500,000 will be paid by the end of the year thereby consummating this part of the transaction. The following is from a Journey PR dated July 19, 2006.
“As previously announced in a recent news release dated June 28, 2006, the Company entered into an option agreement (the “Option Agreement”) with Wits Basin Precious Minerals Inc. (“Wits Basin”), whereby the Company has granted Wits Basin the exclusive option to acquire up to a 50% interest in and to the Property.
The terms of the Option Agreement include payment and expenditure requirements by Wits Basin. The payments to Journey include: 500,000 common shares which were issued on June 29, 2006; and an additional 500,000 common shares to be issued on or before January 15, 2007.
Wits Basin must also incur a minimum of US$500,000 in exploration expenditures on the Property by December 31, 2006 and an additional US$500,000 in exploration expenditures on or before September 30, 2007”
Secondly, today, December 4, 2006, Wits Basin put out a PR:
12/4/2006 7:04:19 AM ET
Wits Basin Reports High-Grade Silver-Lead-Zinc Potential Ore Indicated by Recently Obtained Assays From Previous Work on -75 Meter Level of Vianey Mine, Mexico
Please take time to review this PR because I believe you will be favorably impressed.
Now, remember that some of the star attractions; star performers of the mining world are currently silver and zinc. With a past history of mining silver and zinc, I think one would be remiss in not closely examining what Journey is doing in Mexico. The Wits Basin PR delves further into this Mexican property and makes some very positive statements. To wit (You know I couldn’t resist!) in referring to the Vianey Project:
The Hawley report provides three sets of high-grade assay results as follows: (1) Assays over a 61 meter length from an average 2.6 meter wide vein in the southeast end of the -75 meter level average 43.9 ounces per tonne (opt), silver (Ag), 17.1% lead (Pb), 6.36% zinc (Zn); (2) Assays from a 3.0 meter wide vein in a drill hole drilled below the -75 meter level average 41.0 ounces per tonne (opt), Ag, 7.42% Pb, 10.76% Zn; and (3) Assays from a 6.0 meter wide zone in a drill hole from the -75 meter level average 15.0 ounces per tonne (opt), Ag, 8.0% Pb, 22.3% Zn.
Please refer to the link for the complete release.: www.integratir.com
Jack Bal was at the Vianey Mine in Mexico this Week
As was stated in the above press release, Journey began drilling on this Project in early November 2006. Jack also visited the mine this week, the last week in November of 2006. I should think that one of the things on his mind would be how soon they could get this advanced stage project back into development.
If you were the CEO, what would you be thinking? If you were a busy CEO how would prioritize your projects and why would you be traveling to Mexico? Well, we know there is an ongoing drill program and we know that this was a mine that was previously in operation so I’m going to put 2 and 2 together. How about you?
I believe we’ll all have to wait and see but I for one am going to be keeping a close eye on what the next few press releases are going to be focusing upon.
Conclusion
I’m putting a little extra emphasis on Journey in this update because JNY has been a terrific performer over these past seven months. It is my personal opinion that the best is still to come. I realize how difficult it is to get behind some of these juniors when you don’t have that “feel” for them. However, this group has done what they’ve said they were going to do and I know for a fact they are working diligently to move all three of their advanced stage projects forward.
The “Empire” Property in Idaho is moving towards feasibility, the “Muskgrove” Property in Idaho has excellent potential, and now the Vianey Project in Mexico is being drilled and tested.
It is my opinion that this company is undervalued and will become more undervalued at these price levels as this resource market heats up.
It would appear that the bull market in precious metals is just getting moving again and that by early 2007, we’re going to see real progress being made in both the projects and the share price in companies such as Journey Resources.
CEO’s must be cognizant of so many elements in order to build shareholder value; everything from the geological anomalies of their properties to IR to PR to how the market is perceiving and reacting to their projects.
I think that Journey’s Vianey property is a sleeper and I for one am going to be purchasing their stock up to a dollar US and perhaps beyond. Remember that I work with the company as a consultant and have read not only their press releases but most of their other material as well.
I am very favorably impressed with what is occurring at the Vianey Mine in Mexico and on their other projects as well. Somehow the cream rises to the top and I think we are seeing that with Vianey.
From out of the blue, this project is beginning to create excitement because of quality.
It also is becoming ever so apparent that hard driving CEO’s of these junior mining companies can be the key to their success. However, that is true in just about any endeavor, and not just mining companies.
In the coming years, I believe that the world will continue bidding the fiat currencies of the major western countries lower, and with the economic boom in China and the Asian countries continuing, there are going to be more and more reasons for the world to appreciate hard assets and for hard assets to appreciate in the world. You can quote me on that.
Consider quality when you see it unfolding before your eyes.
Until the next time,
D. Stewart Armstrong
Posted by D.Stewart Armstrong in Articles