-- Posted Thursday, 29 March 2007 | Digg This Article
GOCM.OTCBB
www.geocom-resources.com
I believe that Geocom Resources is an excellent company. My dilemma is how to convey to you the enormity of what has been occurring at the company over the past six months without sounding like I’ve gone over the top. I think that all one can do is to be honest—that and have you review my past track record which is quite available in my archives on Goldseek. I’d also like you to go to www.geocom-resources.com, the company website and review their press releases over the past four or five months. That will quickly bring you up to speed.
Finally, I can tell you that John Hiner is a top notch CEO and a first rate geologist. He has the best interests of his shareholders at heart and he plays it “by the book.” I’ve a bit of an advantage in that I’ve had the pleasure of talking with John many times now and I haven’t met a more decent guy in the business. I believe Geocom is going to continue to be very successful by executing their business plan. I also know that Kinross Gold is rather circumspect when it comes to selecting those companies with which they choose to work.
So, for my own portfolio, Geocom is a buy. I’d be purchasing it up to at least $.60 US and then review and reevaluate. I cannot be much clearer than that.
This is one of the few companies that can be purchased for a very reasonable price, has ten bagger potential because of their extraordinary projects, and JV partners, and is directed by experienced people with integrity. Simply put, GOCM has all the ingredients for success. This is a company that is worth all the patience we can muster. It is also a company that may very well surprise us because almost everything affiliated with the company is understated. There is no hyperbole. There is a quiet class behind everything this company does. Sometimes it can seem a bit too technical, but that is how the mining environment has been unfolding.
Again, I own shares in the company, work with the company, have options in the company and—I’m still purchasing shares in the open market because this is one of those companies that I believe is going to make its mark before this bull cycle in commodities is over. In my opinion, it’s going to make a very big mark. In many ways, it already has—it’s just that too few people know about it.
If I’ve piqued your interest, by all means email me at consulting@seacoastpub.com and I shall request that Samantha Hayes, their IR professional, send you an updated Geocom CD—no charge, no obligation. The first CD that we sent out, after the first article that I posted, was very well received. This CD is a bit more current and simply shows you in detail what the company is all about. I highly recommend it; especially if you did not receive one the first time they were offered.
Remember, that the company was founded in March of 2003 and their main focus has been to explore and develop gold and copper resources in geopolitically stable areas of the world. The Company is active in the US (Alaska and Nevada) Argentina and Chile.
A Good Buy Then, A better Buy Now
The first time I introduced the company to you was back in November of 2006 and it was a good buy then. It is even a better buy now because Geocom has made enormous progress on their South Chile Project; the one in which their JV partner Kinross is involved. There is a lot happening and there is a lot more going to happen—all positive for the company. I have no doubt the share price will come along. I think we have one last chance to avail ourselves of these prices before the share price begins to appreciate. That may be going out on a limb, but part of my reasoning has to do with the fact that I think we may be close to breaking out of this monotonous trading range where we’ve been for the past year.
We must remember that patience and being able to practice it is a prerequisite for most of the quality junior mining companies at our disposal. Of course, we all want to own the companies that appreciate 300% in several weeks. However, those can be the same companies that might be going in the exact opposite direction during the subsequent several weeks. For Americans, patience can be the most difficult commodity of all.
That being said, Geocom Resources has infinitely more on the table; more going for it by far, than it did when I first brought it to your attention some three months ago. One of the reasons the share price hasn’t moved significantly is because the company is small and tightly run, and doesn’t have enormous amounts of money to use for promotion. Another reason is that the gold market has been in that trading range I just mentioned and smaller companies are flowing below the radar screen of most investors. Investors lose patience quickly and a year can seem like an eternity when we’re waiting for a breakout.
However, I think that the main reason that people are currently not involved with Geocom is because they simply don’t understand the story or the business model. Other than the usual things I mention such as the people, the projects, the ability to fund, the willingness to promote and Integrity there is one very important component of which you need to be aware, and that is the business model.
As demonstrated below in the JV exploration venture with Kinross, Geocom’s business strategy is to develop new exploration targets that it considers to have solid developmental potential and then form joint ventures with solid operating companies for continued development. In the view of management such ventures will allow Geocom to continue its exploration efforts while maintaining an interest in its developing properties.
What is so different about this particular company and their approach? They are very good at exploration because John Hiner, their CEO, has been at this for over 30 years and has had a good deal of success as a geologist. He also has a well worn Rolodex allowing him to assemble an excellent team of people. What makes this group different than many is the quality of the JV Partners!
Those people have now assembled an excellent group of properties. Those properties have attracted some very recognizable names such as Kinross, BHP Billiton, and Latin American Minerals.
A Recapitulation:
1. The Joint Venture with Kinross Gold Corporation
This is currently the most exciting story line. Geocom and Kinross Gold staked a total of 318 claims in six separate claim blocks in Region Ten of Southern Chile based on anomalous multi-element sample results and promising geology. After taking close to a year to stake out approximately 354 square miles (226,591 acres) in Southern Chile, they sent in four technical teams to conduct mapping and detailed sampling on six high priority targets:
1. The Chaiten copper – gold-molybdenum porphyry
2. The Cerro Primero - disseminated gold target
3. The Cerro Vaca Gold Target
4. The Cerro Mera gold-zinc-copper skarm target
5. The Cerro Condor Gold Zone
6. Rio Azulado - porphyry copper target
a.) Tigre high-grade silver zone
So now GOCM has acquired a substantial database of geological information and initiated exploration in an area of southern Chile that has been largely ignored but which has immense ore body potential. The attractiveness of Geocom’s initial exploration results resulted in the formation of a joint venture with Kinross Gold Corporation.
A helicopter-supported reconnaissance (recon) program was completed in May of 2006 and identified several high priority analogous areas. Rock-chip sampling detected gold, copper, silver and lead-zinc mineralization in 15 target areas within Region Ten of Southern Chile. The Mineralized zones are supported by strong pathfinder element presence and by geologic conditions that have the potential for discovery of economic ore bodies.
The Time Line
One of the things I what you to understand is that this process of staking out approximately 354 square miles took close to a year to complete. Due to the nature of the mining business and due to some of the peculiarities and idiosyncrasies of staking claims in certain countries, one must always be mindful of having your i’s dotted and your t’s crossed. Having an experienced “land man” in any given country can be of extreme importance because of the possibility of, “claim jumping” for want of a better term. Just contemplating the sheer size of such a large piece of ground can be daunting. Staking it can be even more so. Hence, Geocom was preoccupied for the better part of a year and the news was quite limited. This didn’t help the share price.
That work is now beginning to pay off and the diligence that was extended in the process was certainly worth the time. Could one have a more suitable partner than Kinross Gold in undertaking such an endeavor? Could there be a better partner and a better arrangement than a small outfit doing excellent exploration work while being backed by a company with such international stature as Kinross? I would be hard pressed to find a better “marriage”.
The 2007 field program is underway with four teams of geologists conducting additional mapping and sampling to prepare drill targets.
March 23, 2007 From the latest press release to be found on Geocom’s Website: www.geocom-resources.com
Geocom Resources Inc. (OTCBB: GOCM) ("Geocom" or "The Company") is pleased to announce the positive results of mapping and sampling at its Espolon Claim Block, which is part of the south Chile Region Ten reconnaissance joint venture with Kinross Gold Corporation.
Sampling by Geocom crews has returned gold assays ranging from 0.56 ppm Au to 20.9 ppm Au (0.016opt Au to 0.61opt Au). Copper assays have not yet been received. Check sampling has been conducted to verify the high grades of gold in numerous samples, and additional results will be released when the lab provides them. The table below sets forth a selection of sample results and sample widths.
Sample # Width g/t Au oz/ton Au
-----------------------------------------
531058 8m (26 ft) 1.003 0.029
531066 grab 2.468 0.072
531068 7m (23ft) 3.196 0.093
531079 8m (26ft) 2.108 0.062
531083 5m (16 ft) 8.064 0.236
531084 5m (16 ft) 20.900 0.61
531085 5m (16 ft) 2.997 0.087
Project Level Status!
Variably altered and mineralized gold and copper-bearing manto
Due to the excellent assay results and the highly prospective geology, Geocom has selected and elevated this claim block to project-level status. Upon receipt of complete results, Espolon will be offered to Kinross for formal joint venture in accordance with the reconnaissance venture agreement.
The Espolon Claim Block comprises 13 claims totaling 3,800 hectares (9,390 acres or about 14 square miles). The project encompasses a variably altered and mineralized gold and copper-bearing manto that has been traced over a strike length in excess of 3 kilometers (2 miles).
Ladies and Gentlemen: this is huge news. Additionally, there are five more blocks or claims that need to be evaluated in just this one area.
I would direct your attention to a PR dated as recently as March 5, 2007. It offers an excellent overview of why this work in Southern Chile has so much potential. I quote:
“At Chaiten the initial sampling of the mineralized outcrops along a road cut has produced numerous chip samples containing anomalous gold over significant widths. A series of 10 continuous two meter chip samples across the accessible outcrop averaged 0.17g/t gold and 0.19% copper. Selected chip and grab samples of the mineralized veinlets have returned up to 1.67g/t gold, 3.45% copper and 3560 ppm molybdenum. The zone remains open in all directions.” It goes on to state:
The sampling at Cerro Mera has returned high grade gold values associated with quartz veins hosted by a series of easterly trending structures. In 2006 a grab sample contained 72g/t gold. The 2007 sampling program has concentrated on collecting representative chip samples across the host structures and permissive calcareous horizons. Results from the first group of samples have returned a high value of 6.12g/t gold over a 25cm width of quartz veining. Other results from vein systems returned >100g/t Ag, 0.24%Cu, 1.91% Pb, 3.61% Zn over 1m and 32.9g/t Ag, .49%Cu, 1.25% Pb, and 10.5%Zn over 1m.”
Any way you cut it, pun intended, these are absolutely terrific numbers.
2. The Joint Venture with Latin American Minerals (LAT)
Latin American Minerals and their relationship with Geocom is a story unto itself. I would direct you to their website at www.latinamericanminerals.com and review their recent press releases. By all means please review the PR dated January 15, 2007. This is called due diligence! However, one of the most important items to review is that Eleven (11) high priority targets associated with known gold occurrences and /or highly anomalous gold soil anomalies have been identified.
GOCM drilled and discovered gold at the La Carolina project in Argentina, and in November 2005 the Company entered into a JV with Latin American Minerals to continue the exploration and development of the multiple targets at this project. Latin American Minerals has successfully built upon the work completed by Geocom and plans to drill expanded gold targets in early 2007. As I understand it, that work could commence in Early April or thereabouts.
In addition to the gold zones drilled in 2004 by Geocom, La Carolina has expanded on Geocom’s work and utilized both geophysics and geochemistry to identify additional targets as well as better define the mineralization in these upcoming drill programs.
Latin American Minerals has become sufficiently excited with the latest results at La Carolina that they have increased their drill program from the original 2000 meters to an open ended amount in the future. This will allow them to adequately drill out the Geocom targets and the newly defined targets.
3. Joint Venture with BHP Billiton
As a result of previous drill programs, Geocom discovered gold and copper at the Iliamna project in Alaska, and formed a joint venture with BHP Billiton. A drill program was completed in late April 2006 and results are pending from assays in the lab.
A funny thing happened on the way to the Forum
That’s the name of an old musical which I still love to this day. The story is about a guy in Roman Times getting started in one direction and doing an about face because of some exogenous factors that kept popping up in his life. Sound familiar? I became interested in Geocom because of their Iliamna project in Alaska and became totally turned around because of a huge piece of ground the company picked up in Southern Chile. Staking and evaluating those claims have taken on a life of their own. The value of all of these huge land positions is still to be determined but one thing is for certain-Geocom and their team are well on their way to discovering that value.
As of November 2006
Until Next Time,
D. Stewart Armstrong
Consultant to the Junior Mining Community
Please send your particulars if you’d like to be on my mailing list or if you’d like to receive a copy of the latest Geocom CD at no charge.
Disclosure and Disclaimer by the Author: In the spirit of full disclosure, although D. Stewart Armstrong, Seacoast Consulting, and or Seacoast Publishing, are independent entities, they may be employed by this particular company, may own shares in this company, and this company may be an advertiser on GoldSeeek.com which is an internet site in which the author is consistently involved. Although the author is an independent analyst, he is also a paid consultant by the Junior Mining and Exploration Sector. The author is a private investor in the precious metals markets. He is not a board qualified or licensed investment advisor. All material is deemed to be accurate and to have been gleaned from reliable sources in a timely fashion; but said material cannot be construed as being totally complete or absolute. Consequently, the aforementioned parties can take no responsibility for any investment decisions you make or the results thereof. The author does not accept responsibility for any possible errors in calculations disseminated by any company he represents or in which he is involved, nor does he guarantee or insinuate any type of investment results. Consider any and all recommendations as personal opinions on the part of the author. It is highly recommended, and even insisted by the author, that investors, individuals, and all interested parties, conduct their own due diligence before becoming involved in any investment or with the interests of any company mentioned. That process would include direct contact with the company to confirm any facts, opinions, or ideas represented by these companies in general or on any Company CD’s distributed and referred to in these articles. The author would suggest the possibility of hiring professional advice from a certified investment advisor before making any investment transactions. Again, please consider these articles as opinions and please understand that investing in Junior Mining Companies is a high-risk, high reward proposition and you must take full responsibility for your own actions because there is always the possibility of losing all or a portion of your investment capital. This disclaimer applies to this article, Email correspondences, and all communications with both public and private entities. This disclaimer is applicable to all articles and communications published previously and to ones to be published in the future.
-- Posted Thursday, 29 March 2007 | Digg This Article
