Mexican Project Generator
With hundreds, if not thousands, of mineral exploration companies vying for investors'/speculators' attention, it can be a challenge (though an enjoyable one) weeding through them to locate those companies with supporting fundamentals that could spur significant gains - while hopefully providing limited downside risk as well.
I feel that Yale Resources (v.YLL), last trading at 0.125, is one such unique exploreco.
Yale Resources separates itself from many of its peers for its "project generator model" employed as well as its small recurring revenue stream. Essentially the company's mission statement is to acquire promising properties, with a focus in Mexico, with the intent of optioning them to partners for staged payments and exploration expenditures, while remaining the operator. This allows the company to increase the chances of success with a portfolio of properties while decreasing exploration expenses and limiting share dilution.
The effect this has is evident in its latest financials. The company reported mineral acquisition and exploration expenditures of $226,000, but had exploration cost recoveries and option proceeds of $367,000. It's also worth noting that the company also owns a 3% interest in a couple oil wells in the U.S which also generates a small revenue stream for YLL.
Yale Resources currently holds 9 Mexican properties in its portfolio. All properties have produced very encouraging drill, underground or surface sample results to date. Most of these properties have small, historic, shallow mines or workings. Please see below for a list of Yale's properties and select results from each.
Guadalupe - recently reported drill results including 11.5 m of 2.09 g gold and 382.7 g silver; 2 historic mines on property
Urique - sampling in Rosario tunnel yielded assays up to 1, 640 g silver and 9.74 g gold
Orofino - 11 mineralized zones; 6 open pit workings, 3.19 g gold, 83 g silver over 30 m
Tenorida - 4.8 g gold, 64 g silver over 10.2 m
Carol - 24 m of 2.24 % zinc, 1.2 % copper
Los Amoles - 20 historic workings in 1100 m wide zone; surface assays up to 1.06% lead, 451 g silver
Apache - 30 km from Timmins Gold; Chip/grab samples up to 2.99% copper, 2.96% zinc and 75.7 g silver
Dos Nachiones - several small historic mines/pits; assays up to 4.45 % lead, 256 g silver
La Verde - samples average 3% copper and 190 g silver over 50 m
With 9 quality Mexican projects, all of which have produced significant results, and their willingness to option properties to share risks and costs while operating (and also limiting dilution), I feel Yale Resources at current prices (0.125) offers great potential with limited downside risk for an explration company.
Special thanks to mooreman for bringing YLL to my attention.