Resource World Magazine

68 www.resourceworld.com A P R I L / M A Y 2 0 2 0 tion and drill core. The Dawson area has a high-grade NI 43-101 gold resource with expansion potential. In the centre of the trend lies the Broken Hill Type equivalent El Plomo section, with potential in silver, zinc, and lead. This area also includes a one-mile square section of 'Colorado State Lease', which means whatever is earned there goes to support Colorado schools, so the state will benefit greatly if a mine becomes productive in this part of the claim block. How big and rich could these deposits be? The Broken Hill Mine was the largest base metal mine in the world with 280 million tonnes already mined at Broken Hill (18.5% Pb+Zn, 148 g/t Ag), with sphalerite (zinc) grad - ing more than 10%. Cannington (45 million tonnes of high-grade ore, 16.7% Pb+Zn, and 520 g/t Ag) was a blind deposit that had no outcropping mineralization. It was discovered in 1990 when BHP Minerals found high zinc gahnite in the area and then followed up with an airborne magnetic survey. Now, after some 20 years of producing, Cannington has generated $25 billion in today's dollars. The large magnetic anomalies coupled with magnetic high-grade zinc mineralization in historic shallow drill holes on the El Plomo section along with the important pathfinder mineral, high zinc gahnite and similar geol - ogy suggest "a good chance of finding something like this," according to Will Felderhof. Historic drilling results at Zephyr's project intercepted in hole GC-8, 1.9% Zn over 5.6 metres, and in GC-9, 5.3% Zn over 8.2 metres including 10.2% Zn over 2.5 metres. Zephyr's plans for the summer of 2020 include dia- mond drilling under historic drill holes GC-8 and GC-9 which were drilled immediately above the large magnetic anomaly. It should be noted that although both of these holes intercepted high-grade mineralization, neither of these hit the magnetic anomaly. It is believed that the mineralization strength is correlated with the magnetic intensity, suggesting the magnetic anomaly may be reflecting much higher grade mineralization than that intersected in GC-8 and GC-9. In addition, interpretation of the 3D magnetic inver - sion modelling points to a possible fold structure with the dip of the mineralized trend changing from 60ᵒ south near surface to 85ᵒ north at depth, pointing to structural thickening. This suggests thick, high-grade intervals may be a clear possibility. Future outlook for the project, if successful, includes an environmentally sensitive underground mine, employing at first a few dozen exploration workers and, when fully in operation, some 500 people could be employed. n ZEPHYR continued from page 21 URANIUM continued from pag 43 southwestern Athabasca Basin. The Hook Lake joint venture is con- sidered one of the highest quality uranium exploration projects in the Athabasca Basin due to its loca - tion along the prospective Patterson Lake trend and the relatively shallow depth to the unconformity. Tisdale Resources Corp. [TRC- TSXV], formerly Senator Minerals, controls the Patterson North East (PNE) and Carter Lake uranium projects, both of which are located on the west side of the Athabasca Basin. The PNE project covers approximately 531 hectares, directly adjoining the easternmost boundary of Fission 3.0's Patterson Lake North (PLN) project. Fission 3.0 is a subsid - iary of Fission Uranium Corp. Uranium Energy Corp. [UEC- NYSE] sees itself as having an infrastructure advantage with its state-of-the art fully licensed Hobson processing facility in South Texas, which is central to the Palangana, Burke Hollow, Goliad and ISR proj - ects. In Wyoming, Uranium Energy controls the Reno Creek Project, which ranks as the largest permitted, pre-construction ISR uranium proj- ect in the United States. Additionally, the company controls a pipeline of uranium proj- ects in Arizona, New Mexico and Paraguay, a uranium/vanadium project in Colorado and one of the highest-grade, and largest undevel - oped Ferro-Titanium deposits in the world, located in Paraguay. Previous plans to resume last year's successful drilling program at the Burke Hollow ISR Project will be postponed along with the asso - ciated capital outlays until market conditions normalize. In the mean- time, the UEC team will continue to advance its ISR projects with engi- neering and geologic evaluations that support the company's produc- tion readiness strategy. n lagging the expansion of the world's money supply, particularly when compared to the currency printing machine that is the United States Federal Reserve and its M3 money supply. Gold bullion, as a currency, should mirror this expansion of the world's funds. And in reality it is doing just this as in most currencies the price of gold is trading at record highs. Gold is lagging in US dollar terms because the American dollar is widely held as a reserve currency so a lot of those dollars are not out in circulation. Also, as the world's reserve currency, US dollars are bought and hoarded in time of economic uncertainty. Long term, the price of gold, even after the recent run-up, would seem to be underpriced by some 13% to 30%. Now, back to the question posed above. Is gold underpriced? To me, there is no simple answer. Rather, the answer would seem to depend on one's perspective. Short-term momentum suggests gold bullion may be overpriced. Mid-term, gold bullion would seem to be fairly priced based on world economics. However, long-term is quite dif - ferent. The price of gold, as the world's only true global currency, should mirror the worldwide sup - ply of money, but seems to be lagging by quite a large margin, especially in US dollar terms. Over time this differential in price should resolve itself. And if 2011 repeats, gold bullion may even foretell of another increase in the supply of mone y and move up to new all- time highs. Is gold underpriced? I think that based on one's perspec- tive the price of gold bullion may be overpriced, fairly valued, or indeed underpriced. Establish your parameters and position yourself accordingly. n GOLD continued from page 8

• Cover