Sector NewswireTM

Sector: Mining - Metals and Minerals  :

Sub Sector: Precious Metals  :

 

News Release - February 4, 2010 5:36 PM ET 

 

 

Journey Resources to Mine High Grade Gold-Silver Project in Mexico and Imminent New Resource Estimate from Idaho Property

 

Journey Resources Corp. (TSX-V: JNY) (Frankfurt: JL4) (US Listing: JNYRF) President provides interview with Mining Journal regarding status of planned low-cost mining of high grade vein-hosted Charay Gold-Silver Property, Mexico and new gold resource estimate on Musgrove Creek, Idaho expected ~Q2 2010.

   

NEW YORK, NY, February 4, 2010 /Sector Newswire/ - Mining MarketWatch Journal has published review on Journey Resources Corp. (TSX VENTURE: JNY) (Frankfurt: JL4) (US Listing: JNYRF) and interview with President and CEO of Journey. The review and interview offers insight and opportunity afforded investors as the Company is poised to take their 100% owned high grade Charay, Mexico gold-silver deposit into low-cost mining operation. Additionally, a new gold resource estimate on Musgrove Creek, Idaho is expected in Q2 2010 and the Mining Journal projects at least a doubling of the current 313,822oz gold resource.

  

The full review, interview, and valuation commentary may be found at: http://miningmarketwatch.net/jny.htm online.

 

Excerpts:

 

"Journey Resources Corp. (TSX-V: JNY) is poised for significant upside share price revaluation as two of their 100% owned gold projects are poised for major developments that will fundamentally change the inherent value of the Company. Journey Resources’ Charay property is a high grade vein-hosted gold-silver project that posses a technical report that places the operation ready for immediate production. With blasting permits received, the company is making quick progress in arranging to mine the Charay property. The first 35,000 tonnes of material is essentially at surface. With an average grade of 18.75g/t. Mining MarketWatch believes an initial 24,000+ oz of gold will be mined at a cost of ~US$100/tonne. This scenario will cash flow the expansion of the property, which is open at strike and at depth; the deposit has only been drilled to 50m with every hole intersecting substantial mineralization and the highest grades being the deepest holes. Mineralization is mesothermal and later low sulphididation epithermal systems.The ongoing cash flow will enable advancement of all their projects without further dilution to the share structure and most importantly prove up their flagship Musgrove Creek Idaho gold project (currently with resources of 313,822oz gold) towards their 1Moz+ gold target. JNY.V appears undervalued with only ~89M shares outstanding and trading under CDN$0.15, a multiple upward revaluation appears readily in store."

 

Charay Gold Project expected to be operational in Q2 2010 • JNY.V making quick progress

Journey Resources Corp. is making quick progress at Charay and Mining MarketWatch Journal anticipates the mine will be operational in Q2 2010 -- this will result in a significant cash flow boost to the Company and take its valuation to a new level as a functioning operation. Journey is well capitalized to see the project to fruition. Management, geologists, and contractors all converged at Charay this January 2010 to solidify logistics, among other tasks, for low-cost mining of the high grade vein-hosted Charay gold-silver deposit.

 

Jack Bal, President & CEO of Journey Resources Corp., returned from Charay with a check list of critical tasks complete and offered Mining MarketWatch Journal the following synopsis "We had several major things on our list to accomplish and we knocked off every one of them. 1) One was metallurgy; we shipped a 400kg sample to our metallurgist in Hermosillo and visited their facilities. 2) Second, was to organize a drill program and we decided in that process with the driller to import our drill (JNY.V owns its own Hydacore 2000 drill that it purchased ~2 years ago for ~$500,000) and have it on the property to be available for continuous drilling. We have started that process, we have an importer that we are working with to bring the drill into Mexico probably within two weeks -- the drill is in transit now. 3) Third, was to negotiate a deal with a mill to take our ore, we have a verbal agreement but don't want to sign one until we knew what the metallurgy was, but we did establish that a mill ~1 hour from the property which is 400TPD is available. 4) We wanted to develop a relationship with a mining contract group that we trusted and the main one on our list was a group from Quebec that's currently running all the operations for a major Canadian mining Company in Sinaloa State Mexico. So we did a tour of their mine and the mining contractor has been to our property, we have sent them all our data -- they want to mine our project and we are waiting for a proposal from them."

 

Figure 1. (Left) Photo of Metallurgy Discussion at Metallurgical Lab in Hermosillo Q1 2010

 

Metallurgical results are expected back soon. It looks like a large component of Journey's Charay gold will be free gold and the balance appears to be amenable to using cyanide. There appears very little sulphide, almost completely oxide. The grades will probably pick up on some samples using a different protocol to account for free gold as fire assay alone did not account for free gold.

 

Based on initial metallurgical results, mainly verbal right now, it looks like Journey can probably grind the material on site, do gravity separation to extract the majority of gold, and then leach the rest out all on site. This will really lower the costs and at the end of the day Journeys product is almost pure gold. The cost savings would drop the already estimated ~$100 per tonne all-in cost of getting material to concentrate using a mill. If Journey's metallurgy shows the rock is amenable to cyanide JNY.V won't need to transport off site, won't need to float it (leaching is much less expensive), and JNY.V would have more control of the final product.

 

The full review, interview, and valuation commentary may be found at: http://miningmarketwatch.net/jny.htm online.

 

  

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. The term investment advisory refers to the fact the reader is being advised there is a publication on an item that is also an investment, and not advice to buy or sell. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URLs.

 

SOURCE: Sector Newswire Per: Mining MarketWatch Journal

editorial@SectorNewswire.com

 

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