Temex Resources: Kinda Dull, But Good Resources

Temex Resources Corp. has two flagship properties: the Juby in northeastern Ontario and the Whitney near Timmins. Both have been extensively drilled recently. The Juby results show gold, but the grades for the drill core haven't been that good. For their depth, the grades are too low to be economical so far: at best, a little more than 2 grams/tonne, even if along long intervals. That's the bad news for the property.

The good news is that the drilling on the Juby is expansion drilling. Temex already has a near-surface resource of 614,000 ounces of gold indicated, grading 1.36 grams per tonne gold with a cut-off grade of 0.50 g/t, and inferred resources of 602,000 ounces of gold grading 1.14 g/t with the same cut-off. If the inferreds fully pan out, the company's sitting on a resource with well over a million ounces of gold. Some of the Juby drilling in the future will be infill, whose goal will be to promote those inferred resources to indicated.

More interesting are the results coming from its Whitney property. Last September, the company landed 5.61 g/t gold over 8.70 metres. Today, before market open, it reported a hole with 9.97 g/t gold over 6.70 metres, another with 6.47 g/t gold over 5.70 metres and a third with 5.81 g/t gold over 11.40 metres.

Despite those encouraging drill results, the stock hardly moved today. Perhaps that's because
the Whitney deposit is considered too small to be a major strike.


As sketched out above, though, the real story behind Temex is the Juby. Resources are not reserves, and a resource estimate does not include a preliminary economic assessment, but that estimate is pretty large. Should all inferred resources be converted to indicated, the comoan;ys got 1.2 million ounces of gold with reasonable confidence. I should repeat the fact that its economic prospects have not been studied, nor is such study likely to be done for a fairly long time. The company's busy with expansion drilling now and infill drilling later.


As for Temex's one-year chart, it's pretty boring. The company largely missed out on the exploration rush last fall:



The Moral Of The Story: Bullish pile-ons carry up a lot of companies, but they also leave lots of companies behind. Their stocks tend to be boring, but steady companies with boring charts affords time to think things over. They also tend to have limited loss potential unless some bad news comes out.


Disclosure: None.