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International Enexco Ltd.: One discounted ticket to copper development and uranium exploration by John Lee 03/07/2008 Symbol: IEC.V, IEXCF.PK
International Enexco is a Vancouver exploration company focusing on two key properties: 1) the Contact Copper/Silver Resource Property in Nevada and 2) The Mann Lake High-Grade Uranium Property in Saskatchewan. Contact Copper Project, Nevada:
Contact is in northeastern Nevada and is approximately 370 km away from the RTZ / Kennecott Copper Smelter in Salt Lake City Utah. The project area covers 1400 ha of patented and unpatented ground held by IEC. The Contact Deposit consists of 3 principal vein systems. A study released in July 2006 reported the Contact project to have an Indicated Resource of 4.4 million tones at 1.35% copper and 12.2 g/t silver and an Inferred Resource of 6.0 million tones with 1.80% copper and 8.7 g/t silver. Together, the property contains over 400 million pounds of copper and 3.7 million ounces of silver. Eighty percent of the Inferred material and 100% of the Indicated material lies within approximately 350 meters of surface.
Not included in the report are some spectacular deep drilling by Phelps Dodge. The particular highlight was a Phelps Dodge drill hole, PD-4, which hit copper including 3.66m @ 20.75% Cu plus 207 g/t Ag at 561.4m depth and 14.0m @ 9.17% Cu (including 2.8m @ 29.0% Cu) plus 144 g/t Ag at 656.5m depth.
Guided by ex Teck geologists, IEC purchased a drill and in 2008 the company intends to infill drill Contact to get to prefeasibility, and to follow up on Phelps Dodge’s spectacular PD-4 of 20% Copper. Production at Contact could begin as early as late 2009. Mann Lake (30% by IEC, 70% Cameco), Athabasca Canada Mann Lake property covers an area of approximately 3,400 hectares and is located within the eastern Athabasca Basin in Saskatchewan. There, the ore uranium grades exceed 10 times the global average of about 0.14% and frequently go above 10%. The property is about 25 km southwest of the McArthur River Mine, the largest high-grade uranium deposit in the world, and follows the conductor line of the nearby Millenium uranium mine. IEC’s joint venture partner in Mann Lake is Cameco, which readers may know is the world’s premier Uranium miner and accounts for 20% of total global uranium production. Mann Lake Uranium claims gathered speculator’s interests in 2006 and 2007, with intersects of 7%+ (over 0.25m) of U3O8 and 5.53% (over 0.4m) of U308, sending IEC’s stock to over $4 in early 2007.
In 2007, on behalf of IEC, Cameco performed an 8 hole, 5,200 meter step out drilling program in all directions to figure out how the mineralization trends. The results released in December disappointed investors and the stock receded. However, this is by no mean the end of the project and Cameco geologists are conducting winter geo-survey analyzing data in order to budget and access next step. IEC is another Arnold Amstrong’s baby along with SilverCorp (SVM.to), RedHill (RH.v), Ivory Energy (IV.v). Mr. Armstrong is 81, has solid reputation in the industry and in 2007 was inducted into Doug Casey's Explorer's League. He owns over 20% of the company. Selling at $25 million market cap with over $15 million in cash, IEC is now as good of a value as it will ever get. Technically, the stock retested strong support at $1.25, currently capped at 50 DMA (blue) of $1.5, it could quickly fill the gap between the 50 DMA and 200 DMA (red), which is $2.25. Drills are turning at Contact and a good set of results might just be the catalyst for a speed recovery for the stock. John Lee
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