Fjordland’s Discoveries Attract Major Miners By James West and Claire O’Connor MidasLetter.com Tuesday, March 2, 2010 Fjordland Exploration Inc. (TSX-V: FEX) is proving to be quite the diamond in the rough. Based in Vancouver, Fjordland is focused on the discovery of gold, copper and molybdenum deposits in British Columbia, and while still a junior exploration company, they’re attracting attention from the big guns. Gold Fields (NYSE-GFI), one of the worlds largest un-hedged producers of gold, discovered Fjordland and recognized the potential of the company, their projects and the entire geographical area. What could have attracted a major gold producer, with attributable production of 3.6 million ounces per annum from nine operating mines in South Africa, Ghana, Australia and Peru, as well as reserves of 81 million ounces and resources of 271 million ounces, to a junior company in British Columbia? Let’s dig deeper to find out. Fjordland proudly see themselves in a position for discovery. With the worldwide pursuit of mineral resources, President, CEO and Director Tom Schroeter explains why Fjordland chose British Columbia. © 2009 MidasLetter.com – All Rights Reserved- Unauthorized duplication or distribution of all content herein prohibited. This document is copyright protected and may not be copied, disseminated or distributed without the prior express consent of Resourcex Financial Publishing LLC. Contact darryl.kelley@resourcex.com for permissions and licensing. “It’s important to understand why we’re focused on doing business and exploring in BC… 1. There’s a politically stable environment 2. Significant mining heritage 3. It’s a proven resource-rich area 4. It has superior geological database and mineral tenure systems…”. The Woodjam Project (60% Fjordland; 40% Cariboo Rose Resources – Woodjam Joint Venture) The success of the Woodjam Project is testament to Schroeters’ convictions. The property is located at and around the village of Horsefly, situated approximately 45 kilometres east of the city of Williams Lake, in the Cariboo region of central British Columbia. The claims encompass low elevation, relatively flat terrain and are easily road accessible and workable on a year-round basis. What’s interesting to note, and insightful into the as yet unrecognized potential of the area, is that Gold Fields approached Fjordland with a Woodjam joint proposal 2 years ago, unsolicited! Their first venture into BC, they had the company on their radar from as far back as then. Fjordland decided to decline this first proposal, explaining that they hadn’t yet discovered the true potential of the area and felt it to be in the best interest of their shareholders to hold off on making a commitment. With what can only be seen as a huge expression of confidence in the entire Woodjam project, Gold Fields obviously knew they were onto a good thing here and persisted in becoming a part of the Woodjam Project. On 29 July 2009 Gold Fields was awarded an option to earn an initial 51% interest in a portion of the property referred to as "Woodjam North" by expending $7 million in exploration and making $350,000 in cash payments to the joint venture over a three year period with a minimum expenditure of $1 million in the first year. Gold Fields can earn an additional 19% in the project by expending $12 million in exploration over a four year period and taking the project to the feasibility stage. Woodjam Becomes North and South The decision to separate the Woodjam property into North and South was based on the fact that Gold Fields, principally a gold mining company, was interested primarily in the potential of the Northern part of the project which had demonstrated more significant gold than copper. However, not to discount the Woodjam South property, in early 2010 Gold Fields provided written notice that it intends to exercise a right of first refusal with respect to Woodjam South. This matches an offer presented by another major international mining company. Although the future of the southern property hasn’t been confirmed yet, I think we can take away a pretty strong indication from this information that there are great things happening, and to happen with Woodjam South. Fjordland and Gold Fields See Eye to Eye Back up in Woodjam North, Fjordland are very pleased to be working with Gold Fields. “They feel that there is significant potential to find or discover several new deposits..” Schroeter explains. As well as Gold Fields’ evident confidence in the project, their aggressiveness in working year round on the area suits Fjordland’s very unique winter drilling program to a T. © 2009 MidasLetter.com – All Rights Reserved- Unauthorized duplication or distribution of all content herein prohibited. This document is copyright protected and may not be copied, disseminated or distributed without the prior express consent of Resourcex Financial Publishing LLC. Contact darryl.kelley@resourcex.com for permissions and licensing. Coming from the East in the late 60s, Schroeter could never understand why there weren’t more winter programs in BC. A moderate climate and financing is all you need, he believed. Cue Gold Fields with their financing, contractors, drilling and voila – a winter program match made in heaven. Or more probably in Fjordland’s offices but that doesn’t have as nice a ring to it, does it? The fact that Woodjam has this winter drilling program highlights the tenacious hard work they’re willing to invest in this project, and again, an overwhelmingly strong vote of confidence from Gold Fields in the project and the area. Regarding resource estimates, at present there are no resources calculated for any zones on the property. However, “we’re not sitting on our hands here!” Schroeter assures. Gold Fields has just resumed a drilling program that’s part of their last year’s commitment of 3 million dollars and intend to reach 7000 metres by July hopefully. When the drilling is done and the results are in, we’ll hear more about the resources. And – a second year of significant budget expenditures will begin in August. The QUEST JV Project On top of this immensely promising Woodjam Project, Fjordland are working with Serengeti Resources Inc. on the QUEST JV Project. Currently, Serengeti has an approximate 58% interest in the project; Fjordland has the remainder. In late 2007 to early 2008 airborne magnetic surveys at 250-metre line spacing were completed on 18 of the 28 properties that comprised the JV Project. Follow-up reconnaissance scale IP surveys, totalling approximately 130 line-kilometres, were completed over the most favourable magnetic anomalies on 11 of the QUEST properties. Of these 11 properties, 7 have drill ready targets, Schroeter explains. Although lacking in the infrastructure and access that Woodjam boasts, QUEST is still regarded as one of the more promising group of properties in the underexplored and prolific Quesnel Terrane in central BC. Fingers and Pies QUEST and Woodjam aren’t the only pies Fjordland have their fingers in. “Since the Fall, Fjordland have acquired 100% interest in 8 separate properties (‘Tak’ Project) in the general area of Woodjam, and we did that because of our experience and expertise and success at finding new discoveries at Woodjam”. Right now, they’re deciding whether to farm them out as a package, a potential joint venture, or start the initial work on their own. Just a few more layers to add to the wealthy little onion that is Fjordland Exploration Inc! W hy Fjordland is the W ay Forward Tom Schroeter seems to have an admirably shrewd perception of mining in BC. With many of his hunches and convictions leading to success, his 35 years experience in the Canadian Mining Industry are a testament to his work ethic. 21 of those years have been based in Vancouver where he has obviously developed a feel for the land, whilst establishing himself as one of the most respected and expert authorities on BC’s geology and mineral deposits. Now, with Fjordland and its various projects under his belt, he looks forward to taking advantage of their favourable land packages that bode well for future discoveries in BC. Furthermore, he foresees a new era of development and exploration for large-scale copper, gold and molybdenum © 2009 MidasLetter.com – All Rights Reserved- Unauthorized duplication or distribution of all content herein prohibited. This document is copyright protected and may not be copied, disseminated or distributed without the prior express consent of Resourcex Financial Publishing LLC. Contact darryl.kelley@resourcex.com for permissions and licensing. deposits in British Columbia. The reason that right now is the time to pay attention to Fjordland is the fact that its stock is tremendously undervalued, trading as low as 7 cents. For now. So why sit up and pay attention to a company trading so low? This is why 1. The interest and involvement of mining giants, likeGold Fields, basically stamps a seal and a promise of future fortunes! 2. They have proudly been fortunate enough to make 2 brand new discoveries in the last 2 years. 3. Fjordland is one of the few companies in BC that can boast a winter drilling project in 2010. 4. Fjordland is actually finding better grades in their Southeast Zone copper-gold-molybdenum deposit than were ever thought to be in BC. Similar recent success stories from the nearby Mount Polley mine and the Red Chris deposit in the Northwest are de-mystifying the baggage that BC deposits are low grade in comparison to Chile and Argentina. Basically, Fjordland has hit on something new, something different and something that threatens to change the way the world views mining in British Columbia. Keep your eyes on these guys. Fjordland set out to discover, and it looks like discover they did. © 2009 MidasLetter.com – All Rights Reserved- Unauthorized duplication or distribution of all content herein prohibited. This document is copyright protected and may not be copied, disseminated or distributed without the prior express consent of Resourcex Financial Publishing LLC. Contact darryl.kelley@resourcex.com for permissions and licensing.