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.
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“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.
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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
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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.