Trueclaim Exploration, Inc. (OTCQX: TRMNF) (TSX-V: TRM)
Recently published results could point to a BONANZA for investors!

 

Trueclaim Exploration Inc. (TSX: TRM) (OTCQX: TRMNF) engages in the acquisition and development of precious and base metals properties in Ontario and Arizona. In our opinion, Trueclaim’s properties could offer investors a potential bonanza of gold, silver, and copper from its current properties. Trueclaim Exploration Inc. strives to be recognized as a global leader in sustainable mining by supporting the communities where it operates; by protecting and enhancing the environment at every opportunity; and creating a great place to work for all of its employees.

Major Properties

Trueclaim Exploration has two major projects; the former Scadding Gold Mine near Sudbury, Ontario and the Black Diamond claims in the Apache Mountains of Gila County, Arizona.

The former Scadding Gold Mine claims are part of approximately 42,000 acres the Company has assembled in this area. It is imperative investors realize Sudbury, Ontario’s rich history of mining. Thomas Edison visited the Sudbury area as a prospector in 1901, and is credited with the original discovery of one of the area’s most prominent ore bodies.

The Black Diamond claims are the result of an option agreement with Black Diamond Exploration Inc. in Claypoole, Arizona to acquire 100% of the 127 claims owned by Black Diamond representing approximately 2,500 acres. The claims area is located in and around an area known as the Richmond Basin in the Apache Mountains of Gila County, Arizona, which is located approximately 100 miles east of Phoenix, Arizona. Aside from many past producers, five major operating mining porphyry copper operations occur within a 20 mile radius of the Black Diamond claims.

Trueclaim also has a 100 % working and revenue interest in the 3360 acre Sandeb Property in the Dixie Lake area of the Red Lake Mining Division in Ontario. The Sandeb property has year round highway access and is adjacent northeast of the Dixie Lake North Area property where Grandview Gold Inc. obtained good drill results on its 88-4 Zone. The Grandview property contains a known resource of approximately 415,000 tons grading 4.5 grams per metric tonne. The Sandeb property has been optioned to another company that plans to conduct exploration on it. Trueclaim will retain a royalty interest in the Sandeb claims.

On June 16, 2011 Trueclaim announced it had signed an option agreement with Krinor Resources Inc. and ASK Prospecting and Guiding Inc. to acquire 100% of 59 claims encompassing 1,475 hectares, or 1,200 acres, known as the Linear Property, which is located 15 kilometers west of Gander, Newfoundland. The Property covers a portion of the Appleton Linear, a north-northeast trending structure that extends more than 30 km in length, where high-grade gold mineralization in quartz veining and breccias has been discovered through prospecting and subsequent diamond drilling. The Company intends to transfer for consideration its right under the Option Agreement to a third party that will fund the option and work commitments.

Trueclaim’s primary focus will be on the Black Diamond claims and the Scadding Gold mine. Recent drill results at Scadding proved favorable and Trueclaim’s June 2, 2011 press release announced that the examination of several old workings on the Richmond Basin Silver Property revealed two new anomalous areas of gold, copper and silver mineralization.

In our opinion, Trueclaim’s strategy of acquiring properties near major producers is not only smart, but profitable. The world’s richest man, Carlos Slim, is doing the same thing with his Minera Frisco, S.A.B. de C.V on a larger scale. Trueclaim Exploration offers an opportunity for investors to ride along with a proven management team as they develop properties in these proven areas.

Black Diamond/Gila County Property- Gila County, Arizona

Trueclaim Exploration has entered into an option agreement with Black Diamond Exploration Inc. in Claypoole, Arizona to acquire 100% of the 127 claims owned by Black Diamond representing approximately 2,500 acres. The claims area is located in and around an area known as the Richmond Basin in the Apache Mountains of Gila County, which is 100 miles east of Phoenix, Arizona.

The property includes the former McMorris and Silver Seven mines, as well as several other smaller mines. The area is readily accessible by year-round roads and has extensive nearby local mining infrastructure. Acquisition of the claims followed an extensive review of the property, including a physical inspection by the Trueclaim geological team in early May, 2010.

The site was first discovered in the late 1800s and subsequently prospected with limited production by a number of small operators between 1900 and 1980, but no formal drill program was ever undertaken.  In addition no shafts were sunk beyond the 700 foot level, nor were there any efforts to create a comprehensive picture of the potential resource. In comparison to the technology available today, this would be the equivalent of driving your garden tractor around the track at the Indianapolis Motor Speedway. We love underexplored mining properties in areas where major producers operate and, in our opinion, believe investors should follow the progress at Black Diamond very closely.

 In the vicinity of Black Diamond there are five major, operating mining porphyry copper operations within a 20 mile radius:

1.       Freeport McMoran Copper & Gold- Miami, Arizona - operates a large open pit mine and smelter operation producing 100 million pounds of copper.

2.       BHP, Pinto Valley, Arizona has an open pit operation producing approximately 18.1 million pounds of copper per year.

3.       Quadra Mining Ltd., Carlotta Mine, Globe, Arizona operates an open pit producing approximately 65.7 million pounds copper per year.

4.       Resolution Copper, Superior, Arizona is an underground operation cited as potentially one of the largest, richest and deepest (7,000 feet deep) copper and molybdenum ore bodies in North America.

5.       Grupo Mexico, Ray Pit and Hayden Smelter, Mission, Arizona is producing approximately 232 million pounds of copper per year, as well as more than 600,000 ounces of silver. 

 The area has an extensive mining support infrastructure that Trueclaim will be able to draw upon in its planned exploration and development activities for the various historic minesites.
Trueclaim has started a Phase I exploration program for the Black Diamond property. Trueclaim can earn an undivided 100% interest in the Property by paying the aggregate sum of $850,000 in cash, issuing an aggregate of 800,000 common shares its stock, and incurring $1,500,000 in exploration expenditures over a three year period.

Scadding, Ontario, Canada  Property

Trueclaim has an option to acquire up to a 100% interest in the Scadding Gold Property, which produced approximately 914 kilograms, or approximately 29,400 ounces, of gold from 150,000 metric tonnes (330,693,000 pounds) of ore grading 7.2 grams per ton of gold between 1984 and 1990. Since the initial discovery in 1973, five zones of gold mineralization have been identified: the North, Central, South, East-West and the New Zone. Shallow open pits are found in the North, East-West and South Zones while the Central Zone was exploited to about 110 meters below surface.

The Scadding Township and Davis Township area has more gold occurrences than any other similar sized area in the Sudbury District and Trueclaim now holds the largest land position in this area.

Trueclaim has completed its first phase of drilling on the Scadding Property, undertaken an exploratory drill program and is now 75% through its 8,000 meter Phase II diamond drilling program on the Scadding Gold Property Minesite Area. The Phase 1 program conducted in late 2009 and early 2010 consisted of 33 NQ drill holes totaling 3,275 meters. The best grading hole in this program was TRM-10-07 in the North zone which graded 12.9 g/t across 19.29 meters. The use of Surpac, a three dimensional modeling software was acquired by the Company half-way through the phase 1 drilling program. This program was instrumental in targeting the mineralized zones encountered. Three dimensional modeling allows the geological team to accurately target zones of interest, areas that need to be in filled or the direction in which zones can be expanded. It would appear that the down plunge potential of all the zones has not been totally evaluated to date since most drill holes are less than 100 meters in length.

In January 2011, Trueclaim commenced an 8,000 meter (26,248 feet) Phase II drill program on the Property. Data compiled from the 3-D model developed from work performed by Trueclaim and previous operators of the Property was very effective in assisting the geological team target holes in areas of potential mineralization. In March 2011, Trueclaim announced a significant intersection of 5.36 grams per ton of gold over 15.78 meters (51.9 feet) (53.0 to 68.78 meters, 173.8 to 225.7 feet) in hole TRM-11-10 drilled at the South Zone of the Scadding Gold Property. Management is very pleased with the results thus far and is encouraged by the capability of their team to use the modeling software to define zones of chlorite mineralization and successfully target drill holes in mineralized areas. The Company holds the Scadding property under option and has earned a 51% working interest and has the right to earn a 100% working interest in the property.

Summary

Trueclaim Exploration is not a $0.15 stock. Its 52-week trading range has been between $0.11 and $0.23. Buying the stock near its low is probably a wise move, especially if gold, silver, and copper prices move higher over the near term. However, if reading between the lines of Trueclaim's June 2 announcement of "significant copper mineralization" at its Richmond Basin Silver Property proves to yield the bonanza we think it might, you can pretty much forget about the year high.  In fact, if the "significant copper mineralization" is similar to the other properties in the area, the Black Diamond Property could prove to be worth much more than the entire Company is at its current trading price. In our opinion, investors should keep close watch on the drill results at Black Diamond and will probably want to own the stock before they are released to the pubic.

Even more compelling is the fact that early miners were removing silver by hand from at least one local area within the Jumbo vein which was reported to have values of several hundred to several thousand ounces per ton of native and horn silver. With a patient group of long term shareholders, in our opinion, shares of Trueclaim Exploration could move higher very rapidly as the Company’s business plan unfolds. Technically, the next stop should be $0.18 before pushing through to $0.21.