HALIFAX, Sept. 11, 2012 /CNW/ -
Dear fellow shareholders,
I am writing today to provide you with an update of the activities of
Stockport Exploration over the past five months since accepting the
position as President in April.
Initially, much of my time was spent with our equity financing which
closed in June. It is a testament to the opportunity Stockport
provides shareholders that we raised $1.1 million in such challenging
markets. After our financing, my attention turned to operations and a
focus on our exploration program.
Our recent exploration began in earnest in early August. We divided the
current program into two stages. Stage one includes mapping and
sampling of the quartz vein pebble lag (pebble lag), extending our
gradient induced polarization (IP) survey data, and identifying higher
potential areas for Pole Di-Pole (PDP) IP follow-up.
From a strategic perspective, there are several reasons we recommended
this approach. Essentially, quartz pebble lag is the top of a quartz
vein that broke away and, through erosion, likely spread out in the
surrounding area. By knowing where the pebble lab is on our
concession, and at what gold grades, it allows us to have a better
understanding of where the host quartz vein may lie, and if it is
likely to be gold-bearing. IP and PDP provide us with data of what the
underground structures may look like. Through gaining a better
knowledge of the underground geological structures, we can gain a
better understanding of what opportunities may be on our concession.
Our objective from stage one, is to prepare for stage two. Simply put,
we plan to use the data from the first stage to identify the highest
priority targets and undertake a test drill program. We are currently
in the process of compiling and analyzing the data and waiting on assay
results from a number of our samples. It is our hope, by early
October, to announce all of the results from stage one, as well as our
intended drill targets.
I visited our Kenyan concessions for the start of our stage one
exploration program. The Kenyan Government has granted or is in the
process of granting Stockport Exploration more than 2,000km2 of
licenses for exploration. While I was unable to view every corner of
our concessions, I was left with two very clear take aways.
First, the level of artisanal activity at Kamwango (our priority target)
is substantial for an area that covers 15km2. For those of you not
familiar with artisanal mining, it is surface mining generally
undertaken by the landowner and other prospectors. Locals will often
find a quartz vein on their land, and use very rudimentary methods to
extract small quantities of gold. When their land falls within our
concession, we are ultimately the owner of those mineral rights.
However, artisanal workers tend to only be able to access on, or very
near, surface gold. Stockport is focused on identifying large deposits
that are more often found below the surface soils. Allowing artisanal
miners to work the land helps to support good relationships with the
community, and in some cases, helps us identify areas to begin more
thorough exploration programs.
There are over a dozen artisanal operations working in the Kamwango
area. One operation has approximately 150 people working soils and
quartz veins every day. Another operation has dug approximately 7
vertical shafts that range in depth from 20-30 metres. All operations
on the Kamwango license have been dug by hand. Locals put a tremendous
amount of hard labour into their gold recovery operations. It is hard
to believe they do all that back-breaking work without consistent gold
recovery. Our geological data for Kamwango is still in early stage,
but observational rational is quite strong. Visit the presentation
section of our website www.stockportexploration.com to see a photo presentation of artisanal activity at Kamwango.
Second, we have put together an impressive land package which we have
only begun to understand the potential. Touring our concessions
involves a lot of ground to cover. But even just by driving through
our concessions, from the roadside, we identified several new potential
Historic geology in the area suggests much of the gold occurs in quartz
veins. On the Sotik concession we found an exposed quartz site, where
the landowner has been selling quartz ore to artisanal workers who
bring the ore back to their homes to process. We also identified
sites where British colonials had worked shallow mines for gold, but
these sites were not record with the government mining commission. And
in several instances locals came to us, identifying new surface quartz
veins which they discovered. The bottom line is we are in an early
stage on this seemingly prolific mineralized concession. We have much
more to do in identifying targets and establishing a priority for their
exploration. It is important to note that not all quartz veins carry
gold, and even if they do, we would be a long way from determining if
the gold is economical to recover. Still, these are interesting, early
Change has been constant since taking over as President of Stockport.
First, we adopted a new name based on the tenacity and hard work of our
namesake community. You can read more about the inspiration of our new
name on the website. Next we welcomed CFO, Rob Randall, who has
experience in African mining projects and publically-traded companies
in general. Rob's experience has proven him to be an exceptional
sounding board in terms of both financial and exploration planning.
Our next change comes at our Vice President of Exploration level. Matt
Rees is leaving us. Matt was instrumental in putting together our
impressive land package in Kenya. It was primarily his brainchild to
introduce the company to Kenya. While Matt will remain with us as a
consultant when required, he has chosen to pursue other options that
will allow him to remain closer to home.
I am pleased to announce that Mercator Geological Services, a
highly-respected geological consultancy firm headquartered in
Dartmouth, Nova Scotia, has been retained to provide geological
direction for Stockport and act as our Qualified Person (QP), providing
quality control and expert sign-off on our activities. Mercator offers
us several unique advantages. As a large organization, they can
provide access to professional geologists with diverse expertise. This
includes specific commodity experience in gold, silver, copper, lead,
zinc, and iron ore deposits. They have experience in Africa and provide
expertise in the assessment of geophysical, geochemical and geological
data in order to generate specific mineral targets. In addition, as a
consultant, Mercator can adapt to our needs and provide cost effective
support that matches our exploration activity. The initial assignment
for Mercator will be to provide support on two key projects.
Mercator's first assignment will be to analyze and interpret data from
our recent first stage exploration activity. Their focus will be on
analyzing our IP, PDP, quartz pebble mapping, and auger soil sampling
data. This is with the view to identifying our highest-priority drill
targets for the Kamwango concession.
Mercator's second assignment is already in progress. They have been
tasked with undertaking a regional geological assessment of all our
concessions in Kenya and will complete a site visit later this month.
Working with our two full-time geologists in Kenya, they are compiling
all of our exploration results from the past year and a half of
exploration, including historical United Nations and government data.
In addition, they are working with our on-the-ground teams that are
currently systematically exploring all our concession, mapping and
sampling new potential sites for exploration. The end result, expected
in late fall of this year, will be a compilation study that will
provide us with a better understanding of the opportunities and
priorities throughout our entire Kenyan property.
Later this month I will be visiting Kenya again to attend the Mining,
Business and Investment Conference in Nairobi. This is the largest
mining conference in Eastern Africa and attracts mining operators and
explorers, investors, potential joint venture partners and government
regulators from the region. The Kenyan Government will be a major
participant in the conference and is working hard with companies like
Stockport to encourage and support foreign investment in their
burgeoning resource sector. My interaction with government officials
and agencies to date indicates a supportive government that is anxious
and willing to work with foreign companies to advance the economy of
Our planned exploration and compilation study will keep us quite busy
over the coming weeks and months. You can expect to hear regular
updates as each stage completes. Specifically, we will be announcing
the results of our stage one exploration and recommendation on a near
term drill program. We will also be providing a complete program
update following the completion of the compilation study.
I am quite optimistic about the future of Stockport. The end of summer
has seen an upswing in the price of gold. Our stock is closely-held
and is supported by many long-term shareholders. I believe we are well
positioned to benefit from the opportunities that lie ahead. My door
is always open. I would encourage any existing or potential
shareholder to contact me directly to discuss the future of Stockport.
President and CEO
SOURCE: STOCKPORT EXPLORATION INC.
For further information:
President and CEO