Drilling at Koshaj yields encouraging high-grade assays
Tirex selected Koshaj as its first target and the company recently wrapped up
its nine-hole, first phase of drilling. Assays revealed substantial intersections of
mineralisation containing higher grades of zinc, as expected, accompanied by
a significant copper content. These results support the company’s geological
model for Mirdita.
Gold at Koshaj provided a pleasant surprise
Unexpectedly, Tirex’s assays from the Koshaj programme contained
noteworthy values of gold and silver across the mineralised zone. The
company now believes Mirdita has the potential to yield worthwhile
amounts of precious metals beyond Koshaj. This expands the potential
of the project significantly.
Gurthi Central could be the key to the Mirdita project
Tirex recently commenced drilling at Gurthi Central, which contains two
known deposits. Copper was the primary target, but the company also expects
to find zinc-rich zones, and possibly exploitable quantities of gold and silver.
The two deposits at Gurthi Central could offer the substantial size potential and
higher grades to meet its goal of discovering and developing a large, Norandastyle
volcanogenic massive sulphide deposit.
A high degree of risk accompanies the considerable exploration potential
Tirex is the first explorer to employ modern techniques at Mirdita and all of its
deposits and targets remain at the earlier stages of exploration. The company
has yet to define an NI 43-101-compliant mineral resource at any of its targets.
Given its goal of discovering multiple large tonnage high-grade deposits at
Mirdita, the company’s exploration risk remains considerable. The possibility of
finding lesser but nevertheless economic deposits on Mirdita partially mitigates
the risk.
An increased valuation based on promising early results
Our revised model places a base-case value of C$1.46 per share on Tirex.
This is higher than our previous estimate of C$1.24 of November 2007. Our
more optimistic assessment of C$2.52 per share, based on higher probabilities
of exploration success, reflects the potential offered by further drilling on the
key targets at Mirdita. Continued development offers potential for significant
further increases
