INVESTMENT COMMENTARY — Golden Tiger burns bright in Vietnam

Several promising exploration projects in Vietnam render Golden Tiger Resources (VSE) an attractive buy, according to broker Yorkton Securities.

The junior is drill-testing two joint ventures with Teck (TSE) — the Khau Au and Kim Hoa projects — as well as its wholly owned Na Tum lead-zinc prospect.

Golden Tiger has been active in Vietnam since 1993 and entered into the joint ventures with Teck last year. The Teck deal calls for 50-50 participation in future precious and base-metal projects in the country. Na Tum is excluded from the deal, as Golden Tiger acquired the property beforehand.

The Khau Au prospect encompasses 190 sq. km within an area of small-scale gold workings that cover several northeast-trending, parallel structures.

The principal focus of work there has been the crest of Khau Au Mountain, where more than 120 small underground mines are working a series of shallow-dipping, stacked shear zones (0.5-3 metres wide and 4-10 metres apart). The workings extend over a 200-metre width and a 3-km strike along the major structural trend. Production from these operations is estimated at 13,000 oz. per year.

Using small, portable rigs that can reach a depth of 150 metres, Golden Tiger is testing the downdip extension of the zones being mined.

The Kim Hoa prospect comprises 164 sq. km and covers a deep shear zone.

Vietnamese work on the prospect identified gold mineralization in steep vein systems, and values of more than 5 grams per tonne have been reported.

Lower-grade disseminated gold occurs between the veins.

The project is in the early stage of exploration and Golden Tiger is using small, portable drill rigs to confirm the potential of the zones.

At the Na Tum project, the company is drill-testing a zone of lead-zinc sulphide mineralization which underlies a large gossan cap. The drilling includes 1,000 metres of stepout diamond drilling on 30-metre centres.

Previous drilling, 24.7 metres below the gossan, returned values of up to 9.39% lead, 8.34% zinc and 356 grams silver over 18.35 metres.

Yorkton expects Golden Tiger to receive exploration licences for the Kim Hoa and Khau Au areas in the next few months, and believes its market capitalization of US$10 million to represent a low-priced entry to a highly prospective mineral region.

Golden Tiger has 10 million shares outstanding, or 13.8 million fully diluted, as well as $3 million in working capital.

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