Typhoon winds down on resource estimate (January 19, 2007)

It wasn’t the reception a junior looks for when it releases a resource estimate to the world, but Typhoon Exploration (TOO-V) found its shares falling on Friday on an estimate from its Fayolle Property in Quebec.

In Toronto on Jan.19 the company’s shares were off 20% or 8 to 32 on just over 2 million shares traded.

Just two days earlier the Laval-based company stoked the Street’s expectations by announcing a drill intersect of 51.3 metres grading 2.81 grams gold — including 8.43 grams gold over 13 metres.

But the NI 43-101 compliant estimate prepared by InnovExplo— failed to meet those expectations.

A cutoff grade of 1 gram per tonne gives the indicated category 287,200 tonnes grading 3.5 grams gold for 31,982 oz and an inferred resource of 1,020,000 tonnes grading 2.6 for 86,726 oz.

Raising the cutoff to 3 grams gives an indicated resource of 106,900 tonnes grading 6.4 grams gold for 21,976 oz and an inferred of 218,800 tonnes grading 6.3 grams gold for 44,648 oz.

With a 0.1 gram cutoff the indicated resource totals 1.4 grams gold for 848,000 tonnes grading 39,397 oz. with the inferred resource at 6.5 million tonnes of ore grading 0.7 grams gold for 148,609 oz.

While those numbers weren’t enough to give lift to the company’s shares, its president and chief executive, David Mc Donald, said in a release that resources can still be expanded.

“This resource is more in keeping with near surface development scenarios rather than just a global resource,” Mc Donald says.

In the past, the company had said Fayolle had an inferred resource of roughly 800,000 tonnes grading of 6.19 grams gold.

Located at the periphery of the Rouyn-Noranda mining camp, the Fayolle and Aiguebelle-Goldfields extend over 8 km along the Porcupine-Destor fault.

In March of last year Typhoon signed an agreement with Agnico Eagle (AEM-T, AEM-N) whereby it can earn a 51% interest in Aiguebelle-Goldfields by spending $1 million on exploration and delivering 250,000 of its shares to Agnico.

The company says mineralization at Fayolle extends from the surface to a vertical depth of 250 metres and was delineated over a strike length of approximately 400 metres and a width of up to 300 meters.

Typhoon plans to push ahead with its 20,000 metre diamond drill program through the winter. It is targeting mineralization at depth and towards the west, and the extensions of Aiguebelle-Goldfields with the aims of link the two zones over a minimum distance of 800 meters.

The company also announced the completion of an access road that will give the company year round access to the property.