U.S. Precious Metals, Inc. (OTCBB: USPR) may soon have reason to bellow, “Eureka!” –- Archimedes’ famous phrase popularized by 19th-century gold prospectors — if all their plans come to fruition. USPR, based in Sanford, Florida, is an exploration stage company engaged in the acquisition, exploration, and development of mineral properties located in Michoacan, Mexico. According to professional reports, there exists excellent potential for a large, multi-lens, bulk tonnage, open pittable, gold resource.
Since drilling commenced in February 2008, the Company has completed twelve drill holes, seven of which have shown significant mineralized zones, three of which have not shown significant results, and two of which have not yet been analyzed.
Data available to the Company from the 43-101 Report commissioned by the Company and dated as of October 30, 2008, show the proven reserves at 57,432 ounces of gold; 403,532 ounces of silver and 3,057 tons of copper ore. Probable reserves are at 156,288 ounces of gold; 1,295,857 ounces of silver, and 8,922 tons of copper ore.
The proven and probable reserves from the ten holes have been developed and represent only five acres of the 37,000 acre property.
Using market pricing as of January 28, 2009, the Company’s proven reserves are valued at $64.7 million and the probable reserves are valued at $180.3 million. The value of the reserves is subject to price fluctuations in the commodities market; and, as more exploratory drilling is completed, the Company expects the amount of proven and probable reserves to fluctuate. USPR stock is trading around $0.25 with a market cap around $12.2 million.
USPR has secured access rights to the concessions known as Solidaridad I, Solidaridad III, and Solidaridad V. USPR is in the process of securing, but has not yet secured, access rights to the other concessions, which it plans to do in the future in connection with any decision to begin exploration or exploitation of those areas.
USPR may attempt to interest an operating company to enter into a joint venture to undertake exploration work on the properties for which it owns mineral rights, or it may even consider an outright sale.
In September 2008, the SEMERNAT (the Mexican environmental agency that regulates the mining industry) approved USPR’s previously submitted environmental impact statement. If and when USPR decides to begin exploitation, this permit would allow USPR to start building facilities to begin the exploitation of a portion of the properties for which it owns mineral rights.
For more information on USPR and to access the most recent drilling reports, visit www.usprgold.com.
some experienced insiders said that for something as strategically valuable as precious metals, restrictions on exploitation and export are not enough. In the long run, a strategic stocking system on the national level and matching policies should be established.