 | |
August 25, 2008
Dear Shareholders,
In the past year our Company has seen an unprecedented amount of attention as the McFauld's Lake area continues to dominate the Canadian exploration industry. Although it has had its ups and downs, we feel strongly that the McFauld's Lake Belt represents a new frontier with the potential to become as important, and as valuable, as some of Canada's great mining camps. Probe is taking its part as an aggressive explorer in the area, having completed drilling projects on its Victory and McFauld's West projects, with results that confirm our belief in the area's promise. We have now identified potential nickel-copper-PGE host rocks on both properties, with the Victory project returning anomalous values of these metals. These results are very encouraging and have prompted renewed exploration. At the writing of this letter, another, deeper penetrating, airborne survey has been completed over selected areas on each of the projects in preparation of further ground geophysical surveys and Fall drilling programs. Concurrent with these programs, we expect drilling to commence on our Tamarack project, funded by Mantis Mineral Corp who is currently earning an interest in the project and has indicated a start up date for drilling in the Fall. The Tamarack project has strong potential, already hosting high-grade copper mineralization, and lying along the northeast strike extension of the sulphide and massive chromite deposits of Noront and Freewest Resources. The prospects are looking very good and we expect to generate considerable results during the latter half of 2008 on all of our properties.
Although the McFauld's Lake area has been the focus of our attention, news out of Quebec has also been positive for the Company. Agnico Eagle's Goldex Mine in Val d'Or has commenced production and they are working towards our royalty area. Probe holds a 5% net smelter royalty on a portion of the mine, which will see the generation of a revenue stream when ore is produced within our royalty boundary. We expect that the royalty will begin producing within the next two to three years as Goldex comes up to full production.
On the Corporate front, the Company was pleased to announce the addition of two directors to the Board, Dr. John Gammon and Mr. Dennis Peterson. John brings 37 years of experience in the mining industry, bridging private industry and government through his various positions in public companies and the Ministry of Northern Development and Mines, where he was Assistant Deputy Minister of Mines for Ontario. John's keen sense of the industry from various perspectives is a welcome addition to Probe's already well rounded Board. Dennis Peterson is no stranger to Probe, and the Company is pleased to see his return to the Board. In these days of increased regulatory processes, Dennis' wealth of experience as a corporate securities lawyer will insure that Probe meets these responsibilities. Unfortunately, Harry Hodge has stepped down as a director of Probe, and his technical and corporate skills will be missed. Harry will continue to provide Probe with his experience in an informal role.
Exploration is not an instantaneous process, but rather an evolution through successive programs. Fortunately our recent programs at McFauld's Lake have provided positive results that indicate increasing potential for these claims to host mineralization. This is the justification we need to increase our efforts and continue exploring for McFauld's Lake's next big discovery. We have maintained our reputation as a company which is focussed on putting our investor's money into the ground in the most cost-effective manner and will continue this philosophy as we move forward.
On behalf of the Board of Directors, I would like to thank old and new shareholders alike for their support and participation as we continue to grow in the years ahead.
Sincerely,
David Palmer, Ph.D., P.Geo.
President & CEO
Probe Mines Limited
| |
| |
