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| | Mon Oct 13, 1997
Tracker 1997-40: Kenrich heads into post-season slump
Publisher: Kaiser Research Online
Author: Copyright 1997 John A Kaiser
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| | Kaiser Bottom-Fish Tracker 1997-040
October 13, 1997
Kenrich Mining Corp (KRC-V: $$0.40)
Tel: (800) 322-3311
Web Site: www.kenrichmining.com
Kenrich heads into post-season slump
On October 7 Kenrich announced that work on the Corey project in the Eskay Creek area of northwestern British Columbia had stopped for the season. Prime, which is operator on a 6,000 ha portion of the 18,700 ha Corey property, drilled one stratigraphic hole in the Bench area that failed to encounter any visible mineralization. Prime spent $425,000 in 1997 on what was largely groundwork for a full work season in 1998. Kenrich on its own holdings did further mapping and prospecting on known showings. Sample assay results have not been received. The HSOV showing has been extended, though that is only of academic interest because this smoker system is barren. The stock is now caught in the seasonal downtrend that annually afflicts Eskay Creek area projects, and without any strong new encouragement generated by this year's abbreviated work season, Kenrich is going to have a tough time holding investor interest unless it comes up with a new project that can be worked between October and May. Kenrich has 23.9 million shares issued and 27.8 million fully diluted. About $800,000 should still be in a flow-thru trust account from which Prime can draw down when it resumes work next year. Kenrich, however, will need to replenish its treasury, no small task in what still remains a bearish market for resource juniors, especially ones that won't be flowing fresh information for another half year. Bottom-fishers need be in no hurry to accumulate Kenrich. A new acquisition in sunnier climes will probably cause Kenrich to bounce back to the $0.60 level on light volume, but for the market to chew through what now has turned into a heavy overhang will require a very good story. The only story to which this market is presently receptive is a discovery. Conceptual, development or other long term resource sector plays elicit only yawns from investors. |
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