Fjordland Set For More Cariboo Drilling
2005-11-14 15:16 ET - Street Wire
by Will Purcell

Victor Tanaka's 13-center, Fjordland Exploration Inc. has a new supply of cash that it appears poised to spend on a new drill program on its Woodjam gold and copper play in British Columbia. The company's shares now trade for about one-third of their 36-cent high of a year ago, but another round of drilling could stir up renewed interest in the story. The company also has some gold prospects in Nevada, but the Woodjam play seems the most likely candidate to benefit from the new cash.

The Play

Earlier drill efforts were encouraging on the 3,500-hectare property, which is about 50 kilometres east of Williams Lake. Drilling produced assays of 1.35 grams of gold and 0.13 per cent copper over a 58-metre interval starting in the 1970s. Fjordland signed an option deal in 2001 that will give it a 60-per-cent share from Wildrose Resources Ltd. The company must complete $1.35-million in exploration by the end of October, 2006. A busy drill campaign seems likely as a result.

Wildrose managed three holes in 2002, again finding modest copper and gold values in an area called the Megabuck zone. Three new tests in 2003 also delivered intriguing copper and gold values in an area up to 800 metres east of the original holes.

The partners mounted a bigger effort on the Megabuck zone last year, and the assays continued to deliver modest values. One hole produced 0.77 grams of gold over nearly 400 metres, with a copper content of 0.13 per cent. The top of that layer was near the surface, adding to the encouragement.

The Money

The company had just over $400,000 in working capital at the end of June, and its latest private placement added to the total. Fjordland sold 540,000 flow-through units priced at 20 cents and 680,000 regular unit went for 15 cents each.

The placement fetched another $212,000. Each flow-through unit comes with a 30-cent warrant that expires in six months. The others have a 25-cent warrant that is good for a year. If Mr. Tanaka attracts attention with his drilling, the warrants could bring in another $332,000.

Nine investors bought the 1.22 million units. Mr. Tanaka picked up 200,000 units and Ross McDonald Inc. bought 25,000 units. The big believer among the insiders was director Richard Atkinson. His Challenge Capital Management bought 450,000 units and his Richard Atkinson Enterprises Ltd. added 375,000 more.

That brought the insider tally to 1.05 million units. The identities of the holders of the remaining 170,000 units are hidden by regulators.

The Players

Mr. Tanaka began as president of Fjordland in 1996 and he has run Pathfinder Resources Ltd. for the past 12 years. A geologist, Mr. Tanaka keeps busier touting exploration plays and he popped up as a director of several resource companies over the years.

He is a director of Commander Resources Ltd., which was Major General Resources Ltd. when he joined in 1993. Mr. Tanaka also was a director of Aber Resources Ltd. in the late 1980s, but he left just before the company started its diamond hunt.

Mr. Atkinson, Fjordland's chairman and largest shareholder is a mining engineer who also is active on the promotional end. He calls himself an independent investor; a status that came after a successful takeover of his Getty Resources Ltd. netted its shareholders $140-million. Mr. Atkinson became a director of Major General and Pathfinder in the mid-1990s. Mr. Atkinson also runs his own investment company, Richard Atkinson Enterprises.

Fjordland had two other directors. Mr. McDonald joined early this year and Peter Krag-Hansen replaced the late Lawrence Barr in 2003.

Fjordland lost 1.5 cents on Friday, closing at 10 cents on 50,000 shares.

Provided by Stockwatch www.stockwatch.com.