Sell the dogs:1. Seafield Ventures Ltd. (TSX.V:SFF)We learned that the CEO and CFO, Tony Roodenburg and James Pirie, doubled their own severance pay this year prior to being replaced as management.Unethical, for sure, and possibly illegal. We are going to break this story next week, so I’m saying get out of Dodge while you still can, cause this could really take the share price lower.
The subject matter is Seafield Resources (SFF.v) and its big hole announced last week. This excerpt from James West's Midas Letter dates from December 3rd."When the market opens Monday, any shares you can get under a dollar will likely be ten-bagger potential, as with a few more drills holes like this one, and you’ve got Ventana 2 on your hands. (Ventana is currently the subject of a buyout offer by Brazil’s EBX Group for $1.5 Billion.)"The market looks upon West as a guru. I personally remember him as the dumbass who looked really really stupid by reco'ing Southwestern as a buy just AFTER the Boka scandal broke. Meanwhile, this on SFF.v last week is from the smart guys at Metal Augmentor: For the record, put me firmly in their camp as regards Seafield:"I’d go as far as saying that anybody who compares Seafield to Ventana Gold (TSX: VEN; Pink Sheets: VENGF) at this point hasn’t even bothered to look at the drill map."
DYODD dude, and laugh hard at self-fulfilling prophecies.
"I am a geo, working up north. A few years back I spent a regrettable half-day with "guru" James West, who at the time was a consultant in how to formulate a strategy for optimally pumping a junior mining stock. His method mainly involved making sure the headline for every press release always contained large numbers - the maximum possible for grade, width, whatever. He did not seem at all interested in any geological or logistical aspects of the project. Just how to manipulate the stock price upward (or keep it up) over a period of several months by a planned sequence of news releases, within the context of a good overall story.
Anyways, the guy is a total ass. Very rude, obnoxious, aggressive and with a ridiculous amount of phony-seeming macho. He knows very little about exploration or mining, just about telling "fairy" tales about junior companies." Wiley.
Seafield Resources Ltd. (SFF) | As of December 15th, 2010 | ||||||
| Filing Date | Transaction Date | Insider Name | Ownership Type | Securities | Nature of transaction | # or value acquired or disposed of | Unit Price |
| Dec 14/10 | Dec 10/10 | Pirie, James | Direct Ownership | Common Shares | 10 - Disposition in the public market | -300,000 | $0.610 |
| Dec 14/10 | Dec 09/10 | Pirie, James | Direct Ownership | Common Shares | 54 - Exercise of warrants | 200,000 | $0.160 |
| Dec 14/10 | Dec 09/10 | Pirie, James | Direct Ownership | Warrants | 54 - Exercise of warrants | -140,000 | |
| Dec 14/10 | Dec 09/10 | Pirie, James | Direct Ownership | Warrants | 54 - Exercise of warrants | -60,000 | |
| Dec 14/10 | Dec 09/10 | Pirie, James | Direct Ownership | Common Shares | 10 - Disposition in the public market | -350,000 | $0.610 |
| Dec 13/10 | Dec 09/10 | Roodenburg, Anthony Ralph | Direct Ownership | Common Shares | 10 - Disposition in the public market | -1,000,000 | $0.600 |
| Dec 13/10 | Dec 09/10 | Roodenburg, Anthony Ralph | Direct Ownership | Common Shares | 54 - Exercise of warrants | 600,000 | $0.160 |
| Dec 13/10 | Dec 09/10 | Roodenburg, Anthony Ralph | Direct Ownership | Common Shares | 54 - Exercise of warrants | 250,000 | $0.100 |
| Dec 13/10 | Dec 09/10 | Roodenburg, Anthony Ralph | Direct Ownership | Warrants | 54 - Exercise of warrants | -400,000 | |
| Dec 13/10 | Dec 09/10 | Roodenburg, Anthony Ralph | Direct Ownership | Warrants | 54 - Exercise of warrants | -200,000 | |
Seafield Resources Ltd. (SFF) | As of December 10th, 2010 | ||||||
| Filing Date | Transaction Date | Insider Name | Ownership Type | Securities | Nature of transaction | # or value acquired or disposed of | Unit Price |
| Dec 10/10 | Dec 06/10 | Paterson, James | Direct Ownership | Common Shares | 10 - Disposition in the public market | -300,000 | $0.705 |
TORONTO, ONTARIO--(Marketwire - Dec. 9, 2010) - Seafield Resources Ltd. (the "Company") (TSX VENTURE:SFF - News) is pleased to announce that it intends to complete a private placement offering of up to 16,000,000 units ("Units) at a price of $0.50 per Unit, for gross proceeds of up $8,000,000 (the "Offering"). Each Unit will consist of one common share (a "Common Share") of the Company and one common share purchase warrant (a "Warrant") with each Warrant entitling the holder thereof to purchase a Common Share at an exercise price of $0.75 for a period of two years following the closing of the Offering.
In addition, the Company intends to pay finder's fees to parties that refer subscribers to the Company equal to 6% of the proceeds of the Offering and will also issue broker warrants equal to 6% of the number of Units issued pursuant to the Offering. Each broker warrant will entitle the holder to acquire a Unit for a period of two years from the date of issuance exercisable at a price of $0.50 per Unit.
Proceeds of the Offering will be used to advance the Company's Quinchia, gold property in Colombia and for general working capital purposes.
Influential newsletter writers and Seafield’s big hole...........Speaking of investment letter writers, I understand that the Midas Letter is calling Seafield Resources (SFF.TSX-V) the next Ventana, and advises that you grab as much as you can with both hands at under $1.00. Ventana Gold (VEN.TSX) has a 3.5 million ounce inferred gold resource in Colombia and is the subject of a takeover offer of approximately $1.5 billion. Seafield, or Ventana II if you prefer, announced a drill intersection of 449 meters grading 1.29 grams per tonne gold including 10 meters @ 2.87 g/t Au, and 23.95 meters @ 9.18 g/t Au. Within the higher grade section was a 2-meter interval grading 70 grams per tonne gold. SFF (~99 million shares outstanding and ~146 million fully diluted) popped from $0.23 to $0.57 on huge volume of 70 million shares after it opened for trading on Friday.I reviewed the results and the well-written 43-101 after the drill hole announcement, and since I received a number of queries from subscribers, offer the following quick and dirty review of the Miraflores property in Colombia.The property has seen a number of drill campaigns from several exploration companies, the most recent being B2 Gold, in 2007. The historical work, plus a report from the renowned economic geologist Richard Sillitoe concluded that Miraflores is a multi-phase magmatic-hydrothermal breccia. Meaning, the mineralization is confined to a fractured and broken pipe-like body formed by the injection of several magmas and hydrothermal fluids related to these intrusives. There are three alteration and mineralization phases, of which it appears that an early silica and base metal event is associated with the better gold mineralization. Drilling, mapping, and underground sampling have essentially defined the limits of the body at about 250 meters by 280 meters. Although the breccia body is open to depth, drilling suggests that the better gold mineralization is concentrated in the upper 250 meters or so. There is some evidence that a high grade core dipping to the southwest could extend the mineralization to depth in one direction.In April 2010 SFF estimated an inferred resource, based on approximately ten drill holes and underground sampling, of 776,373 ounces grading 1.295 grams per tonne gold for the Miraflores breccia pipe. The resource report noted that the high grade mineralization within the body occurred mostly within a central core and was both erratically distributed and nuggety (localized very high grade gold that is difficult to model in a resource estimate). The highest grades (3 to 429 g/t Au) occurred in fault veins, and mineralization generally decreased towards the edges of the breccia body.Our handy-dandy drill interval calculator (pictured below) reveals that, excluding the two higher grade intervals in DH-03, the SFF announcement of 449 meters grading 1.29 grams per tonne gold consists of 415 meters grading 0.798 grams per tonne gold plus the two high grade sections. Within the higher grade, 23.9 meter interval, there is a 2-meter section grading 70 grams per tonne gold. This narrow interval alone has a significant influence on the entire 449 meter interval, such that when excluded the grade drops to just under 1g/t Au for the remaining 447 meters. DH-03 went through the guts of the breccia pipe, and the drill results are representative of the deposit-- basically they confirm the previous drilling and resource estimate. Hmm…this is not looking good.
(Fig. 1- Breakdown of Seafield’s 449 meters grading 1.29 g/t Au)In summary, all the excitement is over a single drill hole that really offers minimal new information on a gold deposit that has been effectively defined by previous work. Miraflores is a discrete breccia pipe hosting a decent resource centered around a higher grade core. There may be the potential to add ounces at depth to the southwest as indicated by the deeper interval announced by SFF this week. It is difficult to tell how much of the resource could be economically mined because the deposit rests on the side of a steep hill; developing the deeper portions could entail the removal of a significant amount of barren rock (high strip ratio).Although the upside to the Miraflores property may lie in as yet undiscovered or undrilled targets, that upside existed at $0.23, and has nothing to do with the 449 meters grading 1.29 grams per tonne gold or, the 415 meters grading 0.798 grams per tonne gold plus a couple of high grade intervals. This is not Ventana II, and Miraflores is not a large enough deposit to entice me. If other gold in soil anomalies on the property noted in an October 6 news release are the real sex to this play, then it is best to really look at the historical results and wait until SFF begins releasing additional data from those targets. Considering that a single drill hole through a known deposit caused over two-thirds of SFF’s outstanding shares to trade hands in one day, one has to wonder who made the better trade, buyers or sellers. Monday’s action should prove interesting.
"When the market opens Monday, any shares you can get under a dollar will likely be ten-bagger potential, as with a few more drills holes like this one, and you’ve got Ventana 2 on your hands. (Ventana is currently the subject of a buyout offer by Brazil’s EBX Group for $1.5 Billion.)"
"I’d go as far as saying that anybody who compares Seafield to Ventana Gold (TSX: VEN; Pink Sheets: VENGF) at this point hasn’t even bothered to look at the drill map."
About Seafield Resources Ltd.Seafield Resources Ltd. is a precious metals exploration company with assets located in Colombia, Mexico and Ontario. The Company's flagship project in Columbia is the Quinchia Gold Project, which contains a 43-101 compliant resource of 778,000 ounces gold.
