Lac Lisette

Lac Lisette property

The following paragraphs are taken from the article Vikas Ranjan: Companies Meeting Emerging Market Demand mentioning Glen Eagle Resources by Brian Sylvester of The Energy Report on 10/27/11.

TER: Glen Eagle Resources has several projects based in Québec, Canada; a very safe jurisdiction.

VR: We’re very excited about Glen Eagle. The company is focused on phosphate. It also has a reserve on a lithium project next to Canada Lithium Corp. (CLQ:TSX; CLQMF:OTCQX).

Glen Eagle recently announced an option agreement to acquire 100% of the Moose Lake phosphate property. It’s immediately adjacent to a phosphate property called Mirepoix, which is controlled by Arianne Resources Inc. (DAN:TSX.V; DRRSF:OTCBB; JE9N:Fkft). A grab sampling and initial work were very promising. Glen Eagle is currently developing its Lac Lisette phosphate project. It is presently drilling on it. The Lac Lisette property is 40 km away from Arianne Resources’ Lac à Paul property, and shares the same main road.

Phosphate, like potash, has tremendous use in agriculture and is in high demand. Glen Eagle is very undervalued because not many people know about that resource. Its market cap is about US$18–20M. Right next door, Arianne Resources is roughly a US$140–150M market cap company. We see Glen Eagle closing that valuation gap once it starts to prove up the deposit. We have a model price of US$0.96 on that stock. It trades at about US$0.43. We started covering Glen Eagle when it was about US$0.30.

Why Lac Lisette could become a major discovery

As previously reported in a press release dated May 31, 2011, the airborne survey had detected 2 large magnetic anomalies defined by a high mag over a 12 km strike length. The high mag also indicated that the average width of the anomalies is approximately 750 meters wide. The drill program tested these large magnetic anomalies over a 2.5 km strike length by 250 meters in width.

The initial 3,000 meter program started on the southern tip of the anomaly and was comprised of 10 drill holes spaced roughly 250 to 400 meters apart covering the first 2.5 kilometers of the 12 kilometer strike. An eleventh hole (LL-11-10) was drilled well outside the target zone. The Company is very encouraged by the fact that all 10 holes returned phosphate values along strike with several drill holes having each intercepted over 95 meters P2O5 in their total mineralized sections. Of note, some of the best assays came as the drilling moved north along the anomaly with hole LL-11-09 (which is the northernmost hole drilled) intersecting the best phosphate values of the drill program with 4.78 % P2O5 over 30 meters including 6% P2O5 over 10 meters and 9.2% over 1.5 meters which also ended in mineralization with the intersection still open in width and on strike.

To have consistently intercepted phosphate over an area this large confirms the presence of a major system and the fact that the values continued to improve as we headed north provides us confidence that this system will continue to extend along strike and we are anxious to test this in subsequent drilling.

Drill results from the fall 2011 program

The blue dots indicate where the drill holes were positioned along the high mag colored in purple. The area covered by the map represents roughly 45% of the mag’s total length.

Click on the images to view them full sized.

The high mag can be seen in light purple extending over 12 km from SW to NE within the property claims.

Lac Lisette property location can be seen circled in red.

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