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Wednesday, 01/10/2007 7:44:42 PM

Wednesday, January 10, 2007 7:44:42 PM

Post# of 585
PAX.V (Pacifica Resources) is my pick for 2007

A gold and base metals exploration company

With the acquisition of Howard’s Pass deposits in May 2005, Pacifica’s main focus will be the Selwyn Project in eastern Yukon. The Selwyn Project consists of Pacifica's wholly owned HP and Nod Claims, and recently staked mineral claims together with those comprising the Howard's Pass property.

In total, Pacifica has 100 % interest in 5 prospects. The largest by far is the Howard Pass Zinc-Lead prospect with resources as follows:

Howards Pass Yukon: 115.4 mm tons inferred resource, 5.41 % zinc, 2.1 % lead plus a potential resource of 376.0 mm tons, 5.12 % zinc, 1.9 % lead. Howard pass is a near surface deposit and will be mined primarily as an open pit.

The in-situ value of their resources using $600 for gold, $2.50 for copper, 1.75 for zinc, 0.72 for lead and $12.30 for silver is $113.2 billion. Ninety- nine percent of that value comes from zinc and lead.

The company has 128.2 million shares outstanding. So the in-situ value of their resources (i.e. the metal content) is worth $883 per share. Pacifica's shares closed today (Jan 10/07) at 80 cents per share. Need I say more.

While the size of the resource is massive, one concern is the average grade of the resource, 5 +% zinc and 2 % lead is considered fairly low and at the above prices is worth only about $215 a ton of ore. Of course open pit mining costs tend to be low but operating in the Yukon will be somewhat costly (mining, housing, transportation etc). If the price of zinc were to drop back to 60 cents a pound, this deposit would probably be uneconomic to mine (even though open pit). To deal with this concern management has just recently started to drill beneath the pit as many mining companies have found richer ore bodies in such locations.

Results of recent drilling have been very encouraging - for example today (Jan 10th, 2007) Pacifica reported:

* Infill drilling continues to confirm above average zinc and lead grades within the XY open-pit area with drill hole XY-145 intersecting 11.96 metres true thickness grading 8.76% zinc and 2.64% lead that includes 3.58 metres grading 20.84% zinc and 6.06% lead or 26.90% combined zinc-lead.

* Definition drilling continues to expand along strike the previously defined underground Inferred mineral resource with drill hole XY-138 intersecting 5.25 metres true thickness grading 7.66% zinc and 1.62% lead that includes 2.45 metres grading 12.83% zinc and 2.39% lead.

The combination of a massive resource with areas of high metal concentration and all close to the surface makes this a very attractive resource and company.

For further info, see: pacifica-resources.com


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