The mining industry continued to benefit from strong prices for mostmining commodities, although this has been at least partially offset bysignificantly rising costs thus squeezing the margins for most producers.Although these factors resulted in a slight pull back in commodity prices inthe second half of the year, they still remained much higher than historiclevels, providing for a very buoyant mining sector with increased levels ofexploration spending and mine investment. Subsequent to year end theuncertainty with the currency markets produced a strong pull back of shareprices, as selling to cover liquidity concerns spilled over from financial assetsinto mining sector shares.
Despite this downtrend subsequent to year end, the past year has been a very successful one for Portal Resources Ltd. with:
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A successful initiative to increase the Company’s working capitalwhich closed subsequent to year end raising C$5.126 million ingross proceeds.
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Drilling further defined the high grade Principal Vein at Arroyo Verde.
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Drilling defined wide zones of higher grade molybdenum
mineralization at the Refugio-Porvenir porphyry target.
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Drill targets have been established and permitting started at the Tiger uranium project.
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The Cerro Solo Basin joint venture added significantly to the La Pampa uranium project, and work began on defining drill targets.
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Acquisition of the Slick Rock uranium project added excitingpotential to Portal’s uranium initiative in the USA.
During the year Portal completed three drilling programs, one at Anchorisand two at Arroyo Verde. At the Anchoris copper-gold porphyry project,geophysical surveys defined large chargeability anomalies in three zones overa strike length of 8 kilometers. Even though the initial drill program waslimited in scope due to permitting restrictions, wide zones of copper-goldmineralization were intersected in one zone and two large low gradeporphyry systems were identified.
At Arroyo Verde, drilling continued to define the high grade zone of thegold-silver bearing epithermal Principal Vein, while additional drilling onthe Refugio-Porvenir molybdenum target intersected wide zones ofmolybdenum mineralization in a zone of intense alteration and quartzstockwork.
In the past year Portal has substantially strengthened its move into uraniumexploration. Although at year end uranium prices were coming off theirhighs of US$135/lb U3O8, the projected imbalances in supply/ demand foruranium to supply the new “green” nuclear energy industry suggests highuranium prices will continue.
Portal, emphasizing its uranium focus, is well positioned to take advantageof this trend with three major projects in established uranium districts withexcellent potential for discovery of major new ore bodies. In Argentina, boththe Tiger and La Pampa uranium projects are progressing well towards thedrilling stage.
At Tiger, within the Sierra Pintada Mining District, drill targets have beenestablished and permitting applications have been made for a major drillprogram.
At La Pampa, joint venturing of claims owned by Consolidated Pacific BayMinerals Ltd. with its projection of an established mineralized trend, hasincreased the exploration potential. Mapping and sampling began within theLa Pampa properties and is advancing well towards defining drill targets.
Finally late in the year, Portal added the exciting Slick Rock project locatedin the major uranium and vanadium producing Uravan Mineral Belt inwestern Colorado USA. At the Slick Rock properties, which are closelysurrounded by historic producers and properties with defined resources,permitting applications have been submitted for an initial program of widespaced drilling to test the projections of the surrounding mineralized trendsonto Portal’s ground.
Portal plans to aggressively pursue its advanced exploration targets withdrilling programs at Anchoris and its uranium projects as environmentalpermits are obtained. At Arroyo Verde, Portal is evaluating its options as toadditional drilling on both the Principal Vein and Refugio-Porvenirporphyry system or to seek joint venture partners for further exploration onthese targets.
On behalf of the Board of Directors,