Nebu looks to make its mark in 2010

Nebu Resources (NBU-V) is looking to make 2010 a defining year in the company’s recent history.

Originally set up as a uranium company, the move to gold came early in 2009 when higher gold prices coincided with an opportunity to move into one of the world’s most prolific mining camps.

And company founder and current president and chief executive, Brian Murray, didn’t have to go far to make the move.

Nebu controls seven non-contiguous claims that cover 8 sq. km the West Timmins mining district and the company was able to grab market as a gold play in a short period of time thanks to some stellar results from the drill bit.

In early November of last year Nebu announced results from the first 8 holes from a 10 hole, 1,200 metre drill program at its North Denton property in West Timmins.

The program focused on an area adjacent to the Lakeshore Gold Corp.’s land position roughly 35-km west of the main part of the Timmins gold camp.

Highlights from the results included what Murray called “one of the highest grade drill hole intersections ever drilled west of the main Timmins Gold camp.”

The hole alluded to is DE-09-4, and its assays are indeed impressive as it returned 4.7 metres grading 98.41 grams per tonne from 78.3 metres down hole, including 413.57 grams gold over 1 metre.

Nebu says the interval came from a sulphide rich quartz vein and that it contained several sightings of fine gold. It also says sulphide mineralization is dominated by pyrrhotite and includes lesser amounts of chalcopyrite, pyrite, sphalerite and arsenopyrite.

While the overall significance of the intersection is not yet known, the results fit nicely with results from other holes released a few weeks prior.

It was in fact those initial results that first propelled the Nebu’s stock up the ranks of the market.

Nebu shares climbed as much as 76% over the two weeks following the Nov. 12 release of the results which were highlighted by:

DE-09-5 – 5.9 metres grading 8.45 grams gold and 4.5 metres grading 5.96 grams gold.

DE-09-6 -1.1 metres grading 4.46 grams gold. The hole was drilled in an area situated between drill hole’s 4 and 5.

Taken together, the results of the three holes have Nebu postulating that the vein system has a more northerly strike than it originally believed. This means that the best mineralized veins were missed in some of the other holes drilled.

As for the holes that did strike gold, Nebu says they show mineralization to be shallow – ranging from 15 to 55 metres below surface.

No deep drilling has been completed in the area where exploration hadn’t been done since the 1940’s.

The company followed up its positive drill results with news that it had raised $655,000 through a private placement made up of 2.18 million units priced at $0.30 per unit.

The units were made up of one flow-through common share and one warrant with a strike price of 50¢ for a term of 2 years.

Nebu said the funds would not only go to West Timmins but also to its recently acquired Burntbush project in north-eastern Ontario.

Of note in the financing was the fact that the main subscribers were company officers and directors – a good indication that the people driving the project have faith in the project.

Some of the directors acquiring the stock were the newly arriving Duane Parnham and Jacob Willoughby.

Positioning itself to move up to the next tear of gold exploration plays, the company thought it was time to bring in some specialized skill on to the board and Murray believes the company has found it in the forums of Parnham and Willoughby.

Parnham, who will be coming on as chairman, is best known in the industry for his role as founder, president and chief executive of Forsys Metals (FSY-T) – a company that has developed the significant uranium play, Valencia, in Namibia.

Parnham also serves as chairman and is also chairman of Universal Power (UNX-V), a company with oil concession offshore in Namibia.

As for Willoughby, the new director established his name at Paradigm Capital. Nebu says his substantial network of mining company executives as well as institutional
equity fund managers across the globe will prove beneficial to the company.

Cal Bruner and Roger Peacock, who had been with Nebu since its inception, stepped down to make way for the new additions.