Moriarty recently spent a week in Eastern Europe visiting Serbia, Bosnia and Albania, where Tirex Resources' claims are based.
Tirex announced late last month that it received the official seal from the Albanian Ministry of Economy, Trade and Energy to convert its six exploration licenses in the region to 25-year mining licenses, paving the way for near-term production.
The six specific areas, for which conversion to exploitation licenses were ordered with immediate effect, are located in the Mirdita volcanogentic massive sulfide (VMS) district.
The company already has a partnership agreement relating to copper, gold and silver production from the six areas for which it was granted a mining license, meaning it can fast track to production without corresponding share dilution. This is because it has access to mill capacity and underground mine development capital through its mining partnership.
Tirex has built a 40-man camp and conducted scout drilling and mapping since 2007.
"Tirex is doing something quite brilliant," says Moriarty.
"Rather than raising $50 million to construct a mill, they are entering into a JV with a private Turkish company named Ekin Maden with annual revenues of over $1 billion. The 50/50 JV will call for Tirex to put in their mines and Ekin Maden to do the processing.
"They have a nearby mill with a capacity of production of 1200 Tpd. Tirex plans on fast tracking one of their mines and being in production in about 6-8 months."
The deposit is a VMS, with grades running between 1.12% to as high as 5% copper and various grades of gold from 1.2 up to 4.6 grams per tonne (g/t), Moriarty notes.
"Before Tirex, there has been no professional exploration done while it was a government-mining district. Tirex plans on conducting ground geophysics and an extensive drill program to define a larger resource."
Indeed, Tirex said earlier this week it has more than 40 high priority airborne electromagnetic (NYSE:EM) anomalies at Mirdita and has identified six exploration areas for immediate ground geophysical surveying and drilling, outside of the mining partnership zones.
The institutional non-brokered private placement financing the company has arranged, which will be used strictly for exploration, will consist of 11 million common shares at 70 cents each, for total gross proceeds of $7.7 million.
Moriarty adds: "Other than getting their hands on more ore, the Turkish mining company is also going to get their hands on Canadian expertise. Ekin Maden is believed to be recovering about 84% of the copper and 28% of the gold. For a flotation plant processing VMS material, those recoveries are poor and better metallurgy should increase recovery especially for gold."
In the article, Moriarty says he has been warning of an "impending financial superstorm" for years - now a mainstream message. "The only safe haven is going to be precious metals and resource production stories."
"Tirex is executing a brilliant plan and will be in production next year without major dilution. That's remarkable. It's a big district and once supported thousands of workers. Tirex has a known resource and the potential for adding a lot more," he concludes.
Deposits in VMS districts tend to cluster, and Moriarty says there "will be more hidden from the surface" only to be discovered with modern exploration techniques.
With a stock price of 70 cents and 68 million shares outstanding, Tirex has a market cap of about $50 million. "Management has done a good job of maintaining the share value but we are entering the range just before a company goes into production where the largest gains are possible."
The article, title "In the Shadow of a Headframe", can be viewed here:http://www.321gold.com/editorials/moriarty/moriarty110612.html?utm_source=Tirex+Resources+Ltd.+List&utm_campaign=5ee559d839-Tirex_Featured_in_Bob_Moriarty_s_321gold_Article&utm_medium=email
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.