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Journey Resources Corp. (TSX-V: JNY)

       Journey Resources Corp. is a Canadian-based exploration and advanced stage development mining company listed on the TSX Venture Exchange (ticker symbol JNY) (Frankfurt: JL4) (US Listing: JNYRF). The Company has come to our attention due, in part, to the exceptional opportunity afforded shareholders as the Company is poised to take their 100% owned high grade Charay gold property into operation and advance their 100% owned Musgrove Idaho gold project towards a projected 1M+oz gold resource.

Background: Journey Resources began as a mining entity in 2004 and spent the first couple years acquiring projects considered 'non exploration'/'late stage', where majors have been on the property, resources already drilled-off, and JNY.V needing to take it the last 30 or 40%. The first major project JNY.V acquired was the Vianey silver project in Guerrero state Mexico. This was an underground mine developed in 1996 where half a million tonnes of high grade silver-lead-zinc was developed by the former operator which had to let it go due to market conditions at the time. Vianey is now a fully developed underground mine - JNY.V has spent the last four years rehabilitating it on a 50-50 JV bases and as silver heads up in price the mine can be taken into production. Highlights of the Vianey silver mine may be seen further below. The inherent value of Vianey alone is enough to justify the current market cap of JNY.V, however the overwhelming value of Journey Resources as a Company exists in its two 100% owned gold projects of significance at Musgrove Creek Idaho and Charay Mexico; The risk-reward characteristics are highly advantageous for investors establishing a long position in JNY.V now, as the reality of undervalued nature of JNY.V becomes increasingly apparent to the market and as Journey Resources takes the high grade Charay gold deposit into operation.

Charay Gold Project expected to be operational in Q2 2010 • JNY.V making quick progress

February 2010 Interview/Progress Report & Photos of 2010 Activity at Charay • Journey Poised to Cash Flow at Charay

Journey Resources is moving ahead quickly at Charay as it arranges for initial bulk sampling followed by ongoing low-cost mining of the high grade vein-hosted gold-silver deposit. Jack Bal, President & CEO of Journey Resources Corp., returned from Charay with a check list of critical tasks complete and offered Mining MarketWatch Journal the following synopsis "We had several major things on our list to accomplish and we knocked off every one of them. 1) One was metallurgy; we shipped a 400kg sample to our metallurgist in Hermosillo and visited their facilities. 2) Second, was to organize a drill program and we decided in that process with the driller to import our drill (JNY.V owns its own Hydacore 2000 drill that it purchased ~2 years ago for ~$500,000) and have it on the property to be available for continuous drilling. We have started that process, we have an importer that we are working with to bring the drill into Mexico probably within two weeks -- the drill is in transit now. 3) Third, was to negotiate a deal with a mill to take our ore, we have a verbal agreement but don't want to sign one until we knew what the metallurgy was, but we did establish that a mill ~1 hour from the property which is 400TPD is available. 4) We wanted to develop a relationship with a mining contract group that we trusted and the main one on our list was a group from Quebec that's currently running all the operations for a major Canadian mining Company in Sinaloa State Mexico. So we did a tour of their mine and the mining contractor has been to our property, we have sent them all our data -- they want to mine our project and we are waiting for a proposal from them."

Photos of recent activity at Charay Q1 2010:

Journey Resources is very close to creating cash flow for the Company at Charay, a transition that will change the complexion of the company. Potential catalysts on three key fronts make JNY.V an undervalued and exceptional risk-reward scenario, Mining Marketwatch provides insight into each of these: 1) Charay Gold Property - Sinaloa, Mexico,  2) Musgrove Creek Gold Project - Idaho, USA, 3) Vianey Mine Silver Project, Guerrero, Mexico

1) Charay Gold Property - Sinaloa, Mexico - 100% Owned

Immediate cash flow from open pit beginning with a pilot 30,000 ton operation of high grade vein-hosted gold-silver mineralization

Note New Development: The mining operations contractor currently in discussion with JNY.V is exploring all possibilities and may use the existing shaft(s) on the property to access higher grades sooner than beginning with open pit.

The Charay project will get Journey Resources Corp. to cash flow quickly as this is a 'ready to go' high grade gold project. Charay was drilled three years ago by Lane Exploration. Lane put another mine into production and by circumstance were forced to focus on that and the Charay reverted back to the land owner. Another public company took the deal, spent a considerable sum creating a technical report then they got caught up in a $25M potash deal and got rid of all their gold properties, they just missed the market and JNY.V were lucky enough to get the project. All the due diligence has been done and the geologist that created the report has reassayed all the core.

This is very high grade deposit, Journey Resources has over 18g/t Au, the deposit pretty much starts at surface, the maximum drill depth that they drilled was only ~50 metres and every drill hole intercepted the vein with the highest grades seen at 50m and below, intersecting areas over 100 g/t gold. JNY.V now has a blasting permit in place and the goal is to take 30,000 tonnes out immediately and create some cash flow.

Taking ~30,000 tonnes of material amounts to over 20,000 ounces of gold plus a significant component of silver as well. The grade is high enough that simply a portable mill at nominal capital outlay is all that would be required  to generate cash flow. Charay would be able to cash flow the company going forward, advancing projects without further dilution to the share structure. Journey Resources' President & CEO offered the following insight on Charay: "The goal and focus is to get cash flow from this high grade deposit. We sent down some very competent people to do our DD. Our VP of exploration is Dr. Chris Wilson, he used to be the manager of exploration for Ivanhoe Mongolia. We also sent down the chief geologist for Ivanhoe, Dr. Miles Worsley, he is a gold expert and says this is not just 'epithermal', its 'mesothermal' as well with multiple phases. He believes #1) it probably goes deeper and the grades are going to improve somewhat with depth, #2) he also said it is likely a regional type system so there are probably quite a few additional veins in this system, you never get just one vein. The gold is just waiting there to be taken away, there is only ~1m of overburden sand." ... "We would like to poke a few holes below the 50m mark because every hole intersected well, and the highest grades are the deepest holes, we’ve got a lot of 70g/t, 100g/t, 120g/t intersects at that level. Our objective is to drill it down 100 metres and see if we can start building tonnage but most importantly lets get some cash flow here." ... "We will work our way to production and because the ore is so accessible we can probably take a few thousand tonnes just with a backhoe. We have a blasting permit in place and it is our objective to take out 30,000 tonnes just using some basic – sort of strip mining kind of open pit. Do it cheaply and get 20,000 ounces of gold to start. This is an exceptional deposit, we’ve had offers to sell it the day we bought it."

Infrastructure: The landscape at Charay is completely flat, there is water, a telephone pole, electricity, you can drive right to the property, Los Mochas (a city of ~1 million people) is ~50 minute drive away, and Charay is right by the national coast highway.

Salient Project Details:

• High grade vein-hosted gold-silver mineralization associated with hybrid mesothermal and later low sulphidation epithermal systems;
• Mesothermal systems usually have very good depth potential; multiphase systems often have high grades.
• Recent drilling indicates of a 240 m long by 50 m deep block defined approximately 37,000 tonnes at an average grade of 18.75 g/t for 21,000 oz.
• Mineralisation is open down dip and along strike. Significant potential for rapid upgrade of resource. Excellent under explored regional potential.
• Basic infrastructure is in place. Local land owners are pro-mining and are supportive of development. Deposit is proximal to major highway, power, water supply and source of labour. Opportunity for immediate pilot open pit 30,000 ton operation.
• Historic work defined high grade gold and silver vein system at surface. Copper, lead and zinc may be viable by-products.
• Only the upper 50 metres has been drill tested and mineralization is open at depth and along strike. Subparallel veins may exist under extensive cover.
• The exposed vein and drill core suggests Charay is a mesothermal vein with later low sulphidation epithermal overprint. Excellent depth and strike. High grades due to multiple mineralizing events.
• Excellent exploration potential for continued cash flow well into the future.

Project History from 2005 - Present:

2005
     • Vane Minerals Group (VMG) completed 27 drill holes totaling 1576.6 meters
     • Drilled strike length of 240 meters
     • Estimated average vein width of 1.4 meters
     • Average grade of 18.75 g/t gold, 120 g/t silver
 
2008
     • Minera Bacoachi SAC performed due diligence of property
     • Recalculated VMG data to give 16.98 g/t gold and average vein width of 1.31 meters
     • Re-assayed selection of pulps from VMG drill program
     • Quarter cut remaining half cut drill core for check assaying at ALS Chemex, Vancouver

Significant drill results

Results from VGM drill program.
*Weighted averages taken from report by Allen, 2008
**Weighted averages calculated by EAL from data supplied in Allen, 2008

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2) Musgrove Creek Gold Project - Idaho, USA - 100% Owned

Low cost, open-pit gold mine potential - JNY.V aims to sizeably increase resources

Journey Resources' flagship project, Musgrove Creek, is located in the state of Idaho near Salmon Idaho, ~12miles away from Meridian Gold's Beartrack Mine which operated between 1995 and 2001 (Beartrack produced ~650Koz gold at an average grade of 1g/t, was a large open-pit heap leach operation and it was reported their average costs were between $US190-200/oz.).  The Musgrove Creek deposit is very similar to the Beartrack deposit – it is similar in grade, in metallurgy, and in stripping ratio. Journey Resources has a 43-101 report which shows 8 million tonnes at 1.22 g/t Au at 0.8 g/t cut off for 313,822oz Au. That report was done using ~$300 gold. Using what Meridian Gold mined at 1 g/t JNY.V should have over 423Koz gold. Mining MarketWatch Journal thru its research projects a near term achievable resource estimate of 1M ounces gold. Management of Journey Resources contacted by Mining MarketWatch were able to confirm we were not out of line in our expectations. President & CEO of Journey Resources, Jack Bal, had the following synopsis: "I believe Musgrove Creek has the potential to be a 1M ounce target. We made a major discovery ~2 years ago on the Johny NW target about 300m from our main Johnys Point discovery/inferred resource and our goal is to drill that off this year. A million ounce target - I believe; with some additional drilling and the fact we have lots of holes that were never offset that aren’t included in our resource calculation." Past operators have provided reams of information for JNY.V to build on and a review of past drill holes show this is not a spotty resource, it has good depth to it.

 
History: Musgrove Creek was originally drilled by Newmont between 1990 and 1994. They had optioned this and many other projects from Atlas Gold and then due to the proximity of this to Meridian Gold's project 12 miles away Newmont optioned the property to Meridian Gold and Meridian did a major drill program as well. Due to market conditions and the requirement of their first gold mine at Beartrack Meridian let it revert back to the original land owner. At that time this area was hotly staked; Newmont, Meridian, Home Stake, Atlas, and many other companies were in the area -- what Journey Resources have been able to do over the last four years is create a good sized land package that previously belonged to some of the majors, JNY.V has a good land package and is negotiating on acquiring the original patent claims that has a high grade underground mine that was operated between ~1900 – 1910. They mined high grade quartz veins between half an ounce and one ounce gold per tonne – which is probably the feeder system for Journey Resources claims.

 
100% Ownership: JNY.V has a 100% lease interest in some of the claims and a 100% interest in the claims that they staked themselves. The lease is a 10 year lease with two additional 10 year options to renew, and currently their advance royalty payment is $40K per year, there is a 2% NSR on the lease interest parts of the project. The leased claims are owned by the geologist that originally discovered the deposit, Ray Robinson. The Johny NW area that JNY.V made a major discovery on ~two years ago is entirely on claims that JNY.V control. The Johnys Point resource area is mainly on the Robinson claims. JNY.V has targets on land the Company staked themselves that go all the way up the property as well.

2010 plans for Musgrove involve the release of the drilling results from the 09 campaign and a new resource estimate calculation expected to be completed in Q2 2010:

Assay results from the Fall 09 drilling program are expected to be released this February 2010; Journey Resources has drilled (using Diversified Drilling of Missoula Montana) several reverse circulation holes totalling ~600 meters to test the new discovery on the “Johny Northwest Target area”. The holes were collared from the existing access road constructed in 2007 to access the 2009 drill sites without additional permitting or cost.  Following the aforementioned results a new resource calculation on Musgrove Creek is expected to be commissioned and completed in Q2 2010. Mining MarketWatch Journal projects at least a doubling of the current 313,822oz gold resource based on the fact the old resource was calculated in 2005 when gold was ~$350/oz using a 0.8g/t cut-off -- higher gold prices coupled with new drilling results and a lower cut-off will allow a substantial increase.

Note: JNY.V owns its own drill; a hydacore 2000 drill which they paid about $500,000. Using their own equipment allows the Company to keep costs quite low.

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3) Vianey Mine Silver Project, Guerrero, Mexico

Near term production potential from reopening Vianey silver-lead-zinc mine, a fully developed and proven underground mine now rehabilitated and in turn-key state waiting in abeyance for timely reemergence

Journey acquired 100% ownership Vianey property from Minerales Jazz S.A. in 2005. The Vianey property is comprised of two blocks totaling 5,022 hectares (approximately 12,400 acres) and has a silver-lead-zinc mineralization production history. The concessions are located in the southern Mexican state of Guerrero, 250 kilometres south of Mexico City and 160 kilometres north of Acapulco. Less than 2 kilometres away is the town of Atzcala, with water, telephone and medical facilities, as well as a sufficient labor pool. There is existing electrical power at the mine and a major power line passes near the property.
 
Journey entered into a joint venture agreement with Wits Basin Precious Minerals Inc. (“Wits Basin”) to form a 50% joint venture , Wits Basin has earned their interest in the joint venture. Journey will be the operator of the joint venture.

Image 10. Replacing hoist at Vianey Mine Silver Project Vianey is now a fully developed underground mine - JNY.V has spent the last four years rehabilitating it on a 50-50 JV bases and as silver heads up in price the mine can be taken into production.

Past calculations (non NI 43-101) provide a total in all categories of 345,020 metric tonnes grading 2.13% lead, 3.66% zinc and 269 grams of silver per tonne. Mineralization includes veins, breccias, lens and mantos of silver as well as poly-metallic (Pb-Zn) mineralization with local concentrations of gold and copper.

Location of the Vianey Mine and nearby mineral deposits:

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4) Silver Mountain mine, Lima Peru

High grade silver opportunity adjacent to high grade, small scale, silver and lead mine.

The Property is an advanced stage exploration property covering approximately 1,684 hectares, located approximately 75 kilometers east of Lima City and 50 kilometers south of Peru Copper's Toromocho property and Pan American Silver's Morococha Mine. The deposit is on the southern border of the long hydrothermal alteration trend known as the Central Polymetallic Belt, situated in the Western Andeen range at an average elevation of 4,200 meters. The mine is currently comprised of 4 drifts, developed on 4 levels, approximately 2 kilometers long in total. The target area is 800 meters by 400 meters in surface area and is characterized by tectonism developing compressive folds, reverse faults and transverse faults aligned northwest-southeast, along with volcanism depositing flows and tuff. The veins are open, along strike in both directions and open at depth.

 Robert Bryce, BSc, MBA, PEng, Director
Robert Bryce has served on our board of directors since February, 2005. Since May, 1996, Mr. Bryce has served as President and Director of Abitex Resources Ltd., a nickel exploration company based in Val d”Or, Quebec. From 1991 to 1994, Mr. Bryce was President of Mining Operations for Aur Resources Inc., where he was in charge of the construction and development of the 4,000 tonne-per-day Louvicourt base-metal mine in Quebec, and General Manager of BHP Billiton’s 7,500 tonne-per-day Selbaie Mine in Quebec. Mr. Bryce currently serves as a Director for Western Wind Energy Corp., Tagish Lake Gold Corp., Kalahari Resources Inc., Alexis Minerals Corp. and Scorpio Mining Corp.

For more information contact Journey Resources' head office: Ph (604).633.2442

E-mail: info@journeyresourcescorp.com   Company's web site: www.journeyresourcescorp.com

SEDAR Filings: URL