Juniors Trading Is Dismal
Dec.09.11
Without a write up in almost a month it is time to bring out some news on the trading end of things here. Hard to find any good news relating to junior mining stocks these days. It seems that almost every good value stock is under attack by either shorters or hedge funds of some other big money out there. I think that this is why some of these companies have swallowed poison pills. Two of the stocks we follow, Tanzanian Royalty TNX and Foundation Resources FDN both have swallowed the pill in light of hostile takeovers. This is a plan that a lot of big hedge funds had in mind all along we believe. Short good gold stocks to a minimum and then get the big money in to buy up all the cheap shares. One only has to look at Jaguar Mining JAG a few months back when their stock was being pounded down to 52 week lows. For those who are interested, just take a peak at a chart of the last few months and see what you make up of the graph looking at you.
In other news though this week back in the north of Canada, Canadian Zinc CZN got good news about the long awaited enviromental review for their Prairie Creek mine in the Nahanni area of the NWT. This is news with a twist as this mine is smack dab in the middle of the National park. Actually the mine was on the border or the park until the prk boundaries were extended a few years back.
The value of the zinc, lead and silver deposit is estimated at $2.5 billion. Mine infrastructure needs to be updated or replaced, including the power plant and water treatment facility. Construction could begin late next year with the earliest start for production in late 2013. I had read somewhere that this was not a large deposit but was ver rich deposit. They figure there is 20 years worth of mining reserves. Good to see another mine get the OK.
Even though a lot of the juniors we follow are down, we are still doing well with the mining plays that are issued to us each month via the Midas Letter. After being a subscriber for almost a year now I can attest that it is money well invested. James West takes the guess work out of stock picking for sure.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
And if you don't want to buy any mining stock, at least look into buying a gold mining claim.
GAdams
Juniors Still Getting Hammered
Nov.12.11
Lots of articles these days about the bargains in junior mining stocks. No matter which ticker you plug into, the story and chart are the same. Almost everything sitting at 52 week lows or very close to it. Then just when you think they can't get any lower, they get hammered again. Such was the case this past week with Tanzanian Royalty TNX when is came under attack by a classic bear raid. At one point in the trading day I think the stock was off around 50%.
Back a few years ago in 2006 this stock was $10 bucks and gold was $600. This week the stock hit $1.60 or so and gold is plus $1700. Something seems off here. No doubt a lot of longs have thrown in the towel not only on this play but a lot of other plays.
The other issue that seems to come into play here is that there seems to be a bit of nervousness when investing in places like Africa or some parts of South America. For that reason we are focusing our research on junior miners with projects here at home in Canada or the USA and Australia. Three stocks on watch and following are Canasia CAJ, Atac Resources ATC and Smash Minerals SSH.
Even though a lot of the juniors we follow are down, we are still doing well with the hot mining plays that are issued to us each month via the Midas Letter. After being a subscriber for almost a year now I can attest that it is money well invested. James West takes the guess work out of stock picking for sure.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
Gold. Food.
Nov.8.11
If you are collecting metals and you want to have a metal capable of food production you would want the scarcest metal because you would want a manageable amount seeing that these metals are cheap at today's prices. Molybdenum is the scarcest metal/element for food production and it happens to be a transition metal which in today's economy driven by energy and manufacturing makes it attractive and consumed.
To grow edible plants you need specific ratios of elements that are proven to work. I use a reputable product that grows great hydroponic/aeroponic food.
Let's say there is 80 pounds of molybdenum left on Earth. You would add 10,000 pounds of iron, 5000 pounds of manganese, 1500 pounds of zinc, 1000 pounds of copper, 1000 pounds boron(nonmetal) and 50 pounds cobalt to water along with other very abundant elements to grow plants.
In the Earth's crust there is 1 ppm molybdenum, there is 56300 times more iron(56300 ppm) than molybdenum, 950 times more manganese(950 ppm), 70 times more zinc(70 ppm), 60 times more copper(60 ppm), 10 times more boron(nonmetal-10 ppm) and 25 times more cobalt(25 ppm) than molybdenum.
After mixing these micronutrient metals in water you would see that when all the 80 pounds of molybdenum is gone(the actual ratio available on Earth), you would still have all the other elements left over in large amounts because you need a higher ratio of molybdenum to grow plants than the ratio that is available on Earth.
The other abundant elements you would need to grow plants is nitrogen, phosphorus, potassium, calcium, magnesium, sulfur, chlorine and oxygen, hydrogen, carbon(water and air).
Humans need these other elements in our diet, some of these elements are necessary, probable or controversial: nickel, arsenic, chromium, silicon, iodine, fluorine, selenium, vanadium and sodium.
It just so happens that the scarcest element needed in food production i.e. molybdenum, is needed in higher amounts/ratios than is available on Earth, making it even more valuable.
Carlo Biancardi (London, Ontario) Nov. 2011
Read more of Carlo Biancardi.
Remember that the first Sunday of every month there are up to three new hot mining plays issued, so make sure you are in the know.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
Spooky Start
Oct.30.11
Not quite halloween and I see that gold is off over $30 bucks. US buck up almost a full cent so Monday morning if this continues, should see another washout of junior stocks along with anything else resource related in metals. Been this way for 10 years now so why change the story. Anyhow it may be a bit premature to buy anything as another bottom could be coming into view. That's just my opinion of course.
Stocks on watch this week in regards to mining are still Atac Resources ATC which had a nice small rally back above $4 on Friday. We are also looking at Smash Minerals SSH which is also in the Yukon but feel that any money tied up in the stock may not do quite as well as others because winter is just setting in and there may not be much work till spring. No work equals no results which equals no news. No news equals no pop in the stock. However, with gold continuing to climb, except for today that is, these small players are the place to be. Once again, my opion.
Also watch Jaguar Mining JAG as it has quite a run lately. This is one those players that gets stuck with a pile of shorts and gets hammered quite hard. They have a bunch of working mines in Brazil so they are really not a small player like most we follow.
Another small player we have been watching lately is Canasia CAJ. These guys have a property in BC here that has had some dynamic results but the stock can't seem to move anywhere. I don't understand why.
News just last week was this: assays have been received for the 102 one-ton lots comprising the 2011 bulk sample from the Clone property, situated 12 miles southeast of Stewart, B.C. The average for the 102 tons is 4.0 ounces per ton gold or 137.1 grams per tonne gold.
What I can't figure out is why nobody seems to care about this kind of result.?? It goes onto say, This year's bulk sample contains 408 ounces of gold, which when added to the 68 ounces collected in the 2010 bulk sample (34 tons at 2.0 ounces per ton gold), amounts to 476 ounces in total. The company anticipates receiving the revenue from the gold sales in 2012.
Remember that the first Sunday of every month there are up to three new hot mining plays issued, so make sure you are in the know.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
Yukon Gold Explorer
Oct.22.11
When looking at investing or trading a junior mining stock, one of the first things I like to look at is the location or area that the junior is exploring. Whenever I stumble onto a junior that is exploring in Canada, I will take an extra look. Reason being is that Canada in general is a good place to explore and has postive governments that will allow the company to explore. There has been cases over time where governments cave into those in society that don't like mining and shut down the operations and turn the area of interest into a park. Much like Royal Oak Mines Windy Craggy project years ago. The government of the day which was an NDP govenment shut the operation down and that area became the Tatshenshini-Alsek Park in the very north west corner of the province. What I am trying to say is that with all the uprisings in the world today that are causing the riots and protests, Canada to me stands out as a great place to invest. Also with the nationalization of minerals and resources in some South American countries and corruption in a lot of African countries the world seems to be getting smaller in regards places to safely invest in mining.
I have been watching with interest some of the Yukon plays and find that there is a good chance at seeing some real growth and maybe even another discovery or two in time to come. Since the Underworld White Gold discovery a few years back a lot of newer juniors are coming into play in this area. In fact the Yukon in general is getting a lot more notice. In my last article I mentioned Atac Resources ATC which is active in the Dawson area. Their stock price like 99% of the others has fallen to 52 week lows. For those who may have been keen on buying the stock but like me felt it was out of reach, now might be a good time to do some extra DD and research.
For those who feel that buying stock in the $3 range is a bit high, there is another player who is active in the same area. Smash Minerals SSH is exploring in the Dawson White Gold area. The people running the company are the same people who ran Underworld and later sold out to Kinross K. They control a lot of ground in this area. Over 4000 claims totaling around 850 sq km.
Aside from the high acreage it controls, Smash Minerals has fairly impressive team of seasoned prospectors on staff. Remember these same people are the ones who found the 1 million ounce Golden Saddle gold deposit, now owned by Kinross Gold. Smash has a low amount of O/S. Something like 20 millions shares is all and they have some big investors too like Dynamic and Sprott. The stock just hit a new low this week of 30 cents but bounce back to close the week out at 38 cents.
I don't know if the Midas Letter will have this company spotlighted but it would not surprise me if it does one day.
As always, use Due Diligence and see our Disclaimer.
GAdams
What Can You Buy For A Nickle?
Oct.8.11
You can buy a share or two or maybe even 3 in almost any junior mining company. Well maybe not quite like that but there are a pile of small companies out there going for real cheap prices. Junior mining companies have just been getting slammed this past few weeks. As everything metals got taken down the larger juniors tumbled even more. Stocks like Tanzanian Royalty TNX were hit even harder falling back to levels of almost 3 years ago. Lots of smaller players are under a nickle now but the big question is at what point will they make a turn for the better. With the banking sector in the news almost daily investors may be reluctant to invest no matter how good the projects seem.
We get emails from time to time asking about certain stocks and some asking what we would be buying. At this time we are hanging tough on buying anything but one play that has us interested in the the Yukon play of Atac Resources ATC. We missed this play last year and by the time we were thinking about buying in the stock was just a bit out of reach price wise for us. Now of course the fundamentals are the same but the price come down to what some may say is over sold and undervalued. Wait until there is a definate turn around though as the trend is still downward.
Got an email from a reader with a mention about Bard Ventures CBS. I did a short read up on them a while back when I was doing some research on moly and some of the moly miners. Turns out that Bard has drilled up some very impressive results in gold and silver while doing some exploration on its Lone Pine property which is just outside of Houston BC. Instead of me writing out the drill results, I will just give you the link here and you can read it for yourself. By the way this is one of those players whose stock price is under a a nickle.
High trading volume on our featured miner All American Gold AAGC this past while also. The stock has sold off like most but this to creates a buying opportunity. You will want to read up on this miner as they are into an exciting play in Nevada.
James has some pretty interesting juniors that have some postive potential in these uncertain times.
As always, use Due Diligence and see our Disclaimer.
GAdams
Another New Junior To Watch
Sept.22.11
Well we don't have to tell you that the markets corrected today. Anyone who has ears will have heard by now that things are not as they sometimes appear. Good buying opportunity in some stocks today like Tanzanian Royalty TNX if you like higher priced plays. The stock was off 15% or so today. Hit a new 52 week low of $4.53. Silver was off $3.00 at point also. Had I watched more carefully I would have bought a few ounces maybe over at Bullion Vault. We will see in the AM how trading is so there is still a good chance to be had.
Our new junior on watch, Victory Ventures VVN did the opposite today. Up 15% to 11.5 cents on a high volume of over 400,000 shares traded. Our featured miner All American Gold AAGC lost of few cents today. Nothing really concidering what some other stocks did.
We will see how tommorrow trades being the last day of the week. After the weekend maybe things will turn around a bit and at least stable out somewhat.
Remember that the first Sunday of every month there are up to three new hot mining plays issued, so make sure you are in the know.
As always, use Due Diligence and see our Disclaimer.
GAdams
Another New Junior To Watch
Sept.16.11
Our featured junior All American Gold AAGC has sure been active this past week with fairly high trading volumes. The stock got quite volatile after their news release which stated that a total of 1,550 to 2,000 meters of RC drilling is planned for six drill sites located in both the northern and southern parts of their Goldfield West property. Then two days later another news release came out stating that the company had signed an option agreement to secure an initial 15% interest in the Iowa Canyon Property in Lander County, Nevada.
The other new junior this week to watch is Victory Ventures VVN. Victory is a fairly new company having been listed just over a month. They have an exciting property here is BC about 10 kilometers east of the town of Lillooet. The company has signed an option agreement for the Blustry Mountain epithermal gold-silver prospect which is an epithermal gold-silver prospect.
The company has a NI43-101 Technical Report on the Blustry Mountain Property. The stock has just 15 million shares and is going to be getting a listing on the Frankfurt Exchange so this is one stock that you may want to place on your watch list.
Lots of talk this past few weeks about European banks going broke and just global debt in general. This all boads well for gold as a safe haven, so it is just a matter of time before money comes out of other assets and seeks undervalued assets such a many juniors are today. News out this week also about Silvercorp SVM buying back almost 4 millions share back as they feel their shares are undervalued. Good sign to see when companies are buying back their stock. This show confidence is a company.
Remember that the first Sunday of every month there are up to three new hot mining plays issued, so make sure you are in the know.
As always, use Due Diligence and see our Disclaimer.
GAdams
New Junior To Watch
Sept.12.11
With about 2000+ junior miners out there it sometimes gets to be quite a task to find out who is doing what and where. That is why we just love it when companies come to us and ask us to tell potential investors who they are and what they have to offer. This month we have as a featured miner a gold explorer that is working in Nevada. The company has quite a nice portfolio of properties that readers should take note of. The company is question is All American Gold stock trades on the NASDAQ (OTCBB) and their ticker symbol is AAGC
As you can see by the chart above, the stocks has performed quite well compared to a lot of other junior explorers who are finding their stock prices sitting a yearly lows with trading volumes drying up. From a low of .36 to almost $1.00 in the past 4 months the stocks volumes had dramatically increased as the stock is getting more public exposure. Also with the way governments in some foreign countries are behaving like Venezuela, Peru and a few others, this is a good way to invest without a lot of the risk that is associated with mining in general.
Also keep in mind that James West has some really hot plays in this months newsletter. James is well know for picking 10 baggers.
As always, use Due Diligence and see our Disclaimer.
GAdams
Gold Up. Silver Up. Juniors?? Down!
Aug.21.11
The metals have sure been hot lately. I see that gold is trading tonight at $1870 and change. Silver finally broke out of that $40 range bound and is now at $43 and change. Platinum is trading right with gold. With all this high flying metal prices one would think that the juniors would be trading a bit higher or at least be a bit more active. If it wasn't for my silver Bullion Vault account that I trade I would be not be seeing any profits at all.
With a lot of the juniors not trading or being inactive, we have decided to go over our watch list and weed out the loosers from those who have potential or at least have a percieved potential. After 2 emails sent to Sidon SD and not hearing back we have decided to write them off the watch list. Also is Encore EZ. We had hopes for news about their Bonapart mine project but after no news we have decided to focus our attention towards more promising players.
Aside from gold and silver players we will also be watching miners who are focused on the lesser know minerals. Companies like Northern Graphite NGC who is exploring for graphite. Graphite could very well become the next rage mineral as its uses are far beyond pencils. Another player that is involved with graphite is Focus Metals FMS.
Remember if you want to trade and own REAL silver, there is only one place to go and that place is Bullion Vault
As always, use Due Diligence and see our Disclaimer.
GAdams
Pencils & Solar Panels
July.21.11
When we think about junior miners, we mostly think about small companies out exploring for gold, silver, copper and other familiar metals and ores. So when we come across a small junior exploring for something out of the ordinary, we like to take notice and maybe do a bit of investigating. This happened a few days back when I came across and article about solar panels being developed using graphite and not the regular silicon that most panels use. I know that graphite is used in lubricants, batteries and brakes, but was totally unaware of it's uses in the solar area like rare earths are used.
So after reading the article I was wondering about where graphite came from and how it was mined, processed etc. and of course the next logical step was to see if there was any juniors who were active in exploring this kind of commodity. After a google search of Canadian juniors that might be searching for graphite in Canada, I came across a junior company based out of Ottawa. Northern Graphite NGC is an explorer that is not only searching for graphite, but has a graphite project located about 100km east of North Bay, Ontario. In fact the company has completed an NI 43-101 preliminary assessment report on the project and has subsequently initiated a bankable final feasibility study and commenced the environmental and mine permitting process.
Reading their website is really interesting as they have a complete selection of links pointing to various aspects of graphite, it's uses, prices and future potential. You can read up on this company here
The reason for no write ups lately is because we were on a vacation. Our destination of course was Yukon and northern BC area around the historic mining town of Atlin. Placer mining in these areas is king and the creeks were very busy this year. With gold around the $1600 mark there is getting to be a lot of interest from small time panners with home made sluices to large trommels and de-rocker set ups using excavators and cats. Lots of the ground around the old town site of Discovery is being re-worked. While we were in Atlin Chieftain Metals CFB had an open house about the Tulsequah Project which is located in NW British Columbia about 100km south of Atlin. This property has two past producing mines from back in the 1950s, the Tulsequah Chief and Big Bull Mines. This same property was the property that was owned and run by Refern Resources which is now defunct.
A lot of our readers and subscribers have followed us along in online silver trading using Bullion Vault. Like we mention quite a while ago we had a gold account but sold our postion out and took the funds over to a silver account. On the last run up to $50 and ounce we sold a small portion out around $47-$48 and have bought that postion back at $32.30 average. as of today silver is back holding around the $40 mark so we gave ourselves a pat on the back. We have had a lot better run of profits trading silver than we have of the juniors this year. If you feel that you would like to participate in the silver run but are confused about which silver junior to buy into, maybe take a look at what Bullion Vault has to offer. Remember you are buying real silver, not paper.
As always, use Due Diligence and see our Disclaimer.
GAdams
Happy B-Day Canada
July.1.11
First day of July and it's Canada's birthday. 144 years young. Gold is at 6 week lows I was reading today also. I see silver sitting down in the $33.00 range too. I was reading an article stating that gold could fall back under the $1400 area and silver could get as low as $28. If that is the case then this would be a year for those so called summer doldrums where nothing trades.
Mining stocks are sure taking a beating. Those that do trade. I think a lot of people have tossed in the towell in regards to trading positions because of the lack of volume and what seems to be a complete downward trend. We follow a lot of plays and a lot of them are sitting on 52 week lows. Even with metal prices higher than last year the stocks show nothing like they did a year ago. There are actually some real good buys out there when you figure in cash producing plays and potential dividend payouts in some of the miners.
Some of these miners like Jaguar Mining JAG who have producing mines are sitting at obsurd lows right now. Tanzanian Royalty TNX is going to be putting some properties into production very soon and will be producing gold. You would never know this by the stock price that keeps getting pounded down by negative articles.
As far as silver miners goes we are still keeping a close watch on Silvermex SLX. The stock keeps getting beat down but seems to be basing well in the mid 60 cent range. Our other silver player we follow, Silverquest SQI has taken off and is over the $1 mark now.
We have also started to follow one of James West's winning stocks and will be looking for an entry point sometime this summer. If you would like to to know which one it is we will give you a small hint. The company name starts with "Northern".
As always, use Due Diligence and see our Disclaimer.
We will be gone prospecting over the month of July but will have some small updates over that time.
GAdams
Gold... Somewhere Over The Rainbow
June.13.11
June 13. That is the day today. June 13 is also the day mentioned by Martin Armstrong as a day to watch for in regards to gold and the gold price. Martin Armstong for those who don't know is the founder of Armstrong Economics. He is a wizard at mathematics and cycles and timing. For information about the cycles and timing you can view his website at Armstrong Economics and see how this all relates to gold. Having a good high gold price is what is really needed these days to maybe give the juniors a boost.
Looking at the juniors as a whole these days has become a real struggle to watch. Most are well off their 52 week highs and there is a lot that are trading at their 52 week lows. Even with the metals kind of holding their own, the stocks seem to be getting beat down at every corner. Of course summer is historically the time of year that gold takes a breather into the so called summer doldrums.
After reading Martin Armstrong you will see why today and the gold price is so important and how it will all relate to the junior mining stocks somewhere down the road or over the rainbow.
As always, use Due Diligence and see our Disclaimer.
Remember that at the start of every month, James West puts out the very latest winning stocks that are sitting right on the "Next Big Find." One of his picks looks really attractive in the 40 cent range and I picked some up last week. After reading the research report, this stock will be an easy double for sure. Thanks for the tip James.
GAdams
The Week In Review
May.23.11
Last write up we talked a bit about how Jaguar Mining JAG was back on botton and looking primed to pop. Not less than a day or so later the stock did just that. Unfortunate for us here, we did not buy any on the bottom and thus we missed out on some very easy profits. Will the stock fall back again? Only time will tell but we are thinking more in line that most of these players like JAG that have been shorted down for so long will be fighting hard to stay up and may just build themselves a new base support.
As the price of gold continues to stay high it's only a matter of time that some of these miners are turning a profit and profits are what a lot of large funds look at before investing. Once that happens and the buying begins it's pretty much game over for the shorts. After all money talks and BS walks.
A few sessions ago we talked about moly and had a small write up on the reason to invest in moly. This write up was compliment of Carlo and we had forwarded us part 2 of some reasons to invest in moly.
Investment Grade Molybdenum : Part 2
In Part 1 of Investment Grade Molybdenum, I established my reasoning
for picking molybdenum as my personal favorite. Now I will bring in
some arguments, for example, when I called around to purchase some
molybdenum, people usually asked what it was for. I told them I was
investing and collecting it. I had one person laugh, no kidding. One
person told me I should go buy some silver if I was investing. On the
other hand, back in 2008 Eric Sprott opened up a molybdenum stock that
actually had physical holdings of molybdenum in its portfolio. I think
it is not silly to invest in physical moly metal as well as moly
stocks. If you just chuckled you probably own silver or gold. All
metals usually gain value over time, but which metal will prevail?
Molybdenum can be bought in many forms. It is commonly mined from
molybdenite ore which is MoS2. MoS2 can be purified and is used as a
dry lubricant, desulfurization in petroleum refineries, etc... MoS2
concentrate is 85-99% pure. If you roast or heat up MoS2 to between
500-650 degrees celsius you produce moly trioxide concentrate or tech
oxide, which is a yellow powder. MoO3 is used in pigments, flame
retardants, fertilizers, catalysts, alloying steels, etc... You can
process or treat MoO3 even further to get molybdic oxides, etc..
Purity ranges from 50-99.9%.
Ferromolybdenum (FeMo) is another type of molybdenum mixture, it is
added to molten steel to alloy it and is preferred over the moly
oxides in alloys with over 1% molybdenum since it avoids having to add
oxygen to the heat. FeMo is not pure (60-75%) and is produced when
MoO3 oxide is mixed with iron oxide and aluminium and is reduced in
the an aluminothermic reaction to molybdenum and iron. This is made in
a smelter.
The London Metal Exchange (LME) sells Roasted Molybdenum Concentrates
(RMC) which is under contract to be 57-63% pure and it sells for about
$36000 U.S.D a tonne ($18 a pound), with a 440 pound minimum purchase.
Molybdenum comes in many other forms and can be quite confusing.
MoO3 + hydrogen under high heats produces molybdenum in metal form,
which I prefer to buy. I have been quoted $40-$200 a pound for 99.9%
pure moly metal. And yes I do purchase moly for investing. Remember
that the Earth's crust has molybdenum at 1 ppm in abundance. This
means that 1 million pounds of rock would only contain 1 pound of
molybdenum and at $40 that is cheap. Please do your own research.
Carlo Biancardi (London, Ontario) May 2011
Read more of Carlo Biancardi on instablogs at SeekingAlfa.com.
As always, use Due Diligence and see our Disclaimer.
Remember that at the start of every month, James West puts out the very latest winning stocks that are sitting right on the "Next Big Find." One of his picks looks really attractive in the 40 cent range and I picked some up last week. After reading the research report, this stock will be an easy double for sure. Thanks for the tip James.
GAdams
Back On Bedrock?
May.15.11
Last month for a while we were looking at Jaguar Mining JAG as a bottomed out stock with a good buy in potential. Shortly afterwards the stock did rally but this past wek we see that the stock is back sitting on lows again. As we mentioned earlier this is a company that has producing gold mines in Brazil. This is not just a junior miner explorer.
As you can see below on the three month chart, the stock is back down on lows again. Infact this time the stock has fallen further to below the $4.00 mark.
We have also been talking a bit about moly especially since I was sent an email with the 9 reasons to invest in moly. There really aren't a whole lot of moly explorers out there although another small company that is probably worth doing some DD on is Columbia Yukon CYU. This small company has a moly deposit in northen BC call the Storie Moly deposit. The project is NI 43 101 and the stock has just under 50 million O/S. Below is a 12 month chart.
Also on an added note here, Supreme Resources Ltd. SPR which was a featured miner here had more news out this past week stating that they had aquired more ground. In the news release they stated "two mineral claims adjacent to the TAS property at Copper Mountain in Southern British Columbia had been aquired. The two tenures cover 611.25 hectares and are located approximately five kilometres south of Copper Mountain Mining Corp.'s Copper Mountain mine".
As always, use Due Diligence and see our Disclaimer.
Remember that at the start of every month, James West puts out the very latest winning stocks that are sitting right on the "Next Big Find." One of his picks looks really attractive in the 40 cent range and I picked some up last week. After reading the research report, this stock will be an easy double for sure. Thanks for the tip James.
GAdams
Market Corrections
May.7.11
I read once that markets are like roller coasters. It is always fun going up but scarey going down. For a lot of us who have been owning silver especially last week was a bit scarey for sure. For those who maybe just got into the silver game it is most likely horrifying. But with the sell off it brings out baragains as a lot of people run for the exits.
A few silver plays that got abit into the sell off mode are looking good to maybe pickup for those who are long term holders. Players like Silvermex SLX and Golden Goliath GNG are two silver juniors we are watching. We are also looking at Silver Quest SQI and we are doing some addtional DD on this player.
Silver Quest has been trading in the 70-80 cent range for the better part of a month. One thing to note is that Silver Quest is not just a silver explorer. The company has a lot of different properties being gold and silver combined. We tend to favor players with a western Canada exposure as we are familiar with the areas. The one project they have is a JV with Richfield RVC. Silver Quest has a 25% interest in the Davidson project while Richfield has 75%. Silver Quest is a small company that has about 100 million O/S but a lot of projects.
As always, use Due Diligence and see our Disclaimer.
Remember that at the start of every month, James West puts out the very latest winning stocks that are sitting right on the "Next Big Find." One of his picks looks really attractive in the 40 cent range and I am looking to pick some up next week. Easy double for sure.
GAdams
Thinking About A Moly Play?
Apr.24.11
In our write ups on bedrock stocks a few weeks back we were talking about a moly stock that could be on bedrock. That stock is Adanac Moly AUA and the stock is sitting around $1.50 and has been that price for about the past month now. In wondering if and when it would be time to pick some stock up, I happened to get an email the other day with a short article on the 9 reasons to buy moly.
Now the article does not mention any particular stock, it just talks about some of lesser know facts about moly or as some who prefer, Molybdenum.
Molybdenum the new Gold !
9 reasons why investing in this commodity makes sense
#1 An investment will and should be in a precious metal needed for life to occur, plants and animals need Molybdenum to live. There is nothing more fundamental or basic than an element. We need elements to build or grow anything. We need Molybdenum (an element) to grow any plant or life form. There are 3 types of elements: poisonous, inert and life giving. Which elements would you want to be around? Which elements would you keep away? Gold does not support life. Silver does not support life. As for Platinum, Palladium and Rhodium you can probably guess what I will say next. Molybdenum is the finest metal to be a part of (literally). Molybdenum has many uses. Invest now while it is cheap!
#2 Molybdenum has the lowest abundance of the life giving elements in the Earth's crust (other than industry useless Selenium) at 1 ppm (0.0001%).
#3 Molybdenum has the 6th highest melting point of all the elements, and by far the highest melting point (4753 degrees fahrenheit) of all the metals needed for life.
#4 If I were leaving Earth forever, I would build the ship out of Molybdenum. I could grow hydroponic plants which need Molybdenum and other life giving elements to survive. I would not bring Gold with me.
#5 China has high rates of esophageal cancer and/or strokes because of low Molybdenum amounts in their soil. To fertilize farmland you need half a Pound of Molybdenum per acre (International Molybdenum Association)some websites suggest up to 6 pounds per acre, on a 1-3 year basis. There are about 1 billion acres of farmland in the U.S.A. and billions of acres of deficient farmland worldwide, which clearly means there is not enough Molybdenum for everyone.
#6 Nuclear power is not leaving, nor are oil and gas pipelines. Nuclear power plants need high Molybdenum content stainless steel cooling pipes (6.5% or higher Molybdenum) because it prevents corrosion. Salty ocean water is very corrosive to the water cooling pipes. All nuclear power plants are near large bodies of water and need lots of water for cooling the reactors. Pipelines use high amounts of Molybdenum and will be using higher percentages of Molybdenum content in the future to combat corrosion and reduce friction of crude oil delivery in the pipelines. Corroded infrastructure and new infrastructure will need Molybdenum for the Steel used. Molybdenum also greatly enhances Steel strength.
LUCKY #7 CHINA IS CALLING MOLYBDENUM A NATIONAL RESOURCE AND IS LIMITING THE MINING OF MOLYBDENUM BECAUSE THEY KNOW IT IS MORE VALUABLE LEFT IN THEIR MINES AND IN THE GROUND, THEY WILL BUY EVERYONE ELSES AT LOW CHEAP PRICES NOW. THEY WILL IMPORT THIS METAL. THE BIG NEWS ON HOW MUCH THEY WILL LIMIT THE MINING OF MOLYBDENUM IS DUE TO COME OUT IN 2011.
#8 The world total yearly amount of Molybdenum mined and CONSUMED is 500 million pounds. What does that amount look like? Well it's 150 meters x 150 meters x 1 meter high . That is not much at all! ONE huge project could easily consume this all.
#9 ONE investor could buy the whole planets yearly Molybdenum production for $8 billion dollars (Jan 2011). Molybdenum only costs $1 per ounce. In comparison, to buy all the Gold that is available and that has ever been mined, it would cost you $7.4 trillion dollars (Jan 2011) to buy the 375 million pounds of useless bling!
Read more of Carlo Biancardi on instablogs at SeekingAlfa.com.
As always, use Due Diligence and see our Disclaimer.
Remember that at the start of every month, James West puts out the very latest winning stocks that are sitting right on the "Next Big Find"
GAdams
Happy Easter
Apr.22.11
Happy easter to everyone. While the easter bunny might be out there hiding colored eggs, the gold and silver bulls are out looking for the goose that laid that golden egg. Sure nice to see this rally in the precious metals. News highs all around.
These new highs are not doing much for the juniors though. Still most are down from previous highs and some are sitting on 52 week lows. Came across a great read here about why these juniors are down in price. Once you read the article you will understand the situation of why there is little action in the junior mining sector.
Silver sure is shining. We wrote last session about Silvermex SLX as being what we feel is an undervalued silver miner and is well worth taking a look at. We are still working on doing some DD on another small silver explorer that is priced in the same area but has a lot less shares outstanding and is working in Canada. Hopefully we will have some more information in the next write up.
How are our bedrock stocks doing? Since we first mentioned Jaguar Mining JAG back in early March when the stock hit a low of $4 and change, the stock has rebounded nicely. The stock did a double top out over the course of a months time but in the last few sessions has been on fire. For those trying to catch a bottom now, I think you missed it.
Back to silver for a moment. We mentioned a while back about trading silver online with a company called Bullion Vault. We had a gold account set up with them but sold out our positions and swapped all the cash into a silver account a few months back. They just got started into the silver trading. Needless to say we haven't traded any silver lately but we may look at selling a portion out here as we think there could be a pull back or correction in silver. This would allow us to buy a postion back in at a later date hopefully for less money.
As always, use Due Diligence and see our Disclaimer.
In case you're interested, here are a few junior miners that are sitting right on the "Next Big Find"
GAdams
Metals Still Heading Upward
Apr.10.11
The metals were still hot last week with gold touching the $1470 area and silver blasting past the $40 mark like it wasn't even there. A lot of analysts were writing before that $40 for silver was going to be a hard resistance but the way the price went last week we saw no sign of resistance at all. How high is silver going to go? I read articles stating that silver will go to $100 an oz. all the way to $250 an oz.
You would almost think that the way silver has rallied that a lot of the smaller juniors involved in silver would be showing some signs of upward gains but this just is not happening. Of course some of the larger players like First Majestic FR or
Silvercorp SVM are seeing some gains but there are lot of small players that are well worth a look that are not getting any benefit of this silver rally at all. A couple of small silver players that both have operation in Mexico deserve to be looked at here.
Silvermex SLX and Golden Goliath GNG are two smaller explorers in Mexico that are still under the radar of most investors. Silvermex has been in a bit of a downturn for the past while. At the end of last month they put out news stating: Silvermex Resources Inc.'s preliminary production at its La Guitarra mine, located in the Temascaltepec mining district in Mexico, is currently under way. The company continues to successfully ramp up production. Since the beginning of 2011, the mine processed 15,008 tonnes of ore grading on average 164 grams per tonne silver and 2.07 g/t gold (288 g/t silver equivalent). Total silver equivalent (gold and silver) production consisted of 126,123 ounces.
The news release goes onto say that Due to lack of underground development in recent years, the mine's current production rate and grades are lower than the historical average. The stock is priced in the 70 cent range and has 230 million shares O/S.
Later during the week we will be looking at a few other silver juniors that we feel are worthy of having on a watch list. One of those silver juniors is working on a project here in British Columbia so stay tuned.
As always, use Due Diligence and see our Disclaimer.
In case you're interested, here are a few junior miners that are sitting right on the "Next Big Find"
GAdams
News Highs In Metals
Gold hit a new high this week. Silver hit a 31 year high. You know silver has sure been in a rally and on fire. I pay a lot of attention to silver now since I opened a silver trading account a few months back. The way the junior stocks have been going lately, trading silver seems about the only way to turn a profit these days.
Uranium stocks sure made a quick comeback. I am not sure what I was thinking when I was watching Forum Uranium FDC falling from highs. This is a uranium player we have followed for quite some time. Or how about Mega Uranium Ltd MGA ?? Here would have been the play of the week for those who just like to swing a trade or two. Nothing like an easy 50% ROI in 3-4 days.
With gold being at record levels it sure seems strange that most juniors are sitting on lows. I was reading some back that most of these gold juniors are being suppressed with big money in the way of short postions. It's not only the small penny miners either but even some of the mid cap players who have actual working mines and are producing gold.
Speaking of gold though, I was reading in the last write up by Martin Armstrong that if we hit a low in June then it is blast off time for the yellow metal. Martin Armstrong is a person who works with cycles and timing and has a very good track record. Too good to be precise. By the way, his projections for a gold price is $5,000 to $12,500 by 2015. Hmmm ... I wonder what some of my penny miners will be trading for at that point??
Tanzanian miners have sure been weak also. Of course when there is no news, those who get a bit impatient sell off the stock mostly at the market bid price and in a lot of cases as in 99% of the time, those in the know are picking them for the next round of rallies. Hopefully this is what is happening now. As long as work continues, news will be forth coming.
On a final note here, I am just wondering on what will become of Adanac Moly AUA. With the stock sitting on bedrock for now and a large deposit as an asset, we are just wondering how long before there could be a turn around. The stock closed the week out at $1.69. That's 10 cents off bottom. Time to buy??
As always, use Due Diligence and see our Disclaimer.
In case you're interested, here are a few junior miners that are sitting right on the "Next Big Find"
GAdams
Gold On Bedrock?
Mar.16.11
The gold and silver markets rallied dramatically to the upside as concerns and worries over oil supplies, inflation, and general nervousness in the world markets pushed both metals into new high ground.
Here is a just completed a new short video we would like toshare with you showing the upside target zones for gold. The video only takes a few minutes to watch and emphasizes how important technical analysis is in the gold market. Our weekly Trade Triangles have been long gold from $1,368 and it looks as though that position is going to work out well.
We also refer back to a video that was made on September 20th last year, which underscores the importance of cyclic work in the gold market and, how if these same cycles hold true, can predict with a fair degree of certainty when the next cyclic high is going to occur.
This video reveals all of this and I think you'll find it both informative and educational. Take a look at the short video here:
As always, use Due Diligence and see our Disclaimer.
Here are a few junior miners that are sitting right on the "Next Big Find"
GAdams
Stocks On Bedrock. Part 3.
Mar.15.11
Big sell off today. Not just gold and silver and the other metals but everything. The theme of the day was "Throwing the baby out with the bath water". While gold was off by 50 buck at one point from its high, palladium was off about the same in dollar terms. Never mind uranium. Just think last month or so uranium was king. If you were in any of the junior uranium plays you were making money. Depending on where you bought though, after the last two days or so you are most likely in the red.
One of the plays we follow in uranium is Forum Uranium FDC which has plays in the Thelon region of Nunavut. Their stock has been beaten down quite hard over the last few sessions. After what is happening over in Japan it makes a lot of people wonder about the future of uranium and nuclear energy. The reality is that until there is a viable alternative there will most likely be power generated by nuclear and that of course requires uranium. Anyhow, getting back to Forum the company just had news out last week in regards to an option agreement with Cameco Corp. whereby Forum and
Mega Uranium Ltd MGA
may jointly earn a 60-per-cent interest in the 98-square-kilometre North West Athabasca project, including the historical 1.5-million-pound Maurice Bay uranium deposit in the Western Athabasca basin.
Of course there is a few other uranium plays out there that are beat down as well. Pure Point PTU being another junior that is being sold off hard.
New lows today were reached with Adanac Moly AUA also. Closed down 10% to $1.77. We just had a small write up last week about this company. They were under creditor protection for quite some time but are trying to get back to business. Their core holding is the Ruby Creek Moly deposit in Atlin BC. This is a world class deposit and is well worth the DD to check into.
As always, use Due Diligence and see our Disclaimer.
Here are a few junior miners that are sitting right on the "Next Big Find"
GAdams
Stocks On Bedrock. Part 2.
Mar.13.11
Last session we talked about some stocks that were on bottom or what we here at junior miners like to refer to as bedrock. We always assume that most of the bottomed out plays are the penny miners but some of these stocks are large players in the mining industry and have mines that are producing. These are not just some small junior player that has some mining porperty that they are planning to prospect. The one player we would like to look at this week is Jaguar Mining JAG.
Jaguar Mining is a gold miner that is working in an area of Brazil that is know as the Iron Quadtrangle. This is one of the worlds largest mining areas and Jaguar has approximately 90,000 acres in this area. Along with this massive land holding the company also has plans to develop the Gurupi Project where it controls 293,000 acres.
The company is currently producing gold at three of it's operations and is hopeful of starting production at a fourth operation. The stocks has fallen a lot over the year due to to geo-technical issues at one of JAG's mines (Turmalina), which has now been solved by changing the underground mining method from sub-level stoping over to cut-and-fill. Other pressures on the stock were due to weak Q4 production numbers compared to guidance as well as a convertible note issued in early February. The company has 84 million share O/S. What we are wondering here is if this stock is on bottom and we may start to see an upward trend, or will the stock continue its downward trend for some time yet. You tell us what you think.
(on an added note, JAG closed up almost 5% Friday to end the day at $4.88 ).
As always, use Due Diligence and see our Disclaimer.
Want to know which junior is sitting on the "Next Big Find?" and will make some investors a fortune? Click Here to find out.
GAdams
Stocks On Bedrock
Mar.8.11
For those who don't know the lingo, bedrock is in placer mining terms, the bottom. It's a low as you can go. It's solid rock or could be a solid hard pan clay, but either way, it's the bottom. Now in placer mining, bedrock is where the gold lies. Because gold is heavy it works it's way down through the soils until it reaches bedrock and has nowhere else to go. That is why placer miners like those on Gold Rush Alaska are so keen on getting down to bedrock.
So, what does that have to do with stocks? Well for some of us we are hoping that there might be some gold in the stocks that are on bottom or at least that they have hit bedrock and can't go any lower. With gold, silver etc. at historical highs it makes one wonder why some of these juniors are, like we said, on bottom.
Now when watching a lot of these small juniors, the ones that trade under a dollar say, one can expect some volitile days and big swings. Kind of like Sidon SD did today. News came out for their drilling and sampling program in Tanzania and it was not quite what investors wanted to hear. So, what happened to be an 11 cent stock at the open turned out to be a
7 cent stock at the close. Over 9 million shares traded today. In fact the stock did hit 6 cents during the day.
Now just to be clear, we own some of this stock because the play is in Tanzania and Tanzania seems like a happening place. A lot of junior miners are combing the hills over there and news from some of the other juniors seems to be quite positive. Question is now is whether the Sidon is on bedrock or not. That is, are they at bottom and will there be any gold?
It's just now these penny miners that are at the bottom either. I have been watching Adanac Moly AUA since they have rolled back and switched over to the venture exchange. Their chart also is not very impressive but the question remains, are they on bedrock with this moly play in BC?
Or how about Jaguar Mining JAG ? Here is another big player, on bottom. Or how about Golden star GSC ? These are mid cap miners, sitting on bedrock.
As always, use Due Diligence and see our Disclaimer.
Want to know which junior is sitting on the "Next Big Find?" and will make some investors a fortune? Click Here to find out.
GAdams
New Month. New Highs
Mar.4.11
A new month and some new highs in the metals. Both gold and silver are seeing some rallies finally and hitting higher highs each day it seems. What is a bit sad though is it seems none of this excitement in this rally is filtering over to the junior mining sector. One would think that some of the plays would see some interest but this week proved otherwise.
Adanac Moly AUA did a roll back this week. 1 new share for 150 old shares. The stock today sold off hard. We were watching first thing in the AM when the stock was trading down a slight bit but by the end of the day the stock price had fallen 50% to close out the day at $2.25. The stock was priced around $9.00 on the first of the month so for a $6.50 -$7.00 drop in two days is quite drastic. This could though represent a good buying opportunity for those who are confident in the stock and moly market. We stress could.
Adanac which successfully implemented its plan of compromise and arrangement and has emerged from creditor protection is the owner of the Ruby Creek moly deposit in the Atlin area of B.C. This moly deposit is a world class deposit and will most likely need a partner to help develope. One issue at this time though could be the price of moly which is less that $20 a lb. Another issue is that the shares which trade on the TSX are going to be moved to the Venture exchange. This could hinder some large funds from buying and holding the stock and even in raising additional funds. Asked about whether to buy the stock or not? In a nut shell, we would wait till the down trend ends.
Brookemont BKT had news about their Tanzanian project. In a news release they state that they have identified multiple areas for detailed geochemical surveying and geophysical magnetic surveying on its Handeni North gold prospect. This property directly borders Canaco Resources Inc.'s property in the Handeni area of Tanzania. In a news release they state that they have identified multiple areas for detailed geochemical surveying and geophysical magnetic surveying on its Handeni North gold prospect. This property directly borders Canaco Resources Inc.'s property in the Handeni area of Tanzania.
As always, use Due Diligence and see our Disclaimer.
Want to know which junior is sitting on the "Next Big Find?" and will make some investors a fortune? Click Here to find out.
GAdams
PS. The 2011 Prospectors and Developers Association of Canada (PDAC)
International Convention is on this week next week March 6-9, 2011 at the Metro Toronto Convention Centre.
End Of The Month
Feb.26.11
Trading this month has not been a very pretty picture. Most of our plays are down to support levels. I think that the volitile gold markets are not helping at all. Unrest in the mid east has a lot of concern for oil of course.
Palladium sure had a plummet in price this past while. From a high of $850 to a low of $730 or so. Silver also had some good swings and of course gold gets a beating from the bullion banks as usual. Gold now over $1,400 should hopefully hold and maybe bring some of the junior miners along with it.
Tanzanian Royalty TNX had a very interesting webcast out this past week. Over 3 hours of webcast infact. If anyone is interested in getting involved in what is going to be a future gold royalty company, this is one to be involved in. Yes, we do hold stock in TNX at this time.
Tanzanian Royalty is a company that has massive holdings in Tanzania. We at junior miners here have followed this company quite close for numerous years now. A lot of what this company does along with the likes of Canaco CAN can have a way of effecting the outlook for some of the smaller players we are also watching in Tanzania. Those small juniors being,
Sidon SD, Currie Rose CUI and Brookemont BKT. Speaking of Sidon, we are expecting to hear some news soon from their on going project in Tanzania. Hopefully in the next week or two we might hear something positive.
As always, use Due Diligence and see our Disclaimer.
Want to know which junior is sitting on the "Next Big Find?" and will make some investors a fortune? Click Here to find out.
GAdams
Featured Miner News!
Feb.16.11
News out at the close today from our featured junior miner in regards to a new vein on their Ample Gold Max property in BC. This new quartz vein is located in a previously unexplored area, and is located north of the Ample-Goldmax Main zone. It is estimated to be approximately five metres (15 feet) in width, and is exposed on the surface of a rock face and appears to continue into the mountain for an unknown length.
Currently, Supreme Resources is conducting a soil geochemical survey over the new area in the vicinity of the newly discovered quartz vein. The results will provide further insights as to the geological and economic potential of the new quartz vein.
Ample-Goldmax gold grades from previously identified and sampled quartz veins returned gold values of up to 66.34 grams per tonne gold (2.13 ounces gold per tonne)
.
Prior drilling results by Homestake and Gold Ore include an 8.2-metre intersection with 11.76 g/t gold, 4.5 g/t Au over 7.2 metres, 9.5 g/t Au over 1.5 m and 3.9 g/t Au over 5.0 meters.
As always, use Due Diligence and see our Disclaimer.
Want to know which junior is sitting on the "Next Big Find?" and will make some investors a fortune? Click Here to find out.
GAdams
Turn Around Time??
Feb.15.11
Looks like the metals have done a turn around and have started to head back up to the old highs. There was a small write up on JSMineset today about that stating that
a lot of gold watchers feel the bottom has been set and we are now onward and upward. Problem is, most of the juniors we are watching are still sitting on the bottoms. Hopefully this will change shortly.
Some of those juniors in question of course are those who are working in Tanzania. Juniors like Sidon SD, Brookemont BKT and Currie Rose CUI. These plays have fallen back to old support levels and trading volumes are lower than low. Hopefully either news or higher gold prices will help push these stocks a bit higher as the latest news from Canaco CAN has done little for these plays although Brookemont was up 14% today.
While we always seemed to be focused on gold and silver and other metals, we seem to forget about those juniors that are out exploring other commodities and are doing quite well. One such junior is Saturn Minerals SMI which is exploring in Saskatchewan for coal. Here is a small company that has a good portfolio of land holding and in their latest news release they state they have aquired 102,757 hectares of Oil Rights in Eastern Saskatchewan. Here is a player of both oil and coal working in an area of excellent infastructure. With just around 55 million O/S the stock is up 200% in the last few months and is just off 52 week highs in the upper 20 cent range this very well could be a stock to watch, trade or invest in.
As always, use Due Diligence and see our Disclaimer.
Want to know whose got the "Next Big Find?" Get a sneak preview with the Midas Letter.
GAdams
Some Quick Mid week News
Feb.9.11
Our featured junior miner, Supreme Resources Ltd. SPR had news yesterday in regards to a 200-metre, four-hole drilling program conducted on the TAS project at the Cliff and Road showings. Grades showing at TAS are 19 metres grading 0.20 per cent copper, and the Road showing drilling intersected 14 metres grading 0.21 per cent copper. The stock had a small gap up yesterday and hit highs of of 17 cents both yesterday and today.
Elsewhere in BC, Barker Minerals BML had news of kimberlite indicator showings on some their TASSE properties in the Cariboo. This news helped pop the stock to a new high of 10 cents setting a new 52 week high.
Gold, silver & rare earth. Which has the strongest trend right now? In today's video we will be looking at the gold market, analyzing the silver market, and finally, checking into the rare earth market. Before you look at the video, you may want to consider doing this as an exercise: Write down which market has the strongest trend - up or down. Then rate the markets. Number 1 - Number 2 - Number - 3. Once you see the video it will become clear to you how we rate these markets. It might surprise you.
If you're using MarketClub's "Trade Triangle" technology the answer is simple and you'll discover it in a matter of seconds. If you haven't used our "Trade Triangle" technology, this will be a good exercise for you to look and see just how powerful this technology is and how it can help your trading. We all know that gold has had a big move, but so have silver and rare earth stocks. So what's next? I hope this video helps outline some ideas that you can put to good use in the future.
As always, use Due Diligence and see our Disclaimer.
Want to know whose got the "Next Big Find?" Get a sneak preview with the Midas Letter.
GAdams
A Small Metals Rally?
Feb.3.11
Metals rallied today for the first time in what has seemed to be a very long time. All of January was just a waste of time for most metals and junior miners. Good news was taken as a yawn and most stocks sold off from highs and others have even fallen below support levels. Today though all of that seemed to change.
Fronteer FRG popped 40% today on news stating that: Newmont Mining Corp. of Canada Ltd. and Fronteer Gold Inc. have entered into an agreement pursuant to which Newmont will acquire all of the outstanding common shares of Fronteer Gold by way of a plan of arrangement. The stock closed up over $4.00 to close at $14.32.
Uranium miners were quite hot today also with Forum FDC up 20% to hit a new high of 39 cents. ESO Uranium ESO was also up over 20% and it too made a new 52 week high of 17 cents. Volume was over 5 million.
While staying on the topic of uranium, Mesa Uranium MSA was also up almost 30% today. Pure Point Uranium PTU also did a breakout to the upside for a 7% gain to close out at .44 cents.
Of our stocks on watch, St. Eugene SEM did a quick turn around and closed up 6 cents to 24 cents for a 30 % gain from yesterday. Even Sidon International SD that we watch fall through support levels did a small turn about today to close up a penny to 14 cents.
If you would like to find winning stocks like the ones we mentioned here, why not get a subscription to the Midas Letter and get fresh mining stock updates delivered right to your inbox like us.
As always, use Due Diligence and see our Disclaimer.
Want to know whose got the "Next Big Find?" Get a sneak preview with the Midas Letter.
GAdams
Where Is Gold Heading From Here
Jan.26.11
Today saw a nice little turn around in the metals. At one point palladium was up over $30. Gold pulled up about $20. In fact most commodities in general were up. The HUI was up also today. Up almost 20 points.
We got news today too. Our featured junior miner Supreme Resources Ltd. SPR that we were talking about the other day put out news from drilling results from their Copper Mountain Mining camp in the Princeton area of B.C. Headlines read, Supreme drills up to 1.23 % Copper, 132 grams Silver on Verde at Copper Mountain. Some of the highlights of this news release are: high overall silver values are of particular interest, highlighted by 132 grams/tonne
silver (4.19 oz/t ) over 0.72 metres (0.96-1.68 metres) in drill hole V1004 and 32.2 grams/tonne silver (1.02 oz/t ) over 0.76 metres (1.22-1.98 metres) in drill hole V1006. You can read the entire news release right here.
So where is gold really heading? With the way gold and silver have been this month we know that a lot of longs are most likely throwing in the towel on both the metals and the stocks. A quick look at the video below may give you a hint of where gold may just be heading. After a $100 drop from its high is it time for a rebound? Watch and see, then let us know.
Still two more days in trading this week so let's see how some of the juniors on our watch list finish the week. Hopefully we have seen the last of this downward trend that has had a constant sell pressure on the juniors.
As always, use Due Diligence and see our Disclaimer.
Want to know whose got the "Next Big Find?" Get a sneak preview with the Midas Letter.
GAdams
Buy The Rumor, Sell The News??
Jan.23.11
One of the challenges of watching junior miners is wondering sometimes why stocks will go ballistic. Especially when the stock was just a normal low volume trader to begin with. Case in point is the stock of
Golden Goliath GNG. Here is a stock that traded in the low 20 cent range for what seemed to be years and then all of a sudden in just one single day the stock goes from 28 cents all the way to 75 cents and then closes the day at 50 cents. It's average volume was maybe 100,000 shares per day but on Friday the volume was almost 3 million.
Now Golden Goliath is a small silver explorer in Mexico. We have followed this junior for a few years now and in fact this small silver junior was even a featured junior miner here back in 2008. There was news release on Wednesday about drill results that were very impressive. From a stockwatch news release they state: Drill hole C-3-10 drills 7,170 grams per tonne (g/t) silver and 0.25 g/t gold over 0.65 metre (119.6 g/t gold equivalent) overlain by a wider zone of 0.38 g/t gold and 10 g/t silver over 37 m. The drill hole ended in high-grade mineralization. Good news but it still begs the question as to why the volume and share price increase two days after the news. So much for "Buying the rumor, sell the news". Now would be a great time to keep a close watch on GNG as there could be a good chance that trading volumes and share prices may become a bit more active. Also when this happens large funds with deep pockets take notice and a lot of these undervalued juniors start to see their share price climb a bit higher. This is one junior in our eyes that deserves too see a bit more attention.
Our rare earth player, Hudson Resources HUD is building a nice handle after forming a good cup formation. The stock is just off it's 52 week high now in the $1.70 range.
Hudson is our Greenland rare earth junior. We chose this small junior to be one to watch because of it's area of exploration. Greenland is like the last frontier and small juniors that get established in this area may be rewarded well in time.
Things to watch for this week. Possible drill news from Tanzania for Sidon International SD and also possible drill results for our featured junior miner Supreme Resources Ltd. SPR.
As always, use Due Diligence and see our Disclaimer.
Want to know whose got the "Next Big Find?" Get a sneak preview with the Midas Letter.
GAdams
News So Far This Week
Jan.18.11
Well here it is another week and the metals are still sideways as is a lot of the juniors. Volumes on most juniors seem to be weak at best except for uranium players. ESO Uranium ESO was sure active today. Up 20% with 7 million shares trading. JNR Resources JNN also seemed to have a good day. JNR saw its stock close up a nickle at 45 cents. Uranium explorer Pure Point PTU had its stock fall though after a good rally yesterday and last week that saw the stock price climb over 30%.
Sidon International SD the Tanzanian explorer we follow was off as well today as was Currie Rose CUI. Currie Rose has fallen back a lot since their last news release. It is looking like a lot of hopeful longs are leaving the ship now. Their stock is down to 16 cents today. That is a long way from the 52 week high of 47 cents that was reached just about 60 days ago.
I get a lot of emails here from readers from time to time asking me for good stock tips. The first thing I like to mention is that there is close to 2000 junior mining companies out there and trying to find the next winner is like trying to find a needle in a haystack so it can be a very daunting task sometimes. Actually most times it is a task and a half. Then every once in a while you get an email from someone who writes in and makes a suggestion or better yet you get a company itself that writes in telling you who they are, what they have and why you, as an investor or trader should take a serious look at their company. One such company here is
Supreme Resources Ltd. SPR. Supreme is a company that has a project on the go right here in B.C. That project is in the heart of the Copper Mountain Mining camp in the Princeton area. This property is right by the open pit copper mine owned by Copper Mountain Mining CUM
which is going into production in June of this year. That open pit contains 500 MT grading 3 billion lbs copper, 8 million ounce silver and about a half a million ounces gold. There is an old saying in the prospecting world and that is "the best place to find a mine is beside another mine" and this is one of those plays that need to be watched. (BTW, I just happen to glance at Copper Mountain stock price. That's a 7 buck stock)
Aside from the properties right now, Supreme has a lot of pros going for it. Low amount of O/S. Only around 45 million so it is not diluted like a lot of the smaller players we see. One of their last news releases was in regards to a USA listing and they do have an OTC listing now. Their 52 week trading range is 6 cents to 20 cents.
Now, here is the best part of this story. You will want to watch this stock really close as there is going to be news released quite soon from a 12 hole drill program. Good news could very easily have this stock sitting on a new support level waiting for the next round of news. One only has to look at St. Eugene SEM that we looked at back on the 11th here as a possible example of what can possibly happen. The one thing for certain is that it is getting harder all the time to find good undervalued stocks with promising plays like this for under the 50 cent range. When we do find them or become aware of them we like to put them on our watch list for sure. We have already added this play to our stocks on watch and you can follow along right here for updates and news.
As always, use Due Diligence and see our Disclaimer.
Want to know whose got the "Next Big Find?" Get a sneak preview with the Midas Letter.
GAdams
End Of Week
Jan.15.11
Well it's now two weeks into the new year and so far it looks pretty bleak for the juniors. Aside from the odd rise from news most players are drifting lower or just trading flat on low volumes. The big culpirt we were reading is that some of the larger funds are dumping out of commodities. This sends the metals and other commodities lower and of course sends the junior mining stocks lower. One good indicator o be able to see where the sector is at any given time is by simply pulling a chart of the HUI which is the official gold bugs chart.
As you can see by the chart above the trading broke through the 100 day moving average. This is why so many junior mining stocks and other commodity stocks have seen prices fall, trading volumes drop and just a lack of interest even when news is good. You will see in the chart below that the GDXJ is almost of replica of the HUI. The GDXJ is the Market Vectors Junior Gold Miners ETF. Although most of the stocks in this ETF are larger mid cap it still give a good image of the overall market for junior miners.
Let's hopt that this up coming week will see a bit of a turn around in the stocks we are following. Even with news this past week from both Encore Renaissance EZ and Sidon SD their stocks drifted lower on lower volumes.
As always, use Due Diligence and see our Disclaimer.
Want to know whose got the "Next Big Find?" Get a sneak preview with the Midas Letter.
GAdams
More Active Trading In Tanzania Juniors
Jan.11.11
Still pretty active active over in Tanzania. Some for the better, others for the worse. So far this week we have seen a couple of news releases. First off though was Currie Rose CUI that put out news of grades for some of the drill holes they have done so far. For a couple of holes the grade was looking pretty good. In one instance there was three metres grading 9.89 g/t Au and in another 11 g/t Au over three metres. Unfortunately there were twelve other holes drilled that just encountered low grade mineralization. This bit of news had traders dumping the stock like a bad habit. After two days of selling on high volumes the stock finished today at .22 cents.
Encore Renaissance EZ put out news today about an option agreement to acquire a 50-per-cent option in the Handeni East prospect in the direct vicinity of Canaco Resources in Tanzania. This prospect is 50.5 square kilometres. In order to acquire this option Encore will make cash payment of $2.3-million, work commitments of a total of $2.5-million in exploration work on the property and issue to the optionor 20 million common shares. Stock in EZ fell today 1/2 cent today to close at 7 cents. Volume was high at 13 million. This is a company that does have a lot of other prospects in BC and Yukon area also in some highly prospective areas. Yes, we at junior miners .com do own the stock at the time of this writing.
Sidon SD also put out news this week. Although the news had little to do with what is going on over in Tanzania in regards to their drill program, it does have an effect on the company in general. One of the directors, Mr. Farrage has private placement subscription agreement for one million dollars. He has agreed to subscribe to eight bimonthly tranches of $125,000 each. Mr. Farrage stated, he wished to ensure the company remains adequately financed while pursuing its exploration program on its gold properties in Tanzania. News like that is good for long term stock holders for sure.
We got an email the other day from a reader asking about Kokanee Minerals KOK. This company also is run by the same group that runs Sidon. The last news release stated that the company has optioned two large blocks of property in Tanzania. We will be doing some more follow up with KOK as time goes on and also a bit more DD. One nice item about this stock is the amount of share O/S. Only 28 million. Also in Tanzania, Tanzanian Royalty TNX had an up day. Up 4% to close at $6.97. This was one of the few we follow that had a positive day trading.
Our Sask gold miner on watch, St. Eugene SEM had a positive day also. Up 17% on moderate volume to close out at 27 cents.
As always, use Due Diligence and see our Disclaimer.
Want to know whose got the "Next Big Find?" Get a sneak preview with the Midas Letter.
GAdams
Active Trading In Tanzania Juniors
Jan.7.11
The Tanzania junior miners were some of the more active traders during the past week. Most of them even had gains. Brookemont BKT came out the winner this week in gains starting out at 22 cents and finishing the week off at 36 cents. The stock was up 20% on Friday alone. Currie Rose CUI was flat most of the week but popped 11% on Friday to end the week at 34 cents. Currie Rose is still well off it's 52 week high that it reached back in December.
Sidon International SD which has been building a base at 18-19 cents for the past few weeks made a move above the 20 cent mark to tag 23 cents but fell back to close the week session at 20 cents. We are thinking there could be news out soon in regards to drill results and maybe even some placer results given the increase in trading volume over the past two sessions.
A few years ago Eagle Plains EPL was the annual sponsor of junior miners here. This is a company that has an impressive array of mining and exploration projects on the go. Their projects are scattered mostly across western Canada in BC, Yukon, NWT, Sk. The types of projects also vary from precious metals to rare earths and base metals. During the past year they aquired the Yellow Jacket property in Atlin BC and this week put out news of some drill results. One of the better results was 6.09 metres at 26.8 grams gold. Being placer miners ourselves in the Atlin area we like to keep an eye out on these companies and see the results. Long term investors should note that with their stock price finding a base in the mid 60 cent area it may be a good time to consider some stock in this junior miner.
Side Note Jan.9.11. We just posted some placer lease claims for option or sale which are located on Pine Creek in the Atlin area. This is the same creek that the Yellow Jacket property is located on. You can find out more by contacting the vendor whose email is posted with the ad. You can find out more by clicking the link in the menu that reads "Mining Claims For sale"
Also on an added note here, our Greenland rare earth explorer we follow, Hudson Resources HUD hit a new 52 week high of $1.86 this week.
As always, use Due Diligence and see our Disclaimer.
Want to know whose got the "Next Big Find?" Get a sneak preview with the Midas Letter.
GAdams
Ugly Start To The New Year
Jan.5.11
The first two days of trading were sure a bit ugly. Gold and silver and all the rest of the metals all sold off heavily. Yesterday seemed pretty grim with most stocks selling off but today some of the junior stocks did turn around.
Playfair Mining PLY was one that we just added to our watch list with there Seal Lake project. That stock did buck the trend and hit a new 25 week high today. This is the sort of action we like to see especially when the market is generally in a down mode. When market sentiment is down but your portfolio or stock picks are beating the odds and going the other way it can give you a bit of confidence in both the stock and the project. Hot money will follow the hot projects.
Another stock beating the trend which we also follow was Brookemont BKT. The stock today was up 20% to close at a new high of 27.5 cents. We are thinking that news could be close. Brookemont currently has quartz mineral claims in the Yukon bordering Underworld, which was recently taken over by Kinross Gold Corp, mineral claim blocks in the Stewart mining region of British Columbia bordering Canasia Industries Corp.'s Clone prospect, mineral claims prospective for lithium, Quebec rare earth elements and regulatory approval for 63.4 square kilometres bordering Canaco in Tanzania.
We need to make it three good things that happened today so last but not least today our BC Gold BCG jumped 25% to a close of 14 cents on a higher than normal volume.
As always, use Due Diligence and see our Disclaimer.
Want to know whose got the "Next Big Find?" Get a sneak preview with the Midas Letter.
GAdams
Welcome To 2011. Let The Trading Begin!
Jan.2.11
Every year at this time, like other traders out there, I like to set the stock score at ZERO. That means if I bought a stock last year at say 10 cents and the stock is now 20 cents I would clock that stock with a 100% gain for the year. I would then start the year off with a 20 cent stock or act as if the stock is zero to calculate any gains or losses that may occur during the new year. I will still keep in mind and also on a spread sheet the running totals that I have with trades that go back many years ago. It's kind of like running a business. Knowing your profitable trades and even knowing your not so profitable trades.
The other point of interest here at junior miners for the past few years has been our tag line or slogan. Our tag line "The Next Big Find Starts Here" slogan is one that we like to keep in mind and also wonder which junior out there will be the one who does come up with the Next Big Find. Back in 2009 there was the big find by Underworld Resources in the Dawson area. That play was eventually taken over by Kinross K. Last year without a doubt was Canaco CAN which their project in Tanzania. Of course there are also a lot of other finds that are taking place all the time. In a lot of cases it's just that the public has not become aware of these companies or their projects that they are working on.
Some plays for the year to keep and eye out on in our opinion is Forum Uranium FDC and their uranium play in the Thelon area of Nunavut. This is a large area of high potential finds not only in uranium but other metals as well as rare earth elements.
Northern Tiger Resources NTR with their Yukon projects and Playfair Mining PLY with their Seal Lake project in Labrador are also two plays to keep a close watch on. The project of Playfair is a 100% owned copper/silver project and will have a drill program running on this project.
As always, use Due Diligence and see our Disclaimer.
Want to know whose got the "Next Big Find?" Get a sneak preview with the Midas Letter.
GAdams
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