Most junior miners will be glad to put 2012 into the rear view mirror. It has been a troubling twelve months for many as they have watched their stock prices tumble 50% or more and treasuries drained of cash.
Many juniors have entered a period of dormancy in which they are hoping to ride out the current weakness in equity markets. Valuations remain depressed and there is little appetite to fund early-stage exploration. Opinions are abuzz as to whether or not 2013 will be as rough, if not worse, as 2012 was for junior explorers. Continue reading .... HERE.
A lot of us who follow the junior sector are really taking it in the chin with low stock prices. There is not a lot of winners this past year in the mining stock game. Most stocks are at 52 week lows and lots more are at multi year lows. It seems that even gold hasn't done anything this year but it has. Gold is up almost $100 an ounce from this time last year. Year over year it is up close to 6%. Although it is not the same returns as a few years ago when gold was giving returns of 20%-30% annual, it is still a positive return.
Silver has performed even better. Up about $2.50 an ounce over a year ago it translates into a return of 8%. But at $32 an ounce it is a long ways down from a few years back when it topped out in the high $40's and gold was in the $1900 range.
There is still hope that Central Iron OreCIO will put out news related to their iron ore drill program. News has been slted for the end of the year or the first part of the year. With tax loss selling the stock is at 52 week lows.
A great way to participate in silver swings is by trading. Open an online silver trading account with Bullion Vault and get a FREE OUNCE of silver to get you going.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
Some Silver Miners To Watch
Dec.10.12
Silver StandardSSO released news Wednesday announcing results of the feasibility study for its 100% owned Pitarrilla project in Mexico. The study significantly expanded the mineral reserve estimate at Pitarrilla, which now totals 479 million ounces of silver and makes it one of the largest undeveloped silver mines in Mexico.
Highlights of the feasibility study included probable mineral reserves of 479 million ounces of silver and an after-tax net present value (NPV) of $1.7 billion using spot metal prices and a 5% discount rate. The study also calculated an internal rate of return (IRR) of 21.2%. The payback period is anticipated to take less than four years at current spot metal prices. Continue reading....HERE
The second silver miner to keep watch on is Levon ResourcesLVN which is exploring its 100%-owned, 20,000-hectare (49,400-acre) Cordero Project in northwest Mexico. Cordero represents an outstanding and rapidly-growing target for porphyry silver, gold, zinc and lead. Cordero's first NI 43-101 resource was announced in June 2011 and included 310M oz silver, 900,000 oz gold, 5.3B lbs zinc and 2.9B lbs lead.
The company has around $50 million in the bank and has around 200 million shares outstanding. With the stock price at 35 cents the market currently values that resource at only $20 million which is about 5 cents per silver ounce. Put these guys on your radar.
Internet chat. Central Iron OreCIO could be putting out news soon about their iron ore drill program. Stock is at 4 cents.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
A Look A Duluth Metals
Dec.5.12
Deluth MetalsDM stock price jumped 8% during Tuesday's trading session after the company released an updated mineral resource estimate on its Twin Metals Minnesota project. The project is located in northeastern Minnesota and is controlled by a joint-venture between Duluth Metals (60% interest) and Antofagasta PLC (40% interest).
The Twin Metals project is one of the largest undeveloped copper-nickel-PGM deposits in the world. The new National Instrument (NI) 43-101 resource estimate calculated contained metals totaling 13.7 billion pounds of copper, 4.4 billion pounds of nickel and 21.2 million ounces of PGMs (platinum, palladium and gold) in the indicated category. The updated inferred category calculated an additional 11.8 billion pounds of copper, 4 billion pounds of nickel and 12.8 million ounces of PGMs. Continue reading ....HERE.
A great way to make some cash in this market is by trading silver. As you can see from the chart below, there was healthy 10% gain to be made in less than 30 days. 10% in a month or less on any item that you know is not going to go broke or vanish is a great deal these days. Backup one month when silver was in the $31 range, the chart was reading "buy". So how does a person take advantage of these moves or better yet, how does someone "trade" these moves?
I use Bullion Vault as a platform for trading silver. This allows me to trade and profit from the volitile nature of silver. I have use Bullion Vault for the past four years and have aquired a tidy sum of silver bullion during that time. There has been times of course where I have gotten on the wrong side of the trade but either way, I still end up with silver. If you are looking at a way to diversify your portfolio and not just be in stocks, this could very well be a simple solution. Sign up today for your silver trading account and get a FREE OUNCE of silver to get you going.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
Last Month Of The Year
Dec.3.12
Last month of the year now and that usually means tax loss selling. I am not sure how much lower a lot of the juniors can go. Some will have to go to zero to take advantage of being in the tax loss category. The metals are still being pulled around in a tight trading range also.
Not sure what happened to day with Central Iron OreCIO. Over 2 million shares traded today and most of that was in the last hour of of the trading session. The stock fell 1.5 cents to close out the day back at it's 52 week low of 4 cents. This is the highest trading volume day for the stock this year. There is going to be news out about their drill results from the iron ore drilling project in the near future so that could be the cause. Let's see what the rest of the week brings.
Central Iron Ore was a featured miner just last month right here on the site and when you go through all the data and numbers this company is prime example of the term, undervalued. Do some DD on this small Australian miner and see for your self.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
Nice End Of Week Rally
Nov.24.12
Nice rally on Friday for the metals with gold up over $20 and silver close to a $1. It was just 3 weeks ago that I mentioned on the home page of this site that this might be the last time you would be able to buy silver for under $31 an oz. JM Bullion had silver rounds priced lower than Kitco. For those who bought in congrats because you are already up over 10% on physical silver pricing.
Most stocks rallied to on Friday. One stock we followed years ago here off and on was a small silver explorer called Golden GoliathGNG. The company has been working in Mexico for what seems to be years now and is slowly developing it's Uruachic Mining Camp in the Sierra Madre Gold-Silver Belt of northwest Mexico. The Uruachic Mining District hosts the recently discovered Orisyvo deposit, which is a 9.6 million ounce gold deposit.
Agnico-Eagle is working a earn in option on some of Golden Goliaths claims at the moment. Under the terms of the Earn in and Shareholders agreement, Agnico can earn a 51% interest in the property by spending $5 Million on exploration over a 5 year period. They will then have the option of earning an additional 20% interest by either completing a feasibility study or by spending an additional $10 Million in exploration.
I mentioned Golden Goliath this week because the stock is sitting on bottom and looks poised to start an up tick. At 14 cent close Friday they are 1 cent off the 52 week low. The 52 week high is 31 cents. There are others that are following the stock now so with more promotion and more investors taking note, the stock could very well start to perform another leg up.
As I mentioned, I posted on the home page the deal that JM Bullion had on 1 oz. Silver Rounds. The price at the time of posting was lower than what Kitco was even offering. Of course silver has climbed almost $4 an oz since that time which is about an 11-12% gain in less than 3 weeks. Physical silver, still a great investment.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
Market Makers
Nov.16.12
Well another week has past and it one would hardly know by the way most stocks traded. Today however there seemed to be a bit of a small rally towards the end of the trading session. Gold and silver closed about par on the week.
North American NickelNAN put out news from their drilling in Greenland. Some of the highlights are posted below:
First hole (MQ-12-001) beginning from 5 metres (m) below surface, intersects:
16.41m @ 1.36% Nickel (Ni), 0.52% Copper (Cu) & 0.07% Cobalt (Co)
Including
5.12 m @ 2.2% Ni, 0.55% Cu & 0.07% Co from 11.82m.
Mineralization was located within an EM conductor defined by NAN 2012 Versatile Time-Domain Electromagnetic (VTEM) survey.
Second hole (MQ-12-002) beginning from 4m below surface intersects:
66.08m @0.55% Ni, 0.2% Cu & 0.02% Co.
Including
14.18m @ 1.33% Ni, 0.38% Cu and 0.04% Co from 55.90m.
Mineralization was located within an EM conductor defined by the NAN 2012 VTEM survey.
The market however took this news with a yawn as the stock really did very little. North American Nickel is not a high volume trader in the first place but news did push trading volumes over the 100K for a day.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
CIO NEWS
Nov.8.12
Central Iron OreCIO put out a news release today in regards to their South Darlot Project located in Western Australia. Gold grades were consistent with past drilling projects. We have the highlights posted on a news letter that went out to readers today. Grades were excellent to say the least but it seems that the market is having to digest the numbers at the moment as the stock opened up 1.5 cents higher but closed the day up just .005 cents. Trading volumes were in the 800,000 area.
News should be forth coming with North American NickelNAN in the next short while. That news will be related to their Greenland project that was drilled this summer. There is a brief intro on this project in the Miner Minute video posted below.
Stocks of interest this past week, Brixton MetalsBBB hit a spectacular hole on their Thorn project located in the northwest corner of BC. Highlights from the news was: Hole THN12-83 intersected 73.70 metres of 466.28 grams per tonne silver equivalent (284.15 g/t silver, 1.49 g/t gold, 1.31 per cent lead and 1.78 per cent zinc) within a broader interval of 150.50 m of 314.59 g/t AgEq (165.30 g/t Ag, 1.37 g/t Au, 0.92 per cent Pb and 1.25 per cent Zn).
You will want to keep Brixton MetalsBBB on your radar as there is still more news pending. There is nothing better than an active trading junior that is drilling out the next big find.
Over the weekend I posted on the home page the deal that JM Bullion had on 1 oz. Silver Rounds. The price at the time of posting was lower than what Kitco was even offering. Of course silver has climbed over $2 an oz since that time which is about an 8% gain in 3 days. Physical silver, still a great investment.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
New Month
Nov.1.12
Another few days and the USA election will be over and done with. Maybe the gold markets will stabilize a bit after that or better yet, start moving upwards.
One of the metals that isn't followed very much is palladium. Not sure whether many readers notice the volatility in that metal, but it sure can be wild. I have a small kitco chart for last month posted below.
High trading volumes the last few days in our featured miner Central Iron OreCIO. Volumes are nearing the 500,000 per day now. The company is expecting to put out news from their drilling on the South Darlot project in Australia. They will have earned in 51% of a very large land mass from Barrick with this drill program. Previous drill records were exceptional. You can read the reports on their website or even read a review we have posted on the site right here.
High volumes today with Sand Storm EnergySND. Most noted was the warrants. The company has 155 million of them. There was around 13 million traded today alone. Up 1/2 cent to 1 cent. From what I gather, don't quote me, the warrants expire the 23 of December 2012. If you like warrants, keep this in mind.
Stocks to watch, Central Iron OreCIO as it could be posting news almost any day. The stock did trade as high as 6 cents today but closed up 1/2 cent to 5.5 cents.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
Bloodbath On The Markets
Oct.23.12
Today the markets sure took a beating. Absolute bloodbath for some equities and a lot of commodities. While gold was down over $20 and silver down almost a $1, I saw that rhodium was down $100. Palladium was under $600 also. Some say this is just pre-election jitters and others figure that this is what's about to become the new normal. One huge sell off. Question is then, for those who sell, what are they going to do with all that cash? Well they could load up on some juniors that are selling for pennies.
Bank Of America put out a press release today. Listen to this. Their analysts say gold could go to $3,000 or even $5,000 per oz. If you don't believe me, here's the link. Anyhow the reason why this is a bit more important news is because most predictions on gold comes from gold bugs and gold news letter people. Bank people are not really gold people. They are paper people. Equities, bonds all that sort of stuff. Not gold. This is what makes this news so different.
Junior stocks not really doing a whole lot. There was some activity though with a couple of juniors the past few days. Both GalwayGWY and CalvistaCVZ were taken over by AUX which is a private company.
Both of these companies stocks shot up almost double their stock price. So what is this telling us? Obviously some people view these juniors as undervalued. A lot of these miners are priced way below their real values. Back when gold was around $1400 per oz. James mentioned Foundation ResourcesFDN as a way to own gold for around $5 bucks in the ground and that was when the stock price was 10 cents. Today with a a stock price of 5 cents, it's even a bigger bargain. And one day someone will come along and offer a premium for the stock. You can still make a lot of money in the junior mining game. You just need the right juniors. A month ago a lot of Galway and Calvista shareholders were probably moaning and groaning about how bad things were. I'll betcha most of them are laughing all the way to the bank right about now and looking for the next easy double to ride.
That's about it for this week. Take a review of our featured miner, Central Iron OreCIO. Here is another excample of undervalued.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
Mid Month News
Oct.14.12
There is a lot talk from some of the gold bug newsletter writers that figure that once the US election is over, the gold and silver markets will take off. Reason being is that you can't have a sluggish underperforming dollar and an economy that is in the drink and expect to get voted back in. So in order to that you need to be able to somehow show that things are bit more rosey than they are. After all a strong dollar equals lower gold. In times of crisis, gold has always out performed equities, bond and treasuries and is once again trying to do the same. So hopefully, after the election, the metals do take off and take the junior sector with them.
We got a new featured miner on the site. Central Iron OreCIO. Interesting little company. It's not often that we get an Australian company either. Out of the over 2000 junior miners, only a small percentage are Australian. We were mentioning last week that it seems most juniors are trading for pennies and this one is no different. What I can tell you is that this company is different and that difference is their holdings.
Central Iron Ore is an iron ore miner with a very large exposure to gold in the Kalgoorlie region of Western Australia. If you don't know anything about this area, maybe google it and do some research. That being said, the Kalgoorlie region is one of the riches mineral spots on the planet and this small junior has a lot of square kilometers of that land.
Now here comes the good part. They have an active drill program going on right now. Past drill results have been very impressive and there will be news out in the very near future. The company has around 73 million shares and insiders and institutions own about 55% of those shares. As an added bonus, unlike so many juniors today, they have over a million bucks cash on hand.
With the stock price of 5 cents, you might just want to look at buying a few. The stock trades are a bit on thin side so you may want to treat this stock as a longer term play. On an added note, I think Central Iron Ore is a very good example of the meaning, undervalued. Go here to read up on the short feature presentation of this company.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
Happy Thanksgiving Canada.
Oct.6.12
Happy thanksgiving and we are back on mining stock talk. After being away for the past 4 months actively placer mining, it is good to be back online and also to see that ..... well we never really missed anything! Going through the lists of stock tickers I see that nothing has changed in the last 4 months other than the fact that trading volumes have all but dried up. I also can't help but notice that a lot of the 5 and dime stocks are now pennies. WOW!
Nickel players seem to be trading upward though. Hard Creek NickelHNC is coming up off bottom. They are developing the Turnagain Nickel deposit which is a nickel sulphide deposit in north central BC. Also on the topic of nickel, North American NickelNAN preliminary results from its first drill campaign at the 100-per-cent-owned Maniitsoq project in southwestern Greenland indicate the property has the potential to host not only high-grade, semi-massive to massive sulphide-type nickel-copper deposits, but disseminated, bulk-minable nickel-copper deposits as well. The stock is off a high but more news with postives could move the stock upward.
Speaking of Greenland, our rare earth explorer we watch here is performing quite well. Hudson ResourcesHUD is working on a couple fo 100% owned project in Greenland. One is an REE project and the other is a feldspar project.
Greenland is looking more and more like the place to be. It is a country of very little exploration due to the fact that most of the country was under ice. Now that global warming is, or shall I say "Climate Change" is happening, a lot of these under ice areas are being exposed and showing the world that there is a lot of goods under this ice.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
Ever thought about trading REAL silver? Now you can, live and online, 24 hours a day, 7 days a week. Open a silver trading account and get one (1) FREE OUNCE of silver to get you started.
GAdams
New Month. New Attitude.
June.5.12
Last month was a total waste with regards to junior mining stocks. The reason for no write ups was just that. It would have been just a rehash of what everyone else was trying to write about. No use us here at juniorminers.com joining the unhappy lot so we decided to do the sell in May and go away although we were too far down to sell. Anyhow it is now June and right from the get go, things are turning around. Gold and silver both up and even some of our beaten down into the gutter stocks are putting on a shine.
Last week Friday gold was up $66 bucks and then on Monday some of the stocks started to get noticed. Today was a shiner for Jaguar MiningJAG grabbing about a 20% gain on the day. Not sure what the scoop is with the high volumes and gain today. Maybe there will be buy out news or ??? Chart below is a two month showing that maybe, just maybe the bottom has been done??
AtacATC also has been roaring again now that summer is here and drills will be turning. The stock is up about 70 cents in the last two trading sessions. News also that Calico ResourcesCKB intends to focus all its resources and efforts solely on advancing the Grassy Mountain project. The stock is still at 27 cents on light volumes.
Base metal explorers haven't faired as well I see that Western CopperWRN is sitting on all time lows although it did pop today. Also in the Yukon, zinc explorer, SelwynSWN
has been in the Yukon News. The company is looking at going only half on their Howards Pass project. Instead of 8000 ton per day they are looking at 3500. Their stock is sitting at 10 cents.
This is will be our last write up for the summer as we are going to be out doing some placer mining on our claims over the next 3 months. We wish everyone a summer of happy days are here again and will see everyone in the fall with $2000 gold, $50 silver and some much higher priced juniors.
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
New Month. Sell In May & Go Away?
May.9.12
The old saying of "Sell in May and go away" seemed to ring true yesterday. Gold fell through the $1600 mark and today it was still selling off. Silver is well down into the $28-29 range. The miners? Much of the same.
When it comes to oversold gold stocks there are a lot of them. Yesterday though was an exception. Jaguar MiningJAG sold off after news was released that really wasn't what shareholders wanted to hear. The stock was down over 30% from the $2.20 area all the way down to the $1.50 range. I think it actually hit $1.40 for a low on the day.
The stock did rally back up to almost $2.00 today but finish the day around $1.70. Back on 08 this stock was around $15.00 a pop and gold was only around $600 so my guess would be that there is some good value to be had here going forward. Disclosure: We are in this stock as of this week.
For those who subscribe to our newsletter, you will have gotten a brief news bit about Logan CopperLC. Reason we mentioned this is because of the companies newly aquired graphite properties in Quebec. Graphite is becoming sort of a hot item as far as exploration goes. Although graphite has been mined for years it has only been in the last few years that the price has gone up to where it is now attractive to explore for. Also there is getting to be a lot more uses for graphite thus creating some shortages. The price of graphite has steadily increased to as much as $1,200 per tonne from $700 per tonne in 2009. Industrial demand for graphite is growing at approximately 5 per cent annually.
Logan Copper is trading at 2 cents so that in itself makes it a great spec play that almost anyone can afford.
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
End Of Month Wrap Up
April.29.12
Not a whole lot to wrap up this month. The markets did everything for us. Lots of new 52 week lows on some juniors and even some mid caps. Last year we were talking about the kicking the Jaguar MiningJAG was getting. Here is a mid to large cap miner in Brazil with active mines and their stock price has just taken a real beating. Last year it was the same thing with shorters and then there was news of a possible buyout and the stock lifted off. Since then news of a take over or buy out has been quite and the stock has drifted back down to even lower lows.
I don't know what to make of this play at the moment. There was some heavy volume and a huge spike back on the 10th and 11th of the month and news was that the company knew of no reason for the volume.
We mentioned a small Vancouver player last time, Snowfield DevelopmentSNO and no sooner had we mentioned it and the stock became halted. Late filings. The halt back in the fall also was late filings.
Foundation ResourcesFDN is back down on the bottom. This is one of Midas Letter picks. The stock has been a dissappointment to a lot of longs but for those who wish to get into the stock, the price is about as good as it gets. Do your own DD and see why this small play could be a huge payoff in the time. By the way, it's 9 cents right now.
How high is silver going to go? Alf Fields who is an EW specialist says it could very well hit $150 an ounce. $150 an ounce would be nice for sure. That would really put a shine on my silver holdings. I would even like to see $50 an ounce once again.
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
A Vancouver Island Explorer
April.12.12
With spring in the air, one would have thought that some of the juniors would be turning around by now. After all in the northern hemisphere spring is a time for a lot of juniors to get the last minute plans in place for the summer of drilling and prospecting. Especially those juniors that are active in the north say around Dawson Yukon. With companies like AtacATC which have huge drill plans on the way you would almost think that investors would be thinking seriously about loading up on some of this stock. I see today that the stock price of Atac was around $2.50. Last year at this time it was $7 bucks a share. If the market felt there was value then, what happened this past year?
When most people think about Vancouver Island they think don't really think about mining. Most people think the island was settled for fishing and logging and are actually shocked to hear that it was the miners who were here first. All the way back to the 1500's to be exact. The spanish were here then pocking around what in an area that is now known as Zeballos. That spot became famous for the Privateer Gold Mine. Then there was Leechtown, not far from Victoria itself. How about gold in the Oyster River? The coal mines of Cumberland, Nanimo area. Further at the north end of island around Port Hardy was Island Copper. Mid way between Campbell River and Gold River is the Myra Falls Mine. That mine is one of the few that is with the boundaries of a park. Quinsam coal just outside Campbell River is still active to this day.
Anyhow I thought I would just throw that bit of history in because we have found out that there is a small junior that is working around the Alberni area. Snowfield DevelopmentSNO has the Nahmint property that is a 95 sq. kilometer exploration property located along the sheltered tidewaters of Alberni Inlet, Vancouver Island near Port Alberni BC. This property property had three historic past producers, in the early 1900's, of direct-shipping high grade coppersilver- gold ore. Three Jays 1,981 tonnes @ 7.52% copper, 38.0 g/t silver and 0.97 g/t gold.
Monitor 1,288 tonnes @ 9.08% copper, 28.8 g/t silver and 0.05 g/t gold. Sunshine 5 tonnes @ 17.4% copper and 43 g/t silver.
Previous sampling on the property has produced assays of up to 160.7 g/t gold, 57.83 g/t silver and 4.58% zinc. The gold is hosted in vein systems and exploration for 2012 will focus on discovering the extent of these systems. In February/March 2012 an airborne geophysical survey was conducted over the entire property at a height of 50 meters with 100 meter spacing; a detailed analysis is expected in May so there could be some exciting news at that time.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
Buy Outs & Take Overs
April.3.12
Retrograde is almost over. Infact tommorrow the 4th of April is the last day of retrograde. This is a good thing for those of us who use these keys and dates as a trading tool because once retrograde is over we can get back in the game. Of course not all traders care about retrograde but there are those of us who do. I for one am one of those who refrain from making online trades during that time or at least try to avoid making trades. However once in a while there comes an opportunity that can't be left out and you end up trading some stock whether it be selling on the upside or buying some on the downside. Lately it has been a lot of downside.:(
It seems also during retrograde a lot of trading is off and investor enthusiasm seems to run thin. The big collapse in 2008 was during retrograde. Anyhow, hopefully we are over the hump here and some of the miners will put on a shine.
One junior that was shining today was SilvermexSLX. The stock was up around 25% after news came out today that First MajesticFR was buying them out. Even after the pop in the stock the price is still way off it's 52 week high.
Silvermex has silver mining property and mines in Mexico so it will fit well with First Majestic long term game plan of having good silver properties in Mexico. Silvermex was a small player we watched right here for quite some time. That was back when the stock was hanging around 70 cents. We followed that stock and also Golden GoliathGNG
A lot of people wonder about buying some mining stocks these days because they see the prices a historic lows. No matter which stock you look at it seems that their stock price is sitting at rock bottom. Although it may seem like a good time it is best to use caution. One thing to keep in mind is that if any of these companies decide to do any prospecting, they are going to be needing money and money just might not be the easy to obtain. The last thing you want to do is be holding the stock of a player that can not raise cash. That is why we stress to do some DD on not only management and properties but look at the amount of O/s and ask the company how much cash they have.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
Trading Mentality
Mar.18.12
When it comes to trading stock and the mentality of traders, I am always amazed by the reaction to news. I don't know how many times there has been some good bits of news issued from a company and the stock sells off like crazy. Then you end up reading some article about why the stock sold off and it says something really stupid like "the price was built into the news already".
Anyhow the reason I am saying this is that I was reading a news release issued by San GoldSGR the other day. In the news release they talk about closing of a private placement where they raised 22 million by issuing 10,715,000 shares. The share price issued was $2.10 but the stock price that day was $1.50. After the news the stock sells off and closed the week at $1.40.
Now some people would argue that the company now has way to many shares outstanding. Granted they could be partially right because the company has a bit over 300 million shares already but adding another 10 million shares in the scheme of things is not a big deal in my books. This is now the time to watch this stock close.
Anyone else see Canaco ResourcesCAN lately? The stock dipped below the $1 mark this past week. I would imagine that there are a few longs out there in trader land that are starting to squirm right about now. I know I sure would be. This stock is a great play for those who are trading the Tanzania gold plays.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
Foundation In Rally Mode
Mar.5.12
For those who are holding Foundation ResourcesFDN, today was a nice surprise. For some reason the stock popped and rallied most of the day on no news. Could be news out in a while though. There was news last week in regards to the Coldstream property where the company has successfully intersected new gold mineralization at Goldie Lake, located approximately one kilometre south of the Osmani gold deposit. We await for more news to see how additional results add up in time.
In our last write up we talked about Calico ResourcesCKB which has a gold play going on in Oregon. For those interested in getting in for a cheaper price, today was the day, as the stock sold off to almost 52 week lows. The stock was down 14% to 37 cents. There was news stating that the company has hired Resource Development Inc. to perform metallurgical test work that that is designed to confirm gold recoveries at Grassy Mountain of up to 95 per cent and to explore flowsheet alternatives which will provide the best set of project economics going forward.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
New Miner To Check Out
Feb.20.12
At junior miners we are always on the lookout for the next big find when it comes to small mining stocks with potential. One of the things we like to see is a company with a small float of shares. We also like to see 100% ownership in the properties they are working and hopefully there is a 43-101 compliance report to go along with their project. Sometimes we get an email from a reader telling us about some small mining play and other times we just seem to stumble upon a play that seems to have the potential to maybe have something big happen.
While doing some reading on various mining news sites a news release caught my eye. It was the news release of Calico ResourcesCKB with a headine that read, Calico's Grassy Mountain Exceeds 1,250,000 ounces Gold and adds 4,100,000 ounces Silver. 1.2 million ounce of gold is what got my attention. That is kind of like Foundation ResourcesFDN with 860,000 ounce of gold and we are following Foundation close so I decided to check this junior out abit more.
Calico ResourcesCKB has the Grassy Mountain project as it's flagship play at the moment. The Grassy Mountain project is located in Oregon's Malheur County. From their website this project has 1,271,300 oz. Au and 4,139,300 Ag. Averages are 1.055 g/t at a 0.34 g/t Au cutoff. The company has around 34 million share OS fully dilluted. You can read more about this latest news release here.
As always, use Due Diligence and see our Disclaimer and be sure to visit one of our sponsors.
GAdams
Atac On A Roll
Feb.2.12
Last week we had Foundation ResourcesFDN on a roll with good gains and now this week we are having our Dawson area explorer, Atac ResourcesATC running up huge gains. Today alone the stock price was up 23%. With no news out we are left wondering whats going on? The stock has seen it's price run up from the low $2.20's to the $3.80 region in a matter of a few days. In the same exploration area we see that Smash MineralsSSH and Prosperity GoldPPG have signed an agreement to join forces to amalgamate. The new company will be called Prosperity Goldfields Corp. We talked about Smash in a few of our other writeups here on this page. All of these stocks are a great way to play the Whitegold area in our opinion.
So back to Atac ResourcesATC we are left wondering if there might be a merger in the works, maybe a buyout, or maybe just some huge news awaits. After the run in the last two days though it would almost be ready for a pull back in our opinion.
How high is silver going to go? Alf Fields who is an EW specialist says it could very well hit $150 an ounce. $150 an ounce would be nice for sure. That would really put a shine on my silver holdings. I would even like to see $50 an ounce once again.
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
Foundation On A Roll
Jan.22.12
In the last few write ups we have been mentioning Foundation ResourcesFDN as an undervalued play in gold. This play is really a no brainer when you think about all the postives the company has going in it's favor. Their main play is the Coldstream gold play located in the Shebandowan Greenstone Belt North West of Thunder Bay, Ontario. This play has a resource estimate of 860,000 ounces of gold (763,276 ounces gold inferred and 96,400 ounces gold indicated) that Foundation has within this 16 km long Coldstream gold trend. In the last write up the stock price was 10-11 cents but this week the stock took off and hit a high of 17 cents but has since settled back down to 14 cents on the close of the week. The company also had news out this week with results from this season prospecting program. Highlights include: Widespread gold mineralization up to 17.85 grams per tonne gold in a grab sample.
This is a play we will be watching very close this up coming summer season. With a small float of less than 50 million shares this play could run hard and fast if results continue to be positive. Remember this play already has a NI 43-101 which has a valued of $5.80/oz in the ground based on its share price. You won't buy cheaper gold than this.
Also keeping an eye out on Atac ResourcesATC which is our Dawson Yukon stock. This stock has most likely hit bottom now and will sideways chop with nowhere to go but up from now on in. Atac is a great way to play the Whitegold area of Yukon.
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
New Year Trading Continued
Jan.15.12
Lots of talk and chatter out there about the juniors being bottomed out and ready to maybe make a start back up. A lot of juniors, if not most have heavy short positions on them but once a short squeeze happens it can be happy days again for the longs. With gold wanting to get out of this sideways chop and silver poised to lift off, a lot of juniors will follow along. I am reading in different articles that state there is some big money sitting in some of these more undervalued juniors.
I was reading in the aureport an article where James West was being interviewed about Foundation ResourcesFDN. We've been talking about this miner here on this page for a few weeks now. Anyhow if anyone is looking at getting into a small miner that is way undervalued this could be a very good choice. Fountation has recently become a top pick in that region because it has 860,000 ounces (oz) gold and an NI 43-101 valued at $5.80/oz in the ground based on its share price. In James own words. "It's just a spectacular opportunity."
Trading volumes have picked up somewhat since an article was written up at the first of the year. Of course small plays like this grab the attention of a lot of people who seem eager to jump on the stock. The stock has been holding though in the 10-12 cent range and does not seem to want to fall back to far. Heavy bids underneath and of course heavy asks prevent the stock from really doing anything. Long term though this could be a very good play and this is a very cheap way to own a company that has a lot of gold reserves. I like the miner because the gold play is in Canada.
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
New Year Trading
Jan.04.12
Trading in the juniors so far this year has been not to bad. It's only been a few trading days but still with an upward trend in gold and silver, some stocks are rebounding a bit of the lows. That's the issue with end of the year and the tax loss selling. It seems once the stocks are beat up by shorters, there is that other group that like to sell off for tax credits and the stock gets beat up some more.
So far this year Tanzanian RoyaltyTNX has been one of the best in the turn around game and has come up a lot of the close of last year. They also hired a PR frim to get the word out about some of their properties. This should be a great help the company somewhat in regards to the stock price. Hopefully. Fingers crossed.
James West who runs the Midas Letter still has a great big buy signal out on Foundation ResourcesFDN. last article he wrote he pointed out that the stock price was so low that even the best of investors just somehow thought that there was something wrong with the company. Not so.
The stock did pop nicely over 50% from 7 cents to 12 cents where it is today. Two other pluses for the company is that the company has a 43-101 report in hand. Secondly they are focused on one main project therefore they are not being spread out to thin. That's the problem with a lot of small juniors these days. It may seem like a great idea to have a basket of projects but if you run out of cash or can not get cash, your going to find yourself out of the mining game, and fast. It costs a lot of money to maintain your acreage of mining ground. Whether you apply assessment work or cash, it still cost money. If you have a lot of ground, it costs that much more money.
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
