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o:t fringe don't like being off topic i was wandering what u thought of AMERA RESOURCES CORP ams.v there chart has little up and little down since about june 2006 , don't get out camp to much ,wife doesn't like on computer to much,hope all is well you ,ever here from mason12
bob
AMERA RESOURCES CORP (AMS:TSX-V )
can any one look at the chart on ams it looks flat line since june and small movement up and down ,doing another 4 million dollar pp just did one for 4million not long a go insiders are buying the pp ,
i hold shares for some time ,to the un trained eye of mine it looks like possibleiaty of shoot up some .
bob
your not joking , you would like to ,drive it in the next Sadi Hawkins day parade have fun just joking .have a good week end
bob
46.95 m traded so far today
whats up with ??
Watch out for your better interests. It may cost you. Have been doing some other research as well in regards to Corr this past week. Alot of dirt to be found, suggest you start your own DD with the keenest eye.
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well post what you got dirt and all.
i wouldn't be suprised if Michael Lynch is buy more at these levels when you own a 1/3 why not 1/2 of the company?
let the company get some work done not reporting every day,basicly when you buy shares you hired them to work for you not keep you company.
EXCELLENT NEW INTERVIEW - ESO
Post Time: 5/3/2006 13:55
LISTEN NOW
NEW
http://www.fmnn.com/eTVLaunch.asp?rid=593
could this be are Michael Lynch
For Immediate Release
For Further Information Please Contact:
Paul Hirsch for Fuelers Snacks
(925) 736-0976; plhirsch30@aol.com
Danville Marketing Exec Places Healthful Branded Cookies In Local Supermarket Chains
Fuelers Cookies Debut in Albertsons After Two Years of Development
DANVILLE—Jan. 2, 2006—Michael Lynch had a dream. After years as a food marketing executive for companies like Kraft Foods and Dreyers Grand Ice Cream, and the father of two young boys, he wanted to develop a line of snacks that kids would love and would provide good nutrition plus healthy energy…and he wanted to do it on his own.
"I'm an entrepreneur at heart," said Lynch who holds an MBA from the University of Michigan. "I felt I had learned all I could from the books and the big companies and that it was time to try living my dream. There's plenty of evidence that healthy snacks represent a huge untapped need in the food marketplace; and that inadequate nutrition and childhood obesity are growing concerns. As a father myself, I want to help kids limit their consumption of empty calories and have access to the nutritional building blocks they will need to have active lives."
Lynch's dream is coming true this month, about two years after leaving Dreyers and beginning product development. His Fuelers Cookies will be in Albertson's cookie section throughout Northern California on Jan. 23. Lynch also has commitments from Safeway, Costco and Longs Drugs.
"Getting to this point took a bit longer than I expected," Lynch admitted. "Not everything went as smoothly as I had hoped. It was challenging to come up with just the right recipe for the cookies that balances nutrition and taste, and it also took time to get the name and packaging just so. However, the end result is exactly what I had hoped for, and the testing we've done with the kids has been very positive and extremely rewarding."
A major element of the development phase was working with Junior Achievement students at Diablo Vista Middle School in Danville. Lynch would share his experiences and know-how with the budding entrepreneurs and in exchange they would taste the cookies and tell him what they thought.
"The kids were honest in ways that only kids can be," remembered Lynch. "My demographic for these cookies is ages 9-14, which encompasses the entire middle school period plus a little bit more on each end. Thanks to the kids at Diablo Vista and some private testing, I am convinced that we've hit the right balance between flavor and nutrition.
"Any parent can tell you that if something doesn't taste right kids won't eat it without a fight," he continued. "My experience with the final recipe for Fuelers is that kids not only eat them willingly, they ask for more."
Fuelers varieties include chocolate chip, peanut butter, chewy oatmeal raisin and chocolate fudge chunk. Typically they have about 25 percent fewer calories than similar traditional cookies and one-third the fat content. Fuelers also offer about three times as much protein as traditional cookies and are an excellent source of Vitamin C, calcium, Vitamin B12, Vitamin B6 and magnesium, among other nutrients. Further, according to Lynch, the protein and complex carbohydrates in Fuelers make them a great source of sustained energy.
Fuelers will retail for about $3.59 for 18 cookies, which makes them both less expensive and, in comparing both brand's labels, more nutritious than Snackwells.
“Even though kids understand the benefits of healthy choices, many won't eat nutritious foods unless they taste good," said Registered Dietician Pat Wilson. "Fuelers Cookies are a great way to satisfy their desire for a delicious treat while providing nutrients their growing bodies require such as protein and vitamins.”
"We want to market these cookies as a product that kids will love and that parents will feel great about offering," Lynch said. "The reception I have received in the marketplace so far has been extraordinarily gratifying."
Ultimately, Lynch plans to branch out nationally into salty snacks and energy bars, but will retain his strategy of developing nutritious snack foods that kids will love and parents will appreciate. "Fuelers are just the beginning," he said. "As long as we stay true to our core concept, we believe that there is no limit to the success we can have."
Helping Lynch launch Fuelers is his business partner Neal A. Mitchell, serving as Chairman of the company. Mr. Mitchell was the Founder and CEO of NAK corporation and is currently involved in the financial aspects of Fuelers Cookies.
where does it say 6 billion out standig shares
Market Regulation Services - Trading Halt - ESO Uranium Corp. - ESO
VANCOUVER, May 2 /CNW/ - The following issues have been halted by Market Regulation Services (RS):
Issuer Name: ESO Uranium Corp.
TSXV Ticker Symbol: ESO
Time of Halt: 9:05 EST
Reason for Halt: Request of company pending News
news
RushNet Inc.: RushNet Accepts New Deal
Blue Island, Illinois, May 02, 2006 (M2 PRESSWIRE via COMTEX News Network) --
Robert Corr, President of RushNet, Inc. (Pink Sheets: (RSHN.PK), has agreed today to accept the offer made by Michael Lynch of Lynch Partners One, LLC to purchase a 30% stake in the company in return for restricted shares. This signed agreement gives RushNet, Inc. a cash infusion of $615,000 plus an additional commitment for inventory capital of $2.4 million, for a total of over $3,000,000 to RushNet, Inc.
Robert Corr and the RushNet management team will hold restricted shares totaling 32%, with the public free trading shares totaling 38% of the stock. The stock issued to Lynch has been placed into an escrow account with a closing scheduled in about two weeks.
As, Robert Corr stated: "This new ground in capital financing will secure the company's inventory needs for all the new items planned for introduction by this fall. Our larger retailers require firm inventory levels to be maintained at all times, and as a company, we have gained a valuable partner who's expertise in raising large amounts of capital will assist us in our future expansion plans. I feel confident in the strategic plan that Michael Lynch and I have developed to grow RushNet's brands on a worldwide scope."
Michael Lynch added, " This will be the beginning of a highly visible beverage company, and I'm looking forward to launching some our branded beverages in the national beverage arena."
Michael Lynch and Robert Corr, as mentioned in a previous press release, are in the process of purchasing a regional brewery that will use RushNet to market the brands worldwide. Newly re-designed products will be introduced this summer and the fresh labels will be unveiled in the coming weeks to stockholders.
RushNet Inc. is the licensed marketing agent for Rush Beverage Company products and brand owner of e-water(TM). www.enjoytherush.com Disclaimer: The Company relies upon Safe Harbor Laws of 1933, 1934 and 1995 for all public news releases. Statements, which are not historical facts, are forward-looking statements. The company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the company include, but are not limited to, government regulation; managing and maintaining growth; the effect of adverse publicity; litigation; competition; and other factors which may be identified from time to time in the company's public announcements.
CONTACT: Robert Corr, RushNet, Inc. Tel: +1 708 389 6625
M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com.
(C)1994-2006 M2 COMMUNICATIONS LTD
resume at 9;30 pst 1.30$$
ESO URANIUM CORPORATION Quick Quote:
ESO 1.20 (Even)
ESO Uranium Strikes 19 meters of 4.1 g/t Gold
4/24/2006
VANCOUVER, Apr 24, 2006 (Canada NewsWire via COMTEX News Network) --
ESO Uranium Corp. ("ESO" or "the Company") announces that two drill holes have returned gold grades over substantial widths of mineralization in the drill program on its Mikwam Property along the Casa Berardi Deformation Zone in northeastern Ontario. Seven holes were completed for a total length of 2,437 meters (8,042 feet) in this first phase of work. Assays have been received for the first three of these holes and the significant intersections are reported below (all units are metric except where indicated in brackets).
<<
DDH No. Northing Easting Elevation Azimuth Dip
------- -------- ------- --------- ------- ---
06-01 5483013 592337 284 0 -45
06-02 5483013 592337 284 7 -60
06-03 5483092 592256 287 90 -45
To - From Interval m Grade g/t
--------- ---------- ---------
06-01 104-150 46 Anomalous
Including 125-128 3 1.4
322-326 4 2.1
06-02 274-293 19 4.1
06-03 140-156 16 4.8
169-176 7 5.0
Drill hole 06-01 was located close to a previous drill hole (92-1) from a 1992 programme by Royal Oak Mines Ltd. who had the property under option from Newmont Canada. That hole intersected the A8 vein with a 7.2 meter (24 foot) intercept and grade of 5.6 g/t gold. The 06-01 hole returned a broad intersection of anomalous values and occasional grades over 1.0 g/t. This suggests that the vein zone was intersected where the mineralization was diffuse.
Hole 06-02 undercut the first hole and showed a significant grade thickness improvement over the original 92-1 drill hole intersection. The intersection of 19 meters (63 feet) at 4.1 g/t is the longest mineralized section at this grade reported to date on the property.
Drill hole 06-03 was drilled from the west across the zone to resolve the structural relationship of the vein with an associated iron formation. The grade of 4.8 g/t gold over 16 meters is a good general confirmation of the grade in hole 06-02 and the historical data of drill hole 92-1.
Some repeat assays have suggested a need to check for metallic gold which may cause a nugget effect and a wider statistical error in the results than desirable. This check work is in progress and any significant variances will be reported. The Lasarre Assay Laboratory that is undertaking this work for ESO has considerable experience with samples from the Casa West project of Aurizon Mines Ltd. This project is within the Casa Berardi Deformation Zone and lies about 15 kms east of the current Mikwam property boundary.
ESO will report on the remaining samples submitted for assay as they are completed.
The data set used here has been presented to ESO by Caracle Creek International Consultants (CCIC) who are assisting in the drill programme as an independent Qualified Party. The data generated in the ongoing programme will be used by CCIC to complete a resource estimate that is compliant with NI 43 101. Drilling is expected to re-start on April 24, 2006 with an initial focus on the A8 vein area for resource estimate data. In addition to this drilling, several targets are being reviewed for drilling on the recently acquired contiguous claims.
About ESO Uranium Corp.
ESO Uranium Corp., a Vancouver based mineral resource company, is actively exploring for gold in the Casa Berardi deformation zone in Ontario and for uranium in the Athabasca Basin in Saskatchewan. The Company is well financed with over $5 million in its treasury.
The Company controls in excess of 860,000 acres of mineral claims in the Athabasca Basin making it one of the largest land holders in the world's most prolific uranium producing region. The Company also controls 21,380 acres of mineral claims referred to as the Mikwam gold project located along the western extension of the Casa Berardi deformation zone in Ontario. At current gold prices of over US$600/oz, a gram of gold has a value of more than US$19.30.
Benjamin Ainsworth, MA (Oxon), PEng, is the Qualified Person responsible for this news release.
On behalf of the Board of Directors of ESO Uranium Corp. "Ben Ainsworth" --------------------------- Vice President, Exploration
The TSX Venture Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release which has been prepared by management. Statements contained in this news release that are not historical facts are forward looking statements as that term is defined in the private securities litigation reform act of 1995. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. The historical information contained in this news release was obtained from reports prepared prior to the implementation of NI 43-101. Though the Company has no reason to doubt the accuracy of this information, readers should use caution when considering such information and should not place undue influence upon such.
>>
SOURCE: ESO Uranium Corp.
For corporate communications please contact Investor Relations at ESO Uranium Corp., Phone: (604) 629-0293, Email: tcorcoran@esouranium.com, Web site: www.esouranium.com
Copyright (C) 2006 CNW Group. All rights reserved.
ALLAN BARRY REPORT ON
PRECIOUS AND BASE METALS EXPLORATION
6TH EDITION
March 21, 2006
Welcome to the 6th edition of our report on Precious and Base Metals Exploration. In our past editions we have covered a wide range of subjects that are relevant to companies involved in metals exploration. As well we have discussed a group of companies that we feel are well positioned to take advantage of the increasing price of metals. We have stated why we think precious and base metals are in a long term bull market which we feel will last for many years.
We are currently working on a website on which we will post all of our past and future reports. This website will make it easier for our readers to cross reference our past reports. We expect to go live with this website in the next 6 weeks or so and when it is live we will notify all of the readers on our email list at that time.
In the closing section of all our reports we give our toll free phone number; we would like our readers to know they are welcome to call if they have any questions about the companies we have featured or about the topics we have presented in our reports. We have had the pleasure of speaking with many readers of this report. This feedback is greatly appreciated as it helps us understand what our readers like about our reports and what they would like to see. This feedback is valuable in helping us improve our future reports.
Metals prices have been in a bull market for the last 4 years; based on supply and demand, we feel that this bull market will continue for several years into the future. As these prices continue to improve, the discovery of new deposits will play an increasingly important role. When current mines are depleted, they will need to be replaced and the supply of new deposits is not keeping up with worldwide demand. Our bottom line is that we feel exploration companies play a major role and are still not appreciated to the degree they should be.
We feel that all of the companies we have featured in our past reports meet our 4 key factors that we evaluate when considering featuring a company in our report. These factors are:
1. They have quality projects based on drilling results.
2. They have key people with significant experience in metals exploration.
3. They have reasonable or, even better, undervalued market values.
4. They have the potential of their market value increasing.
Because all the companies we have featured in our past editions have the qualities we just described, we are going to feature all of them again in this edition. In the next section we will discuss indicators we follow for clues to the health of the bull market for metals. Following that section we will present the section we call “Our Favourite Treasure Hunters” which covers all the companies we have featured in the past. We will then present the section we call “Our Report Card” in which we will detail the past performance of the companies from our past reports.
Riding the Bull Market in Precious and Base Metals
As we mentioned earlier in this report, the price of metals has been on a bullish run for a few years now. However, to a large degree, the exploration companies have not participated in this run up in prices relative to the move in the metals for which they are exploring. We feel that this is an indication that the bullish move is far from over.
In any bull market you always want to keep an eye out for a “wall of worry”. If a market is running and every company is moving no matter what their quality, then you have indications that the market is getting frothy. If one wants to look for signs of a “wall of worry”, there are a couple of areas where you should look.
One example is in the price movement of metals. With many metals we are currently seeing fundamental strength based on soft supply and strong demand. Yet in this scenario of fundamental strength, the market surges forward but any hint of negativity and the selling becomes pretty significant. To us this is a strong sign that even though metals are performing very strongly based on fundamentals there is still a healthy amount of worry. We feel this is a very good sign that the bull market is far from getting frothy.
Another example is in the price movement of metals mining companies. The larger mining companies have participated in a large way in the upwards price movement of the metals they produce. But if you look at the medium and small mining companies you can see a great deal of evidence of a wall of worry. The prices of the metals that many of these companies explore for have in some cases doubled or more, meaning that what they have in the ground is becoming much more valuable. Yet even though the prices for the metals they are finding have improved dramatically, the stock prices have not improved as dramatically. This provides an opportunity to get involved in companies that have dramatically improving fundamentals and still have the potential of significant increases in their market values.
As you can probably gather, we feel that there is plenty of evidence of worry in the market from the investors that invest in metals and the companies that search for these metals. We are still a long way away from a market where there is an irrational amount of confidence.
We therefore believe that we are still in the early stages of a long term bull market that could last many years into the future. If this analysis is proved to be correct, then possibly the best advice one could give is to buy quality companies during pullbacks, this will help improve returns.
Some of Our Favourite Treasure Hunters
This section of the report is dedicated to discussing companies that we feel have quality projects that offer significant potential to grow into companies with higher market values.
We are shareholders of all the companies included in this section. We believe strongly in the age-old adage about eating our own cooking. At times we offer our consulting services to companies we own shares in. We are only interested in offering those services to companies we first and foremost want to be shareholders of, as well as being able to provide services that will assist the company in unlocking value to the shareholders.
At the beginning of the discussion of each company we will indicate if we are a consultant to the company; as previously mentioned we are shareholders of all the companies listed below. We also advise readers to look at our disclaimer at the end of this report. The following companies are listed alphabetically.
Abacus Mining and Exploration
Abacus has been featured in several of our past editions of our report on Precious and Base Metal Exploration. They were featured in our most recent report and since then they have two developments that we would like to update our readers on. One is the completion of a large financing and the other is a new phase of drilling beginning shortly. We are a shareholder and a consultant to the company and are considering increasing our shareholdings in the future.
Recently the company completed a large financing of 14.5 million dollars. These funds will be used for the company’s exploration and development costs. Those costs include an aggressive amount of drilling on the company’s known discoveries. As well the company now has the funds needed to pay for the costs of purchasing the mining assets they have agreed to purchase from Teck Cominco. Part of the payment for these mining assets will be paid for by issuing 18.5 million shares to Teck Cominco. This will make Teck Cominco the largest shareholder of Abacus. As well, the financing that was done was primarily purchased by a group of mutual funds. The combination of Teck Cominco and the group of mutual funds will leave Abacus with a large institutional ownership.
The other important development is shortly the company will be starting a very large drilling program. This second phase of drilling is into the company’s most recent discovery under the old mine workings of the Ajax Pit. Ajax was mined in the past by Teck Cominco. Upon further drilling under the old mine workings a new discovery was made that is showing excellent potential. The highlight of the first phase of drilling was drill-hole #1 intersecting 408 meters of a copper equivalent grade of 0.69 %. The other four holes had similar grades over intersections ranging from 100 to 358 meters. Long intersections like these make an exploration company’s efforts a lot easier. They don’t need to step out a long way to quickly have significant tonnage.
With the funds in hand from the above mentioned financing, the company can aggressively drill the known discoveries in the project area. The upcoming drilling will be a second phase on the new Ajax discovery and drilling at depth to test the Rainbow zone. Together, these two discoveries are a very good combination. In the Rainbow zone, you have a known zone and the potential of adding tonnage in testing along strike and at depth. At Ajax, it is safe to say that this is a large tonnage target based on the first phase of drilling. Quite possibly the most important synergy between these two discoveries is Ajax is located at the end of a haul road that was built when Ajax was in production in the past, and the Rainbow discovery is within a few hundred meters of this haul road. Both of these discoveries could be combined in any mine plans of the future if they prove to be economically mine-able.
The haul road, mining assets and permits that Abacus is buying from Teck Cominco will be a major benefit to the economics and timelines of developing these discoveries. We look forward to the drilling results from the Ajax and Rainbow discoveries.
Abacus’s stock symbol is AME and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.amemining.com. Their website contains past news releases and additional information to do your own due diligence.
Atna Resources
Atna has previously been featured in the 4th and 5th editions of our Report on Precious and Base Metal Exploration. The company has a very impressive gold exploration project in the state of Nevada, USA that continues to find new holes with excellent intersections and grades of gold. We are a shareholder of the company and are considering increasing our shareholdings in the future.
In our past editions when we have discussed Atna and other companies we follow in Nevada, we have mentioned the importance of Nevada in the gold mining industry. Nevada is the second largest gold mining region in the world. The main reason we mention this is for our readers to understand that this area has several large gold deposits and the potential of more being discovered. To say the least, this area is in big gold country.
In past editions we have discussed Atna because of the success they are having drilling in Nevada. The past results have been highlighted by good intersections of high grade gold. In the future they will continue to aggressively drill their discoveries. Their project is emerging as a very important new gold discovery in Nevada. These kinds of discoveries can quickly get the attention of major mining companies and if they keep going in the direction they have been they will have a project that many major mining companies would like to get their hands on. We feel that Atna is quickly turning itself into a potential takeover target of the future.
Atna’s stock symbol is ATN and the shares trade on the Toronto Stock Exchange. Their website is www.atna.com. Their website contains past news releases and additional information to do your own due diligence.
Bear Creek Mining
Bear Creek has been featured in a few past editions of our report on Precious and Base Metal Exploration. They have an outstanding silver discovery in Peru, the potential for new discoveries of gold, and a team led by people that have had major success in the past. We are a shareholder of this company and feel the company still offers excellent potential for market value growth.
When assessing a discovery for its potential of being economically mine-able, the two most important keys to focus on are grade and tonnage. It is imperative to consider both because it is the combination of the two that will give you the answer to whether or not a deposit can be mined. If you have a high grade deposit with low tonnage or a low grade deposit with modest tonnage, neither will pass the test of the economics of mining those kind of deposits. In Bear Creek's discovery they have mine-able grades combined with high tonnage, this is a strong indication that they are moving in the right direction to having an economically viable discovery. More work is needed to prove the economics of this discovery but to date they are jumping over all the hurdles quite impressively.
Recently the company announced their resource estimate that indicates 250 million ounces of silver. Another important piece of information in this resource calculation is that the area where they found their highest grades and longest intersection is still open. So it looks like they can expect to increase the size of the resource. There is other evidence in the drilling that is indicating that there are other parts of this deposit that can be expanded to increase the size. The above resource calculation was based on 83 drill holes and 24 trenches, but there are an additional 20 holes that were not included in the above resource calculation.
It is already proving to be a very large system, future drilling will continue to step out drill with several drill rigs being used to add to the resource at Corani. Additionally, the company has other areas on their property with excellent potential. One of these other targets has good potential for a gold discovery. Future drilling will also be focused on these other targets as well.
We look forward to the upcoming drilling. With several drill rigs working, the flow of news in the future should be significant for the entire year ahead. For investors that are bullish on silver we feel Bear Creek warrants a close look because we believe they are on to an impressive discovery. An added bonus is that they also have good potential for gold exploration as well.
Bear Creek’s stock symbol is BCM and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.bearcreekmining.com. On their website you can find past news releases and additional information to do your own due diligence.
Exall Resources
This is the second time we have featured Exall in our report on Precious and Base Metal Exploration. The reason we like this company is because of a new gold discovery they are co-developing in Red Lake, Ontario. We are a shareholder of the company and feel it offers above average potential for market value growth.
Exall is co-developing this project with Southern Star Resources on a 50/50 joint venture relationship. Both of these companies have similar market values but the reason we have chosen Exall over Southern Star is because Exall also has oil and gas projects that the company is working toward spinning off into a new publicly traded company. If an investor is only interested in what is happening with the Red Lake discovery, either company with a similar market value is a way to be exposed to that potential. Our main interest in Exall is because of their Red Lake gold project but we think we could get a nice little bonus if the oil and gas projects are spun off.
In our past editions when discussing Exall and other companies we follow in the Red Lake area, we have mentioned how impressive this gold camp is. What makes Red Lake so impressive is that the deposits already found are high grade and very profitable to mine. One of the world’s most profitable gold mining companies is Goldcorp and the reason they are so profitable is because of their gold production from their Red Lake mines. Recently Barrick bought out Placer Dome and part of that deal was that Goldcorp will buy Placer Dome’s mines in Red Lake from Barrick when the deal is finalized. This acquisition will ensure that Goldcorp has many years of future production in this area. Goldcorp is flush with cash and seems to want to control this Red Lake gold camp so new discoveries have a major in the area flush with cash.
We feel that the project that Exall and their partner are developing has the potential of becoming an asset that not only Goldcorp would be interested in but other gold mining companies as well.
Drilling resumed in the middle of January and the plans are for a significant program. They have 3 rigs working right now and are looking to add more to aggressively drill this new discovery.
Recently the company has released drill results and they continue to be very impressive. These results are highlighted by high grade intersections of gold. They continue to increasing the size of this discovery and they are continuing to drill and more results are pending.
We look forward to this additional drilling and the results from this work. Stay tuned – this project is advancing toward a major discovery in the Red Lake gold camp.
Exall’s stock symbol is EXL and the shares trade on the Toronto Stock Exchange. Their website is www.exall.com. Their website contains past news releases and additional information to do your own due diligence.
International PBX Ventures
International PBX has previously been featured in two of prior editions of our report on Precious and Base Metal Exploration. The company has three key projects in Chile looking for copper, molybdenum and gold. One of those projects has begun a drilling program. We are a shareholder and a consultant to the company and feel the company offers the potential of significant market value growth.
PBX has been active in Chile for several years because of the exploration potential in the country that is one of the world leaders in copper and molybdenum production. As we have mentioned in the past, PBX’s long term efforts are starting to pay off. Those efforts have helped the company acquire a very attractive group of projects.
One of those projects is the Tabaco project; this is the company’s most advanced project and is the first to begin drilling this year. This project has seen a fair amount of drilling in the past when metals prices were much lower than they are currently. This drilling was done before changes to reporting standards and therefore additional work is needed to bring the known zone on the property up to current reporting standards. It is reasonable to believe that because there was a significant amount of drilling done in the past those results can be confirmed with the new drilling. Another important aspect of this known zone is that it is still open at depth and past drilling covers a zone of around 600 meters of strike length inside a much larger zone of favourable rock. The current drilling is focused on confirming the past drilling and testing some step outs inside this large zone of interest.
PBX is planning a 3000 meter drilling program for the Copaquire project. Copaquire has seen a small amount of past drilling by PBX that was highlighted by a drill-hole intersection of 236 meters of .40 % copper. In close proximity are some very large mines including the Callahousie mine, it is fair to say that this project is in a good location. In the past, the drilling was focused on a geological feature that is very large, and this drilling has proved that this structure has long intersections of mine-able grades. Future drilling will be focused on further testing of this excellent target.
In addition, the company’s Tierra de Oro project is in the drill planning stages. This project is a gold target. It has only seen minimal past drilling but there are a series of pits that were dug by local miners that suggest that this area has a widely spread gold system.
We look forward to the results of the current drilling at Tabaco and the future drill programs for Copaquire and Tierra de Oro. We feel there is a very good chance that the company’s long term efforts in Chile are going to be rewarded.
International PBX’s stock symbol is PBX and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.internationalpbx.com. Their website contains past news releases and additional information to do your own due diligence.
Mountain Boy Minerals
Mountain Boy was previously featured in the first edition of our report on Precious and Base Metal Exploration. What caught our attention at that time were the high grade gold and silver results from drilling. We are a shareholder of the company and are considering increasing our shareholdings in the future.
Since we initially featured the company, they released additional drill results that are indicating that this project has a lot of potential. The drilling has ranged from modest grades up to very high grades. Some of the highlights from past drilling included one hole which returned 1 ounce per ton gold and 6 ounces per ton silver over a 50 foot intersection. Subsequent drilling has proved that this was no lucky hit because other holes also intersected high grades like these over substantial intersections.
The company has engaged Minefill Services Inc. to complete technical reports, modeling and resource calculations. Recently the company announced the results of this resource calculation and it looks very encouraging. More work is needed to bring this resource calculation up to reserve status but technical indicators suggest that they should be able to accomplish this. Additionally there are indications of being able to increase the size of what they have in the ground.
During the winter months no drilling can be done in this area, but spring is approaching and new drilling is getting closer. They have done a lot of drilling in the past and will be doing a great deal in the upcoming drilling season. If they are able to get results like they did in 2005 this year’s work looks to be a major breakthrough.
In our past report on the company we mentioned that this project is in a mining district where large deposits have been discovered in the past including the Eskay Creek mine – one of Canada’s most profitable mines. The project is located in an area with good road access and is within 25 miles of the deep sea port at Stewart B.C.
We look forward to the upcoming drilling. The company gained a lot of technical information last year and follow up drilling looks to be exciting. High grade gold and silver deposits will catch the attention of investors and major mining companies. We will be watching for drilling to begin and most importantly looking for the results from this drilling.
Mountain Boy’s stock symbol is MTB and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.mountainboyminerals.ca. Their website contains past news releases and additional information to do your own due diligence.
Niblack Mining Corp.
Niblack was previously featured in the 3rd edition of our report on Precious and Base Metal Exploration. The main reason they were featured then is because they are reassessing the potential of a known discovery that hadn’t been worked on in almost ten years. We are a shareholder of the company and a consultant to the company, and considering increasing our shareholdings in the future.
We are seeing a definite trend developing as metals prices are improving. The trend has been toward revisiting old discoveries now that metals prices have dramatically improved since these old discoveries were made. The Niblack project is one of these kinds of projects. It is worth noting that when it was last developed, the project was on its way to proving the economic potential of mining this discovery. In fact, that past work was strongly indicating that even with the prices being a great deal lower than they are now it could have passed the economic test.
To put things in perspective, when this project was previously being worked, the metals prices of the particular metals found in drilling were much lower. The value for copper used in the past evaluation work was $0.80 per pound and currently copper is trading at over $2.25. This dramatic difference will have a significant influence on current evaluation. As well, gold, silver, and zinc were also much lower. These 4 metals are what are found on this project, so the company is well positioned in 4 metals that have very strong fundamentals based on supply and demand.
New drilling will be done to expand the resource on this project and infill drilling on the historical resource. Upon the company being listed in the 3rd quarter of 2005, they were able to get in and do a small drill program that confirmed some of the past drilling results. Similar grades were found in areas that had previously been drilled and similar intersections were also found.
Since we last featured the company they completed a 5.5 million dollar financing. This funding gives the company the opportunity to do the drilling to expand the historic resource calculations. Another important factor is that the past drilling did not fully delineate the resource.
Winter is almost over and new drilling will be underway as weather permits. We look forward to the upcoming drilling that will be focused on expanding the size of this gold, silver, copper and zinc project.
Niblack’s stock symbol is NIB and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.niblackmining.com. Their website contains past news releases and additional information to do your own due diligence.
Peru Copper Inc.
Peru Copper has been featured in two of our past reports on Precious and Base Metal Exploration. The main reason is because they have a very impressive copper and molybdenum project in Peru. They are also very well financed and have a very accomplished management team. We are a shareholder of the company and feel that they are undervalued based on what they have in the ground.
Since we last featured the company they have released a pre-feasibility study which indicates that the economics are looking very robust. They followed that news with a new reserve estimate and it indicates that the reserve and indicated resource contain 22 billion pounds of copper and 840 million pounds of molybdenum. In the pre-feasibility report they use very conservative prices for copper and molybdenum; using current prices would dramatically change the economics to the positive.
After the pre-feasibility report was announced they also had a conference call in which they mentioned that if the project was in production today it would be the 12th largest mine in the world. This project is a very big undeveloped copper and molybdenum deposit.
The company has also been updating the public on the status of their tradable warrants that expired on March 20/2006. They have had a significant amount of those warrants exercised, which added a healthy amount of cash to their treasury.
These additional funds will afford the company the opportunity to continue to develop this project aggressively. To bring this project into production would require a large amount of cash because this project would be a major development. Most likely Peru Copper would need a major mining company to come in as a partner to develop a mine. The company has engaged UBS Investment Bank as their financial advisor to evaluate strategic alternatives.
We look forward to further work to advance this project and any news on the potential of bringing in a major mining company as a partner to develop this project. In our opinion, Peru Copper is very undervalued relative to what they have in the ground.
Peru Copper’s stock symbol is PCR and the shares trade on the Toronto Stock Exchange they also trade on the American Stock Exchange and the symbol is CUP. Their website is www.perucopper.com. On their website you can find past news releases and additional information to do your own due diligence.
Redstar Gold Corp.
Redstar has been featured in three of the past editions of our report on Precious and Base Metal Exploration. Recent developments include the beginning of a 2nd phase of drilling on the company’s Red Lake project and drilling is nearing on their joint venture projects in Nevada. We are a shareholder and a consultant to the company and feel the company has excellent potential for market value growth.
In the past editions we have mainly been focused on the company’s efforts in Red Lake, Ontario but since the beginning of this year the company’s Nevada projects have seen a great deal of activity. In the past, Redstar negotiated a very good deal with AngloGold Ashanti that allows the company a unique way to get involved with high quality projects in Nevada. In the past Anglo was working toward getting very active in Nevada but a few years ago decided to focus their efforts more in their own backyard in Africa. While they were in Nevada they developed a geological database of the entire state and Redstar was able to negotiate a deal that allows them exclusive rights to use this database to develop projects. Anglo retains the right to back in for a 60% interest if Redstar finds something that meets their development parameters. If Anglo backs in then they have to carry the costs of Redstar's remaining 40% interest through to production.
Earlier this year Redstar negotiated a deal with Strategic Merchant Bancorp., a company we will feature later in this report. The deal includes the first three projects that were generated from the Anglo database. By joint venturing these projects, Strategic will be covering exploration costs. This work should get the projects to the stage where Anglo has to decide if they want to back in and if they do would then have to start picking up the development costs. If Anglo decides to back in then Redstar and Strategic would each have a carried interest of 20% in the project. The Anglo deal is on a project by project basis. This is a win-win relationship for both Redstar and Strategic; Redstar has a partner that will raise the money for exploration work and if the projects are a success they could be carried through to production by a major.
By doing the above deals – first with Anglo, then joint venturing them to a partner that will cover the exploration costs – will allow Redstar to fund and develop their 100% owned project in Red Lake, Ontario and have the joint venture projects in Nevada advanced. As we have mentioned in past reports when covering Redstar, Exall, Wolfden and Goldcorp, Red Lake, Ontario is a very important gold camp. It is important because it has been an area where large high grade gold deposits have been found. Redstar has the lowest market value of all the companies we follow with gold in their drill holes in Red Lake. To date the company has only gone through a phase 1 drilling program; a second phase of drilling is underway to follow up on the high grade gold found in the drill holes from the first phase.
Combined, Redstar has high quality projects in the two most important gold camps in North America. We look forward to drill results from Red Lake drilling and the future drilling on the company’s joint venture projects in Nevada.
Redstar’s stock symbol is RGC and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.redstargold.com. On their website you can find past news releases and additional information to do your own due diligence.
Skygold Ventures
Skygold has previously been featured in the first and second editions of our report on Precious and Base Metal Exploration. Since then, they have recently released the results of over 20 holes that were pending from the drilling that we discussed in the previous editions. These results are impressive and the company is well on its way to finding a multi-million ounce gold discovery. We are a shareholder of the company and are considering increasing our shareholdings in the future.
The company has now completed and reported the results of 90 plus drill holes into a new gold discovery in an area where gold has been found for over 100 years. This drilling has been focused on an area where there is a very large geochemical anomaly at surface which is proving to be a very good indicator of the gold in the ground.
The drilling has been spread out over an area that is approximately 1200 meters by 800 meters. Gold has been encountered at two levels: one begins at or near surface and then there is a gap of 50-60 meters, and then the second zone. These two zones have averaged around 100 meters in thickness and have grades averaging around 1.5 grams per tonne gold. This is what would be referred to in the industry as a “large tonnage – low grade” type of target. For a large tonnage target, the grades are relatively high compared to other large tonnage deposits. There are several large tonnage deposits that are in production with 1 gram per tonne. An important issue that makes the economics and planning of a mining operation of a discovery like this is when the discovery begins at or near surface which this one does. A high tonnage low grade deposit that is close to surface has significant potential of being economically mine-able. In fact, these are the kinds of projects that large mining companies like to develop because the grade is there for them to make a profit and the size gives them a long mine life project.
This project is moving in the direction of proving that there is a large tonnage low grade near surface discovery. The company is currently planning the next phases of drilling. In the near future we would expect to hear their plans for drilling this project and start more drilling on this discovery.
Skygold’s stock symbol is SKV and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.skygold.ca. Their website contains past news releases and additional information to do your own due diligence.
Strategic Merchant Bancorp.
Strategic was first featured in the 5th edition of our report on Precious and Base Metal Exploration. Since we featured the company they have announced a new joint venture project that now gives the company exposure to three high quality projects in Nevada. We are a shareholder of the company and a consultant to the company, and considering increasing our
shareholdings in the future.
In our past edition we discussed two projects the company has acquired on a joint venture basis with Redstar Gold Corp. Since the first two projects were joint ventured between Strategic and Redstar, a new project has been acquired and joint ventured between the companies.
This gives Strategic a very strong presence in Nevada for gold exploration. One of the first two projects is the Dry Gulch project in the Carlin trend area. It has a large geophysical target that is similar to major gold deposits in the area. The second project is the Pine Nut project located in Western Nevada. This project has seen past drilling but only over a small area inside a large geological structure that remains to be drilled.
The most recent project is the North Bullfrog project that is located in Southwestern Nevada. The Bullfrog mine is located 6 miles to the south of the North Bullfrog project. Previously, Barrick Gold recovered approximately 2.3 million ounces of gold from the Bullfrog mine. Past drilling on the North Bullfrog project has intersected low grade gold mineralization but high grade veins have been sampled in a recent surface sampling program. There are geological similarities between North Bullfrog and the past producing Bullfrog mine. Future drilling will be planned to expand the low grade mineralization and test the high grade vein systems.
In a short period, Strategic has gone from a company with not a lot going on to having three high quality projects in a hot area for gold exploration. All of these projects are in Nevada and have been developed using a geological database compiled by Anglogold Ashanti one of the worlds largest gold mining companies.
We look forward to the upcoming exploration work that will include drilling on these projects in Nevada. As well, Strategic is looking at new projects from the relationship they have with Redstar and is evaluating other projects to add to the strong group of projects they already have in their portfolio.
Strategic’s stock symbol is SMB and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.strategicmerchantbancorp.com. On their website you can find past news releases and additional information to do your own due diligence.
Wolfden Resources
Wolfden was featured in the 4th edition of our report on Precious and Base Metal Exploration. The projects that we were most interested in were their gold exploration projects in the Red Lake, Ontario area. Since that report the company has had a flurry of activity on their base metal projects that we would like to update our readers on. We are a shareholder in the company and are considering increasing our shareholdings in the future.
The company has recently acquired a new group of deposits that significantly enhance the economics of the deposits they have developed themselves in Nunavut, Canada. Now they have a group of deposits that have synergies that enhance all these deposits and can be planned for development as a group. One of the main synergies is being able to plan for many years of production from the various projects. They can now use mine facilities that independently they may not have been able to support.
As a shareholder, these recent deals are a very pleasant surprise. As we mentioned earlier, we were most interested in what they were doing on their gold projects. Now we have a very strong story emerging on the base metal side of the company.
The company also announced plans to split the company into two separate public companies. All the current shareholders will get shares in both companies, and we feel both can perform very well based on the merits of their respective projects. To date the company has not announced the details of this spin-off but they have said it is in the works and there will be a Wolfden Gold company and a Wolfden Base Metal company.
The base metal company will have several advanced deposits that are all in a region that will be developed as a group. Future efforts will be developing mining plans for these deposits. The projects have high grade base metals and collectively they would have several years of production. The company also announced that they have come to terms with Kinross to acquire their Lupin mine facilities. Now they have all the key assets to bring together mining plans to mine all the various deposits. Additionally there is still a lot of exploration potential to add new reserves to the deposits that already exist. Recently the company has announced that they are planning to build a deep water port and a road that can be used year round to link the shore line and the mining facilities. In a very short period of time the company has made major strides toward becoming a producer. We look forward to the development of these projects and the exposure it gives us as shareholders to some very profitable mining of base metals that are under heavy demand and supply weakness.
The (soon-to-be) new Wolfden Gold company has excellent projects including a quickly advancing gold project in the Red Lake area of Ontario. Red Lake is (as we have mentioned many times) a very important gold camp. The main mines are very high grade and very profitable. GoldCorp. has already purchased an interest in Wolfden and if the deposit keeps getting bigger will most likely want to acquire the project to add to its impressive group of projects in Red Lake.
We look forward to the details of the spin-off that will create two companies – one a base metal company on its way to becoming a producer and the other a gold explorer in an area where many gold mining companies would like to be involved. The company has been very busy lately and we think that the developments will continue to be strong in the future.
Management is doing an excellent job for the shareholders and the planned spin-off makes it easier to unlock shareholder value by having the two asset groups in their own separate companies. Stay tuned – we feel this company has a very impressive future.
Wolfden’s stock symbol is WLF and the shares trade on the Toronto Stock Exchange. Their website is www.wolfdenresources.com. Their website contains past news releases and additional information to do your own due diligence.
OUR REPORT CARD
We are not big fans of shameless self-promotion; we feel there is enough of that in the investment world. We are much more interested in allowing our research and results of the companies we feature in our reports to speak for themselves. To make it easier for our readers to analyze our past performance we include this section entitled "Our Report Card".
Before going on we would like to remind our readers of something we have all heard before: past performance is not always an accurate indicator of future returns. We are adding this section to make it easier for our readers and ourselves to quickly look at the past and what has transpired.
Good as Gold
Date of report on price of gold November 01, 2005
Price of gold on that date $460.60 USD per ounce
Outlook in that report: bullish
Call in that report 10-30% upside move
Current Price of gold $552.10 USD per ounce
In our 5th edition of our report we made our case of why we see a price for gold between $600.00 and $650.00 USD per ounce by the end of 2006. Our basic argument is that demand has been stronger than supply and that trend will continue in the future. Additionally the USD has been propped up by Federal Reserve interest rate hikes and in our opinion the Fed has only one more rate hike possibly two and when the Fed stops that the dollar will be in for a rougher ride. As the dollar weakens we think their will be an increase demand for gold as an alternate investment to hedge against dollar weakness. We are confident that $600.00 level will be passed and a top of $650.00 is realistic by the end of this year.
A Silver Lining
Date of report on price of silver November 01, 2005
Price of silver on that date $7.47 USD per ounce
Outlook in that report: bullish
Call in that report 50-100% upside move
Current Price of silver $10.48 USD per ounce
Silver also has strong fundamentals based on supply and demand, for many years now demand has been stronger than supply. A key factor to seeing a very aggressive move in silver is the exchange traded fund (ETF) that has been approved by the S.E.C. This ETF will allow investors that want to speculate on the direction of silver, an investment that will allow them to do that without having to play the futures market. The added demand from this ETF for silver will in our opinion be a major catalyst to silver breaking out in a big way. We see good potential of seeing a price of $15.00 USD per ounce by the end of 2006.
A Copper penny for your thoughts
Date of report on price of copper November 01, 2005
Price of copper on that date $1.83 USD per pound
Outlook in that report: bullish
Call in that report for a move to around $2.10 per pound
Current Price of copper $2.31 USD per pound
In the 2nd edition of this report we felt that we could see $2.10 USD per pound within 6 months. After reaching that price we made a new call in our 5th edition for a price of over $2.50 per pound by the end of 2006. The latest numbers and forecasts of supply and demand suggest to us that we are probably on the conservative side. So we will update our forecast for copper to go over the $2.50 level and could see a top of as much as $3.00 per pound by the end of 2006.
Past performance of our Favourite Treasure Hunters
Abacus Mining and Exploration
First featured in Sept.19 2005 edition
Price on that date $0.25 CDN
Second feature in Dec.07 2005 edition
Price on that date $0.36 CDN
Third feature in Jan.16 2006 edition
Price on that date $0.75 CDN
Fourth feature in Feb.7 2006 edition
Price on that date $0.96
Current price $0.73 CDN
We have presented our current update previously in the report so no need repeating here. We are a shareholder and consultant to the company.
Atna Resources
First featured in Jan.16 2006 Edition
Price on that date $2.17 CDN
Second featured in Feb.7 2006 edition
Price on that date $2.04
Current price $1.95 CDN
We have presented our current update previously in the report so no need repeating here. We are a shareholder of the company.
Bear Creek Mining
First featured in Sept.19 2005 edition
Price on that date $2.96 CDN
Second feature in Nov.1 2005 edition
Price on that date $3.20 CDN
Third feature in Feb.7 2006 edition
Price on that date $4.17
Current price $5.96 CDN
We have presented our current update previously in the report so no need repeating here. We are a shareholder of the company.
Exall Resources
First featured in Dec.07 2005 edition
Price on that date $1.34 CDN
Current price $1.68 CDN
We have presented our current update previously in the report so no need repeating here. We are a shareholder of the company.
International PBX
First featured in Jan.16 2006 edition
Price on that date $0.59 CDN
Second feature in Fe.7 2006 edition
Price on that date $0.61 CDN
Current price$0.60 CDN
We have presented our current update previously in the report so no need repeating here. We are a shareholder and consultant to the company.
Mountain Boy Minerals
Featured in Sept. 19 2005 edition
Price on that date $0.71 CDN
Current price $0.59 CDN
We have presented our current update previously in the report so no need repeating here. We are a shareholder of the company.
Niblack Mining
Featured in Dec. 07 2005 edition
Price on that date $0.345 CDN
Current price $0.80 CDN
We have presented our current update previously in the report so no need repeating here. We are a shareholder and consultant to the company.
Peru Copper
First featured in Nov.01 2005 edition
Price on that date $2.00 CDN
Second feature in Dec. 07 2005 edition
Price on that date $3.45 CDN
Current price $3.37 CDN
We have presented our current update previously in the report so no need repeating here. We are a shareholder of the company.
Redstar Goldcorp.
First featured in Nov.01 2005 edition
Price on that date $0.12 CDN
Second feature in Dec. 07 2005 edition
Price on that date $0.10 CDN
Third feature in Feb.7 2006 edition
Price on that date 0.25 CDN
Current price $0.35 CDN
We have presented our current update previously in the report so no need repeating here. We are a shareholder and consultant to the company.
Skygold Ventures
First featured in Sept. 19 2005 edition
Price on that date $0.65 CDN
Second feature in Nov.01 2005 edition
Price on that date $0.55 CDN
Current price $1.50 CDN
We have presented our current update previously in the report so no need repeating here. We are a shareholder of the company.
Strategic Merchant Bancorp.
First featured in Feb.7 2006 edition
Price on that date $0.85 CDN
Current price $0.89
Wolfden Mining
First featured in Jan.16 2006 edition
Price on that date $3.77 CDN
Current price $3.70 CDN
We have presented our current update previously in the report so no need repeating here. We are a shareholder of the company.
Overall Report Card on Metals and Our Favourite Treasure Hunters
Again we would like to add that the numbers and returns are only for comparison purposes. We are not giving investment advice or recommending these stocks for buying or selling; we advise our readers to read the disclaimer at the end of this report.
We think the fairest way to evaluate the past performance of the companies featured in our past reports is to use an equal dollar amount invested in each company on the date they were featured. Again, we advise our readers to remember that past performance is not always an accurate indicator of future returns.
Having said that, the group of companies we have featured has above average performance and we are comfortable having readers compare our results to other newsletter writers and analysts.
We also believe that the performance is a good indicator that our philosophy of picking companies makes sense. We will continue to search out and report companies that have quality projects and quality people and market values that are reasonable to undervalued with the potential of their market values increasing.
We are not going to give ourselves a grade until we have published this report for at least a year. We also think that we would give ourselves a lower grade than most of our readers would, simply because our performance is based on less than one year of publishing this report. We believe that the highest marks go to analysts and newsletter writers who are able to have above average returns for several years.
WHAT MAKES THE ALLAN BARRY REPORT UNIQUE
For the last 12 years, the editor of this report has had a career as a consultant to publicly traded junior exploration companies. Services provided to these companies include investor relations, corporate communications, strategic planning, and fund-raising.
As an investor relations consultant to small companies, one has to wear several hats:
* communicating the company’s efforts to the investing community;
* communicating technical aspects of those efforts;
* being involved in raising funds for drilling and exploration;
* being involved in the technical analysis;
* and reporting of what has been found.
These efforts have provided a unique opportunity to learn, from an insider’s perspective, the challenges that junior exploration companies face. Additionally it has opened doors to meeting a very accomplished group of technical people.
Spending this time as a consultant to junior exploration companies has provided a unique perspective that is an asset few analysts or newsletter writers possess.
IN CLOSING
We would like to take this opportunity to thank you for taking the time to read this report. We hope this information proves to be informative and helpful. We ask the reader not to post this report on any website for at least three days after you receive it and that if it is posted to post the entire report without any editing. We invite our readers to pass on our contact information to anybody they feel may be interested in receiving this report or future reports and we would be glad to add them to our email list for future publications.
There is no charge for this publication. In order to be added to our email list we need your name, phone number and email address. You can call us on our toll free number at 1-877-574-4575 or locally at 604-574-4575 or email allanbl@shaw.ca with the above information.
Regards,
Allan Barry Laboucan,
Editor & Writer
Allan Barry Reports
Disclaimer: The information included in this Allan Barry Report on Precious and Base Metal Exploration is for information purposes only. No statement or expression of opinion, or any other matters herein, directly or indirectly, is an offer, solicitation or recommendation to buy or sell any securities mentioned. The information contained in this e-mail is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in providing it does the editor Allan Barry Laboucan or his companies, or affiliated companies, assume any liability. We do not receive or request compensation in any form in order to feature companies mentioned herein. The editor may have equity positions in companies referenced in this newsletter, or plans on taking a position, or offers consulting services to these companies and will notify the reader of these positions or services provided to the company in the section of the report on each individual company. The editor his personal company or affiliated companies, disclaims all responsibility and accepts no liability (including negligence) for the consequences for any person acting, or refraining from acting, on the information provided in this publication.
Check out www.thepennypros.com, target price .035 !
frankly do you post like that on your own boards 2 . i personally would like to come here read constructive conversation about ekwx and not have to listen to bad apples spoiling the whole basket of this forum, most other forums out there are a waste of time ,lets not let that happen here please.
stocks will go up and go down thats the law of the game if you had anuff of the stock you sell and move on ,i personally will stay with this for a longer time .
good luck
bob
cqz ., ed's other company has dealing in sweden
i would think some of the posters on this board would have depth so it would be kind if they would share with us once in while ,thanks in advance if some posts.i'm sorry i don't or i would.
fringe thanks for the good work and time spent on this board and others .
bob
i hope these reports are okay on this board ,all i have for now if get more ,i can post if it is allright with monitor
bob
Silver Stock Report
by Jason Hommel
January 12th, 2006
The world is about to awaken to several discoveries!
First, the world will discover that gold prices have been suppressed, and will discover that gold is true and real money.
The world is now discovering what I discovered about the gold market years ago…
Gold Market Too Small For Chinese Diversification
http://asia.news.yahoo.com/060109/5/2doc9.html <http://rs6.net/tn.jsp?t=5k459rbab.0.sl949rbab.lyiszpbab.738&p=http%3A%2F%2Fasia.news.yahoo.com%2...
Key Excerpts:
"We view China's ability to raise gold holdings to a meaningful level for diversification as constrained, as the gold market is too small for this to happen without a serious price distortion [RISE!]," said Barclays Capital analyst Yingxi Yu."
"If it [China] were to raise (its gold holdings from 1.1%) to 10%, it would absorb some 4,680 tons, or around two years of global mine production."...
"For China to raise its gold in reserves to the international average of 8.9% would require the purchase of an additional 3,613 tons," said Williamson. "For China to raise its gold in reserves to the ECB benchmark of 15% would require the purchase of an additional 6,501 tons," he added. By comparison, most European national banks have agreed to limit their total gold sales to 2,500 tons in the five-year Central Bank Gold Agreement, signed in 2004."
In other words, when China buys 1000 to 6000 tonnes of gold, how high will the gold price have to rise?!
Compare this news with this excerpt from my Silver Stock Report:
------------------
1,296 tonnes -- the paper positions at the COMEX: Open Interest: 417,000 contracts for 100 oz. each.
5,000 tonnes -- the official number admitted that the central banks have sold.
15,000 tonnes -- the number that GATA research shows that central banks have sold or leased.
30,000 tonnes -- the number of official central bank gold, minus either the 5000 or 15,000 tonnes.
150,000 tonnes -- all the gold mined in the history of the world.
2,500 tonnes -- annual mine supply
4,000 tonnes -- annual demand
And all of that is nothing compared to the amount of dollars out there that exist that could buy gold. $20 trillion bonds, $10 trillion M3 = $30 Trillion. A mere 1% is $300 Billion, which, at $500 /oz. is a massive demand of 18,661 tonnes. Do you understand what that means? That means that far, far less than 1% of dollars, in either bonds or M3 can buy gold, because there simply is not that much gold available.
Long before 1% of U.S. paper dollars tries to buy gold, gold will be going up well over $1000/oz., and silver will be headed up over $50/oz.
------------------
So, how did the value of gold get so low? Manipulation and lies! Central banks have been selling gold, to meet the gap between mine supply and annual demand. Now that central banks (Russia, China, South Korea, Argentina, South Africa, & Iran) are contemplating buying gold, the manipulation is ending.
You should buy GATA's DVD of "Gold Rush 21" a conference in the Yukon in August that cost $3000 per person to attend (I was there), that exposed the central bank gold selling and manipulation of the gold price. The world will increasingly discover what GATA knows, that central banks do not have the 30,000 or so tonnes that the IMF encourages them to report as "on the books", because 15,000 tonnes or more have been lent out and sold into the gold market, depressing the price.
Order for $19.95, the "Gold Rush 21" DVD, containing 8 hours of footage.
http://www.goldrush21.com/ <http://rs6.net/tn.jsp?t=5k459rbab.0.tl949rbab.lyiszpbab.738&p=http%3A%2F%2Fwww.goldrush21.com%2F...
Second, the world will discover that the major gold mining companies are mostly hedged. Barrick owes 13 million ounces of gold, pre-sold at about $350/oz. At $550/oz., this is a trading loss now of $2.6 billion dollars, and growing! Barrick has been looking for a price dip to buy back this gold, ever since $330/oz., and the dip never came! All of Barrick's gains from "hedging" have now been lost! This is a major accounting fraud!
Third, the world will discover that gains can't be made in majors that may go bankrupt due to hedges. People will discover that the most leveraged gains will come from junior exploration gold and silver companies.
Hommelberg (no relation) in "JUNIOR FESTIVAL 2006 - Part II" January 5, 2006,
(A GREAT ARTICLE!)
http://www.gold-eagle.com/editorials_05/hommelberg010506.html <http://rs6.net/tn.jsp?t=5k459rbab.0.ul949rbab.lyiszpbab.738&p=http%3A%2F%2Fwww.gold-eagle.com%2F...
quoted John Brigde (senior gold analyst JP Morgan) who said:
"If you are lucky enough to buy into an exploration company that makes a discovery, you can effectively buy your own auto teller machine. Some of these things are just phenomenally profitable."
ALLAN BARRY REPORT ON
CANADIAN DIAMOND EXPLORATION
3rd EDITION
January 9/2006
Welcome to the third edition of our report on Canadian Diamond Exploration. In our premier edition, published on August 15/2005, we discussed the reasons why we follow the diamond exploration and mining industry and we focused on companies with projects in Canada. Our second edition, published on October 20/2005, focused on explaining some of the important technical tools that exploration companies use to find diamonds. In this third edition we will discuss some of the key developments we look for when assessing whether or not we will invest in a diamond exploration stock. We also give a description of how we think investors can best use our past and future reports. In our section entitled "Our Diamonds in the Rough", we will discuss some of the companies that are significantly involved in Canadian diamond exploration.
Since our premier edition went out, we have received a number of email messages and phone calls from our readers. Thank you for your encouraging comments. As a new publication, we truly appreciate feedback from our readers and we feel this will help improve future reports - keep them coming!
Upcoming mining conferences
The editor of this report will be attending several mining conferences in the near future, specifically:
· January 22-23, 2006 – Cambridge House International will be hosting the Vancouver Resource Investment Conference at the Vancouver Convention and Exhibition Centre. http://www.goldshow.ca/vancouver/jan2005.html
· January 23-26, 2006 – The B.C and Yukon Chamber of Mines will be hosting their annual Mineral Exploration Roundup at The Westin Bayshore Resort and Marina in Vancouver. http://www.chamberofmines.bc.ca/roundupoverview.htm#
· March 5-8, 2006 – The Prospectors & Developers Association of Canada will be hosting their annual PDAC conference at the Metro Toronto Convention Centre. http://www.pdac.ca/pdac/conv/index.html
These conferences offer a wonderful opportunity to meet and talk with the key people involved in running companies that are exploring for a wide range of commodities. We highly advise investors to attend these conferences in your area to add to your due diligence in the companies you are invested in or are considering investing in. For out-of-towners, this would be a great time to plan a trip to Vancouver or Toronto to visit these two great cities.
We publish two publications: the Allan Barry Report on Canadian Diamond Exploration and the Allan Barry Report on Precious and Base Metal Exploration. Several of the companies featured in these reports will be attending these conferences. We highly recommend taking the opportunity to come meet with these companies and learn more about what their plans include.
For our readers that would like to meet and chat with the editor of this report, by all means feel free to call or email and we can set up a time to meet. Our contact information is in the closing section of this report. Or come by the booths of the companies featured in our two reports that are attending the conferences and they would be happy to help you locate Allan at the conferences.
Our guide for readers to get the most out of our reports
The first time we feature a company it is primarily an introduction of the company to our readers. We are selective in what companies we choose to feature in our reports and don't foresee them coming in and out of favour often; however if a company falls out of favour we will state the reasons why in a future report.
We received comments from our readers after our second edition went out noting that it didn’t include all the companies from the first edition. Did this mean they had fallen out of favour? Absolutely not – and we don't want to leave that impression with our readers.
To make things as clear as possible, the first time a company is featured in our report, we are introducing it to our readers. The next time it appears there has been significant news that we would like to comment on. Further developments will be included in subsequent editions of the report.
Our goal is to feature companies that we feel have high quality projects. In the upcoming section we will outline the main things we look for in order to assess the quality of a company.
Our analysis is based on fundamentals
The fundamentals that apply to a diamond exploration company start with the projects the company is involved in. If the projects are the kind we would invest our own money in then we will look at buying stock. Obviously we are not so bold to think that we are always correct; many things can get in the way of the company realizing its potential. Nonetheless, the first question we ask ourselves is “If we took the analysis of the stock out of the picture and all we were looking at were the merits of the project, would we be interested in spending our money to develop that project?” If the answer is “Yes”, then we begin to look at investing.
For us the main yardstick we use to determine our interest in a project is what the drilling is telling us. In the exploration industry the drill is often called the truth machine. If the truth machine is talking, we are listening. The fact of the matter is that if you aren’t drilling you can’t make a discovery. We are interested in companies that are making and developing new discoveries.
Most often a company catches our attention when they have completed early stage drilling and have interesting results from that drilling. Often diamond exploration companies that make these discoveries are small and not followed by a large audience of investors. Therefore, even after a company hits with their drilling we can still get involved with the stock at a reasonable price.
Before a company makes a hit with the drill, they have acquired a project in a prospective area. The next step is geophysical, geological and geochemical analysis. Using these tools the technical team behind a junior develops a theory of where and why they should drill. The drill then tells them whether or not their theory makes sense or if more work is needed to make that determination.
All the companies we have featured in our first two editions of this report have projects in prospective areas. They have also developed a theory of why they will be successful when they drill the targets they have identified. They have drilled and the truth machine has told them their theory makes sense. These steps are the primary developments on which we base our decision on whether or not we will invest in a company.
Typically, before the truth machine starts turning, the stock is cheaper than after they drill into a new discovery. Yes they are cheaper, but they are riskier as well. The technical team that develops any drill program feels their reasoning is sound and spending the company’s money is warranted. But Mother Nature often works in strange ways. We feel a lot more comfortable about a project when we can base our investment decision on what the truth machine tells us.
Our first priority is drill results, and then we look at the people involved in running the company and the technical team developing drill targets. The reason drill results are the first item we look at is because no matter how good the people are that are involved with a company, they can’t make something appear if it isn’t there.
We contact the key individuals and try to continue communicating with them as exploration results are announced in news releases. We encourage our readers to do the same. These companies have investor relation’s people that enjoy the opportunity to tell their company’s story.
When we speak with these people we are trying to understand the projects they are involved with and the reasoning behind their drilling and exploration efforts. We are doing this to assess whether or not we feel they will be successful in their drilling, and how that success could affect the value of the company.
After we have looked at the technical merits of a company’s project and spoken with the people involved, the next step is to look at the valuation of the company based on its stock price and the shares issued and outstanding. We begin this part of the analysis by looking at the market capitalization of the company. Market capitalization is the number of shares a company has multiplied by the current share price. This is also called the market value, which is the term we prefer. In general, assessing the market value is a quick way to measure the value that the market is placing on a company. For example, let’s say a company has 50 million shares issued and outstanding (this is also called fully diluted) and the stock is trading at $0.50, they would have a market value of 25 million dollars. Twenty five million dollars is the value that the market is currently placing on the company.
After we have the market value then we ask would we buy the entire company if we had the money to purchase all the shares? If the answer is yes then we feel we are getting the stock for a reasonable price and we would be comfortable buying the stock at its current price. In our opinion this is one of the best rules of thumb when deciding whether or not to invest in a company, regardless of the size of the company.
Paying a Reasonable Price
Another important topic this brings up is paying a reasonable price for a stock. We feel it is a fool’s game to try and buy at the cheapest price and then sell at the highest, i.e. the “buy-low-and-sell-high” mentality. Of course it would be nice if you were able to do that – but in reality it happens so rarely that you are asking for trouble if you think you can time the market with any kind of consistency. We are much more interested in buying at a reasonable price that we feel a knowledgeable businessperson would pay for the entire company and then selling at a premium from the price we bought at.
When we assess the market value, we are trying to determine if we are getting the stock at a reasonable price or if it is undervalued. We feature companies in our reports that we feel have:
* Quality projects
* Quality people
* Reasonable or undervalued stock prices
* Potential to increase market value in the future
This is the bottom line of what we are trying to present with our reports.
Valuation of the Sector
Another area we look at is the valuation of the sector the companies are part of. This report is focused on Canadian Diamond exploration done by small exploration companies, otherwise known as “the junior diamond market”. Several of the companies we have featured in our two previous editions of our report are currently trading near multi-year lows. It would be safe to say that this group of companies involved in Canadian Diamond Exploration is currently out of favour. We think that this situation is overdone. Several of the companies we are following are preparing for significant developments in 2006 and we feel this year will be much more positive for the sector.
Improvements to Diamond reporting and what we look for
Canada has grown from a newcomer in the diamond business into the third largest producer in dollar value of rough diamonds in the world. During this time of growth, there has been a substantial increase in the knowledge of diamond exploration and mining in Canada. Methods of assessing the diamond potential of a kimberlite discovery (kimberlite is the dominant rock type from which diamonds are produced) have dramatically advanced.
The diamond industry in Canada is still in its early stages and has many years of new discoveries and production ahead of it. As the industry evolves we will see changes, which will serve to strengthen the industry.
After a new kimberlite discovery, the next step is to determine if diamonds are present and if so the next several steps are taken to fully assess whether or not enough diamonds are present to turn that kimberlite into a mine.
One of the first steps taken after a kimberlite is found is to do caustic fusion testing. In basic terms, the kimberlite from drill core is taken to a laboratory where they dissolve the kimberlite in a caustic solution that leaves the diamonds intact. Then they pick out any diamonds that are present, after which they examine and classify the stones.
Some of the changes we are seeing are in the reporting of diamond exploration results. We feel that these changes will assist the technical people involved in the industry and are a very powerful tool for investors when assessing the potential of a diamond discovery. The changes are related to the classification process and reporting of those results.
When assessing the diamond potential of a kimberlite, the bottom-line of that assessment is statistical analysis. The statistics that are used are related to the presence of diamonds and the distribution of diamonds in a kimberlite. Because of the variable distribution of diamonds in a kimberlite, the more accurately the diamonds are measured, the better your statistical analysis will be. The changes we are seeing will help improve this process.
One of the first reports from the assessment of a kimberlite for its diamond potential is micro-diamond analysis. After a kimberlite is discovered the next step is to send the drill core into the lab for caustic fusion analysis. As we said earlier the kimberlite is put into a caustic solution, this process will dissolve the kimberlite leaving diamonds if they are present. There are a couple issues relating to this method of assessment that we feel investors should be aware of. The main issue one has to remember is how small in weight diamonds are compared to the rock it is found in. In a high-grade discovery (for example, one carat per tonne) it is important to realize the weight of those diamonds. A one-carat diamond weighs 0.20 of a gram or 1/5 of a gram. So in a high-grade diamond deposit you will find 0.20 of a gram of diamonds in 1 tonne of kimberlite rock.
Another important fact to remember is that these kimberlite deposits can be multi-million tonnes in size. Usually early stage caustic fusion testing is done on core that is between twenty and two hundred kilos of kimberlite rock. A definitive assessment of the diamond potential of a kimberlite can’t be made from such a small sample. A much larger sample is needed to get a realistic assessment of the diamond grade of a kimberlite.
A perfect example of how dangerous it is to make decisions based on a small sample is De Beers’ Victor Kimberlite in Ontario. De Beers found this deposit several years ago and did a small test of the kimberlite and found a modest amount of diamonds. The deposit was left alone for several years and then De Beers had to make a decision whether to further develop the deposit or let the claims lapse. They went in with a much larger sample and found there was in fact a lot more diamonds than the first tests had suggested. Further testing found that there is a grade of almost ¼ of a carat per tonne. What was even more astonishing was these diamonds are such high quality that they are valued around $400.00 per carat. This makes the rock worth around $100.00 per tonne and Victor is now going into development of a mine and will be one of Canada’s future diamond mines. If the technical people involved in this project based their decisions only on the small sample they would have most likely walked away from a diamond mine worth billions of dollars. That is not a mistake we would like to make.
Other deposits can be full of diamonds; take for example the Diavik diamond mine, which is 40% owned by Aber Diamonds. One of the deposits at this project is called the A-154 South kimberlite. This kimberlite deposit is extremely high grade. It has reported grades of around 4 carats per tonne and the diamonds are worth around $120.00 per carat. So the value of the rock is close to $500.00 per tonne.
From the example of these two deposits one can learn a great deal. From Victor one can learn not to put too much value on a small testing of kimberlite and generally much larger samples are needed to accurately assess the diamond grade of a kimberlite. From Diavik’s A-154 kimberlite we learned that in a deposit like that you don’t need to be a rocket scientist to figure out how valuable the kimberlite is. In some cases the size of the early stage samples are very important, in others they can be so high-grade that even small samples can tell you a great deal.
Regardless of whether a company has a Victor type kimberlite or an A-154 type kimberlite, it is important to be aware that to accurately assess the diamond grade the larger the sample the better. Nonetheless a technical person and investor can still get valuable information from the early stage tests.
For example, one can learn if diamonds are present in the drill core, although you need larger samples to get a realistic evaluation of the mining grade potential. Thus we advise to be cautious about making a definitive decision until larger samples are taken. Another important piece of information one can learn from early stage results is that the micro-diamond results can give an indication of the presence of macro-diamonds. In order to get a good amount of macro-diamonds you need to test more rock. The macro-diamond results give you an indication of the potential presence of commercial sized stones. Another important indicator from these early tests that is often overlooked by investors is an indication about the value per carat. If the test indicates a high percentage of white stones with few inclusions, there is an outstanding potential of a high value per carat.
In order to properly assess the ultimate value of a diamond deposit you need to know what the tonnage is, what the carats per tonne are, and the value per carat. Early stage testing can give you indications about these key questions but they are not able to give you a definitive answer. Therefore we think it is very important to be aware of these results because they can give you important clues to the answers to those questions. The final answers can’t be realistically determined until larger tests are completed.
In the upcoming section we will be discussing some companies we follow that have the potential of finding kimberlites that could have positive answers to these important questions.
SOME OF OUR DIAMONDS IN THE ROUGH
This section of the report is dedicated to discussing companies that we feel have quality projects that offer significant potential to grow into companies with higher market values.
In this edition we will discuss a couple companies that have been featured in previous reports. We will also be featuring two new companies, which have exciting projects.
We are either shareholders, or planning to become shareholders, of all of the companies included in this section. We believe strongly in the age-old adage about eating our own cooking. At times we offer our consulting services to companies we own shares in. We are only interested in offering those services to companies we first and foremost want to be shareholders of, as well as being able to provide service that will assist the company in unlocking value to the shareholders.
At the beginning of the discussion of each company we will indicate if we are a shareholder or a consultant to the company. We also advise readers to look at our disclaimer at the end of this report. The following companies are listed alphabetically.
Metalex Ventures
Metalex Ventures has been around for a few years now; it has been in the spotlight and now is in the doldrums. What got the company into the spotlight was the fact that Chuck Fipke was at the helm. They had acquired several projects around De Beers Victor diamond deposit in northern Ontario near Attawapiskat in the James Bay Lowlands. The public was betting he would repeat the success he enjoyed in finding Canada's first diamond mine. It is in the doldrums now because they didn't find anything substantial in this area, although we feel the area still has significant potential. What has caught our recent attention and the reason we have become shareholders is because of a new discovery they have found west of this area in the Kyle Lake region.
We feel that the big run-up in stock price was overly positive based on Chuck Fipke getting involved in an area where De Beers had already found some exciting diamond deposits. We also feel that the current value in the doldrums is overly negative especially when they have made a new discovery that looks very interesting. These kind of wild swings are good places to look for opportunity after a big run-up the following sell-off can get way overdone. We feel this is a very exciting turnaround play that offers excellent upside potential.
There are two aspects of the company’s recent discovery that have caught our attention. One of those is the diamond distribution that is pointing toward a healthy grade of diamonds. The second issue, which often is overlooked by investors in junior diamond stocks, is the description of the diamonds, many investors and analysts overlook this but we don’t. When they described these stones they mentioned that 62% of the diamonds are white and free of inclusions, this is a very good indication of the potential of having a high value per carat. The value per carat is just as important as the carats per tonne. These two factors as well as the overall tonnage are what one needs to know in order to realistically evaluate the potential of having a diamond deposit that is economically mine able.
If future diamond testing proves to be as good as the initial tests suggested, the results have the potential of adding significant market value. We feel that this project has the potential to launch the company into a much larger market value. More testing and time will tell but we like their chances.
Metalex’s stock symbol is MTX and the shares trade on the Toronto Stock Exchange Venture Market. Their website is http://www.metalexventures.com. Their website contains past news releases and additional information to do your own due diligence.
Shear Minerals
Shear has been featured in the first two editions of our report on Canadian Diamond Exploration. The company’s stock price has been through a tough period since we featured the company and is currently trading less than it was when those two previous editions went out. However, we are undeterred in our conviction that Shear is onto something big, and although they have hit a rough patch, we strongly believe that the worst is over. As we indicated in our previous editions we are a shareholder of the company at higher prices and are using these lower valuations to purchase more and bring down our average purchase price.
We are not going into great detail about the merits of this project because we have covered that in our past editions. For new readers that would like to receive those earlier reports please feel free to contact us.
Shear Minerals has a lot in common with Stornoway, a company we are featuring later in this report, besides their joint venture partnership on this project. Shear also has a large land package, in a prospective area. They have found significantly more kimberlites on their project but to date they have not found a kimberlite that has the same kind of grades as Stornoway has found. As we will mention when discussing Stornoway the first job a company with a huge claim block has is to weed out the less prospective ground and focus on the most promising areas on their claim. Shear is well on its way in this process. We feel that they are narrowing the search and are on the verge of new discoveries that could lead the company to having a much larger market value.
In our previous reports, we have mentioned that kimberlites are found in clusters. The world average is around 20 kimberlites per cluster but some fields can contain over 100. In our opinion, Shear is onto one of these 100 kimberlite type fields – they have found around 40 kimberlites so far. A major issue when looking at these large fields is that a lot of the kimberlites will be barren, a small percentage will be diamond bearing, and a few have the potential to be diamond bearing to the point of having enough diamonds to turn into a diamond mine. In a large field the trick is to find the key kimberlites, and Shear is using some of the new techniques that have been discussed in papers delivered at the past International Kimberlite Conferences that we spoke about in our second edition. The big question is will their best kimberlites be the 100th one found or the 41st? The answer remains to be seen. We do believe that the company is narrowing the search and the upcoming field season that begins in April will be a very interesting time for the company.
Shear’s stock symbol is SRM and the shares trade on the Toronto Stock Exchange Venture Market. Their website is http://www.shearminerals.com. On their website you can find past news releases and additional information to do your own due diligence.
Snowfield Development Corp.
Snowfield was first featured in our premier edition of this report on Canadian Diamond Exploration in August 2005. The main focus of the company is the Ticho Diamond Project that is 25 miles outside of Yellowknife along the shoreline of Great Slave Lake. We are a shareholder and consultant to the company and will be increasing our shareholdings in the future.
One of the major issues that make this project exciting is its close proximity to Yellowknife. Yellowknife is a hub for Canadian diamond exploration and the Ticho Diamond Project is in close proximity to the infrastructure of Yellowknife and a vast amount of technical people and companies with lots of experience in diamond exploration. For a diamond explorer practically everything you need is in Yellowknife, only 25 miles from Snowfields project.
This close proximity to Yellowknife is important for several reasons, the first of which we just mentioned. Another very important factor is that the exploration season for this area is much longer than practically every place else in Canada that is being explored for diamonds. In the winter the project can be accessed by a 40-minute drive along an ice highway from Yellowknife on Great Slave Lake that leads right to Snowfields exploration camp. In the summer time when the ice is off the lake access is by boat that takes a little longer but is still very easy to get to the exploration camp.
These benefits reduce the cost of exploration dramatically and they will also have an impact on the economics of developing a mine if there is a mine able diamond deposit present. The biggest impact is on how big a diamond deposit needs to be found. Take for example the Diavik Diamond Mine. To bring that deposit into production required building a mine with a price tag over one billion dollars. They had to find a diamond deposit that was worth several billion dollars to justify spending that kind of money. In the area where the Ticho Project is located the cost of developing a mine would be much less expensive, therefore the company would not have to find a multi-billion dollar diamond deposit although that potential is present.
The main reason we feel the company is onto something big is because of the unique diamond indicator minerals that have been found in the drill core from the one kimberlite that has been found on the property to date. The next step is to test the kimberlite for the presence of diamonds. That process is underway and we will find out more about this potential shortly. Based on the unique suite of indicator minerals that have been found in the drill core from this project, and the fact that some of these diamond indicators are known to exist only in diamond bearing kimberlite, we feel the upcoming testing has very good potential of finding diamonds.
Another important fact to be aware of is that there has only been two kimberlites found in this area to date. One of those kimberlites is the diamond bearing Drybones Bay pipe that New Shoshone Ventures is developing and the other is the Mud Lake kimberlite that Snowfield is developing. There is no kimberlite cluster in the world that only has two kimberlites present so there is a strong argument to be made that there are still more kimberlites to be found in this area.
The cold season has been slow to arrive in the Yellowknife area this winter but that time is upon us now. This time of the year is the cheapest and most cost effective time to work. We expect to see news on diamond testing from the Mud Lake kimberlite and additional drilling to look for more kimberlites to be underway shortly and a steady flow of news in the near term.
Snowfield’s stock symbol is SNO and the shares trade on the Toronto Stock Exchange Venture Market. Their website is http://www.snowfield.com. Their website contains past news releases and additional information to do your own due diligence.
Stornoway Diamond Corp.
We have followed Stornoway for several years because of their discovery of diamond bearing kimberlite in Northern Canada and the quality of the management of the company. Eira Thomas leads the company and has surrounded herself with a very accomplished team of diamond explorers. Due to some recent news coming out of the company from work done in last year’s field season we have purchased shares in the company. They have a busy schedule ahead with results still pending from work already completed and an aggressive work campaign coming up in the next couple months.
Almost everybody who invests in Canadian diamond stocks has heard of Eira Thomas. For our readers that don't know about her background, Eira was significantly involved in the early days of the Canadian diamond scene. Her father Grenville Thomas was running a tiny company named Aber Diamonds when the first diamond discoveries where being made. Aber was featured in the first edition of our report on Canadian Diamond Exploration in August of 2005. When we spoke about Aber we used it as a model of the kinds of companies we look to invest in that will hopefully turn into a huge winner like Aber. As we discussed in that edition, Aber started as a junior penny stock that is now a major player in the global diamond business.
Eira went to work for her father fresh out of university and was part of the team that discovered the Diavik diamond mine. Aber's 40% interest in that mine helped turn the company into a major player in the diamond industry. Several years passed as Aber was growing into the company they are now, and Eira still very young and having been bitten by the treasure-hunting bug, she started a new company called Stornoway Diamonds that has a very exciting project called the Aviat diamond project in Northern Canada.
Before discussing the technical aspects of the Aviat project we feel it is important to discuss the team that is running this company. The two key figureheads are Eira Thomas and Catherine Macleod-Seltzer. As we mentioned earlier Eira is a very well known figure in the Canadian Diamond Exploration scene. Catherine Macleod-Seltzer is another very well known figure in the metals exploration scene. We have a sister publication called the Allan Barry Report on Precious and Base Metal Exploration, and in that report we have featured two companies that Catherine is involved with. For readers that are interested in that report, our contact information is in the closing section of this report, and we would be more than happy to send you a copy of the reports featuring her companies. Together these two women make a very formidable team. As we mentioned earlier in this report we focus on companies that have had excellent drilling results primarily because no matter how good the people are that are running a company they can't make something appear if it is not there, but in this case this excellent team has found something that we think is outstanding.
A few years ago Stornoway acquired a very large land package of several million acres. Normally we feel that a huge land package can be as much trouble as it can be an asset. What we mean by that is that the vast majority of a huge land package is going to be worthless ground and a small portion will be the exciting part. The main trick is to eliminate the worthless ground and focus on the most prospective ground. This process can take a lot of money to sort out. Fortunately for Stornoway shareholders, the company has a large amount of cash in the bank and a technical team capable of effectively finding the key ground. The first couple years of work on this project were really the weeding out of the weaker ground and trying to focus in on the most promising ground. We feel that they are now at the point of zeroing in on the key target areas on their large land package.
During this weeding out process they have been able to focus on some very exciting areas that are now paying dividends. In the last couple months they have released excellent results from drill testing some of the kimberlites they have identified. In the last few weeks they have also announced a schedule of when pending results will be released over the next few months. The first batch of results is scheduled to come out around the middle of January followed by additional results in the first quarter of 2006.
Basically what they have is a large land package in a prospective area, where they have found kimberlites with very exciting diamond counts. This area affords the company the opportunity to find an entire kimberlite field. As we have mentioned in our previous reports, kimberlites are always found in clusters. The world average of kimberlites per cluster is around 20. Some of these fields can host over 100 kimberlites so based on that the potential of finding a lot more kimberlites on this property is outstanding.
It is one thing to find several kimberlites, it is an entirely different thing to find a cluster of kimberlites with the potential of finding enough diamonds to turn that find into a diamond mine. We feel that based on the diamonds found to date and the diamond indicator minerals from this area that there is a very strong argument to be made that Stornoway is on its way to finding a major diamond deposit.
Another important aspect is that the company is also a joint venture partner of Shear Minerals. We have featured Shear in our first two editions of this report and again earlier in this report.
With the interest that Stornoway has in their Aviat Project and their interest in the joint venture on Shear Minerals project we feel that Stornoway has the assets to be a major force on the Canadian Diamond scene. With the upcoming work on these two projects we feel that Stornoway has a very busy period upcoming that could help them emerge into a company that could grow into another Aber type success story. We feel very strongly that 2006 will be a breakthrough year for the company.
Stornoway’s stock symbol is SWY and the shares trade on the Toronto Stock Exchange. Their website is http://www.stornowaydiamonds.com. Their website contains past news releases and additional information to do your own due diligence.
WHAT MAKES THE ALLAN BARRY REPORT UNIQUE
For the last 12 years, the editor of this report has had a career as a consultant to publicly traded junior exploration companies. Services provided to these companies include investor relations, corporate communications, strategic planning, and fund-raising.
As an investor relations consultant to small companies one has to wear several hats:
* communicating the company’s efforts to the investing community;
* communicating technical aspects of those efforts;
* being involved in raising funds for drilling and exploration;
* being involved in the technical analysis;
* and reporting of what has been found.
These efforts have provided a unique opportunity to learn, from an insider’s perspective, the challenges that junior exploration companies face. Additionally it has opened doors to meeting a very accomplished group of technical people.
Spending this time as a consultant to junior exploration companies has provided a unique perspective that is an asset few analysts or newsletter writers possess.
IN CLOSING
We would like to take this opportunity to thank you for taking the time to read this report. We hope this information proves to be informative and helpful. We ask the reader not to post this report on any website for at least three days after you receive it and that if it is posted to post the entire report without any editing. We invite our readers to pass on our contact information to anybody they feel may be interested in receiving this report or future reports and we would be glad to add them to our email list for future publications.
There is no charge for this publication. In order to be added to our email list we need your name, phone number and email address. You can call us on our toll free number at 1-877-574-4575 or locally at 604-574-4575 or email allanbl@shaw.ca with the above information.
Regards,
Allan Barry Laboucan,
Editor
Allan Barry Reports
Disclaimer: The information included in this Allan Barry Report on Canadian Diamond Exploration, is for information purposes only. No statement or expression of opinion, or any other matters herein, directly or indirectly, is an offer, solicitation or recommendation to buy or sell any securities mentioned. The information contained in this e-mail is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in providing it does the editor Allan Barry Laboucan or his companies, or affiliated companies, assume any liability. We do not receive or request compensation in any form in order to feature companies mentioned herein. The editor may have equity positions in companies referenced in this newsletter, or plans on taking a position, or offers consulting services to these companies and will notify the reader of these positions or services provided to the company in the section of the report on each individual company. The editor his personal company or affiliated companies, disclaims all responsibility and accepts no liability (including negligence) for the consequences for any person acting, or refraining from acting, on the information provided in this publication.
another read and couple more? i should have shared them before but didn't know if it was okay ? i'm more of a quieter investor
ALLAN BARRY REPORT
ON PRECIOUS AND BASE METAL EXPLORATION
5TH EDITION
February 7/2006
Welcome to the 5th edition of our report on Precious and Base Metals Exploration. In our past four editions we have covered a wide range of subjects, including our view of the last ten years and how it affects us now and into the future. We also discussed our outlook for metals prices on gold, copper and silver. We have described the key fundamentals that we look for when evaluating an exploration company for inclusion in our reports. In our 4th edition we added a new section to our report called “Our Report Card”; in this section we listed all the companies that we have featured in our past reports and how they have performed. As we are publishing these reports the style is evolving; as we find ways to improve our report we include them. Some of these changes have come about from feedback from our readers which we truly appreciate - keep them coming!
In this edition we will give our overview of the main points we follow when looking at the metals mining market in general. Specifically, our main view is that supply and demand are the most important factors when it comes to the price of commodities going forward.
In order to confidently invest in companies in the metals mining business, a comfort level based on understanding the movement of metals prices is a great asset. We don’t try to time the short term spikes and pull backs in prices. We are more interested in understanding the long term trend and we feel that a clear and accurate view is an asset to investing in companies in the metals industry.
We feel that we are in the early stages of a multi-year bull market for commodities in general. We follow the metals exploration business because we feel it is a profitable way to benefit from the powerful economic growth in China and India. Of course, there are other ways to invest in this growth; for example, the commodities futures market is another option. We feel our report is a good resource for investors in metals futures and the companies that produce those metals.
If you are interested in companies in the mining business that explore for new metals deposits, we follow a group of companies that are well positioned for significant future growth. For investors who invest in the commodities futures market (specifically precious and base metals) we feel it is imperative to understand what is happening with the industry that produces those metals.
Our upcoming section will concentrate on supply and demand for metals. Following that, we will specify how we feel an investor can use that information to help increase investment returns. The subsequent section will introduce some new companies we are adding to our list of “Favourite Treasure Hunters”. We will also re-visit some companies that have been featured in previous reports. Our final section is “Our Report Card” in which we have a couple of changes – one of those being that we will use that section to give brief updates and outlooks on all the companies we follow.
Demand
When we discuss demand in this report we are mainly discussing the demand for metals, although we do feel that the driver of demand for metals plays an equally important role in commodities in general.
In our opinion China and India are playing an increasingly important role in the demand for metals. In fact, their increased activities constitute the main driver of demand for metals. We feel where economic growth in China and India goes, so goes the demand for metals. Of course the economies of many other countries play a significant role, but the economies of China and India have been, and will continue to be, where the most aggressive demand is coming from. That demand is overwhelming global supply and this is why metals prices are so powerful.
We continue to follow economic signs on the growth of China and India as clues to future demand. Recently China reported their economic growth for 2005 was 9.9% and this is all the evidence we need to feel comfortable that their growth continues very strongly. For the year ahead it looks like it will continue. Throughout the year we will continue to follow economic reports to get a comfort level as to whether or not they will continue to grow; however we would not be too concerned if the growth slowed by half its current rate. Especially if the supply chain for metals continues in its current direction.
The economic landscape of the world is changing very rapidly. China is now in the top 5 economies in the world and is quickly on its way to number one. We think that not only will China be the largest economy in the world in the next 10 to 15 years; we feel that within 25 years, China’s economy will be much larger than the USA’s.
Supply
The global supply chain of metals was significantly damaged during the time of dismal low metals prices in the 1990’s. The impact will continue for many years into the future. New discoveries take years to be put into production so the industry is unable to easily add supply. Economists have been taught that when prices go up aggressively, new production comes online and feeds that demand; you are then supposed to see a correction in prices.
There are factors that have come into play in the not too distant past that are throwing cold water on that analysis. One of those factors is the need for a highly trained workforce in the industry; the 1990’s are referred to as the lost generation in the mining business. What that means is because of the low metal prices there were fewer and fewer jobs available in the mining business. As the job market worsened, fewer students entered university to study geology. As a result, companies are having a hard time finding highly trained people now that metals prices are much higher.
Not only do mining companies have difficulty finding workers, their difficulties are compounded by the fact that they are also seeing higher prices for the commodities they need to mine metals.
Technology is another major factor in adding new supply to replace mined out deposits. The technological advancement the industry seen in the 1980’s and 1990’s helped companies find a lot of major deposits. In the industry we say that much of the “low hanging fruit” has been picked. In other words, what was easy to find has been found and is being mined and the reserves in those mines are rapidly being depleted.
These three factors of: 1.) a tight market for highly trained workers, 2.) rising costs for commodities needed to mine metals, 3.) the low hanging fruit having been picked; combined give us the confidence to voice our opinion that global supply is weak and not getting stronger for at least the next few years.
The Supply and Demand Story
If we had a soft supply of metals and a weak demand we would not be in a bull market. Conversely, if we had strong demand and strong supply we would also not be in a bull market. What we currently have is soft supply and strong demand and in our opinion neither of those is changing any time soon.
The combination of strong demand and weak supply equals higher prices. Until we see supply increase significantly or demand slow, we maintain our bullish outlook. In our fourth edition we gave our outlook for metals prices going forward and we will mention those calls in the “Our Report Card” section.
The US Dollar a big influence on metals prices
The US Dollar plays a major role in the prices of commodities but we think the dollar is near to changing its costume. Commodities are priced and traded using the US dollar. Generally speaking, when the US dollar is strong, commodities go in the opposite direction. And when the dollar is weak, commodity prices are stronger. This link has been broken in the last year. During the last year the price of several metals has been going up while the US dollar has also been going up. We feel this is a very bullish sign for metals prices; it is now more closely following the supply and demand story we just presented.
Another important development we are following is the interest rates in the USA. We feel the dollar has been propped up in the last year because of 14 consecutive Federal Reserve interest rate increases. Around 8 or 9 months ago, Warren Buffet made a large investment shorting the dollar. That move has gone against him but we feel he was just a little early as value investors can be; ultimately we feel his reasoning was sound.
Comments he has made in the press about runaway deficits and national debt is an indicator of fundamental weakness for the dollar and the main reasons behind his bearish outlook on the dollar. We feel what threw off his timing were the non-stop Federal Reserve interest rate increases. Short term currency traders play interest rate moves and the fed’s moves have been propping up the dollar. We feel that the fed has to stop raising rates in the next couple meetings, and when they stop, the dollar has a lot more downside risk than upside potential. The reason we feel they have to stop is because it usually takes up to a year for a rate hike to start showing up in the economic numbers; they have done 14 in a row without allowing the dust to settle. This aggressive action will test the economy and if there are many more could drive the USA’s economy into a recession.
Fortunately for metals and the global economy in general, an American economic slowdown will no longer have as big an impact on global economic growth because China and India are adding to the global economy in a big way. We don’t feel at this time the USA’s economy is headed toward a big economic slowdown but it will be challenged by all these interest rate increases and deficit and national debt issues. We do feel a weakening of the dollar is close at hand and the dollar will be in for tougher times when the fed stops raising interest rates. A softening dollar will add fuel to the fire of the upward move on metals prices.
SOME OF OUR FAVORITE TREASURE HUNTERS
This section of the report is dedicated to discussing companies that we feel have quality projects that offer significant potential to grow into companies with higher market values.
We are shareholders of all the companies included in this section. We believe strongly in the age-old adage about eating our own cooking. At times we offer our consulting services to companies we own shares in. We are only interested in offering those services to companies we first and foremost want to be shareholders of, as well as being able to provide services that will assist the company in unlocking value to the shareholders.
At the beginning of the discussion of each company we will indicate if we are a consultant to the company; as previously mentioned we are shareholders of all the companies listed below. We also advise readers to look at our disclaimer at the end of this report. The following companies are listed alphabetically.
Abacus Minerals
Abacus has been featured in three previous editions of our report. The main reason they continue to be featured so regularly is because they keep making significant developments that we feel merit updating our readers. We are a shareholder and a consultant to the company. We are also considering increasing our shareholdings in the near future.
As we were writing the fourth edition of our report, the company was reporting outstanding results from the company’s Ajax project. This is a new discovery found under a past producing deposit that upon deeper drilling has uncovered a very impressive new discovery.
The Ajax project adds a very nice surprise to the group of projects in the area. The DM/Audra and Rainbow zones are early stage discoveries that we spoke about in our previous reports on Abacus. The new discovery is under the old Ajax pit that Teck Cominco mined out in the past. Deeper drilling, uncovered very long drill-hole intersections with excellent grades in all the holes. Now the company has three targets that will be seeing aggressive drill programs.
Recently the company announced, and is in the process of completing, a financing for $12 million. These funds will put in place the financing to pay the costs of the mining assets Abacus is buying from Teck Cominco. The financing is being placed with a group of mutual funds. With these shares, and the shares Teck Cominco will be receiving in the deal with Abacus, will leave close to half the stock in the hands of institutional shareholders. Additionally, these funds will allow the company to aggressively drill the three known discoveries on the project.
When this financing is completed Abacus will restart drilling, and will focus on the Ajax discovery. So far there have been 4 holes drilled into the Ajax discovery and the first hole intersected around 358 meters of ½ percent copper per tonne. These kind of thick intersections make an exploration company’s life a lot easier, because you don’t have to do a lot of step-out drilling to quickly have a very large deposit. The next three holes also intersected thick intersections of copper. All of the drill holes are open at depth and leave the deposit open in all directions.
In addition to drilling aggressively on the Ajax discovery, the company will be drilling the Rainbow zone. This discovery has big potential ramifications as well because it is just off the haul road that links the Afton mining assets and the Ajax pit. It would be a natural to have this zone in any future mining plans.
As you can see, Abacus has been very busy these last six months and that is why they have been featured in several editions of this report. 2006 is shaping up to continue this aggressive pace of major accomplishments.
Abacus’s stock symbol is AME and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.amemining.com. Their website contains past news releases and additional information to do your own due diligence.
Atna Resources
This is the second edition we have featured Atna; they were also featured in our fourth edition on January 19, 2006. They have a project that is catching the attention of many investors and technical people that know the area well. We are a shareholder of this company and are looking to increase our position on any pullbacks in the share price, although we don’t think it will see any major pullbacks and has plenty of blue sky ahead.
As we have discussed in past editions of our report, Nevada is one of the most important gold mining regions in the world. Many million ounce deposits have been mined and new ones are still being found that will ensure that Nevada continues to be one of the world’s largest producers of gold. Some of those past deposits have launched several companies into major mining companies. None more so than Barrick Gold which is in the process of taking over Placer Dome that will turn Barrick into the largest gold mining company in the world. Barrick began its corporate life as a tiny little junior that had spectacular success because of the mines they found and brought into production in Nevada. These mines are low cost producers and large so they have long mine lives and are very profitable.
Atna is quickly becoming another company that could be launched into being a much larger company because of their drilling success in Nevada. They have a new discovery that they are developing that is highlighted by very significant intersections of high grade gold. One of those drill holes was around 150 feet of around 1 ounce per ton gold. Similar grades and significant intersections in other drill holes indicate this project has a potential multi-million ounce gold target.
A multi-million ounce gold target in Nevada will catch the attention of every major gold mining company in the world. It has caught our attention and we think the company will have an exciting year ahead. Investors big and small are paying attention and we think Atna is primed to see their market value increase dramatically in 2006.
Atna’s stock symbol is ATN and the shares trade on the Toronto Stock Exchange. Their website is www.atna.com. Their website contains past news releases and additional information to do your own due diligence.
Bear Creek Mining
This is the third time we have featured Bear Creek Mining in our report. As we were writing our fourth edition, a development was taking place but due to deadlines we couldn’t do justice to the story so we will cover it in this edition. We are a shareholder of Bear Creek and are considering increasing our shareholdings in the future.
Last month the company reported that they had been informed by the lab that was doing their metallurgical tests that the lab had made an error. This error caused the lab to miscalculate the recovery rates of the metals in the rock. Upon this announcement, the market reacted quickly and drove the price down around 25% in one day of trading. We feel this was an overreaction and at the end of the day was not nearly that meaningful. One must understand that metallurgical analysis and refinement starts before a deposit goes into production and continues throughout the life of a mine. A mining company is always trying to maximize their recovery rates. So the reaction of this very preliminary metallurgical testing is an exaggerated reaction to something that is not that fundamentally important.
Since that big sell-off the company has regained most of the market value it lost, mainly because investors realized that the deposit hasn’t gone anywhere. The metals in the ground remain in the ground. The company has also continued to release excellent results from their drilling. This drilling is continuing to expand the size of the known discovery. As well, they have also found new zones that are hosting gold.
There are lessons that one can learn from this action and response. First, if you understand fundamentally what the company is doing, you would most likely have not reacted in a panic. Hopefully some of our readers realized it was an overreaction and took advantage of the stock being on sale.
The bottom line is that this company has a very impressive silver project, in a time when quality silver discoveries are not easy to find and when the price of silver is in a bullish trading pattern.
We look forward to watching the drilling continue to increase the size of this discovery, and we are now seeing results from gold targets that are showing encouraging signs. In the long run this kind of silver deposit will be under heavy demand and if it continues to grow it would be a deposit more than one major would like to get their hands on.
Bear Creek’s stock symbol is BCM and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.bearcreekmining.com. On their website you can find past news releases and additional information to do your own due diligence.
International PBX
This is the second time we have featured International PBX, the first being our 4th edition of our report when we gave our opinion about the key projects the company has in Chile. Since that edition there have been a couple of announcements that we would like to comment on. We are a shareholder and consultant to the company and are considering increasing our shareholdings in the near future.
When we introduced the company to our readers we described the three key projects including Copaquire, Tabaco and Tierra De Oro and what we thought of these projects. It is basically the quality of these three projects that attracted us to the company. It is our opinion that based on these projects, the company is undervalued. We felt that we could help the company unlock this value and this is why we joined the team as a consultant.
Since the 4th edition of this report was issued, the company has secured one financing raising $2 million and is now in the final stages of closing another financing of $2 million. This will fill the treasury so the company can plan a large program to drill test all three of these projects.
It is our opinion that any one of these projects could be a company maker on its own and collectively they are a valuable group of projects. It would not be a surprise to see the company spin-off these projects into three separate companies. As a shareholder we would be very happy with this because it would give us shares in three companies and those three projects could be attractive on their own. Obviously it would be advantageous to put some drill holes into all three projects and if good results come from all three it would be a brilliant move to split the company into three.
Now that the company has completed one financing and is doing another to put together funding for exploration costs, we look forward to the next step of using this money to drill the three projects. Plans are in the works to for this upcoming drilling and we think the drilling will be underway shortly… stay tuned. We will keep you updated as events unfold.
International PBX’s stock symbol is PBX and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.internationalpbx.com. Their website contains past news releases and additional information to do your own due diligence.
Redstar Gold Corp.
Redstar has been featured in three of our past editions of this report. The reason they have been featured regularly is because they have had developments that we feel warrant updating our readers. We are a shareholder and consultant to the company and intend to increase our shareholdings in the future.
In the past editions we have discussed Redstar’s exploration project in Red Lake, Ontario. Recently the company has completed a $600,000.00 financing. Some of these funds will be used to do a second phase of drilling on the Red Lake project. Some of the funds from this recent financing will also be used to add high quality projects in Nevada using the geological database developed by Anglo-Ashanti.
Redstar has two projects in Nevada that were acquired based on the Anglo database. The company has also added Jake Margolis to the team. He was formally with Anglo and was very involved in the development of the database. He brings a wealth of knowledge about gold exploration and mining in Nevada and, obviously, a strong understanding of the database. He will help the company by leading the team on drilling and acquisition of new projects. A great number of junior gold companies would like to have quality projects in Nevada. Jake’s past experience gives Redstar a tremendous advantage by being able to develop quality projects in Nevada.
Recently, Redstar announced the joint venturing of two of their projects in Nevada with Strategic Merchant Bancorp. We will be featuring Strategic next in this section of the report and will discuss why we think this is a winning relationship for both companies.
In the near future, Redstar will be getting their follow-up drilling on Red Lake project underway and we look forward to drill results. Stay tuned – it looks like the pace of developments is going to gain speed.
Redstar’s stock symbol is RGC and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.redstargold.com. On their website you can find past news releases and additional information to do your own due diligence.
Strategic Merchant Bancorp.
As we mentioned earlier, Strategic has recently formed a joint venture with one of our Favourite Treasure Hunters, Redstar Gold Corp., on two of Redstar’s projects in Nevada. We have recently become a shareholder and a consultant to the company.
Strategic is going through a new phase in its corporate life and is in the process of turning from a shell with not a lot going on into a Nevada gold exploration company. What it brings to the table is a stock that has less than 12 million shares fully diluted, and the ability to raise funds to drill these projects aggressively.
For Redstar it offers the opportunity of having the projects in Nevada drilled without having to finance the costs. It puts the company in the position of being able to focus its funding efforts on financing the company’s 100% project in Red Lake, Ontario. Strategic gets access to excellent exploration projects in Nevada, with a very competent team of technical people that will be running the drilling programs.
The first joint venture project that was announced is the Dry Gulch project that is located in the Carlin trend where millions of ounces of gold have been produced, with much more gold in the ground for future production. This project was acquired due to a geophysical target that is similar to known gold deposits in close proximity.
The second project is the Pine Nut project that is located in western Nevada. This project has a vein system that can be traced by surface exposures for at least 6,200 feet. In certain parts of this system, values over 1 ounce per ton gold has been found but lower grades are more common. In the past, 36 holes have been drilled on this project – most recently by Anglogold in 2000. It is believed that this past drilling did not thoroughly test the high-grade potential. This argument is reasonable because it has only seen 36 holes drilled into a large system; further drilling will test if this theory makes sense.
In the near term we are looking to Strategic to do a financing for drilling these projects. Following the financing efforts we look forward to seeing these projects aggressively drilled.
Strategic’s stock symbol is SMB and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.strategicmerchantbancorp.com. On their website you can find past news releases and additional information to do your own due diligence.
OUR REPORT CARD
We are not big fans of shameless self-promotion; we feel there is enough of that in the investment world. We are much more interested in allowing our research and results of the companies we feature in our reports to speak for themselves. To make it easier for our readers to analyze our past performance we have added this section entitled "Our Report Card".
We are changing the format of this section; after we indicate the dates of past reports featuring the company and the share price at the time and the current share price, we will follow that with updates since the last time the company was featured, if applicable.
Before going on we would like to remind our readers of something we have all heard before, past performance is not always an accurate indicator of future returns. We are adding this section to make it easier for our readers and ourselves to quickly look at the past and what has transpired.
Good as Gold
* Date of report on price of gold November 01, 2005
* Price of gold on that date $460.60 USD per ounce
* Outlook in that report: bullish
* Call in that report 10-30% upside move
* Current Price of gold $551.60 USD per ounce
The price of gold is at the price we projected it would be when we issued the call in the November edition of our report. Our basic argument was that the low prices seen in the last ten years have slowed the supply of gold being produced annually. For several years now the demand has been very strong led by buying from China and India. We have gone over the 10% rise and are moving toward a 30% rise. In that report we based the 30% rise on a couple “ifs”; we are now comfortable taking those “ifs” out of the equation. We feel that the US Dollar has been propped up for more than a year because of Federal Reserve tightening of interest rates. That tightening cycle is coming to an end, and with the out-of-control US deficit and the dramatic increase in US national debt, we feel that the USD is in for a rough ride. Gold is quoted and traded in US Dollars and if the dollar is dropping, gold is rising against that move. Until we see one of two things happen: either supply picks up or demand slows down, we maintain a bullish outlook. We are now comfortable in making a call for gold to trade between $600.00 and $650.00 by the end of 2006.
A Silver Lining
* Date of report on price of silver November 01, 2005
* Price of silver on that date $7.47 USD per ounce
* Outlook in that report: bullish
* Call in that report 50-100% upside move
* Current Price of silver $9.40 USD per ounce
The price of silver is close to the 50% gain we called for in our November Edition. Our basic argument is in line with what we just mentioned regarding gold. We feel that the fundamentals of supply and demand are even more bullish for silver than gold and felt then that silver would outperform gold on a percentage basis. We maintain our bullish outlook for the price of silver going forward. We are now comfortable making a call for silver to trade between $10.00 and $15.00 by the end of 2006.
A Copper penny for your thoughts
* Date of report on price of copper November 01, 2005
* Price of copper on that date $1.83 USD per pound
* Outlook in that report: bullish
* Call in that report for a move to around $2.10 per pound
* Current Price of copper $2.29 USD per pound
The price of copper has now reached our price projection. The basic argument for our bullish stance is the same as for gold, silver and commodities in general – strong demand from China and India and weak supply equals higher prices. That outlook is still the same and we think that until major supply comes online that the price of copper will continue to trade very strongly. We feel it is reasonable to see a move to the $2.50+ range by the end of 2006.
Past performance of our Favorite Treasure Hunters
Abacus Mining and Exploration
* First featured in Sept.19 2005 edition
* Price on that date $0.25 CDN
* Second feature in Dec.07 2005 edition
* Price on that date $0.36 CDN
* Third feature in Jan.16 2006 edition
* Price on that date $0.75 CDN
* Current price $0.96 CDN
We have presented our current update previously in the report so no need repeating here. We are a shareholder and consultant to the company.
Atna Resources
* Fist featured in Jan.16 2006 Edition
* Price on that date $2.17 CDN
* Current price $2.02
We have presented our current update previously in the report so no need repeating here. We are a shareholder of the company.
Bear Creek Mining
* First featured in Sept.19 2005 edition
* Price on that date $2.96 CDN
* Second feature in Nov.1 2005 edition
* Price on that date $3.20 CDN
* Current price $4.17 CDN
We have presented our current update previously in the report so no need repeating here. We are a shareholder of the company.
Exall Resources
* Featured in Dec.07 2005 edition
* Price on that date $1.34 CDN
* Current price $1.51 CDN
Since we featured the company, they have recently announced that they are starting up their drilling again as of Jan.17, 2006. They also indicated that they expect to have a third drill rig on the property shortly and are currently sourcing 3 more drill rigs. It is apparent that they are pretty serious about aggressively drilling this new discovery. We are very positive about the potential of this drilling and look forward to the upcoming results. We are a shareholder of the company.
International PBX
* Featured in Jan.16 2006 edition
* Price on that date $0.59 CDN
* Current price$0.61 CDN
We have presented our current update previously in the report so no need repeating here. We are a shareholder and consultant to the company.
Mountain Boy Minerals
* Featured in Sept. 19 2005 edition
* Price on that date $0.71 CDN
* Current price $0.64 CDN
Since we featured the company, they released all the drilling results from drilling done late in 2005. Since then, they have had to wait until the next drilling season begins, which is getting close. The stock has been hibernating during the winter with no drilling. We look forward to drilling to further test their new discovery and we think things will pick up for the market value of the company once their drilling is underway. We are a shareholder of the company.
Niblack Mining
* Featured in Dec. 07 2005 edition
* Price on that date $0.345 CDN
* Current price $0.75CDN
Niblack started trading in November 2005 and in its short life has had a very impressive group of developments. Those developments include drilling on the Niblack discovery that returned grades and intersections consistent with past drilling in the 1990’s. Recently they announced a $4 million financing. These funds will be used to aggressively drill this discovery. We are a shareholder and consultant to the company.
Peru Copper
* First featured in Nov.01 2005 edition
* Price on that date $2.00 CDN
* Second feature in Dec. 07 2005 edition
* Price on that date $3.45 CDN
* Current price $3.98 CDN
Peru Copper is currently doing a feasibility study on their massive copper and molybdenum deposit in Peru. They have also engaged a large investment bank to look at strategic opportunities. We are looking forward to developments on both those fronts. The bottom line is we feel that this company has one of the most undervalued copper molybdenum projects in the world. We are a shareholder of the company.
Redstar Goldcorp.
* First featured in Nov.01 2005 edition
* Price on that date $0.12 CDN
* Second feature in Dec. 07 2005 edition
* Price on that date $0.10 CDN
* Current price $0.25 CDN
We have presented our current update previously in the report so no need repeating here. We are a shareholder and consultant to the company.
Skygold Ventures
* First featured in Sept. 19 2005 edition
* Price on that date $0.65 CDN
* Second feature in Nov.01 2005 edition
* Price on that date $0.55 CDN
* Current price $1.33 CDN
Since we last featured the company they have continued to announce excellent drill hole results highlighted by intersections that are strongly suggesting a large tonnage deposit. The company has more drill results pending and a very aggressive amount of drilling on this exciting gold discovery. We are a shareholder of the company.
Wolfden Mining
· First featured in Jan.16 2006 edition
· Price of that date $3.77 CDN
· Current price $3.95 CDN
This company has two key projects that they will be drilling aggressively this year. They have already found two very impressive gold discoveries and one of those is in the Red Lake area of Ontario. We look forward to further drilling to expand the size of these deposits. We feel that as they continue to expand the size of their discoveries, the market value will reflect that and participate in further bullish moves on the price of gold.
Overall Report Card on Metals and Our Favorite Treasure Hunters
Again we would like to add that the numbers and returns are only for comparison purposes. We are not giving investment advice or recommending these stocks for buying or selling, we advise our readers to read the disclaimer at the end of this report.
We think the fairest way to evaluate the past performance of the companies featured in our past reports is to use an equal dollar amount invested in each company on the date they were featured. Again, we advise our readers to remember that past performance is not always an accurate indicator of future returns.
Having said that, the group of companies we have featured has above average performance and we are comfortable having readers compare our results to other newsletter writers and analysts.
We also believe that the performance is a good indicator that our philosophy of picking companies makes sense. We will continue to search out and report companies that have quality projects and people with reasonable to undervalued market values and the potential of their market values increasing.
We are not going to give ourselves a grade until we have published this report for at least a year. We also think that we would give ourselves a lower grade than most of our readers would, simply because our performance is based on less than six months of publishing this report. We believe that the highest marks go to analysts and newsletter writers who are able to have above average returns for several years.
WHAT MAKES THE ALLAN BARRY REPORT UNIQUE
For the last 12 years, the editor of this report has had a career as a consultant to publicly traded junior exploration companies. Services provided to these companies include investor relations, corporate communications, strategic planning, and fund-raising.
As an investor relations consultant to small companies, one has to wear several hats:
* communicating the company’s efforts to the investing community;
* communicating technical aspects of those efforts;
* being involved in raising funds for drilling and exploration;
* being involved in the technical analysis;
* and reporting of what has been found.
These efforts have provided a unique opportunity to learn, from an insider’s perspective, the challenges that junior exploration companies face. Additionally it has opened doors to meeting a very accomplished group of technical people.
Spending this time as a consultant to junior exploration companies has provided a unique perspective that is an asset few analysts or newsletter writers possess.
IN CLOSING
We would like to take this opportunity to thank you for taking the time to read this report. We hope this information proves to be informative and helpful. We ask the reader not to post this report on any website for at least three days after you receive it and that if it is posted to post the entire report without any editing. We invite our readers to pass on our contact information to anybody they feel may be interested in receiving this report or future reports and we would be glad to add them to our email list for future publications.
There is no charge for this publication. In order to be added to our email list we need your name, phone number and email address. You can call us on our toll free number at 1-877-574-4575 or locally at 604-574-4575 or email allanbl@shaw.ca with the above information.
Regards,
Allan Barry Laboucan,
Editor & Writer
Allan Barry Reports
Disclaimer: The information included in this Allan Barry Report on Precious and Base Metal Exploration is for information purposes only. No statement or expression of opinion, or any other matters herein, directly or indirectly, is an offer, solicitation or recommendation to buy or sell any securities mentioned. The information contained in this e-mail is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in providing it does the editor Allan Barry Laboucan or his companies, or affiliated companies, assume any liability. We do not receive or request compensation in any form in order to feature companies mentioned herein. The editor may have equity positions in companies referenced in this newsletter, or plans on taking a position, or offers consulting services to these companies and will notify the reader of these positions or services provided to the company in the section of the report on each individual company. The editor his personal company or affiliated companies, disclaims all responsibility and accepts no liability (including negligence) for the consequences for any person acting, or refraining from acting, on the information provided in this publication.
ALLAN BARRY REPORT ON
CANADIAN DIAMOND EXPLORATION
4th EDITION
February 28/2006
Welcome to the fourth edition of our report on Canadian Diamond Exploration. In our previous editions we have outlined our view of why we follow the Canadian Diamond industry so closely. We have also described the key tools used in the industry to explore for diamonds and what we look for when kimberlite is found. In this edition we will again feature all of the companies that we have featured in our past editions and their exploration efforts in the near term in the section entitled “Our Diamonds in the Rough”. Before the “Diamonds in the Rough” section there will be a discussion of our view of the industry in general.
Since our premier edition went out, we have received a number of email messages and phone calls from our readers. Thank you for your encouraging comments. As a new publication, we truly appreciate feedback from our readers and we feel this will help improve future reports - keep them coming!
The Canadian diamond mining industry in general
The Canadian diamond mining industry is currently going through growing pains; as a group, the diamond exploration companies are not performing very well. There are many more companies trading near multi-year low stock prices than there are trading at the high end of their ranges.
We don’t mention this to cause alarm amongst investors; in fact we feel it is a very bullish indicator. When the crowd thinks that an industry is not worth investing in, that is precisely the time when there is the least amount of risk and the potential for the largest percentage growth when that industry gains strength.
While it’s putting it mildly to say that diamond exploration stocks are currently out of favour, we are starting to see signs that the industry is beginning to improve. There are currently some companies starting to recover from multi-year lows. It’s starting to look like there is increased interest returning to the sector.
We think that there is a very good reason to look closely at diamond exploration companies. If a diamond exploration company is successful they can see large increases in their market value. This is due to the value of diamonds found in a kimberlite can be in the billions.
In the rough diamond market demand is very strong and supply (especially in stones larger than a half carat) is weak. For evidence of how strong the rough market is, one can look to De Beers’ record profits this year as an indicator. In fact in the last few years they have been consistently experiencing new record profits. Other mining companies involved in mining diamonds are also seeing their diamond divisions performing very well.
There are two important facts to keep in mind that the performance of the major diamond producers can teach us. One: they are reducing reserves and as they are doing this the group is unable to keep up with demand, especially in the larger stone sizes. And two: the majors that mine diamonds are flush with cash and are in need of new deposits to replace what is being mined out.
We feel that all of the companies we have featured in our past reports all meet our 4 key factors that we evaluate when considering featuring a company in our report. 1. They have quality projects based on drilling results and outstanding diamond indicator minerals found at their projects. 2. Key people with significant experience in diamond exploration. 3. Reasonable or, even better, undervalued market values. 4. The potential of their market value increasing.
Because all the companies we have featured in our past editions have the qualities we just described, we are going to feature all of the companies again in this edition. The next section is our “Our Diamonds In the Rough”.
Our Diamonds In The Rough
This section of the report is dedicated to discussing companies that we feel have quality projects that offer significant potential to grow into companies with higher market values.
We are either shareholders, or planning to become shareholders, of all of the companies included in this section. At times we offer our consulting services to companies we own shares in. We are only interested in offering those services to companies we first and foremost want to be shareholders of, as well as being able to provide service that will assist the company in unlocking value to the shareholders.
At the beginning of the discussion of each company we will indicate if we are a shareholder or a consultant to the company. We also advise readers to look at our disclaimer at the end of this report. The following companies are listed alphabetically.
Aber Diamond Corp.
Aber is one of our favourite companies in any industry. When looking at larger companies, the main driver of the stock valuation is profitability and Aber is a very profitable company with a very good earnings outlook for many years into the future. We are not a shareholder of Aber but feel that it has a very promising future with potential for above average market value growth.
We originally featured Aber in our first edition as a model for success for a junior diamond exploration company.
Their rise from humble beginnings as a junior exploration company followed by the discovery of what is now the Diavik diamond mine is a model for success for companies involved in diamond exploration. Having gone through all phases from discovery through to economic evaluation and now mining diamonds is a phenomenal success story.
Not only is Aber a diamond producer but recently they purchased a large interest in Harry Winston Jewelers, one of the world leaders in high end jewelry. This acquisition gives Aber a direct buyer of the rough diamonds they produce and also allows them to participate in the profits of retailing finished diamonds.
In our past edition we have described the process that happens after a diamond is mined from kimberlite (the primary rock that diamonds are found in), and then is passed through several hands. It can be bought and sold several times as a rough stone before it is cut into a gem that goes into jewelry. During these steps there is a mark up at each level before it is sold to a retailer, and then sold to a customer. Aber can now remove several of these middlemen and go directly from the mine to the retail market – this adding significant value to the diamonds they produce from the Diavik mine.
The profit from mining diamonds and the added value of retailing these diamonds is why the company is seeing strong earnings. The net result in our opinion will be a company that can pay a meaningful dividend and can offer potential for large capital gains over the next decade.
Aber’s stock symbol is ABZ and the shares trade on the Toronto Stock Exchange. Their website is www.aber.ca. Their website contains past news releases and additional information to do your own due diligence.
Arctic Star Diamond Corp.
Arctic Star was featured in our first edition of our report on Canadian Diamond Exploration. Our main reason for featuring the company was the key technical people involved with the company. Buddy Doyle leads the team exploring the company’s 100% owned project in the Northwest Territories of Canada called the Credit Lake project. Since we first featured the company they have delivered a very pleasant surprise from their joint venture project with Metalex Ventures in the Kyle Lake region of Ontario. We are a shareholder of this company and are considering increasing our shareholdings in the future.
Later in this report we will be featuring Metalex and will discuss the new diamond discovery in more detail. Arctic Star has an 8.5% working interest in this project, which means that they are required to pay for 8.5% of the development costs. This project shows outstanding potential of hosting a significant diamond discovery. The 200 tonne test they are taking shortly will reveal a great deal about the realistic potential of this diamond discovery.
As we mentioned in the first edition, we featured the company because of the technical team and the Credit Lake project. The Credit Lake project was acquired from Kennecott Canada and is in close proximity to the Diavik Diamond Mine. Kennecott had done a great deal of exploration work on this project but had not done any drilling to look for kimberlite. Kennecott’s work included geophysics and geochemical sampling, which is the work done prior to drilling.
Based on Arctic Star’s two key projects in the Kyle Lake and Credit Lake areas, we feel the company is well positioned for a breakthrough year. Recently the company reported the results of geochemical work resulting in a clearer picture on where to drill on the Credit Lake project. These results include 4 key diamond indicator mineral trains with elevated counts of these minerals in areas where no prior drilling has been done. As well Arctic Star and Metalex have announced that they will be taking a 200 tonne test of kimberlite from their new diamond discovery in the Kyle Lake area.
We feel that it is reasonable to expect a significant increase in the market value of the company with success at either of these projects. The diamond indicator minerals found at Credit Lake indicate that the kimberlite that these minerals came from has the potential of being diamond bearing. Diamond bearing kimberlite has already been found at Kyle Lake with indications of a good potential for a good grade of carats per tonne and high valuations per carat.
Arctic Star’s stock symbol is ADD and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.arcticstardiamond.com on the website you will find all direct contact information for the company.
Ashton Mining of Canada
Ashton was first featured in the 2nd edition of our report on Canadian Diamond Exploration. The main reason we featured them is because of a group of diamond bearing kimberlites the company has found on their Otish Mountain project in Quebec. We are not a shareholder of the company but do feel Ashton offers excellent potential to increase its market value and are considering buying shares in the company in the future.
As we said earlier the company has found a group of diamond bearing kimberlites that collectively have a tonnage of over 20 million tonnes and an average grade of 0.80 carat per tonne with a modeled value of $88.00 per carat. When we discussed Ashton in our 2nd edition we indicated that based on past experience in the diamond industry, as a company does larger samples it is reasonable to expect the carat per tonne and value per carat will increase because these early estimates on many occasions have proven to be conservative. In addition, the company has good potential of finding new kimberlites on their property. Further drilling on the known kimberlites also has the potential of increasing the overall tonnage.
The company recently announced that they are shipping a dense media separation plant to the property. Having this plant on the property will help the company reduce the costs of testing larger amounts of kimberlite for diamond recovery. The upcoming plans include a bulk sample that should yield at least 5000 carats of diamonds.
This kind of yield will give the company a high confidence level of the grade per tonne and the value per carat. The minimum amount of diamonds that need to be evaluated in order to do a bankable feasibility study is 5000 carats; the company will have at least that amount out of their upcoming efforts.
We feel that based on past results that this project is moving toward proving that it is an economically mine-able diamond discovery and will be one of Canada’s future diamond mines.
Ashton’s stock symbol is ACA and the shares trade on the Toronto Stock Exchange. Their website is www.ashton.ca. On their website you can find past news releases and additional information to do your own due diligence.
Contact Diamond Corp.
Contact was first featured in our 2nd edition of this report on Canadian Diamond Exploration. The main thing that interests us about Contact is the diamond indicator minerals that have been found in the area they are exploring. We are a shareholder of the company and are considering increasing our shareholdings in the future.
Since we first featured the company they have had a couple of news releases that we would like to update our readers on. They announced the diamond results of the kimberlites they found last year. Those kimberlites are not diamond bearing; however, we don’t take that necessarily as a big negative. What they have really done is determined that these are not the kimberlites that the high quality diamond indicator minerals in the area came from. More drilling is needed and they are planning a great deal of drilling throughout this year.
Another announcement was that Matt Manson has been appointed President and CEO of the company. Since he left Aber Diamonds he has taken on an ever increasing role with Contact Diamonds. He is putting his name behind this project and based on his past experience it seems that he thinks there is something significant with the projects the company is involved with.
The basic story with this company is they have a very large shareholder in Agnico-Eagle Mining. Agnico is a large mining company with a great deal of mining experience in the area that Contact Diamonds is involved. The projects are located in an area that has known diamond bearing kimberlites and diamond indicator minerals that suggest that the kimberlite they came from should be diamond bearing. As well the company has other joint venture projects but the one we are focussed on following at this time are the projects in the Timiskaming area bordering Ontario and Quebec.
The company is involved in an area where a cluster of kimberlites has been found. Further drilling is focused on finding new kimberlites, and they are preparing for a busy schedule of drilling this year. They have a strong technical team, experienced in all levels from exploration to mining. We look forward to this upcoming drilling due to the potential of finding kimberlite and that the kimberlites in the area have the potential of being diamond bearing based on the diamond indicators found in the region.
Contact’s stock symbol is CO and the shares trade on the Toronto Stock Exchange. Their website is www.contactdiamond.com. On their website you can find past news releases and additional information to do your own due diligence.
Metalex Ventures
Metalex was featured in the 3rd edition of our report on Canadian Diamond Exploration. The reason we featured the company was because of a new diamond bearing kimberlite they have discovered in the Kyle Lake region of Ontario. This area is located about 100 kilometres west of the Victor Diamond Mine being developed by De Beers in the Attawapiskat region. We are a shareholder of this company and are considering increasing our shareholdings in the future.
This new diamond bearing kimberlite is called the T1 kimberlite. The company has announced a very promising count of diamonds from their preliminary testing of this kimberlite. These results are important to us for two reasons: 1. The diamond distribution curve is very good and is suggesting that they could be looking at a healthy grade of diamonds per tonne, and 2. Over 70% of the diamonds are white and free of inclusions – this is a very good indicator that the value of the diamonds will be high.
Since that announcement the company has also added more information on the chemistry of the diamond indicator minerals. The president of the company is Chuck Fipke. He was instrumental in putting Canada on the global diamond scene because of the discovery of what would become Canada’s first diamond mine. He is also one of the premier geochemists in the world and knows a great deal about diamond indicator minerals. This knowledge is backed up by a large database of diamond indicator mineral data from all over the world.
He is known as being a pretty secretive guy and tends to play his cards very close to his vest. The news releases are starting to show the hand he is playing. One of the indicators that have us believing he is onto something big is that they have made some very strong statements in their news releases. They have discussed the diamond indicator minerals in general being the kind that suggest they are sitting on a highly diamond bearing kimberlite. The one thing they have mentioned that really stands out is they have found diamond indicators that have the same kind of chemistry as indicators that have been found in 100 carat plus sized diamonds from the Ekati mine in Canada and the Premier Mine in South Africa.
Recently the company and its joint venture partner Arctic Star have announced that they are preparing for a 200 tonne bulk sample of the T1 kimberlite for the recovery of diamonds. This is a very important development because to properly assess the potential of a diamond bearing kimberlite, large samples are needed to get a realistic evaluation. This 200 tonne sample should result in recovery of enough stones to get a clearer picture on the carats per tonne and possibly preliminary indications on the value per carat.
We feel that this new discovery gives Chuck Fipke and his team the opportunity to prove his critics wrong and deliver another major diamond discovery. We think they are well on their way and we look forward to the results of their upcoming work.
Metalex’s stock symbol is MTX and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.metalexventures.com. Their website contains past news releases and additional information to do your own due diligence.
Shear Minerals
Shear has been featured in our first three reports on Canadian Diamond Exploration. The main reason we have been featuring them is due to the technical merits of the project they are exploring in the Eastern Arctic Region of Canada. We are a shareholder of the company and are considering increasing our shareholdings in the future.
There are two things that make this project interesting to us. They have found a very large number of kimberlites. Kimberlites are always found in clusters and the world average is around 20 kimberlites per cluster but can be higher than 100 in some fields. Shear has a cluster of kimberlites that is much higher than the world average of kimberlites per field. We feel that Shear is onto one of these large fields. Having numerous kimberlites can be a double edged sword because a lot of them will be non-diamond bearing. They have found diamonds in several of the kimberlites already found but to date they have not been highly diamond bearing. The other side of that sword is that there can also be a few kimberlites that are highly diamond bearing.
They have strong indications from the vast amount of diamond indicator minerals they have found on their ground that there is a strong potential of finding significantly diamond bearing kimberlites. The upcoming exploration season is quickly approaching – it usually begins around April each year.
Past work has given them a sort of blueprint of what they don’t want to focus on and by default should lead them toward the more promising kimberlites in their cluster.
Shear’s stock symbol is SRM and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.shearminerals.com. On their website you can find past news releases and additional information to do your own due diligence.
Snowfield Development Corp.
Snowfield has been featured in the 1st and 3rd editions of our report on Canadian Diamond Exploration. We featured them because of a kimberlite the company has found within 30 miles of Yellowknife and the potential of finding more in this relatively inexpensive place to explore. We are a shareholder and a consultant to the company and are considering increasing our shareholdings in the future.
Recently, Snowfield announced the results of its preliminary testing for diamonds of a small amount of drill core from the company’s first kimberlite discovery on their Ticho Diamond project. The highlight of these results is the presence of a macro-diamond found in this drill core. A small test of core is neither a representative sample of the entire kimberlite nor does it provide a definitive answer to the diamond potential of any kimberlite including this one.
What it does indicate is that the kimberlite is diamond bearing and that it has the capacity to carry macro-diamonds. The presence of a macro-diamond is an indicator that there is the potential of commercial sized stones also being present.
It is also worth noting that the previous drilling that provided this drill core was focused on testing the outer edge of the kimberlite to find a suitable place to take 500 tonnes of kimberlite for diamond testing. It was not designed to delineate the entire body nor provide a representative sample of the diamond potential of the entire kimberlite.
In kimberlites it has been found that you can get different grades in different parts of a kimberlite. The further from the primary part of kimberlite, the weaker the grade will be in most cases. A perfect example of this is the DO-27 kimberlite being re-evaluated by Peregrine Diamonds and their partners. The DO-27 kimberlite was tested back in 1994 by Kennecott Canada and their partners. This testing was very large but it only really tested the outer edges of the kimberlite, not the primary portion. Last year Peregrine went in and drilled a significant amount of kimberlite from the primary portion of the kimberlite and the grade was 3 times higher than the past testing work done by Kennecott had indicated.
There are kimberlites that have low counts of micro-diamonds that also have macro-diamonds and commercial sized stones. One of those is the Victor Diamond Deposit that is being brought into production by De Beers. That deposit is rumoured to have low counts of micro-diamonds. It also has a healthy amount of commercial sized stones that have a high value per carat and is going to be one of Canada’s future diamond mines. Another interesting indicator that is relevant is a strong similarity between Victor and Snowfield’s discovery in the diamond indicator minerals found at both these diamond discoveries.
Snowfield is planning to further test the realistic potential of this diamond bearing kimberlite. More work is needed and, based on the presence of a macro-diamond in a small sample, this further evaluation is warranted. This work will include two efforts to further evaluate the potential of this diamond discovery. One of those efforts is the taking of a 500 tonne sample from the area that the previous drill holes have indicated where the kimberlite comes closest to the surface. The second effort will be to drill into other parts of the kimberlite to test diamond potential of these areas as well and it will give the company a better understanding of the size and shape of this kimberite.
We look forward to the upcoming work to further test the diamond grade potential of Snowfields diamond bearing kimberlite.
Snowfield’s stock symbol is SNO and the shares trade on the Toronto Stock Exchange Venture Market. Their website is www.snowfield.com. Their website contains past news releases and additional information to do your own due diligence.
Stornoway Diamond Corp.
Stornoway was featured for the first time in the third edition of our report on Canadian Diamond Exploration. Since that report was published, the company has announced additional diamond results and a plan for a thorough examination of the various diamond bearing kimberlites on their Aviat project. We are a shareholder of the company and are considering increasing our shareholdings in the future.
The Aviat project is emerging as a major diamond exploration project in Canada and Stornoway looks to be aggressively testing the diamond bearing kimberlites they have found on this property. Nine kimberlites have been found and they are all diamond bearing.
Results to date have come from small samples of kimberlite; larger samples are needed to properly assess the diamond grade potential. Plans are in the works to take much larger samples from this project. The main benefit of this larger sampling is a better understanding of the carat per tonne potential of their various diamond bearing kimberlites.
These nine diamond bearing kimberlites are located within close proximity of each other and could all be used in a mine plan if they prove to be economically mine-able.
More work is needed to test the shape and size of these various kimberlites and to thoroughly test these diamond bearing kimberlites. This work will give indications of the tonnage potential of the known kimberlites. It will also give better representation of the carat per tonne potential.
Another important development is the result of testing several boulders where they have found a fairly large macro diamond as well as many other diamonds in these boulders. However, they have not found the source kimberlite that these boulders came from. The description of the diamond indicator minerals found in these boulders suggest that the kimberlite these boulders came from have excellent carrying capacity and could be highly diamond bearing. The search for the source of these kimberlite boulders is very exciting and could really be a major breakthrough for the company.
Stornoway is coming into a very busy season of work, including the testing of the known diamond bearing kimberlites and the search for the source of the outstanding boulder trains. We will be following the developments of the company very closely and will do our best to keep our readers informed as these developments are reported.
Stornoway’s stock symbol is SWY and the shares trade on the Toronto Stock Exchange. Their website is www.stornowaydiamonds.com. Their website contains past news releases and additional information to do your own due diligence.
WHAT MAKES THE ALLAN BARRY REPORT UNIQUE
For the last 12 years, the editor of this report has had a career as a consultant to publicly traded junior exploration companies. Services provided to these companies include investor relations, corporate communications, strategic planning, and fund-raising.
As an investor relations consultant to a small company one has to wear several hats:
* communicating the company’s efforts to the investing community;
* communicating technical aspects of those efforts;
* being involved in raising funds for drilling and exploration;
* being involved in the technical analysis;
* and reporting of what has been found.
These efforts have provided a unique opportunity to learn, from an insider’s perspective, the challenges that junior exploration companies face. Additionally it has opened doors to meeting a very accomplished group of technical people.
Spending this time as a consultant to junior exploration companies has provided a unique perspective that is an asset few analysts or newsletter writers possess.
In Closing
We would like to take this opportunity to thank you for taking the time to read this report. We hope this information proves to be informative and helpful. We ask the reader not to post this report on any website for at least three days after you receive it and that if it is posted to post the entire report without any editing. We invite our readers to pass on our contact information to anybody they feel may be interested in receiving this report or future reports and we would be glad to add them to our email list for future publications.
There is no charge for this publication. In order to be added to our email list we prefer to have your name, phone number and email address. You can call us on our toll free number at 1-877-574-4575 or locally at 604-574-4575 or email allanbl@shaw.ca with the above information.
Regards,
Allan Barry Laboucan,
Editor & Writer
Allan Barry Reports
Disclaimer: The information included in this Allan Barry Report on Canadian Diamond Exploration, is for information purposes only. No statement or expression of opinion, or any other matters herein, directly or indirectly, is an offer, solicitation or recommendation to buy or sell any securities mentioned. The information contained in this e-mail is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in providing it does the editor Allan Barry Laboucan or his companies, or affiliated companies, assume any liability. We do not receive or request compensation in any form in order to feature companies mentioned herein. The editor may have equity positions in companies referenced in this newsletter, or plans on taking a position, or offers consulting services to these companies and will notify the reader of these positions or services provided to the company in the section of the report on each individual company. The editor his personal company or affiliated companies, disclaims all responsibility and accepts no liability (including negligence) for the consequences for any person acting, or refraining from acting, on the information provided in this publication.
VICTHOM HUMAN BIONICS (VHB:TSX)
don't know how to post charts ,i think vhb on the tsx has good cup form ,and working on a handle ???
bob
Recent Trades - Last 6 only 6 today
Time Ex Price Change Volume
14:42:13 Q 0.0005 - 100,000
13:59:16 Q 0.0004 -0.0001 1,000,000
13:59:14 Q 0.0004 -0.0001 1,000,000
13:36:52 Q 0.0005 - 207,000
13:13:57 Q 0.0005 - 713,000
13:13:57 Q 0.0005 - 713,000
could move after some more at .0004 ,i bought higher ,average .0006 on 4,430,000 shares ,so will also try to get more at .0004 and .0005 rest of this week if not i will wait for it to go higher or lower which i don't think so.BOTTOM IS HERE we think.
good luck all
bob
if we had all the imformation be fore a pr came out ,there would be no need for a pr . SAME THING
all of us would like to now when it's going up or are saying it going up in june?
your post was a complete waste of time go look in your cystal ball
10,000 post 3 days 10 hours
feb 20 11:53
pennytoriches
i say lets get a penny before a dollar your right it was your dream so it can be what you like.
5$ what ever your smoking i want some .
Hi,
The following feature is now available:
http://www.stockinterview.com/eso.html
http://www.stockinterview.com/eso.html
Ancient Meteor Impact May Hold Key to Uranium Exploration Success at Cluff
ESO Uranium to Angle Drill near a Promising 1970’s Hole
“I look at about 100 different projects a year, most of which go into the round filing cabinet on my floor,” said Tony Harvey, the senior technical advisor to ESO Uranium (TSX: ESO), and formerly a senior manager of Wright Engineers-Fluor Daniels, which was involved with the design and construction of 14 mines worldwide. Harvey quickly ticked off what is necessary to attract his eye, “I need to see history. I need to see signposts before I give it any credence.” So why is he advising little-known ESO Uranium, after a long, prolific career? Harvey helped found Amex-listed Azco Mining, and more recently was a director of Mexican mining firm, Cobre del Mayo, which sold two of its last three mines, which he helped discover, to Phelps Dodge (NYSE: PD).
“I believe this one has a huge amount of history,” Harvey argued. “Not only have you got the Cluff Lake mine, which already confirms the presence of uranium, but you have got the Shea Creek drilling intercepts which validate it. We have the conductors streaming onto our property. We have the boulders, which is also another sign post.” The boulders, of which Tony Harvey refers, are the six uranium-mineralized boulders near the ESO Uranium project on the company’s Cluff property. Near those boulders, a promising drill hole from the 1970s indicated 0.85% U3O8 over 2.3 meters. It was all but forgotten until the recent explosion of exploration activity in Saskatchewan’s Athabasca Basin, an area which has helped Cameco (NYSE: CCJ) grow into a company with a market capitalization of nearly $12 billion.
To read the whole article, please click on:
http://www.stockinterview.com/eso.html
Sincerely,
main thing is some one is buying them .
aries i'll try and post more just don't write so well ,good as any time to practise .
just have to watch my self some time get drunking and write to much .
bob
hi jeff
real nice day today, little frost this morning ,sunny i think it dropped down to -2 c last nite +10 day time high califonra of the north.
mining should be getting hotter in nevada soon too.
bob
welcome aboard aries4747
just like haveing kids ARE WE THERE YET? ARE WE THERE YET?
ARE WE THERE YET?
corr drinks rushxxx he's good to his late 90's
corr drinks rushxxx he's late 90's
Ginseng may prevent colds, ease symptoms Jan. 31, 2006
http://mediresource.sympatico.ca/health_news_detail.asp?channel_id=0&news_id=9130&rss=72
Provided by: MediResource
Written by: ALYSSA SCHWARTZ
TORONTO (MRI) - Here's some news that's nothing to sneeze at: A team of Edmonton researchers have found that taking ginseng supplements can reduce your risk of contracting the common cold and reduce the severity and length of a cold if you do get one.
In a study published in the Canadian Medical Association Journal, the researchers compared the effects of North American ginseng supplements and an inactive placebo when it comes to warding off colds or reducing their severity.
The researchers compared these effects by randomly assigning 323 adults to receive either 200 mg per day of ginseng in capsule form or a placebo (a capsule containing no active ingredients) for a period of four months. Neither the participants nor the investigators knew who was getting which treatment while the treatment was being given.
All of the participants reported contracting a minimum of two colds in the year prior to the study, but were in good health at the time the trial commenced. None of the participants had received a flu shot in the previous six months.
Every evening, participants were required to rate themselves on a variety of cold-related symptoms, such as sore throat, runny nose, sneezing and nasal congestion. Symptoms were scored on a scale of zero (no symptom) to three (severe symptom), with a cold being considered a two-day total score greater than 14.
Participants who did come down with colds during the study period were instructed not to take any cold medications unless advised to do so by their doctor.
Over the next four months, participants who received the ginseng capsules reported suffering from 0.68 colds, while the placebo group reported an average of 0.93 colds. There was also a difference in the number of subjects from each group reporting two or more colds, with 10% of the ginseng group and 22.8% of the placebo group reporting multiple colds over the four-month period.
When it came to cold length and severity, ginseng wasn't all stuffed up either. The total symptom scores of participants in the ginseng group was 77.5, on average, compared to 112.3 for the placebo group, while the number of days cold symptoms were reported was 10.8 and 16.5 for the ginseng and placebo groups respectively.
While the study doesn't explain how ginseng may work against colds, the researchers speculate that ingredients called polysaccharides and oligosaccharides, found in North American ginseng, may enhance immune response.
Ginseng "appears to be an attractive natural prophylactic treatment for upper respiratory tract infections," concluded the researchers. "However, further studies are required to assess its efficacy and safety for children and immunocompromised populations."
The study was funded by CV Technologies, a manufacturer of ginseng supplements, though the Canadian Medical Association Journal notes that the company had no role it the trial's design or execution.
Experts also caution against using ginseng if you are pregnant, on blood thinners, have high blood pressure, irregular heart rhythms, diabetes, or some other medical conditions, so talk to a doctor before you use it. As well, because the composition of supplements can vary from product to product due to a lack of regulation, you may see a difference in results.
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Logan Resources Ltd.: Drilling to Commence on ESO Uranium's Cluff Project in the Athabasca Basin
VANCOUVER, BRITISH COLUMBIA, Feb 1, 2006 (CCNMatthews via COMTEX) --
Logan Resources Ltd. (the "Company") (TSX VENTURE:LGR)(PINK SHEETS:LGREF) is pleased to announce that ESO Uranium Corp.'s exploration is now under way on its western Athabasca basin uranium project in Northern Saskatchewan. Logan Resources Ltd. entered into an option agreement with ESO Uranium Corp. (ESO) (See News Release # No. 05-03 issued March 15, 2005 for terms of the agreement). Logan Resources Ltd. owns the property 100%. ESO has an option to earn 50% interest in the claims (S-107580 and S-107581- approx. 7,604 hectares). The claims are situated on the Carswell Dome, Athabasca Basin, Saskatchewan.
The winter program will initially focus on the "Gorilla Lake" zone of the Cluff project. The claims underlying the Gorilla Lake zone, totalling approximately 7,640 hectares, are the subject of a 50/50 joint venture between the Company and ESO. Six drill holes averaging 200 metres to 300 metres deep will test the "Gorilla Lake" zone. Previous exploration in this area in 1979 encountered an intercept grading 0.85 per cent U308 over 2.3 metres in hole CAR 425. Road clearing and site preparation is under way with camp and crew arriving by the end of the week. Drilling is planned to start the following week.
ESO is the operator of this exploration program. The Company will release results as they are received from ESO. Logan Resources Ltd. is a mining exploration company engaged in the acquisition, exploration and development of mineral properties. The Company currently owns five precious and base metal properties in British Columbia, Yukon Territory and a uranium property in Saskatchewan. For more information on the properties and Logan Resources Ltd. please visit www.loganresources.ca and SEDAR and EDGAR websites.
ON BEHALF OF THE BOARD
Seamus Young, President
Statements contained in this news release that are not historical facts are forward-looking statements, which are subject to a number of known and unknown risks, uncertainness and other factors that may cause the actual results to differ materially from those anticipated in our forward looking statements. Although we believe that the expectations in our forward looking statements are reasonable, actual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.
SOURCE: Logan Resources Ltd.
king fisher i'm from bc fraser valley area i staked a claim up in the moutains by acreek road acsess and use it as camp site in summer ,we dug some 4x4x4 foot hole to keep the title up ,yhe first one we made into a out house ,put up a chain across road (danger keep out active mining) keep most out some come and us campsite ,but usely pretty good ,like private camp site on long weekend and you have the right to be there,so ya can kick others out most times just share camp site.no minerails there would be a bonus.