Monday, April 03, 2006 2:17:32 AM
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.
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.
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