Value Microcaps Junior Miners

[lbas]

SRZ.TO/ STACF.PK is my undervalued pick in addition to NRDS.PK. Just like Nord Resources, SRA is also restarting a former mine.

From their website, SRZ’s focus is to restart the Company’s 100% owned Mid Tennessee Zinc Mine and Mill Complex (“MTZ”) at Gordonsville, Tennessee. The 5 mine complex has a 29 year operating history between 1975 and 2003 and has produced 37.9 million tons of ore grading 3.3% zinc and produced over 2.3 billion pounds of zinc. The operations and underground mines were shutdown in 2003 due to low metal prices with all infrastructure intact.

SRZ will have the mine back into production by the end of 2007. See last week's PR (http://biz.yahoo.com/iw/070817/0292116.html)

which reconfirms this. Historically the mine has produced one of the highest quality concentrates in the world with 64.5% contained zinc concentrate with by-product limestone aggregate and agricultural lime. The mine complex has a known resource of approximately 30 million tons containing about 2 billion pounds of zinc metal and valuable germanium and gallium by-product.


Also from today’s PR “Once in full production, the Gordonsville Complex at MTM is expected to be the largest zinc producer and domestic source of germanium and gallium in the continental USA.”

Further, SRA.TO has $83 million in the bank to get them to production. With only 20.6 million shares outstanding, the cash alone is worth $4.03 per share. SRA closed today at $4.62. In my opinion, this is significantly undervalued for a near term producer. I believe this is a multi-bagger from these levels.

Needless to say, I own SRA.TO. Do your own DD.