Gold has traded between $1,652 and $1,683 so far today…as of 7:00 am Pacific, the yellow metal is down $19 an ounce at $1,656…Silver is 96 cents lower at $31.62 (commercial traders have trimmed their short positions in Silver remarkably which is normally a very bullish indicator for a potential powerful short-term move)…Copper is 8 cents lower at $3.30…Crude Oil has slipped $1.47 to $84.10 while the U.S. Dollar Index is up one-third of a point to 77.37…we apologize for an abbreviated edition of Morning Musings today due to a family emergency…
Markets are on the negative side through the first 30 minutes of trading…the CDNX, which closed at 1543 yesterday for a gain of 237 points or 18% over just six sessions, is off 22 points at 1521…the 1530 “area” is providing resistance as expected and must be convincingly cleared in order for this rally (which disturbingly has been on low volume) to continue…the CDNX is facing major technical headwinds and the primary trend is now down (bear market), so traders/investors should remain cautious…we are working on an overall “big picture” assessment of what the next six to 12 months could look like (economic, political and social landscapes) and it’s not pretty, but there will be opportunities nonetheless…
At least 66 of Europe’s biggest banks would fail a revised European Union stress test and need to raise about 220 billion euros (approximately $300 billion CDN) of capital, Credit Suisse AG analysts said this morning…European policy makers are debating how to recapitalize the region’s troubled banks as the sovereign debt crisis threatens to damage balance sheets, undermining recovery prospects…European leaders meet October 23 to discuss the crisis, which has driven Greece toward default and threatened the survival of the 17-nation currency…
Canadian Finance Minister Jim Flaherty said this morning that he’s “worried” about the possibility of another global recession, saying Canada may be able to avoid a major economic slump but it might be too late for Europe…Flaherty, who is flying to Paris for G20 finance ministers meetings, told CTV that he’ll be urging his European counterparts to take action – a message he has been pushing for weeks…he said European leaders have failed to help Greece emerge from crippling debt and haven’t moved to recapitalize the continent’s struggling banking institutions, both of which he said are essential to staving off another recession…
Jim Flaherty should stick to running his own finance ministry. What Greece really needs is to be allowed to default on it’s debts which are gone way past unsustainable. The banks who loaned them too much money are going to have to take plenty of this pain and so will their bondholders. If that means a few of them go under then so be it. That is the market performing it’s job and clearing out bad businesses. Why should the citizens of Europe be loaded with the debt of these stupid bankers who were too busy collecting their massive bonuses to do proper due diligence on the massive loans they were making. The time is approaching when the people will demand a stop to this endless bailing out of failed businesses and to let them end up where they belong. In bankruptcy.
Comment by Patrick — October 13, 2011 @ 7:55 am
Metanor Resources – MTO.
MTO has 257 M shares fully diluted, with $35 M in cash for a market cap of $85 M dollars or enterprise value of $50 M dollars currently. They have 5 different gold projects in Quebec, 1 of which will be a producing asset and another with over 700,000 ozs of gold and an unexplored 13km strike length.
Based on next year’s production forecast of 60,000 ozs at $465/oz, MTO is extremely undervalued at these levels and cheaper than any other producer I have come across especially given it’s location. I believe MTO to be an upcoming Richmont Mines given the fact they have their high-grade Bachelor Lake Mine coming online next year as well as their Barry Deposit with 1 km strike length and potential to be a 70,000 + oz open pit producer in the next couple years. MTO already has all their infrastructure paid for and is beginning a bulk sample next quarter to start up their production for 2012. SSL (Sandstorm Resources) bought out 20% of their production as they liked MTO’s value so much but this still leaves MTO with 48,000 ozs production payable to them for next year.
Assuming MTO’s cash costs come in at $550 / oz about 15% higher than the Feasability Study estimates which I feel is conservative, MTO will generate $50 M dollars in earnings at current gold prices after taxes for 2012.
MTO with an enterprise value of $50 M dollars is trading at the exact value of next year’s earnings – nevermind the exploration potential of their other properties including Barry.
In terms of gold companies trading at book value, this is the absolute cheapest I can find. MTO released news just 2 weeks ago that they have found 89 new IP anomalies at their Barry deposit and they will be starting up exploration again very soon once they’ve determined what the best plan of attack is given the new targets they’ve defined.
The other exciting thing about MTO is that 60,000 ozs production is only 66% of the total capacity available at Bachelor Lake, meaning that MTO could ramp up production further in late 2012 to a higher throughput.
I’ve got several junior explorers I’ve been picking up and holding as I believe them to be take-over targets but have decided to start picking up small producers trading at close to book value from here on in as I believe there is very little downside.
I am very surprised a larger player has not looked at MTO and come in with an offer yet or taken a position as MTO has over a 90% IRR at these levels which is absolutely incredible. I could understand if MTO was in the Phillipines or Chile and was in a much less favourable mining jurisdiction but having all their properties in Quebec, all their infrastructure in place and being a near-term producer.
Definitely worth a look in here at these levels..
The Venture could still fall further but that doesn’t mean all stocks have to go down. MTO has very strong support at these levels and will likely not fall further already trading at 1 X book value. Truly amazing value..
Sandstorm which is a streaming company only takes on the best projects as their whole goal is to minimize risk and their investment in MTO shows how truly undervalued and great an opportunity MTO is.
Comment by Taylor — October 13, 2011 @ 9:03 am
Hi BMR
What is going on with CUI lately? The volume has been slightly above average and the share price is going down – we just breached 10 cents today on significant volume – do you think these sellers have some privied info dumping their shares? I find it difficult to believe that there are this many sellers at arguably the company’s busiest drilling season ever!
Any comments? Is this market weakness/panic selling or an opportunity of a lifetime to pick up more cheap shares?
Comment by Alex — October 13, 2011 @ 12:04 pm
Anon dumping CUI – no buying. News is late. Not sure that it’s a time to pick up any shares of anything! ETFs seem a much safer bet for the foreseeable future. VGD looks like it will slowly wind down, AGE already is and those are the best of the model portfolio.
Comment by Andrew — October 13, 2011 @ 12:22 pm
BER finally had some jumping today and closed at 16.5 cents, up 3.5 cents. The turnover was only half of a million shares. This stock can go back to the 20s and I am still holding a portfolio. As I mentioned a few days ago that this stock will not go further down when it reached 11 cents. Of course, this is one unique opportunity for me to scoop some as I have some bought at higher price … 20s. This is still my favorite stock for October. GBB , I am waiting for the low 20s to scoop some, today closed at 26.5 cents, down 1.5 cents with low low volume. TYP closed at 64 cents, up 2 cents. SD seems to be approaching zero and 1 cent can be stock. I am on the line of 1 cent for 100,000 and I can take the risk of losing $1,000 if the stock to become zero or some good news which may come out and it jumps back to 2-3 cents level. However, I will not invest more than that. SFF dropped to 18 cents and NAR with no turnover.
Comment by Theodore — October 13, 2011 @ 1:52 pm
What sad is that the majority of these small juniors haven’t released any result in a timely manor. Execution seems to be a big deal with these juniors and the majority of BMR’s picks seem to struggle with those deliverables. VGD and AGE are the best picks. SD and VGN should have been removed from their portfolio long ago because neither of the management team know how to execute a drill program or has the vision to jump on opportunity to raise cash. I would also put CQX in that boat but they have the ability to ride the coat tails of VGD so thats one extra plus and that’s exactly what they are doing at this stage.
SFF is also sad with their new CEO. Where’s the EXECUTION while they sit on all their cash that they raise? I could care less about them opening an office in Columbia. Show me drill result and project potential then open an office. It’s irritating to be a shareholder and watch management make poor execution decisions…kinda like Obama.
Money, Management, and Company Assets. The 3 key ingridients to great companies. Most of BMR’s have 2 of 3, some of 1 of 3 and few 3 of 3 (VGD, AGE).
Taylor – Thanks for the update on MTO. Had it on my watchlist but never drilled into the details will look at it harder. It looks like its making a flag formation…..soon to breakout to the upside.
I think we’re going to see a breakout in all indicies into the end of the year. I’m calling Oct 8th the bottom to this market. In Ron Meisels Phases and Cycles report he believes Oct 8th was the low and beleives that we will probably get a year end rally.
BMR hasn’t called the CDNX right since March. Its seems like whatever BMR says if you do the opposite you’ll make money this year. Not to be pessimistic but if you look at the track record lately its true. Now thats not a reason to think the CDNX will rally, but I think we’re going to get a black swan event to the upside in all indicies just as we saw in 2008.
Comment by Andrew M — October 13, 2011 @ 3:50 pm
Probe Mines in yesterdays northern miner. I dont have the link so here’s the text.
Who knew…there was gold in Chapleau?
By: Trish Saywell
2011-10-13
In the eleven years David Palmer has spent working in remote, infrastructure-challenged corners of northern Ontario and Quebec the geologist has never had the luxury of stepping out of his hotel and being on site within fifteen minutes. Until Borden Lake, that is.
A logging road directly off provincial highway 101 takes Palmer straight to his drill site, about 12 km outside of the tiny town of Chapleau. “It’s the best access I’ve ever had,” the president and chief executive of Probe Mines (prb-v) told a group of mining analysts, investors and investment bankers on a recent tour of the company’s Borden Lake property. “You can hear the drills from the highway.”
Timmins is two hours to the east, Wawa is one hour and fifteen minutes to the West, and hydropower is just 1 km away. Ironically, though, it is still one of the least explored parts of Ontario.
“There have probably been thousands of geologists passing through here between Wawa and Timmins and yet it’s been so underexplored,” Palmer says, adding that there are four gold mines within a 150-km radius. Trelawney Mining and Exploration’s (trr-v) Coté Lake deposit is about 110 km to the southeast, Barrick Gold’s (ABX-T, ABX-N) past-producing Renabie mine is about 70 km to the northwest, Prodigy Gold’s (PDG-V) Magino mine is about 100 km to the west-northwest, and Lake Shore Gold’s (LSG-T) Timmins mine is about 140 km to the northeast.
Borden Lake lies within a folded belt of Timiskaming-age (2.6 billion-year-old) meta-sediments in the Kapuskasing Structural Zone (KSZ), an area that Palmer says has been overlooked for generations but which he believes is likely to serve up the next big gold discovery in the province.
“The Kapuskasing Structural Zone is an area no one has ever thought to look at,” Palmer continues, reasoning that prospectors and geologists were more confident looking at the lower metamorphic grade rocks in the greenstone belts of Timmins and Kirkland Lake.
“The only logical reason I see for the lack of exploration in the Kapuskasing Structural Zone (KSZ) is the higher metamorphic grade,” he explains. “It is possible that people feel the higher pressure-temperature regime is destructive for primary gold deposits. Perhaps Borden Lake was preserved because it is at the very end of the KSZ and wasn’t subjected to these pressure-temperature conditions.”
Whatever the reason, it turns out to have been a “blessing in disguise” because there has been so little work done in the area and Probe has a blank canvas on which to work.
The project came out of left-field. In the fall of 2010 Palmer and his team of geologists were busy working on the company’s 100%-owned Black Creek chromite deposit, about two hours by air north of Thunder Bay. The deposit lies in the Ring of Fire area of the James Bay Lowlands and is sandwiched between Cliffs Natural Resources’ (clf-n) two large chromite deposits, Black Thor and Big Daddy.
But when assay results from Borden Lake started trickling back in November 2010 showing gold mineralization in every drill hole, Palmer shifted gears, making Borden Lake his No. 1 priority.
In less than nine months the company completed a National Instrument 43-101 compliant resource and plans to update it before the end of the year. The new resource should confirm what Palmer already suspects: That Borden Lake has excellent potential to host a surface, low-grade, bulk tonnage deposit. So far the deposit has been traced over an area stretching 1,700 metres in length and up to 200 metres in width and running to a depth of up to 340 metres.
Indicated resources currently stand at 11.61 million tonnes averaging 0.8 gram gold per tonne for 305,000 ounces of contained gold, with inferred resources adding 169.32 million tonnes averaging 0.69 gram gold for 3.76 million ounces of contained gold.
The deposit also contains 323,000 ounces of silver in the indicated category and 5.02 million ounces of silver in the inferred, both at an average grade of 0.9 gram silver per tonne.
The initial resource estimate was based on a 0.3 gram per tonne cut-off grade, excluded three satellite gold zones, and was based on just 78 diamond drill holes.
Probe has completed a total of 115 holes and since January 2011 has drilled more than 25,000 metres with two drill rigs. The company is in the queue for more rigs.
The deposit is an outcrop discovery under thin overburden that comes to surface all along strike. Mineralization is characterized by higher grade zones occurring within a broad, lower-grade envelope hosted by meta-sediments.
“Most gold deposits don’t show up in airborne electro-magnetic (AEM) surveys but this one does,” Palmer explains. “The induced polarization (IP) signature is distinctive too.”
“You’ll see the sulphides if you look for them but they don’t jump out at you,” he adds while showing core to his visitors.
Understanding the deposit and how it came to be is proving a challenge, however.
What Palmer does know is that he has a clean sulphide deposit without base metals, arsenic or arsenopyrite. The deposit demonstrates thick planes of mineralization without folding or faulting and without quartz veining. There is little displacement and the same lithologies exist all along strike, while the mineralization is very consistent on strike and at depth. “It doesn’t waffle-the mineralization is consistent throughout,” he says. “We can pick up a high-grade zone right through the deposit and that’s one reason why Micon said we didn’t need to cap the grades.”
But Palmer and his colleagues are still scratching their heads about the mineralization and concede they can’t take anything for granted. That’s why the company is blanketing the ground with geophysics. “You have to sample everything because sometimes it surprises you,” he explains. “We recently found gold in the granite, which was unexpected.”
Palmer is quick to admit that he has a lot to learn about how the mineralization got there. “There are no obvious hydrothermal systems that brought it in; the porphyry isn’t mineralized,” he says. “It’s biotite gneiss, pyrrhotite, pyrite, and amphibolite in a meta-sedimentary belt. There’s no clear correlation between the gold and anything.”
“From the point of view of gold exploration, you’d never put these rocks in a sample bag,” he adds. “It’s a puzzle. But the bottom line is it’s there and in the numbers you need to produce it.”
Palmer is hoping metallurgical results due out soon will provide some clues.
“If it is pre-metamorphic it should be re-crystallized,” he reasons. “These rocks go down 20 km so everything was re-crystallized and we’re hoping the gold was re-crystallized too, which should result in a coarser grain size and aid in recovery.”
Mark Raguz, an analyst at Pinetree Capital, which holds some of Probe’s stock, noted that results from the initial metallurgical test work “should be a revaluation catalyst for the stock if the grind size and recovery are positive.”
In the meantime Probe is pressing ahead with grassroots exploration and in recent months has been getting between 0.3-3.4 grams gold per tonne from grab samples taken near its outcrop discovery.
“There’s a lot of potential on the belt for new targets,” Palmer says, explaining that Timaskaming sediments often show a spatial association with large-scale Archean lode gold deposits such as those found in the mining camps of Timmins, Kirkland Lake, Hemlo and Red Lake. “Between now and Christmas we’re going to make some headway on exploration.”
In late September Probe released more assay results from its drill program demonstrating significant intervals of gold mineralization including a high-grade zone averaging 10.9 grams gold over 6.6 metres, including a one-metre interval grading 57 grams gold.
As Palmer sees it there are few if any stumbling blocks to advancing the project. Environmental permitting, which is expected to take about a year, is already underway, as are discussions with the three First Nations communities near Chapleau.
Last month Probe signed a memorandum of understanding with the Brunswick House, Chapleau Cree and Chapleau Ojibwe First Nations communities and agreed to negotiate an Impact Benefit Agreement should the gold project proceed to production.
Probe has also committed to training, communication and business development with the First Nations and agreed to give 50,000 common shares of the company to each of the three groups vesting over a period of 18 months.
“We are welcome to do our work here, which is a nice thing,” Palmer says, noting that some of the First Nations are now talking about setting up a company that would offer services to the mining company.
Certainly residents of Chapleau could use the work. In its heyday the small town in Cochrane Township situated inside the Martel Forest boasted three lumber mills and a population of 5,000. Today the town is home to about 2,500 people and just one lumber mill.
One of the big question marks analysts seem to have is whether Probe can successfully acquire all of the land that it will need to take the project forward. While Palmer says the company has “got all the critical pieces” of land that it needs, he admits Probe is still holding discussions with several owners including a private forestry company, which owns between 20 or 30 sq km of land to the east of the project and with whom it has already completed one deal and hopes to negotiate others. But Palmer is all about the soft sell. “We want to develop our relationship with them,” he says, “we don’t want to pressure people.”
But Probe Mines is more than Borden Lake and the company has several other assets that store value including its Black Creek chromite deposit in the McFaulds Lake or Ring of Fire area of northern Ontario.
Black Creek extends into the Black Thor claim owned by Cliffs Natural Resources and due to a small displacement fault is also probably just about one or two hundred metres away from Cliffs’ other large chromite deposit, Big Daddy. (Cliffs acquired junior explorer Spider Resources in 2010 to take a majority interest (now 73.5%) in the Big Daddy deposit and since March is the operator. KWG Resources (KWG-V) owns the remainder.)
“We’re right between the two,” Palmer says. “Interestingly enough the horizon is almost continuous between Black Thor, Black Creek and Big Daddy…Black Creek is essentially the southwest extension of Black Thor. The chromite deposits tend to occur as large lenses, but all seem to form a relatively continuous chromite horizon.”
That’s good news for Probe because Black Thor is the largest known deposit of chromite in North America and has inferred resources of 69.5 million tonnes at a grade of about 31.9% chromite. Big Daddy contains an indicated resource of 23.2 million tonnes averaging 40.66% chromite and inferred resources equal 16.3 million tonnes averaging 39.09% chromite. Black Creek has measured and indicated resources of 8.65 million tonnes averaging 37.41% chromite and inferred resources of 1.6 million tonnes of 37.78% chromite.
Cliffs plans to develop Black Thor first given that it is thicker and closer to surface than the Big Daddy deposit. But it will have to spend hundreds of millions of dollars to build the road, rail and power infrastructure it will need given that the deposits are more than 300 km north of the province’s existing road and rail networks. In a project update earlier this year Cliffs announced that if prefeasibility and feasibility studies prove favorable, production at Black Thor could start as early as 2015.
That makes Probe’s Black Creek deposit even more strategic. “The value of Black Creek is going up as they get closer to building the infrastructure,” Palmer says. “It could be worth somewhere between $100 million and $125 million.”
In August 2010 Probe initiated a shareholder rights plan.
Apart from Black Creek, Probe has an option-joint venture agreement with Lake Shore Gold on its West Timmins (Bristol Township) gold project, which surrounds Lake Shore’s Timmins mine, a million-plus ounce gold deposit and is exploring its Cree Lake gold project in Ontario’s Swayze Belt under option from Mantis Minerals.
Finally, Probe holds a 5% net smelter royalty (NSR) interest on claims covering a portion of the Goldex deposit owned by Agnico-Eagle Mines (aem-t,aem-n) and located just 5 km west of Val d’Or, Quebec. “It’s not something to build a royalty company on but it’s a nice thing to have,” Palmer says.
Agnico-Eagle started production at the underground mine in 2008, bringing Probe’s NSR a step closer to becoming a potential revenue stream for the company. The low-grade, bulk tonnage deposit hosts measured reserves of 1.6 million ounces of gold.
Probe currently trades in Toronto at $1.95 per share within a 52-week range of 69¢ and $2.38 per share. The company has 56.6 million shares outstanding and 71.8 million shares fully diluted.
They forgot to mention that they have $23M in the bank as well.
Comment by Rosco — October 13, 2011 @ 4:55 pm
Another stock definitely worth a look and was given an analyst target price of $10.75 for the next 12 months with a Strong buy recommendation today.
Here is my blog for it, stock is NES – Newstrike Capital. I think it’s a must own stock if you’re looking at gold explorers, without a doubt the next Ventana.
Despite the general market Newstrike Capital has had a very successful year in terms of drill results at its Ana Paula Project in Guerrero, Mexico.
The company is currently the largest landholder in the GGB with over 88,000 hectares of land surrounding both Goldcorp ($48 B market cap) and Torex Gold ($500 M market cap). NES acquired the Ana Paula project (7,600 hectares) for $2.1 million dollars from Goldcorp last year and it was already thought to contain 2 – 2.5 million ounces of low grade bulk tonnage gold near surface. Goldcorp originally identified a 1 km by 2 km surface gold anomaly.
Newstrike has been expanding on Goldcorp’s previous exploration with absolutely eye-popping results which are as follows:
1. 214 m @ 3.00 g/t au
2. 275 m @ 1.43 g/t au
3. 231 m @ 7.51 g/t au
4. 112 m @ 2.51 g/t au
5. 190 m @ 3.52 g/t au
6. 116 m @ 4.71 g/t au
7. 120 m @ 4.60 g/t au
8. 52 m @ 6.9 g/t au
9. 119 m @ 3.76 g/t au
As stated by V.P. Exploration Gillian Kearvell in the September webcast, all of these drill holes are situated within the breccia which is currently defined by dimensions of 250 m strike X 150 m width X 250 m depth. Based on these current dimensions alone, Newstrike is looking at a resource of potentially 2.5 million ounces at a grade of about 3.0 g/t au. What has to be understood is this breccia resource is on top of the initial potential for close to 3 million ounces of lower grade bulk tonnage gold and the breccia is still open in most directions as well as to depth.
Currently there is no other junior explorer in the market which boasts these type of drill results over long intervals such as these, nor even comes close. Trelawney (TRR) has several long intervals but most of them come in at the 1 – 1.5 g/t au range over 250 – 300 m lengths. Gold Canyon (GCU) exploring in Red Lake also reports very long intervals of gold but like TRR they also average the 1.0 – 1.5 g/t au range. The only drill results that can be compared to NES’ grades over these intervals are companies which have already been acquired for over $1 billion dollars like Aurelian Resources ($1.2 B+) and Ventana ($1.6 B).
NES has a very lean share structure with only 102 M shares outstanding and 112 M shares fully diluted, giving it a very cheap $250 million dollar market cap currently despite all of the discoveries made this year. In my opinion the market is giving investors a second chance at picking up NES at these levels for those who did not get in ahead of the initial run up to $3.37 this August. Newstrike has plans to add 2 drills in addition to the 2 drills already turning for a total of 4 drills on the property by the end of the month. With 4 drills comes the potential for much more activity on the ground as well as more discoveries and I don’t believe NES will be ignored by majors for much longer with results like they have been releasing.
The average junior has been acquired for $250 / oz by majors in the past 2 years for high-grade finds based on the acquisitions of Fronteer Gold, Andean Resources, Ventana Gold, Red Back Mining and Richfield Ventures. Based on this metric and Newstrike’s market cap of $250 M dollars, the market is pricing in 1 million ounces of gold at Ana Paula. This estimate in my opinion is far too low given the fact that the breccia alone currently has been delineated to the tune of 2.5 – 3.0 million ounces of gold. The low grade halo surrounding the breccia defined over a 1 km strike length (with additional silver grades) also holds potential for 3 million ounces of gold based on Goldcorp and Newstrike’s exploration thus far. If we place a conservative estimate on the gold at Ana Paula and use previous acquisition metrics for the value of NES gold, we come up with close to a $1 billion dollar value for NES currently. This may seem ridiculous but let’s look at what majors have paid vs. what NES has to better understand this.
AEM bought out Grayd Resources last month for $220 / oz for their 1.2 Moz La India Deposit in Sonora Mexico which averages 0.7 g/t au. Based on Newstrike’s 2.5 Moz of low grade bulk tonnage Goldcorp believed they had at Ana Paula (before selling to NES) this would give us a value of $550 million dollars for the low grade halo at Ana Paula alone.
Now onto the high-grade breccia…
Based on a $250 / oz average value for high-grade resources (Ventana – $400 / oz), Andean ($1,000 + / oz), Fronteer ($400 / oz) NES’ 2.5 million ounces in their breccia would have a value of $625 M dollars. $625 M for the breccia + $550 million for the low-grade based on comparative buy-outs at much lower gold prices would give NES a total value of $10.50 a share, or more than 4 times the current price based on discoveries made to date.
In additional to all of this potential, Ana Paula is hardly the tip of the iceberg. NES has also identified through an airborne magnetic survey done this year the potential for the mineralization to continue to the north over 10 km at their next target Apetlanca which shows very similar intrusions.
The markets are turbulent but that is not stopping gold companies from acquiring juniors, large and small. There have been over 6 acquisitions/mergers in the past 2 months alone by gold companies and they are not treating this market as a time to hunker down and hold cash but rather as a great opportunity to pick up advanced stage explorers for bargain prices. Discoveries like the ones at Ana Paula are not made very often and those who don’t do the due dilligence now will regret it later as majors will not allow NES to continue to make discoveries and make it a more expensive acquisition for them.
To add to all of this, the Lundins hold over 35% of NES’ outstanding shares with Sun Valley Financial holding another 10% of shares. The trading float is very tight and with further discoveries the remaining float will get eaten up very quickly, especially at this undervalued market cap.
I strongly encourage readers to take a hard look at Newstrike Capital and their recent webcast before it’s too late.
Link below:
http://static.gowebcasting.com/documents/files/events/event_00000510_0n3e9kTM.pdf
Comment by Taylor — October 13, 2011 @ 6:38 pm
The market sentiment is definitely lot better now. With the European bank recapitalization plan, the Greek default shouldn’t be too bad. That is until Spain gets into the headlines… Andrew M, I agree with you on BMR calls. Seems to be late on calls on the market movement (my intention is in hopes that you make the better calls in the future). The interim bottom calls were good though.
I think the interim bottom was on Oct 4. CDNX was dropping like a stone that day. If not for the European bank recapitalization, it could have gone into a true capitulation.
I think some explorers were holding news last week as bunch of news came out this week. Probably a good move not to NR last week. About CUI and VGD/CQX, I’m starting to doubt. Awefully long time to release drill result after news of visuals (CUI) or trends (VGD). Fishy. I shall see.
Comment by Bruce — October 13, 2011 @ 6:55 pm
Re length of time for results I agree with you Bruce. VGD managed to release one drill assay to move the sp and garner interest and publicity and then nothing. Presumably there was not months between delivering the first sample and the others so the delay will only make investors nervous.
Comment by Andrew — October 14, 2011 @ 3:29 am