Golden Goose Resources (GGR) – listed at $0.20 – high since $0.49 – .325 – completed financing, one of the best junior gold stocks around with over 1 mln ounces of gold, with mills close by, scoping study underway, and has just started a new drilling program to increase the resource.
Mirasol Resources Ltd. (MRZ) – listed at $0.17 – high since $1.00 – .66 – has been going up with no hard news, drilling by Coeur d’Alene continues on one property in Argentina, company has also identified significant new silver/gold drill targets on another.
Rolling Rock Resources Corp. (RLL) – listed at $0.10 – high since $0.25 – .17 – another junior with a resource of 944,000 oz. gold along with a completed scoping study, stock slowly trending up.
Tawsho Mining Inc. (TAW) – listed at $0.085 – high since $0.20 – .185 – shows a resource of over 400,000 oz gold in the Chibougamau camp, actively looking at other projects.
Takara Resources Inc. (TKK) – listed at $0.03 – high since $0.05 – .045 – has sold gold properties to Garson Gold (GG) for shares which it distributed to shareholders as a stock dividend, currently doing private placement in conjunction with acquiring St. Eugene (SEM) which has right to acquire the Tartan Lake Gold mine in Manitoba.
Medallion Resources Ltd. – (MDL) – listed at $0.13 – high since $0.21 – .15 – market changed and could not finance iron-titanium deposit in Quebec, has changed direction, did a private placement and with management having great expertise in rare earth and lithium, is currently looking at new properties.
Prospector Cons. Res. Inc. – (PRR) – listed at $0.045 – high since $0.055 – .035 – tungsten deposit in Yukon is currently on hold, has been looking at acquiring a new property along with a financing.
Gossan Resources Limited – (GSS) – listed at $0.075 – high since $0.27 – .24 – a mixed bag, new process for extracting magnesium from their dolomite deposit gave positive results, just completed a field program on lithium property adjacent to Avalon Rare Earth’s Big Whopper deposit.
Source Exploration Corp. – (SOP) – listed at $0.11 – high since $0.28 – .20 – got extension on property, has over $1 mln cash, new president with silver mining experience, started drilling on Zacatecas silver property with a Silver Standard calculated historical resource of 14.4 mln ounces silver.
GLG Life Tech Corporation – (GLG) – listed at $7.40 – high since $12.96 – 9.73 – many positive developments, great product, recent earnings report was right on target and has enormous potential BUT just announced a prospectus financing along with a listing application for NASDAQ and a surprise 4 for 1 consolidation of the shares (prices changed to reflect this)…. which has resulted in stock tanking from $11 level. Disappointment, but to attract funds in US market, a natural progression.
Explore Resources Inc. – (EXS) – listed at $0.34 – high since $0.54 – .39 – acquired large Timmins claim block which holds great potential, has a number of other good gold properties as well, will require a substantial funding to explore property, letterwriter Greg McCoach recommending stock.
RT Minerals Corp. – (RTM) – listed at $0.22 – high since $0.25 – .21 – tight stock as less than 18 mln shs out, geologically one of the better junior gold properties in Timmins West area, just completed private placement to fund deep penetrating geophysical, has lined up a larger financing that is linked to sponsorship for listing on TSXV, will drill property this winter.
Red Pine Exploration Inc. – (RPX) – listed at $0.12 – high since $0.125 – .08 – optioned off their Timmins property to WTM (now Lake Shore Gold) which was reason for this listing in first place and lost all leverage there, very disappointing, has Abitibi-West gold property in Swayze greenstone belt and just optioned block of adjoining claims.
Here are two great junior gold stocks… one an exploration play with the right geology in one of the most productive gold camps, the Timmins Gold Belt, and the other with a 43-101 combined resource of over 1.5 million ounces and drilling to increase that resource…
RT Minerals Corp. – $0.18
RT Minerals Corp. (RTM-CNQ) is a junior gold exploration company with one of the better properties in the Timmins West Camp. In the opinion of several veteran Timmins Camp geologists, the Golden Property appears to have a very similar geology to that found at the Lake Shore Gold Timmins Mine.
The Golden Property is located along a southwest limb of the Destor-Porcupine Fault and ties directly on to the southwest portion of the combined Lake Shore Gold/West Timmins claim group.
RTM has commenced fieldwork with an excavator on site and a trenching and prospecting program has started on the approximately 4 km by approximately 6 km property. A field crew is prospecting and evaluating historical trenches on the east side of the property, where assays from grab samples from trench material yielded past values of up to 0.32 oz/t gold and historic drilling by Keefer Lake Resources intersected 7 gm/t gold over 0.60 m.
Follow-up prospecting and sampling are also planned on the western side of the property, where historic values from grab samples assayed up to 15.6 gm/t gold (0.50 oz/t gold). The Destor Porcupine fault system traverses the entire property and will also be evaluated. Follow-up line cutting and a geophysical program will commence upon completion of the trenching and prospecting programs.
RT Minerals only has 16.5 million shares out, is closely held and is currently doing a small flow-thru financing (contact company if interested). In addition, at this time RTM is negotiating with a national firm for a larger financing to be combined with sponsorship of RTM for a listing on the TSX.
For maps and other information, go to: Tiimmins West Gold Camp
Golden Goose Resources Corp. – $0.33
Quite simply, I consider Golden Goose Resources (GGR-TSX) to be one of the most undervalued junior gold stocks in Canada. The Company currently shows a 43-101 indicated resource of 450,000 ounces and an inferred resource of 1.1 million ounces at the Magino Mine. The deposit is only 1.5 km from Richmont Mines’ Island Gold Mine and mill and there are two other mills in the area.
This deposit has an open pit component and is open to the west and at depth, with the grade improving with depth. Some of the best grams per meter intercepts on the property have been found outside the current resource, in the volcanics, which are still untested. Golden Goose is starting a drilling program to add additional resource outside of the current deposit envelope using the $1.2 million in flow-through funds now in the treasury.
A scoping study is now underway with its delivery expected in March, 2010. There are 51.5 million shares out, with insiders holding approximately 6.5 million shares. The stock did run up to $0.47 at the end of April, then drifted down to $0.225 and is now looking to break-out over $0.35. The Company recently hired Renmark Financial for their IR and will be embarking on a number of presentation trips for brokers in both Canada and the US. One interesting note here is that the founder of Renmark is the brother of the President of Golden Goose… Henri Perron and Francois Perron respectively.
To view a Golden Goose power point dated October, 2009
For more background information, visit the Golden Goose web site.
Prices as of September 22, 2009
Golden Goose Resources (GGR) – listed $0.20 – high since $0.49 – progressing well, one of the best junior gold stocks around, over 1 mln ozs gold, great location
Mirasol Resources Ltd. (MRZ) – listed $0.17 – high since $0.52 – going up with no hard news, drilling by Coeur d’Alene continues in Argentina
Rolling Rock Resources Corp. (RLL) – listed $0.10 – high since $0.22 – another junior with a resource of 944,000 oz. gold along with a completed scoping study
Tawsho Mining Inc. (TAW) – listed $0.085 – high since $0.145 – appears to have a resource of over 400,000 oz gold
Takara Resources Inc. (TKK) – listed $0.03 – high since $0.045 – changed direction, currently distributing Garson Gold shares as a stock dividend
Medallion Resources Ltd. – (MDL) – listed $0.13 – high since $0.21 – could not finance iron-titanium deposit, great expertise in rare earth and lithium, acquiring properties
Prospector Cons. Res. Inc. – (PRR) – listed $0.045 – high since $0.055 – still hanging on, trying to finance a drilling program on tungsten deposit
Gossan Resources Limited – (GSS) – listed $0.075 – high since $0.22 – a mixed bag, stock has slowly moved up, process for extracting magnesium from their deposit appears to work
Source Exploration Corp. – (SOP) – listed $0.11 – high since $0.17 – got extension on property, has over $1 mln cash, new president with great silver mining experience
GLG Life Tech Corporation – (GLG) – listed $1.85 – high since $3,00 – many positive recent developments, stock moves on light volume, great product, has enormous potential
Explore Resources Inc. – (EXS) – listed $0.34 – high since $0.54 – Timmins claim block holds great potential, has a number of other good properties as well
RT Minerals Corp. – (RTM) – listed $o.22 – high since $0.25 – tight stock, one of the best junior gold properties in Timmins West area, geology intriguing, will drill this winter
Red Pine Exploration Inc. – (RPX) – listed $0.12 – high since $0.125 – optioned off their Timmins property and lost all leverage there, disappointing, but may find other plays
RT Minerals Inc. – (RTM – CNQ) – $0.19
RT Minerals has optioned a block of claims southwest of the Lake Shore Gold Timmins West Gold deposit. A number of good gold results have been previously obtained on the western portion of this block, but the eastern half of the property remains essentially unexplored. This eastern portion contains a north/south fault environment that looks to be highly prospective and similar to the Lake Shore ground.
RTM currently has an excavator on site and is trenching and conducting a prospecting program on the eastern portion where grab samples have yielded values of up to 0.32 oz gold/t. Line cutting and a geophysical program will follow to define the drill targets for this fall/winter.
RTM is now going to do a small flow-thru financing to fund the drill program and combine it with a sponsorship for listing on the TSX-V. The stock is very closely held (16 million shares out) and a substantial public relations program is slated to start soon.
Map of RT Minerals Geology of Gold Property, Timmins West
Three Junior Companies in the Timmins Camp
Currently, Lake Shore Gold Inc. (LSG) is driving the news in the Timmins Camp with their drilling on the West Timmins (WTM) property (60% LSG – 40% WTM). Two current rumours out there…. first, is that WTM has results coming from a hole on their 100% owned ground and the more important one as far as I am concerned… that LSG and WTM will come to some agreement, which makes perfect sense. Once that happens, shareholders of WTM will be looking for new Timmins Camp juniors to move their money into. Here are the three most interesting juniors to look at:
1) Explor Resources Inc. – (EXS – TSXV) – $0.34
EXS recently acquired a significant block of claims along the Porcupine Destor fault, a block that Tom Exploration previously held for a number of years. This block covers a porphyry substantially larger than the one LSG/WTM has shown to be mineralized. There have been intersections of shallow gold mineralization, but the property has not been explored at depth. Chris Dupont, President, has been compiling all the previous data and will be taking that on a tour of a number of Toronto brokerage firms this week, looking for funding for a drill program. This is one of the best virgin blocks of ground in the whole Timmins camp, strategically located on trend. Stock looks to be finally breaking out of the current sideways trading range of the last year and because of the size of the property, long term drilling potential. Web site and a Map of Timmins claim group
2) RT Minerals Inc. – (RTM – CNQ) – $0.22
RTM has just acquired a block of claims on a piece of ground to the southwest of LSG/WTM property along the Porcupine Destor fault. Good gold results have been previously obtained on the western portion of the block, but the eastern half of the property remains essentially unexplored. This eastern portion contains a very intriguing north/south fault environment that leads some to an exciting theory that it looks to be a repeat of the same environment as the LSG/WTM ground. RTM just did a small pp to insiders and Dan Clark, President, plans to do a flow-thru financing and drill the property. Recent crosses of blocks indicate share positioning at the .15 to .20 level, showing the stock is tight and has the potential to take a good run. Web site and maps of Timmins claim group
3) Red Pine Exploration Inc. – (RPX – TSXV) – $0.12 * NEGATIVE UPDATE BELOW
RPX holds the best positioned group of claims for a junior company in the Timmins Camp. The short story is that RPX has just over a 100 million shares out and voted for a 5-1 roll back last fall, but has decided not to go through with it at this time. Since any further exploration on this block will entail some expensive deep drilling to test the property’s potential for mineralization similar to WTM’s, management is waiting on the WTM results. But, I think a LSG/WTM combination will have a much larger long term price influence because it will just highlite the fact that their claim group is smack dab in the middle of the combined LSG/WTM claim blocks. Stock has good volume and has just started to move…. this one is a trading vehicle with potential for a pop. Web site and a Map of Timmins claim group
UPDATE on August 26th in news release re RPX from West Timmins (WTM)
My Comment: This kills stock as they have lost all leverage and now will have to wait for LSG to get around to this property, if they ever do. In my opinion, not a good move.
Costello property — Red Pine Exploration (RPX – TSXV) option
WTM and Red Pine Exploration Inc. have signed a letter agreement whereby WTM has the option to earn a 75-per-cent interest in the Costello property located in Bristol township. The Costello property consists of nine claims located immediately east of Lake Shore Gold’s Timmins mine. The highly prospective Bristol fault, which intersects the Thunder Creek fault proximal to the Timmins mine, crosses through the Costello property. Initial work by Red Pine indicates the presence of gold mineralized quartz-tourmaline veins, which are an important component of the Timmins mine gold system, located in close proximity to the Bristol fault on the property.
Under the terms of the Costello letter agreement, subject to necessary regulatory approvals, West Timmins may vest a 75-per-cent interest in the Costello property by making a single cash payment of $150,000 and issuing 150,000 common shares of WTM on receipt of regulatory and board approvals, completion of title due diligence, and by undertaking $300,000 in eligible exploration expenditures on the property prior to the 18-month anniversary of the effective date of the letter agreement.
Stock Price Updates on TFSA Letter Stocks as of July 24, 2009
Golden Goose Resources (GGR) – listed $0.20 – high since listing $0.49 – currently $0.285
Mirasol Resources Ltd. (MRZ) – listed $0.17 – high since listing $0.445 – currently $0.445
Rolling Rock Resources Corp. (RLL) – listed $0.10 – high since listing $0.19 – currently $0.12
Tawsho Mining Inc. (TAW) – listed $0.085 – high since listing $0.145 – currently $0.08
Takara Resources Inc. (TKK) – listed $0.03 – high since listing $0.045 – currently $0.03
Medallion Resources Ltd. – (MDL) – listed $0.13 – high since listing $0.15 – currently $0.085
Prospector Cons. Res. Inc. – (PRR) – listed $0.045 – high since listing $0.045 – currently $0.015
Gossan Resources Limited – (GSS) – listed $0.075 – high since listing $0.17 – currently $0.15
Source Exploration Corp. – (SOP) – listed $0.11 – high since listing $0.17 – currently $0.14
GLG Life Tech Corporation – (GLG) – listed $1.85 – high since listing $2.75 – currently $2.25
GLG Life Tech Corporation – GLG (TSX) – $1.85
GLG Life Tech Corporation stock is trading around $1.85, so it is not what I would traditionally list in the TFSA Investment Letter as a low-priced stock. However, I believe that GLG could be one of those companies that would become accepted in the stock market as a world leader in their sector and generate substantial capital gains over the next few years.
What is their sector? Sweetener
GLG is a world leader in the production of high quality stevia, a zero-calorie, natural sweetener. Their vertically integrated operations include stevia seed breeding, propagation, growth and harvest, extraction, refining and formulation.
Stevia is a natural, calorie free sugar substitute, derived from the leaves of the stevia plant scientifically known as Stevia Rebaudiana Bertoni. Indigenous to Paraguay, stevia has been used to sweeten food and beverages for over 200 years. It includes no additional chemicals and provides a healthy, 100% natural solution for consumers. Stevia is stable at high temperatures (thus safe for cooking purposes) and has been shown in clinical trials to have many health benefits. Stevia is safe for diabetics, has been shown to help prevent tooth decay, and has even been recommended by the World Health Organization for use as a treatment for hypertension. By replacing sugar with stevia, consumers could potentially decrease caloric intake, helping to reduce obesity and other associated health risks.
Currently, stevia is approved as a food additive in many countries such as China, Japan, Paraguay, Korea, Brazil, Israel, Malaysia and Taiwan. In Paraguay, it has been used for over 200 years to sweeten food and beverages. In other parts of the world, stevia is very widely used and even now accounts for over 40% of the sweetener market in Japan.
The most important event in the recent history of stevia as a sweetener came on December 17, 2008 when the United States Food and Drug Administration (FDA) approved the use of high quality stevia extract in food and beverages.
Rebiana is a stevia-based sweetener jointly developed by international food and agricultural supplier Cargill and leading beverage giant Coca Cola. GLG is the leading producer of rebiana, an all-natural, zero-calorie stevia extract made with 97-per-cent pure rebaudioside A.
GLG recently announced a $40.5 million order from Cargill for Truvia, a tabletop sweetener. GLG has just announced that it has partnered with Zevia which has recently launched a reformulation of its natural soda lines which now utilize GLG rebiana stevia extract. Zevia has been recognized by SPINS, a division of AC Nielson for retail performance, as the #1 selling diet soda in the all natural food category as well as the #3 best selling product over all carbonated beverages in natural foods.
You should be aware that there is another competitor to GLG, called Pure Circle. I think the potential market for stevia – will allow both companies to rapidly expand for a number of years before they start to crowd each other. Pure Circle is listed on the AIM, under the symbol PURE.
I could write a long, detailed report on GLG, but I think that if you find this of interest, it would be better for you to take the time to visit the Company’s web site, read some of the information on the Company and log in this week to listen to a webcast of latest earnings.
NOTE: The webcast this Friday will contain a very comprehensive slide presentation which would give you a great background on the Company and the last one, if you care to go to Company web site and listen to it, has a very long section with a number of analysts asking and getting answers to many questions.
WEBCAST:
Date: Friday, May 15, 2009
Title: GLG First Quarter Earnings Discussion
Time: 10:00am PST/1:00pm EST
Host: Brian Meadows, Chief Financial Officer
Wellington West Capital Markets analyst Robert Winslow rates the shares “buy.” He targets the stock at $3.50. Extract output is forecast to rise 400 per cent by fiscal 2010. Earnings are forecast at 25 cents a share in 2011. The company lost ten cents a share in fiscal 2008.
There are approximately 78.6 million shares outstanding, with 74.5% held by insiders, associates and institutions:
- 18.2% Skyland International Investment Management Ltd. (Peoples Republic of China)
- 12.9% HZ Health Management Company Limited (Marshall Islands)
- 10.3% Pacific Marketing Consultants Ltd.
- 6.4% Dr. Luke Zhang (China)
- 5.2% Brian Palmieri (Wyoming)
- 1.9% Cargill
- 4.7% Black River (Cargill)
- 14.9% Other Institutional Investors
News Update – Wall Street Journal, May 12, 2009 – Soda Tax Weighed to Pay for Health Care
Senate leaders are considering new federal taxes on soda and other sugary drinks to help pay for an overhaul of the nation’s health-care system. The taxes would pay for only a fraction of the cost to expand health-insurance coverage to all Americans and would face strong opposition from the beverage industry. They also could spark a backlash from consumers who would have to pay several cents more for a soft drink.
The Center for Science in the Public Interest, a Washington-based watchdog group that pressures food companies to make healthier products, plans to propose a federal excise tax on soda, certain fruit drinks, energy drinks, sports drinks and ready-to-drink teas. It would not include most diet beverages. Excise taxes are levied on goods and manufacturers typically pass them on to consumers. The Congressional Budget Office, which is providing lawmakers with cost estimates for each potential change in the health overhaul, included the option in a broad report on health-system financing in December. The office estimated that adding a tax of three cents per 12-ounce serving to these types of sweetened drinks would generate $24 billion over the next four years.
Proponents of the tax cite research showing that consuming sugar-sweetened drinks can lead to obesity, diabetes and other ailments. They say the tax would lower consumption, reduce health problems and save medical costs. At least a dozen states already have some type of taxes on sugary beverages, said Michael Jacobson, executive director of the Center for Science in the Public Interest.
“Soda is clearly one of the most harmful products in the food supply, and it’s something government should discourage the consumption of,” Mr. Jacobson said. The beverage-tax proposal would apply to drinks that many Americans don’t consider unhealthy — such as PepsiCo’s Gatorade and Kraft’s Capri Sun — based on their calorie content.
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. The TFSA Investment Letter does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. The publisher, editors and consultants of The TFSA Investment Letter may actively trade in the investments discussed in this newsletter. They may have substantial positions in the securities recommended and may increase or decrease such positions without notice. Neither the publisher nor the editors are registered investment advisors. Recipients should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.
Five More Low Priced Stocks for Tax Free Savings Accounts
1. Takara Resources Inc. – TKK – .03
Has approx. $300k cash, has 30.7 mln shs outstanding, was just granted 110,000 hectares prospective for new ultramafic magmatic sulphide nickel deposits west of Thompson, Manitoba through the “Miskamovwin Project” generated by Dr. James Mungall, who holds the Norman Keevil Chair of Ore Genesis and has published on magmatic sulphide deposits. A further 100,000 hectares is pending. TKK also has a jt-venture with DIR Exploration on a uranium breccia pipe property in Arizona; a strategic alliance with Aphrodeities Mining targeting coal/uranium opportunities in South Africa; several epithermal gold and lead-zinc properties in the Selwyn Basin, northeastern BC; a uranium property near Dryden, Ontario; finished a first phase drilling program on a gold prospect straddling the Cameron shear zone near Lebel-sur-Quevillon, Que. Recently announced a strategic alliance with Garson Gold. Directors include Jennifer Boyle, Pamela Strand, Marjorie Wieshofer and Carrie Howes with Julie Lassonde recently joining the board and are shown as owning 6.43 mln shs
2. Medallion Resources Ltd. – MDL – .13
Has approx. $70k cash (Note – Company is currently working to complete a private placement of up to $2 mln through 6.7 mln flow-thru units and 6.7 mln non flow-thru units at .15), has 15.3 mln shs outstanding, the Company’s main project is the Romaine iron-titanium deposit, 40 km north of Havre St. Pierre, Que. with a historical resource estimate of 234 million tonnes grading 10.8 per cent titanium oxide and 17.9 per cent iron. The deposit is open along strike and down dip and based on a recent sampling and mapping program, has significant potential for increased grade and a doubling in size. The Romaine deposit is located just 3 km east of the Lac Allard mine, the world’s largest hard-rock iron-titanium mine. Hydro-Quebec plans a new hydro-electric complex just 15 km to the east of Romaine with a proposed power line and road. Directors include William Bird, Donald Lay, David Haber, Roderick McKeen and Andrew Morden and are shown as owning 2.25 mln shs and MineralFields is shown as owning 1.38 mln shs
3. Prospector Consolidated Resources Inc. – PRR – .045
Has approx. $5k cash (Note – Company is currently working to complete a $1.5 mln flow-thru financing for the 2009 program), has 37.9 mln shs outstanding, the Company’s main project is the Kalzas tungsten deposit in the Yukon. A total of 11 drill holes, located in a zone of 360 metres by 300 metres and from a zone 100 metres thick indicated a grade estimated at 0.2 per cent to 0.3 per cent WO3 (based on Prospector’s drilling and trench sampling). This estimate results in a zone containing 5.6 million to 8.4 million metric ton units. Using lower and higher average grades as was estimated by Union Carbide and Copper Ridge provides a range of 4.8 million to 16 million metric ton units. (A metric ton unit is the conventional way of reporting tungsten mineralization and consists of 10 kilograms of WO3.) This zone is located within a large tungsten anomaly and covers less than 10% of the greater than 0.12 % WO3 rock chip surface anomaly indicating the potential to substantially increase this zone. Directors include Henry Neugebauer, Joe Milbourne, Michael Easdon and Mohammed Hassan Alief and are shown as owning 2.2 mln shs
4. Gossan Resources Limited – GSS – .075
Has approx. $1.45 mln cash, has 29.1 mln shs outstanding, the Company has 2 main projects: 1) the Inwood Magnesium Deposit (80 km north of Winnipeg, Manitoba), a large, high-purity dolomite with a 43-101 Measured Resource of 28.8 million tonnes grading 21.15% MgO averaging a true thickness of 12m and capable of sustaining a production facility of 80,000 tonnes of magnesium per year for 30 years. There is an Inferred Resource for this deposit of 131 mln tonnes of 21.64% MgO. Magnesium prices have been strong and are currently over US$2/lb and the access to lower hydro electric costs is a major factor in the deposits economics. GSS also holds an option on the worldwide rights to a new high-efficiency modified magnesium production process and is currently testing this technology; 2) a jt-venture with Marathon PGM on the Bird River Ni-Cu-PGM project which has two 43-101 resources on it, with drilling to date focusing on only 3 km of the 22 km property. The Page Block has an Indicated Resource of 1.5 mln tonnes of .32% Ni, .13% Cu, .01% Zn, .90 gpt Ag, .02 gpt Au, .07 gpt Pt and .28 gpt Pd. The Ore Fault North Zone has an Indicated Resource of 905k tonnes of .37% Ni, .24% Cu, .20 Zn, 8.2 gpt Ag, .02 gpt Au, .09 gpt Pt and .37 gpt Pd. Recent results include 12.3m of 0.33% Ni, 0.13% Cu and 0.73 g/t PGM and 5m of 3.79% Zn, 0.56% Cu and 13.73 g/t Ag. Directors include Douglas Reeson, Charles de Chezelles, Louis Chastko, Ryan Cooke, William McGuinty and Andrew Thomson and are shown as owning 1.24 mln shs. Sprott Asset Management is shown as owning 4.72 mln shs
5. Source Exploration Corp. – SOP – .11
Has approx. $2.0 mln cash, has 22.1 mln shs outstanding, the Company’s main project is a 746 hectare Concession hosting the San Acacio Mine property in Zacatecas, Mexico which it acquired from Sterling Mining Company. There is a reported drill-inferred resource of 14.4 million ounces of silver and reasonable resource extensions could add significant revenue potential. The San Acacio mine has been worked since 1548 and has produced 180,000,000 ounces of silver at average grades of over 1,000 grams per tonne. The San Acacio property covers 4 kilometres of the known strike of the Veta Grande Vein adjacent to the Mala Noche vein system hosting the Cozamin Mine of Capstone Mining Corp. The vein is up to 20m wide as exposed in trenches and underground workings. The vein has only been mined for 2 km to the bottom of the oxide zone at a depth of 270m below surface. The potential for significant silver reserves along strike and down dip is excellent. SOP intends to execute a comprehensive exploration program, including surface and underground diamond drilling and has already gained access to the 300m level of the old mine. Directors include Abraham Drost, Robert Tyson, Wayne Moorhouse, Darrell Rader and Ewan Downie and are shown as owning 2.1 mln shs.
UPDATE: Golden Goose (GGR) – should have their new 43-101 resource numbers by the end of the month, which would allow them to move ahead with further discussions; Rolling Rock (RLL) – working to advance gold deposit to next stage; Mirasol (MRZ) reported some good initial results on several of their properties; Tawsho (TAW) – Zoran Arandjelovic continuing to add to his shareholdings, now at approx. 6.3 mln shs
Three Low Priced Stocks for Tax Free Savings Accounts
1. Mirasol Resources Ltd. – MRZ – $0.17
Has approx. $4.8 mln, has 29.3 mln shs outstanding, holds a number of 100% owned gold-silver properties in Argentina – on one, a recent Coeur d’Alene option to earn 51% calls for that company to spend $8 mln over 4 yrs along with $800k in payments; on another two of the properties, Hochschild Mining has options to earn 51% with the expenditures of $3.5 mln and $6 mln respectively over 4 yrs along with $950k in payments. One of the Hochschild optioned properties, where drilling is currently underway, is adjacent to Anglogold Ashanti’s five-million-ounce Cerro Vanguardia gold mine. Directors include Mary Little, Stephen Nano, Timothy Heenan, Douglas Silver and Nick DeMare and are shown as owning 2.62 mln shs. John Tognetti, a principal of Haywood Securities, is shown as owning 3.06 mln shs
2. Rolling Rock Resources Corp. – RLL – $0.10
Has approx. $1.7 mln, has 46.4 mln shs outstanding, main project is the 100% owned Monument Bay gold deposit located 340 km east southeast of Thompson, Manitoba. The property has had 95,000 meters of drilling, approx. $28 mln in expenditures, a recent economic assessment study shows capital cost of $140 mln, operating cost of $106 per tonne processed, a 43-101 inferred resource of 12,575,000 mln tonnes with a grade of 4.22 g/t Au containing 1,872,418 ounces gold. Management includes Scott Angus, Dwane Brosseau, Ian MacLean, Roger Blair, Doris Meyer and Kevin Bullock and are shown as owning 1.45 mln shs. Kinross is shown with 8 mln shs and Oz Minerals is shown with 4 mln shs
3. Tawsho Mining Inc. – TAW – $0.085
Has approx. $2.2 mln, has 22.6 mln shs outstanding, main project is the 100% owned Chevrier gold project located 35 km south of Chibougamau, northeastern Quebec. The property has had three drilling programs over the years, showing good widths and interesting grades, resulting in a non-compliant historical resource of 3.563,000 tonnes grading 5.1 g/t Au containing 640,984 ounces gold at a 3 g/t cut-off. Over the last year, the Company has completed a detailed geological review of the property, had an airborneTEM survey flown, did ground geophysics, acquired additional claims, completed a 16 hole drill program, applied for a bulk sample permit and is continuing infill drilling to update the 43-101 report. Directors include Raymond Savoie, Zoran Arandjelovic, Michael Talmage, Gary Perkins, Camille St-Hilaire, Joseph Feldman and Vance White and are shown as owning 6.9 mln shs
UPDATE on Golden Goose – GGR – Company should have a new 43-101 Resource number by end of first quarter. Francois Perron is a new director – recently managed a resource-focused portfolio for NBC Alternative Investments. Prior to joining NBC in 2007, he spent seven years running various resource funds for the Caisse de depot et placement du Quebec. In 2006, he was recognized by the Brendan Woods International survey as a “top gun” asset manager in mining.
Concept for the TFSA Investment Letter
The concept for this letter is to list stocks that will generate capital gains as quickly as possible. Holding conservative investments in a TFSA does not really make any sense. So, we will only be talking about highly speculative stocks that are trading at their lows, giving them the potential to generate substantial capital gains.
NOTE: Some interesting information you should know about the TFSA:
1. Any amount withdrawn from the TFSA is available as a new contribution amount for the next year!
i.e. suppose you contribute the $5,000 and are lucky enough to buy a stock that goes up substantially and you manage to sell it for $15,000. In this case, if the $15,000 is withdrawn from the TFSA account (tax free!), then a $20,000 contribution amount is available to you for the next year. This new contribution amount is a total of the amount withdrawn ($15,000) plus the annual limit ($5,000).
However, the reverse would also be true. If you contribute and invest $5,000 and you lose $4,000 and withdraw $1,000, then the next year’s contribution room would only be $6,000.
2. Another consideration is looking at contributing warrants from unit financings. Since they have no value if they do not trade, especially if they are out of the money, then there should be no cost attributed to them and therefore no reduction in the contribution limit for that year. However, you would have to make sure you had sufficient funds to exercise the warrants in the TFSA. I understand we should be getting a tax ruling on this shortly.
Golden Goose – GGR (TSXV) – February, 2009 – $0.20
Drilling and exploration to mid-2008 has generated a NI43-101 measured and indicated resource of –
7,295,000 tonnes with an average grade of 2.33 g/t (.0822 oz) for 544,080 ounces from surface down to 200m (open pit)
3,755,600 tonnes with an average grade of 5.94 g/t (.2095 oz) for 717,227 ounces from the 200 m level to a depth of 600 m
Total measured, indicated and inferred resource of 1,261,307 ounces gold
This gold deposit is only 1.5 km from Richmont Mines’ Patricia Island Mine near Wawa
Recent surface stripping has returned 17.6 g/t over 1 m and 9.03 g/t gold over 1.1 m and an update to the NI43-101 Resource is currently underway to help define this year’s drilling program
Management and Share Positions (Management Info Circular)
Michel Bouchard – 15,000
(He is credited for the contribution of the Bouchard Hebert Mine discovery in North-western Quebec. He was a Senior Executive for Aiquebelle Resources, Audrey Resources, Lyon Lake Mines, SOQUEM, and McWatters Mines. Mr. Bouchard is also President and CEO of Cadiscor Resources Inc.)
Kerry Knoll – 420,000
(He served as President of Glencairn Gold Corp. since it’s incorporation in 1987. He was the co-founder of Wheaton River Minerals Ltd., a company founded by Glencairn, and stayed with that company for 11 years in various capacities, including President. Other notable accomplishments during his career include terms as the Editor of both The Northern Miner Magazine and the Canadian Mining Journal. Mr. Knoll sits on the board of Blue Pearl Mining Ltd. (now Thompson Creek Metals Corp)
Jean Marc Lacoste – 1.4 million
(Early in his career, he worked at Merrill Lynch Canada, as Director of Derivative Products and most recently was Vice President Acquisitions at Northland Power Inc.)
Kevin Ramsay – 0
(He has extensive experience as an external auditor with junior and senior mining companies, including Wheaton River Minerals Limited prior to its acquisition by Goldcorp in 2005, and Blue Pearl Mining Ltd. (now Thompson Creek Metals Corp)
Kevin Sherkin – 200,000
(He currently sits on the Board of Directors of Rubicon Minerals Corp.)
Greg Vance – 4.1 million
(He sold the majority of his interest in a private company called Procaps to private equity in 2005. Today he remains active in looking at buying/selling companies, and managing an investment portfolio of $35M)
David Watkins – 80,000
(He was President of Cyprus Amax Minerals Company for six years prior to joining Atna. He joined Falconbridge Copper Ltd. as an Exploration Geologist in 1977 and became Chief Geologist responsible for exploration in Quebec and mine operations at Lake Dufault and Opemiska in 1980. He acted as Vice President, Exploration and later President of Minnova Inc., the successor company to Falconbridge Copper. Early in his career Mr. Watkins also worked with Newmont Mining and with Noranda as an Exploration Geologist in various parts of the world including Australia, Mexico, Ecuador, and Canada. Mr. Watkins is also President and CEO of Atna Resources Ltd.)
Cash Position: approx. $2 million
Shares Outstanding: 47.7 million
