TFSA Letter – New Stock List – November, 2011

TFSA – New List of Stocks – November, 2011

I am listing several companies that should prove to be very interesting over the next 6 – 9 months. I guess it all depends on whether you believe that the market for junior mining stocks will improve over the next six months.

 

RJK Explorations Ltd. – RJX.A – Gold/Copper – $0.13

RJK just issued an exploration update on their Blackwater claim groups, contiguous on the West and East of the New Gold (NGD) Blackwater Gold deposit which is currently at 6.6 million ounces gold/36.3 million ounces silver. RJK has conducted soil sampling, prospecting, an airborne mag survey, an airborne ZTEM survey and a 2D IP survey on both claim blocks. On the East block, a number of exceptional, deposit scale target areas were identified. RJK intends to begin drilling some of these targets as soon as permits are received.

NOTE: NGD just announced the acquisition of two junior exploration companies, Silver Quest (SQI) and Geo Minerals (GM), specifically for their land positions in the Blackwater Gold Camp for $131 million and $17 million respectively.

Shares Out:    71.8 million                            High/Low – $0.22 – $0.06

Altai Resources Inc. – ATI – Gas/? – $0.14

Used to have some of the best, undrilled shale gas exploration permits in the St. Lawrence Lowlands along with known reserves before the “democratic” government in Quebec unilaterally revoked many of them without compensation. Altai has approximately $7.1 million in cash and investments which works out to $0.13 per share, no debt and a really low burn rate. Company is currently looking for a new project to acquire and any activity on this front would be positive for stock price.

Shares Out: 55 million                                   High/Low – $0.41 – $0.08

SGX Resources Inc. – SXR – Gold – $0.18

SGX was a spin out from San Gold Corporation (SGR) which retains 42.6% of the shares out. SGX has a 50/50 joint venture with San Gold on the Tully Gold property which has 954,000 tonnes grading 7.6 grams per tonne gold (223,000 ounces) and a geological potential to the 650m level of 6 to 7.8 million tonnes grading 8 – 10 grams per tonne containing 1.5 to 2.5 million ounces. SGX also has a number of other good  properties in the Timmins Gold camp.

Shares Out: 74.4 million                                High/Low – $0.35 – $0.15

NSGold Corporation – NSX – Gold/Silver – $0.475

NSX just announced that it will be spinning out its silver assets into a new company, NSX Silver, as a dividend in kind. Its President is an ex George Soros senior executive out of London who owns approximately 33% of the shares. Several Sprott funds recently completed a $4.4 million private placement at $0.51 to hold 19.9% of the shares. Its Mooseland gold property in Nova Scotia has a 43-101 resource of 2.5 million tonnes grading 4.9 grams per tonne gold (390,000 ounces) and growing. Its Dios Padre silver property in Sonora, Mexico contains a minimum of  5 million ounces silver with excellent potential to expand to over 60 million ounces.

Shares Out: 43.4 million                    High/Low – $0.88 – $0.20

Sennen Resources Ltd. – SN – Gold – $0.16

Sennen is earning an interest in the Oro gold property in the Hope Bay greenstone belt in Nunavut, from Northern Arrow (Grenville Thomas). Oro adjoins the Doris North mine property being brought into production by Hope Bay Mining (subsidiary of Newmont Mining). The Hope Bay Mining project, estimated to contain approximately 9 million ounces, represents one of the largest undeveloped gold deposits in Canada. Sennen has approximately $14.5 million in cash ($0.24 per share) and has already begun a drilling program on the property.

Shares Out: 59.2 million                                High/Low: $0.42 – $0.155

Xmet Inc. – XME – Gold – $0.095

Xmet is earning a 75% interest in the Duquesne-Ottoman project near Rouyn-Noranda which consists of 4.2 million tonnes grading 6.36 grams per tonne (823,000 ounces). The deposit is immediately adjacent to three past producing mines on ground held by Clifton Star along with excellent infrastructure, meaning no high logistics expenses. Xmet is currently drilling to extend the deposit as it is open at depth and along strike.

Shares Out: 51.8 million                                High/Low: $0.30 – $0.09

Lake Shore Gold Corp. – LSG – Gold Production – $1.29

Lake Shore is a gold producer and one of the largest landholders in the Timmins gold camp. Due to mismanagement in presenting some lower production numbers to the street, the perception of the company was negatively affected and the stock price has dropped to ridiculous levels. Lake Shore currently shows approximately 4 million ounces gold, but is currently preparing 43-101 reports on their resources which should bump that number up to 6 – 8 million ounces. Simple calculation: 400 million shares out with 6 million ounces in production = .015 ounce per share. Market Cap is $520 million valuing the in ground gold/plus production facilities at $86.70 per ounce. Production numbers will improve as higher grade zones are included in production over the next year. At these prices, Lake Shore is flashing – “Takeover”.

Shares Out: 400 million                                 High/Low: $4.42 – $1.27

Driven Capital Corp. – DVV – Silver – $0.13

Driven is earning a 100% interest in the Lyn silver property in the Yukon and owns 100% of the Kuyakuz gold property near New Gold’s Blackwater property in central BC. The Lyn property is 5 km southwest of Golden Predator’s (GPD) Grew Creek epithermal gold-silver discovery in the Tintina fault system. Driven has just completed an initial shallow drilling program along with soil sampling and is awaiting the results in order to plan for the 2012 drilling program. An IP survey is now underway on the Blackwater property where positive results would lead to drilling program early in the 2012 season.

Shares Out: 16.5 million                                High/Low: $0.35 – $011

LaRonge Gold Corporation – LAR – Gold – $0.25

LaRonge just acquired several large claim groups in northern Saskatchewan containing two gold deposits that are located close to current gold production at the Golden Band Resources Roy Lloyd Mine adjacent to the the Jolu Mill and Claude Resources’ Seabee Mine. Historical resources at the Preview SW deposit are 494,000 tonnes grading 12.34 grams per tonne gold (196,000 ounces) and the Twin deposit are 612,000 tonnes grading 5.14 grams per tonne gold (101,000 ounces). Currently conducting hard and flow thru financing to raise $980,000 for drilling program.

Shares Out: 18.8 million                                High/Low: $0.28 – $0.09

Advertisement