Spiny Picks
posted on
Jan 04, 2010 07:10PM
Creating shareholder wealth by advancing gold projects through the exploration and mine development cycle.
I have some of all of these.
Rubicon Minerals- RMX.TO, RBY (Amex). An explorer with amazing drill results that seems to be leaning toward developing their major deposit on their own rather than JVing or selling out. Check out their results- stuff like"0.40 oz/ton gold over 147.3 feet (13.7 g/t gold over 44.9 metres) including a higher grade section of 0.83 oz/ton gold over 59.0 feet (28.4 g/t gold over 18.0 metres)". They're drilling deep and hitting good stuff, and defining an ever larger deposit.
Silver Falcon Mining- SFMI.PK. Re-opening mining on one of the richest silver deposits (War Eagle Mountain) in the US. Kinross (who mines the next two mountains over) gave up the leases when PMs were at a low. The kicker is that there's over 300,000 tons of unprocessed ore on the surface from back when it wasn't economic to haul or process anything under 2 oz/ton. Assays of the above ground ore indicate 6g/ton gold and up- plus silver- and maybe much more. They've had a few setbacks in trying to get started. They own their own milling equipment, which they installed in a leased building that didn't work out. They have since bought property nearer the mines and are putting up a building to install the mill. As soon as the mill is commissioned, they will begin processing ore that they are stockpiling on site. Once that happens, the company should be self-funding in re-opening the mines and still generate plenty of cash. No official resource estimate, but the mines previously produced almost half a million gold eq oz, and 4 million more are thought to be mineable. Currently trading at under 5 cents, w/ 133M shares out for a market cap of less than $7M! They should be uplisted to the OTC very soon, and the mill up and running in a couple months (hopefully). As an interesting sidelight, they have a webcam so you can keep track of construction of the mill building! SFMI mill construction There are risks as with any pink (milling was expected to start at the leased building a year ago), but the potential upside on this one is pretty impressive.
Zenn Motor Cars- ZNN.V. Already brought up by Portee and discussed here. Basically, Zenn is now a shell that owns 10% of the private company EEstor and the rights to market their product in certain markets, including vehicles up to about mid-size. The product?- an ultracapacitor energy storage unit (EESU) that would replace batteries in electric vehicles at much smaller cost, size, and weight. Potential uses also include virtually anything that batteries due, plus applications like storing energy from solar and wind to use at night or calm days. The catch? As a private company, EEstor is notoriously secretive, and aside from meeting certain milestones required for Zenn's investments, little is known about EEstor's progress. The EESU was supposed to have been delivered by the end of 2009, but this is not the first time it has been delayed. If EEstor does deliver, it's a game changer. This is truly a lottery ticket, but with what I think are much better odds.
Golden Minerals- AUM.TO, GDMN.PK. One that's really under the radar. $33M market cap and not very liquid (I think only about 3M shares out?). They have 35 mineral projects in various stages. An imminent IPO is supposedly going to go for more than the current price.
Mirabela Nickel- MNB.TO Recently started producing from their open pit nickel mine in Brazil. The largest nickel sulfide deposit found in many years. As a sulfide deposit, costs will be low- maybe $4-5/lb- so they will be profitable even if nickel prices fall low enough to shut down most producers. They diluted a bit more than I thought necessary, but still should do well once full production is achieved and numbers for a full quarter are announced. Not the lottery ticket the others are, but what I hope is a solid pick.