Stateside Report
“ A Unique Report Service for the Intelligent Resource Investor”
Vince “Stateside” Marciano, MBA, CPA
Email: mailto:stateside@statesidereport.com
Website: http://www.statesidereport.com
“Under the Rocks”
September 1, 2010
“Discovering hidden opportunities in the Canadian junior resource sector”
Included in this report:
• An introduction to “Under the Rocks”
• Hidden opportunities in the junior gold/silver sector including:
◦ Artha Resources (AHC)
◦ Northern Superior Resources (SUP)
◦ Northern Rand Resources (NRR)
◦ Meritus Minerals (MER)
◦ Golden Peaks Resources (GL)
◦ Colt Resources (GTP)
◦ Lovitt Resources (LRC)
• Hidden opportunities in the energy sector including:
◦ Covenant Resources (CVA)
◦ Blacksteel Energy (BEY)
• Hidden Opportunities in the rare earth sector including
◦ Canadian International Minerals (CIN)

Introduction to “Under the Rocks”
Welcome to the inaugural issue of “Under the Rocks”, a new, monthly
report highlighting 5-10 hidden opportunities from the Canadian junior
resource sector. As readers who have been following my work for the
past 5 years know, I specialize in uncovering companies that are weeks
away from announcing potentially market moving news that no other
analyst or newsletter writer is covering. Research has become a lost
art over the years yet the Canadian junior resource sector is one of the
few sectors of the market where early, in depth research can provide
the investor significant returns in the market as most retail and
institutional investors wait until the news is evident before entering a
position in the stock. This supposedly “safe” investing approach
ignores the early gains that can be generated by taking the time to understand a story before the story gets
published and widely understood by the investing community. It also allows investors to get out of a stock with
minimal losses by getting in early if a situation doesn't develop as my investing approach never chases a stock
higher.
Even though I may spend several days researching a stock, I understand most investors don't have the time to
read every detail that can be found in the company's technical reports, SEDAR documents or website.
Therefore, I try and condense all of my research into a quick, fast read, one page summary by highlighting the
few key reasons why I feel the company is a hidden opportunity that presents an interesting investment idea in
the near-term. Investors are then encouraged to do their own due diligence prior to considering an investment in
any company profiled.
“Under the Rocks” will supplement other special reports I put out from time to time and the companies covered
in these reports will also be discussed at the Stateside Report blog featured at http://www.statesidereport.com.
In most cases, I will have a position in the stocks I profile in “Under the Rocks” as a result of my research
activities and I will disclose this fact at the end of each report. My policy is to not sell any stock mentioned in
“Under the Rocks” for at least 30 days after the publication date. In addition, I may have a consulting
agreement for investor awareness services with one or more of the companies mentioned in the report but again
I will disclose this fact at the end of each report. Most Canadian junior resource companies do not get coverage
from the major brokerage houses in the United States, Canada, Europe and Asia so my work tries to “fill the
research gap” by bringing exciting, near-term opportunities to those investors who have come to understand that
the resource sector is still in the 4th or 5th inning of a 9 inning ball game and the bull market in energy and
precious metals has quite a ways to go.
So let's get started shall we? Most of the companies on the following pages you've probably never heard of or
read about. Don't worry.....as you become a regular reader of “Under the Rocks”, you'll come to learn that
investing in unknown companies before they get “known” is the best way to profitably ride this generational
bull market in the energy and precious metals sector. As I've been told by many readers who pay thousands of
dollars to subscribe to other more prominent newsletter writers in the industry, my reports highlight companies
that the other newsletter writers talk about 6-9 months later. That's good enough for me!

Artha Resources (AHC.V)
Current Share Price (8/30/10) - $.14/share
Outstanding Shares – 26 million
Current Market Cap - $4 million
Website: http://www.artharesources.com
A Significant New Discovery plus a REE play?
I first took an interest in Artha Resources based
on the following press release issued in July:
2010-07-26 13:36 ET - News Release
ARTHA RESOURCES CORPORATION: NEW
AND SIGNIFICANT PRECIOUS AND BASE
METALS DISCOVERY
Artha Resources Corp. has discovered a large
system of precious and base metal mineralization
at the Ivan Alberto prospect on the Vallecito
property in northeast Argentina. The highly
anomalous values indicated in assays received
last week, coupled with the geological continuity
and scale of the mineralization, imply potential
for a meaningful discovery of a substantial
pollymetallic multivein system. Mineralization
has been encountered over a total strike length of
four kilometres and over a width of more than 1.5
kilometres. The Vallecito property is a new
discovery that has never been previously sampled
or drill tested.
Near-Term Opportunity
This is obviously a potentially large, mineralized system. Assays are still pending for approximately 100
samples. Approximately 25 to 30 per cent of assays received are considered anomalous in gold, silver, copper,
lead and zinc. Highly anomalous results are hundreds of times background levels for all five key metals
previously mentioned. Since this is a brand new discovery on a property that has never been sampled or drill
tested before, the large size and grades that show values as high as six grams per tonne (g/t) gold (Au), 50 g/t
silver (Ag), 0.4 per cent copper (Cu), 0.4 per cent lead (Pb) and 11 per cent zinc (Zn) will soon catch the eye of
newsletter writers and analysts as the story unfolds.
Other Positive Attributes
– John Kaiser (Kaiser Bottomfish Report) is recommending Artha Resources as a buy due to their rare
earth property also in Argentina. The property is high in the more profitable heavy rare earths.
– Work will also be conducted over the next few months at Pirquitas NW and Pirquitas South, Artha's
properties adjacent to the high grade Piquitas silver mine operated by Silver Standard.
– Tight share structure, excellent technical management, private placement just announced.

Northern Superior Resources (SUP.V)
Current Share Price (8/30/10) - $.28/share
Outstanding Shares – 126 million
Current Market Cap - $35 million
Website: http://www.nsuperior.com
Potentially..... the next Rainy River ?
As shown on the left, the Ti-pa-haa-kaa-ning
(TPK) property of Northern Superior based on
gold grains in till looks striking similar to the
Rainy River multi-million deposit. So much in
fact that the following occurred recently:
2010-06-21 08:49 ET - News Release
NORTHERN SUPERIOR RESOURCES INC.
SIGNS OPTION/JOINT VENTURE AGREEMENT
WITH RAINY RIVER RESOURCES LTD.
RESPECTING TI-PA-HAA-KAA-NING GOLD
PROPERTY
Northern Superior Resources Inc. and Rainy River Resources Ltd. have entered into an agreement whereby
Northern Superior has granted to Rainy River an option to earn a 51-per-cent joint venture interest in the
eastern half of Northern Superior's 100-per-cent-owned Ti-pa-haa-kaa-ning/Big Dam gold property in
Northwestern Ontario (the TPK property) (see Northern Superior news in Stockwatch on Nov. 20, 2008,
regarding Big Damn and TPK).
Rainy River can earn its 51-per-cent interest in the eastern half of the TPK property by (a) financing $9.4-
million in exploration expenses over a three-year period, with $1.4-million in year one, $4-million in year two
and $4-million in year three; (b) making cash payments of $300,000 upon receipt of regulatory acceptance and
a further $1.3-million in January, 2011, and (c) completing three equal annual private placements of common
shares of Northern Superior of $500,000 each for a total equity investment of $1.5-million. The first placement
of $500,000 will be priced at 20 cents per share, while the second and third will be priced at the volumeweighted
average trading price of Northern Superior's common shares for the last 20 trading days prior to the
anniversary date of the agreement. Northern Superior is required to spend an additional $1.6-million in
exploration expenditures on the eastern half of the TPK project this year.
Near-Term Opportunity
RC drilling is currently on going which will be followed up immediately by diamond drilling. Rainy River is so
excited by this project that they didn't want to waste any time moving this project forward. Based on the gold
grains in till, note the following statement:
Stu Averill, vice-president of exploration of Rainy River, commented: "The strong, regionally extensive gold grain anomaly in the till
on the TPK property is exceptional. This anomaly is matched at only three other localities in Canada, all of which either have a new
mining operation (Meadowbank) or are under consideration for development (Meliadine, Rainy River).
Investors may want to wait for a slight pullback in the stock price before entering a position. There has been
strong institutional buying in recent weeks which means the story has started to get out. Rainy River's
involvement has brought more attention to this stock and any positive drill results out of the RC drilling this
month should move the stock price considerably higher. The Rainy River placement means funds will be
available over the next 12 months without the need for external financing.

Northern Rand Resources (NRR.V)
Current Share Price (8/30/10) - $.30/share
Outstanding Shares – 37 million
Current Market Cap - $11 million
Website: http://www.northernrand.com
(website under development)
Potentially......the next Rainy River? Does that sound familiar :)
Here's what caught my eye reading the 2009 43-101 technical report on the Northern Rand Whitemouth Lake
Project in Manitoba/Ontario:
According to Stuart Averill (personal communication), the president of Overburden Drilling Management
Ltd. (ODM), in previous gold exploration programs involving thousands of reverse circulation drill holes on
more than 100 properties, ODM has encountered similar results only twice. The first time resulted in the
discovery of the Sleeping Giant property, Quebec and the second time resulted in the discovery of the Rainy
River property, Ontario. In both instances, the bedrock sources of the gold-in-till were less than 2 km from
the anomalous drill holes. These two discoveries are significant gold deposits. The Rainy River Resources
Ltd. February 28, 2008 News Release disclosed indicated mineral resources of 1.386 to 2.896 million ounces
grading 1.26 to 2.63 gpt Au. The IAMGOLD Corp. December 15, 2008 News Release disclosed production
figures of 960,000 ounces at an average grade of 11.44 gpt Au for the Sleeping Giant deposit. As well, the
bedrock surface at both gold deposits was at a higher elevation than beneath the thick, anomalous till, and
the elevation of the bedrock surface on the syenite rises northeastward as the overburden cover thins.
Does the name Stuart Averill ring a bell? If not, re-read the earlier report on Northern Superior and then ask
yourself ...can this be the next Rainy River? Only time will tell (most likely in January/February 2011). Below
was a few paragraphs from their most recent press release of April 2010:
The Whitemouth Lake property appears to overlay a "hidden" gold target lying in the southern extension of the Lake of the Woods
greenstone belt. The Geological Survey of Canada and the Manitoba Geological Survey discovered anomalous gold-in-till
concentrations in the basal tills in the Whitemouth Lake area during a regional drilling program for diamond indicator minerals.
Subsequent phases of reverse-circulation overburden drilling conducted in 2007, 2008 and by the company in 2010 focused on tracing
the gold-in-till up ice toward a suggested bedrock source.
The objective of the phase III drilling program was to establish the limits of the syenitic boundary stock and determine whether the
supracrustal rocks up ice from the 2008 reverse-circulation drill program were gold bearing. Although the new drilling did not test the
targeted supracrustal rocks directly, it did reveal evidence that they are mineralized. As well, the phase III drilling confirmed that the
high gold values noted in the north-easternmost drill holes continue to build northeastward with an approximate 30-per-cent rise in
the pristine-to-modified gold grains, suggesting a potential bedrock source within one kilometre up ice and confirming the area
immediately northeast of the boundary stock as an attractive gold exploration target.
Near-Term Opportunity
This is a ground floor opportunity to get in on a company that is just now starting their “coming out” party.
They are presently working on their website and will be starting their next drill program in January 2011 once
winter freeze-up commences. They have $2.5 million in cash and no cheap warrants to worry about. They
purchased additional claims northeast of the property as the bedrock source appears to be just northeast of where
they drilled in 2010. As Northern Superior has shown, once a company catches the attention of investors, the
share price and volumes inevitably move higher. I encourage all readers to access the 43-101 report on Sedar to
get an appreciation for how the 2007, 2008 and 2010 programs give clues to what may lie beneath this exciting
gold-in-soil anomaly. I would normally wait until a company gets closer to drilling before highlighting them but
the Northern Superior drilling may spark an interest in Northen Rand based on the property similarities.

Meritus Minerals (MER.V)
Current Share Price (8/30/10) - $.13/share
Outstanding Shares – 47million
Current Market Cap - $6 million
Website: http://www.meritusminerals.com/
Bonanza-grade gold, near surface drilling
commenced; first results due in September
Prior gold drill results at Toordogiin Shil
within 100 meters of surface:
15m @ 15g/t; 23m @ 11g/t; 2m @ 55g/t with
current drilling underway
Prior surface sampling at Toordogiin Hayr
returned:
334 g/t; 402 g/t; 417 g/t; and 542 g/t - First
ever drilling underway
In April 2010, Meritus received approval from the Mongolian government to acquire a subsidiary of Troy
Resources. Troy had spent several million dollars in exploration since 2005 with some spectacular holes at the
property but decided to focus it's effort on their other producing properties. Meritus immediately started their
exploration program with sampling and has commenced their first drill program to follow-up on some
spectacular results. Initial results are due in September. Investors have ignored the headlines below over the
past few months:
Meritus samples up to 231.2 g/t Au at Gutain Davaa
MERITUS RECEIVES RESULTS OF UP TO 231.2g Au/t FROM FLOAT SAMPLES AT MONGOLIAN GOLD PROJECT
Meritus samples 1.8 m of 146.6 g/t Au in Mongolia
HIGH GRADE GOLD IN QUARTZ VEIN SAMPLED BY MERITUS AT GUTAIN DAVAA, MONGOLIA
Near-Term Opportunity
Terence Bates, President of Meritus, has purchased well over a million shares in recent private placements and is
putting his money where his mouth is. The first drill results from this bonanza grade, near surface property are
due in September and the shares have not risen in anticipation of drill results. The investing environment in
Mongolia has improved dramatically with the signing of the Oyu Tolgoi agreement with Ivanhoe and Rio Tinto.

Golden Peaks Resources (GL.T)
Current Share Price (8/30/10) - $.32/share
Outstanding Shares – 43 million
Current Market Cap - $14 million
Website: http://www.goldenpeaks.com
Numerous high grade, near surface gold results over significant widths
Drill results targeting the potential source due in September
The Golden Peaks La Fortuna project in Argentina has generated significant results over the past few
years including the following all within 100 meters of surface; 45m of 3 g/t, 28m of 5 g/t gold and 30m of 3
g/t gold. Several of the 1st half 2010 drill results, including the holes targeting the source of the near
surface gold, have been delayed and are now expected during the first few weeks of September. From the
July 2010 technical report on SEDAR (not disclosed as a press release), we have clues that they may have
found the source.
Near-Term Opportunity
This is what we know before the press release comes out:
Between January 2010 and June 2010, Golden Peaks drilled ten diamond drill holes (1,769.1 meters) to test targets in the T-11 and G
zones, and to reconnaissance test certain CSAMT targets. Four holes (LF-141, LF-142, LF-143 and LF-144) were drilled on the T-11
zone to better define the gold mineralization, extend known the mineralization to depth, and to test for hanging wall zones of
mineralization. Based on assays from holes LF-142, LF-143 and LF-144, the drilling was successful, and significant, high grade
gold-copper mineralization was identified at shallow depths. Assays for hole LF-141 are pending. The mineralizeation is open to the
east. Surface samples collected east of the T-11 zone indicate the presence of a previously unrecognized gold bearing, N-trending
structure in this area with implications for the development of high grade gold mineralization. The area east of the T-11 zone may
contain significant gold-copper mineralization at shallow depths (<100 meters). An electromagnetic (EM) survey is recommended to
try and map the mineralization and to identify other zones of copper mineralization. Drilling prior to 2010 indicated the G zone
extends for approximately 700 meters and could extend along a prominent induced polarization linear a further 500 meters to the
northwest.
Three holes, CRW-21, CRW-22 and CRW-23, were drilled 100 meters apart to test the induced polarization linear over a distance of
200 meters. All three holes were drilled northwest of a break (fault ?) in the chargeability and resistivity anomalies which map the G
zone. The three holes intersected strong structure, alteration and trace to 20% pyrite mineralization. Assays are pending. Three holes
(CRW-24, CS-1 and CS-2) were drilled to test structure and possible root zones (CSAMT targets) to the quartz veins/breccias which
carry high grade gold (and copper) in the T-11 and G zones. Hole CRW-24 tested a new structure which is parallel to the G zone and
is located approximately 250 meters to the southwest. Assays are pending.
Hole CS-1, drilled to test a CSAMT target under the G zone, intersected a 22.6 meter wide zone of breccias, silicification, alteration
and trace to 25% pyrite, starting at 150 meters. This zone corresponds with the G structure. A second, 6.4 meter wide zone was
intersected starting at 209.1 meters. Assays are pending. Hole CS-2 was drilled to test a CSAMT target and the T-11 structure at
depth. It entered the T-11 structure at approximately 165.10 meters and intersected multiple zones with breccias and sulphides (1–15%
disseminated pyrite). Assays are pending.
What we don't know are the grades. Based on the above, it appears they have found the source of the
mineralization. That is good news for those who have done the research before the press release comes out.

Colt Resources (GTP.CN, COLTF)
Current Share Price (8/30/10) - $.28/share
Outstanding Shares – 40 million
Current Market Cap - $11 million
Website: http://www.coltresources.com
Plan to be the first gold mine to open in
Portugal in 60 years
600,000 ounce (historical; non 43101)
High grade gold over significant widths
including:
7 meters of 24 g/t gold starting only 6 meters
from surface
As most readers know, I have been profiling
Colt Resources since September last year when
shares were trading at $.10. Management has
been aggressive in moving it's high grade
Penedono gold project and it's high grade
Tabuaco tungsten project forward.
Management has also been very active on the
marketing front conducting road shows in
Canada, the U.S. And Europe this Summer.
Colt Resources just last month entered into an
agreement to purchase the advance stage, high
grade, near surface gold project called
Montemor. Additional details will be released in
the coming days but the opportunity presents
itself now.
Near-Term Opportunity
Management has not yet released any details on the Montemor project which affords those willing to put in the
time and effort to research the project an opportunity to understand the story before the rest of the investors in
the resource sector. Here's the story from the past operator Tamaya (historical only):
The company (Tamaya) is moving towards feasibility with the Montemor project, following scoping studies indicating a production
rate of 60kozpa at a cost below US$350/oz. The current resource base consists of shallow shear-hosted deposits, with potential
for extensions to known resources along strike and at depth. The initial JORC inferred resource at Montemor has previously been
established at 6mt@2.2g/tAu for 0.61moz. Over 50,000m of drilling has previously been undertaken at the deposit.
No wonder management feels it can be the first gold mine to open in Portugal in nearly 60 years.

Lovitt Resources (LRC.V )
Current Share Price (8/30/10) - $.38/share
Outstanding Shares – 7 million
Current Market Cap - $3 million
Website: http://www.lovittresources.com
Drilling to begin in September at the Lovitt mine
High grade gold targeted based on past reports
Mine tour scheduled for mid-October for
analysts/newsletter writers
Highest leverage of any company profiled – Only 6.5
million shares outstanding
Profiled in November last year and shares moved over
$1 before settling back to the current $.38-$.40 range
Recent purchase of the Matthews property provides
another high-grade gold exploration target to followup
on bonanza grade drill results
Near-term production profile
Near-Term Opportunity
It has taken management a while to put all of their ducks in a row by completing a financing and working with
the state on various permitting but the drill is ready and we should expect the news flow to begin again with the
start of drilling in September at the Lovitt mine. Underground drilling will be via a “bazooka diamond drill”.
Historical work by Asamera has identified a potential block of 30-40 g/t gold in an area of the mine that will be
drill tested from underground. The goal is to identify a block of 20x20x30 ore grade material that can be
shipped to the Kinross facility in Northern Washington to generate significant cash flow. Another area of the
mine identified as the I-74 area will also be drill tested.
The funds generated from early cash flow will be used to drill the high grade Matthews property. There are
several detailed reports on Lovitt's website providing a wealth of information on both exciting properties.

Covenant Resources (CVA.CN )
Current Share Price (8/30/10) - $.19/share
Outstanding Shares – 26 million
Current Market Cap - $5 million
Website: http://www.covenantresources.com
(website under development)
• A newly formed emerging energy play focusing on the bakken shale in Montana
• 40,000 net acres just announced in the Sweetgrass Arch area
• Acreage in the area recently went for over $1,500 on the Canadian side of the play or over $2/share
based on Covenant's share structure
• Two new directors brought in (1) Richard Edgar, a founding member of TriStar Oil & Gas that was
purchased by Petrobakken for over $2 billion and (2) Bruce Murray, who founded and sold two energy
companies for an average of $100 million each
Near-Term Opportunity
Two wells have been permitted on Covenant's newly acquired acreage in Montana to test the bakken formation.
Drilling should start in September. Several other companies including Rosetta Resources, Newfield
Exploration, and Quicksilver Resources have amassed several hundred thousand acres. Tests to date show overpressurized
bakken and three forks formations with vertical movement on the fracs between formations (a key
aspect to commercialize the play). Rosetta is still accumulating acreage so have been unwilling to release
specific results. Field results have indicated over 1,200 barrels/day on a vertical test late last year. No
horizontal results released as of the date of this report.

Blacksteel Energy (BEY.V )
Current Share Price (8/30/10) - $.45/share
Outstanding Shares – 19 million
Current Market Cap - $9 million
Website: http://www.blacksteelenergy.com
Another emerging energy play with an ultra-tight share structure and a focus on the Alberta Basin
bakken. Purchased 2,500 acres for approximately $300/acre in April only 2 miles from the successful
bakken test by Rosetta Resources. Adjacent land sales in July went for over $1,500/acre. This acreage is
considered to be in the sweet spot of the play.
Near-Term Opportunity
In addition to the news from other players in the Alberta Basin bakken as they release results (Rosetta, Newfield
and Quicksilver), Blacksteel has two or three other exciting energy plays that could serve as a catalyst for price
gains:
• Raven Project - 5 sections of ‘traditional’ oil sands leases immediately adjacent to Shell Canada’s
proposed 80,000 barrel/day Carmen Creek expansion project
• Blacksteel is participating in a conventional oil prospect in the Devon area of Central Alberta with a 16%
working interest. In August, Blacksteel announced they would participate in the completion of the well
which commenced on August 24th.
• Blacksteel also has a conventional natural gas play in the Grassland area.

Canadian International Minerals (CIN.CN )
Current Share Price (8/30/10) - $.08/share
Outstanding Shares – 32 million
Current Market Cap - $3 million
Website: http://www.cdnintlminerals.com
Exciting New REE Play.......Drilling in September

The drill results by Spectrum mining are arguably the best REE holes in North America over the past few years.
As disclosed by CIN in their August MDA above, an airborne survey confirms the apparent continuity of
structure from the Spectrum mining property onto the CIN property. Drilling will confirm this.