Summary recap of stocks highlighted in the September 1 s t , 2010 Issue
When I was writing up the inaugural issue of “Under the Rocks” last
month, http://www.statesidereport.com/2010-09-Under-The-Rocks-
Statesidereport.pdf I had high hopes that readers would be able to take
a few of my ideas from the list of 10 stocks I profiled and generate
some initial profits. I have to say I have been pleasantly surprised that
9 out of the 10 stocks profiled have generated positive returns over the
last 50 days with the average gain of all 10 stocks being 74% during
this short time frame. For those who have followed the junior market
over the last several years, returns such as these are certainly possible
from time to time on individual stocks but seldom can a basket of 10
stocks generate these kinds of returns in such a short period of time.
One thing I can tell you is to not expect this kind of performance over the long term. I will do my best to try
and bring you new, fresh ideas for you to review and hopefully we will continue to see nice gains as this bull
market in the resource sector plays itself out over the next 3-5 years. Below is a quick recap of the 10 stocks
profiled last month and the related news events that helped drive prices higher:
Artha Resources (AHC) – one of the “laggards” up 14% from last month. They are planning to resume work on
their REE property and gold/silver property in Argentina later this month as they are now out of their winter
season and exploration activity can resume. They will be looking to do a PP shortly.
Northern Superior (SUP) – Up 52% from last month. Northern Superior and Rainy River announced more
sampling results with gold values up to 48 g/t on their TPK joint property. They will start diamond drilling later
this month so the news flow should start to pick up again.
Northern Rand (NRR) – Up 40% from last month. They were halted in September after announcing a major
acquisition of property both east and west of Canaco's Magambazi discovery in the Handeni region of Tanzania.
They are also bringing in all new management to develop this play. The halt should be lifted in a few weeks.
Meritus Minerals (MER) – One of the star performers up 169% from last month going from $.13 to $.35. As
expected based on sampling results, they released assays from the first 3 drill holes of their Tordogiin Shill
project in Mongolia that really caught the markets attention with 29 meters of 9 g/t gold. They followed that up
with another release of 31 meters of 3.9 g/t gold. They continue to drill and should have 3 or 4 more press
releases from this round of drilling.
Golden Peaks Resources (GL) – Up 88% from last month. Released results from a few holes that tested the
northern extent of their property that were below expectations but additional results are expected on 7 additional
holes over the next few weeks. Similar to Artha, their winter season is just getting over and exploration
activities can resume. If the Chubut mining laws are relaxed as anticipated later this year, such a development
would enhance the value of the shares. They will probably need to do a financing shortly to make a vendor
payment and fully fund their drilling program.
Colt Resources (GTP) – Up 36% from last month. Not much news but the market is awakening to this
undervalued play. Several gold stories in Portugal with plans to move the Montemor gold project forward.
Lovitt Resources (LRC) – Up 71% from last month. Tight share structure with drilling about to begin on their
Lovitt high grade property in Washington. Analyst tour was held last week which brought volume into the
stock.
Covenant Resources (CVA) – Up 74% in the last month. For those who like “management” plays, Covenant is
building a management team that could rival a mid-tier energy company. Received permits to drill their first
two wells at their Sweetgrass Arch prospect in Montana that has gas and bakken oil potential. They announced
that Richard Findley will be joining their team and he is credited with the initial commercial discovery of the
Montana Bakken play at Elm Coulee.
Blacksteel Energy (BEY) – The only negative performance of the group down 13% from last month. They just
announced a $1.75 million private placement to advance their Alberta Basin Bakken play on the Canadian-US
border. Land prices have tripled from April when Blacksteel picked up their Del Bonita acreage.
Canadian International Minerals (CIN) – Up 206% from last month as they moved from the CNSX to the TSX
Venture. They announced the start of drilling adjacent to Spectrum Mining's high grade REE project in BC.
Other Notes
For those who want a knowledgeable, experienced view on the gold market I would recommend reading Jim
Sinclair's JS Mineset on a daily basis (http://www.jsmineset.com). Over 5 years ago when gold was selling for
under $450/ounce he predicted gold would trade at or above $1,650 by January 2011. Of course he was laughed
at by the mainstream financial press at the time but no one is laughing now. He made millions during the last
gold run-up in the late 70's and will make you money by following him on a daily basis now. He selfishly gives
his time and opinion on the markets each day and provides support for those of us who weren't trading during
the last gold bull market. His advice is invaluable.
I use Stockwatch to start most of my due diligence on stocks and highly recommend this service for those who
want to really get involved in following stocks in the resource sector. Packages start at only $4.95 per month
which is sufficient for most people. For those who day trade, there are additional services provided at higher
costs. Stockwatch provides constant news releases for all Canadian stocks and also links for SEDAR filings. It
will be money well spent. The link is here http://www.stockwatch.com.
I will begin to post daily commentary on my website at http://www.statesidereport.com and plan to begin a
weekly webcast (I know I promised this before) as the next 6 months should be very exciting for those fortunate
enough to be exposed to the junior Canadian resource sector. Not only are we entering a seasonably favorable
period for junior stocks over the next 6 months, this year in particular should be financially rewarding as we
begin to enter what may well be the mania phase in the gold bull market. There will be many gold top callers
out front on CNBC, Bloomberg, BNN and other financial news programs as there have been for the last 3 years.
They have all been wrong and will continue to be wrong until gold roars past $2,000 an ounce.
Finally, I'd like to thank those who have taken the time to write me and let me know how much you appreciate
the research I am providing. Remember, this should only be a starting point and I encourage everyone to spend
much more time researching a stock before considering purchasing shares as one page summaries do not qualify
as thorough due diligence.
San Marco Resources (SMN.V)
Current Share Price (10/22/10) - $.45/share
Outstanding Shares – 15 million (pre-just closed PP)
Current Market Cap - $7 million
Website: http://www.sanmarcocorp.com
Summary
Newly formed company with a tight share structure. Properly lies on trend about 20 km north of Oro Gold's
high grade discovery in Mexico. They just announced the closing of their private placement for $1.79 million at
$.35. They optioned the Durango state property from Chesapeake Gold and own 100%. There has never been
any drilling on the property but recent sampling results have been quite exciting from several newly discovered
zones including 1.83 g/t gold and 157.70 g/t silver over 23.0m (open) (4.29 g/t Au/Eq). There are indications
that artisanal mining occurred on the property years ago. Mineral systems identified so far at Tecomate occur
within a primary structural corridor approximately 1.5 km wide and at least 4 km long. This corridor is
interpreted to be the margin of a caldera or superimposed collapsed calderas. Numerous artisanal workings
occur within the corridor and were focused on north-west trending shear veins, sheeted veinlet zones and
breccias that occur within zones of phyllic altered volcanics up to 200m wide.
I like the management team of Robert Willis who founded Geologix and they are strong on the geo side. They
have done no promotion yet but now that the private placement has closed they will begin drilling near several
of the trenches where strong mineralization has been found. Drilling should begin shortly.
NSGold Corp (NSX.V)
Current Share Price (10/22/10) - $.35/share
Outstanding Shares – 30 million
Current Market Cap - $10 million
Website: http://www.nsgoldcorp.com
This isn't just any old moose pasture!
Mooseland is the oldest known gold mine in Nova Scotia.
NSGold optioned this property (100%) from Globex and
started trading on the TSX-V on June 30th of this year. There
is a non-43101 historical resource of approximately 400,000
ounces of gold on the property. They did a $4.1 million IPO
private placement at $.25 and $.30 in June and the shares just
came free trading on October 19th. They are fully funded for
their Fall/Winter drill program and they have already
completed 13 holes on the “west zone” and they are beginning
to drill the “east zone” next week. Here is what caught my
eye:
From the press release last week:
“A total of thirteen (13) diamond drill holes have been completed on the West Zone
for a total of 3,596 meters. Two of these holes (NSG 12-10 and NSG 13-10) are
twins of 1988-89 drill holes to verify the previous results obtained. These drill
holes were selected in consultation with MineTech International of Halifax, Nova
Scotia. Samples for the first 6 holes have been shipped to Laboratoire Expert of
Rouyn - Noranda and assay resultsare pending.
Of particular significance are that three (3) of the drill holes intersected substantial quartz saddle structures; NSG 4-10 with 12.6 meters and 6.4 m,
NSG 6-10 with 10.5 meters and NSG 7-10 with 22 meters of 50% quartz veining. These intercepts are interpreted as sections of the same vein
approaching the crest of the fold or saddle. Such thickness has not been seen in any of the previous drilling programs and represents a potential large
tonnage target. Several flakes of visible gold (VG) were observed in the cores of holes NSG 4-10 and NSG 7-10. Of further significance are the
reports that visible gold (VG) was observed in most of the drill holes logged to date and that all holes intercepted significant vein systems.
The historical resource on the property showed average gold mineralization in 10-15 g/t range but several holes
hit veins over 70 g/t gold over 2-3 meters which was normally the maximum width identified. Using current
modeling techniques to identify optimum drill targets, they have hit mineralization with visible gold over
significant widths 6 – 22 meters. The headline of the press release read: “NSGold completes phase 1 drilling at
Mooseland” so nobody picked up on the details and no volume came into the stock. The “east zone” which they
will start drilling next week has shown even higher grades in past work.
There are some fairly heavy hitters behind the management team. Hans Van Hoof (President) was Chairman of
the Soros Funds Limited in London and CFO Glenn Holmes held senior positions at Nova Gold. The Geo is
James Proudfoot who I have met before. They brought in funds from all over the world for this placement and
any significant drill results (pending) should bring quite a bit of trading into the stock.
Claim Post Resources (CPS.V)
Current Share Price (10/22/10) - $.24/share
Outstanding Shares – 28 million
Current Market Cap - $7 million
Website: http://www.claimpostresources.com
The largest land position in West Timmins but no one has heard of them!
I thought I knew this area well but I had never heard of Claim Post Resources before. Charles Gryba who
founded both Sandspring Resources (SSP) and First Metals is the President. They started trading in April 2010
on the TSX-V after methodically accumulating land in the West Timmins area over the past 5 years. This
release a few weeks ago caught my eye:
2010-10-14 10:00 ET - News Release
Claim Post Resources Inc. has completed deep IP on the Dayton Porcupine and McLaren Porcupine patented properties, located five miles south of
Timmins, Ont. Numerous targets have been identified and drilling will now start, with the focus on known gold mineralization.
The Dayton Porcupine gold zone which is 450 metres long by eight metres wide by 100 metres deep appears to plunge to the west. Claim Post has
targeted an initial 600 m diamond drill hole to intersect the down plunge gold horizon at 300 m below surface. The IP horizon appears to be just
below and to the south of the collar locations of the 1937 historical drilling. The deep IP geophysics traced the Dayton quartz-rich horizon 800
metres to the west on the property.
A second diamond drill hole will be collared to check a very strong chargeability anomaly within the serpentine dike that crosses the Dayton
Porcupine property. The anomaly was traced for 1.5 kilometres and potentially hosts a high sulphide conductor.
The company's president and chief executive officer, Charles Gryba, commented: "We are pleased to have started exploration drilling of the Dayton
Porcupine gold system. For the first time this, historical system will systematically explored using modern techniques. It will take at least 10 diamond
drill holes to drill check the deep IP generated targets on the Dayton Porcupine patents. The gold zone appears to be in a 1.2-kilometre-wide shear
zone that strikes west into the Racetrack property that Claim Post recently optioned."
West Timmins had gone deep last year and hit 12.7 g/t over 83 meters in the camp. There has not been any deep
drilling on the Dayton Porcupine/McLaren Porcupine properties that were optioned from J. Patrick Sheridan but
this team feels there is the possibility that a high grade gold system exists at depths. The drilling will tell the
tale.
Three Deep Value Plays Geared Towards Institutional Players
The following three plays are geared more towards institutional players as they are prime take-out candidates
and two of the three trade on a very limited basis. I have received a few requests from institutions regarding
these types of plays so I present them for additional follow-up research:
Raimount Energy (RMT.V)
Current Share Price (10/22/10) - $1.20/share
Outstanding Shares – 4.4 million
Current Market Cap - $5 million
Website: http://www.raimount.com/
They have both natural gas and oil production but their value lies in two undeveloped properties.
(1) The Company continues to conduct operations on the 5,000 hectare freehold Woolford Unit. In addition to the unitized acreage, the Company has
recently acquired 1,600 hectares of contiguous freehold leases on the north boundary of the Unit. The Company is the Unit Operator and maintains a
50% working interest in the Unit and in the non-unitized freehold lands.
Company lands in the Woolford area, including its operations in the Woolford Unit, appear to be on trend to the developing “Alberta Basin Bakken”
play in northern Montana. The primary zones of interest appear to include the Banff, the Bakken (Alberta-Exshaw), the Three Forks (Alberta-
Wabamun) and the Nisku. Based on the limited information available, the Banff formation is one of the zones that is reported to have tested oil in one
or more wells in northern Montana. The Company has recently acquired leases on land, contiguous to the Woolford Unit, containing a wellbore that
tested natural gas and condensate from the Banff formation. Additionally, the Company is in the process of re-entering one of the Woolford Unit
Wells to test a by-passed Banff pay zone. Based on drilling and log information, the zone should be hydrocarbon-bearing and may, in fact, confirm the
development of the Alberta Basin Bakken play on Company lands in Southern Alberta.
Recent land sales in the vicinity of the Company’s Woolford lands have attracted high bonus payments. As disclosed in the Company’s second quarter
report, a Crown Petroleum and Natural Gas licence in the Whiskey Gap area located about four kilometres south of the Company’s land and totalling
4,544 Hectares received an accepted bid of $7.89 million ($1,736.78/Ha). More recently, three Crown Petroleum and Natural Gas licences located
south-east of Company lands sold for $5.78 Million ($2,257.75/Ha), $4.51 million ($1,956.60/Ha) and $6.67 million ($2,361.80/Ha) respectively.
Meanwhile, the Blood First Nation recently announced two agreements to lease a combined total of 297 sections of reserve land in exchange for $50
million in bonus consideration and multiple well commitments. The Blood First Nation lands are situated north and west of the Company’s
Woolford lands. In addition to the foregoing, Crown land adjacent to the Company’s Woolford Unit has been posted for the mid-October public sale
and a test well has been drilled and cased to the Exshaw formation two miles west of the Company’s Woolford lands.
While speculation surrounding the emerging Alberta Basin Bakken play is the primary source of interest in southern Alberta, the Company is also
pursuing the development of the Basal Colorado formation in this area. The Basal Colorado zone has yielded sweet natural gas and light oil in two of
the Company’s Unit Wells, both of which have encountered mechanical problems during completion operations. The Company has drilled to and
completed this zone in the most recently drilled Unit Well and is encouraged by the results to date. Management is of the view that the Basal
Colorado formation should, at the very least, be an attractive horizontal well candidate.
Needless to say, the Woolford lands have become a very significant asset of the Company. The ultimate value of these lands remains dependent upon
future drilling and completion operations by the Company and others in this area. In due course, the Company and its joint venture partners will need
to decide on a course of action to either continue to finance and develop the lands, to farm-out the lands, to sell the lands, or to pursue some
combination thereof. The Company is committed to maximizing shareholder value from this area and will take whichever course of action that best
serves this objective.
(2) In March, 2008, the Company filed on SEDAR a NI43-101 compliant technical report (the “Report”) prepared by Dr. N. C. Carter, P. Eng., a
“qualified person”, detailing mineral resource estimates on the Company’s wholly owned Rainey Mountain Silver Project. Five principal vein
structures have been identified on or near the Prosperity-Porter Idaho workings, while four structures have been identified at or near the Silverado
workings. Virtually all of the historical production was obtained from two of the five veins on the Prosperity-Porter Idaho side of Mount Rainey,
namely the Prosperity and "D" veins. Estimates of Indicated and Inferred Mineral Resources associated with the Prosperity and "D" veins are
summarized in the Report as follows:
Indicated Mineral Resources
(435,000 tons @ 25.2 oz/ton silver = a contained 11 million ounces.)
Inferred Mineral Resources
(97,970 tons @ 17.3 oz/ton silver = a contained 1.7 million ounces.)
Note that both of the foregoing categories are mineral resources and do not have demonstrated economic viability.
The agency agreement to sell the Rainey Mountain Silver Project has expired on August 31, 2010. During the currency of the agreement, the property
was presented to several companies, two of which showed a genuine interest. Management continues to be interested in the sale of the property and is
optimistic that the sales effort will lead to a transaction in due course. Accordingly, the arrangement with the Company’s agent has been renewed for
an additional six month term.
McChip Resources (MCS.V)
Current Share Price (10/22/10) - $1.35/share
Outstanding Shares – 5.5 million
Current Market Cap - $7 million
Website: None
McChip is a unique company that has three valuable assets:
– 4.9 million shares of Baffinland Iron Mines (BIM) which received a takeover offer and is now “in play”.
Current share price of BIM.T is $.98/share.
– The corporation is the registered holder of 4,147 acres and a 50% working interest in 240 acres in the
Rocanville area located in Southeastern Saskatchewan. McChip signed a lease agreement on September
19, 2008 with Potash Corp (PCS) granting PCS the right to mine potash from their mineral leases.
McChip received $250,000 upon signing the agreement. On January 27th, 2010, McChip reached an
agreement with Potash Corp whereby advance royalty payments would commence on February 15th,
2010 with a $300,000 payment and continue with annual payments of $100,000 until commercial
production is reached. Based on production and price expectations, McChip anticipates the royalty
stream from this source will have a significant impact on income for several decades.
– Oil and gas operations operated by Signalta Resources Limited.
Corona Gold Corp. (CRG.T)
Current Share Price (10/22/10) - $.84/share
Outstanding Shares – 18.8 million
Current Market Cap - $16 million
Website: None
Corona Gold has been a very light trader until recently as a few of their holdings have appreciated in price
substantially over the past few months. Below is a summary of their holdings:
– Cash $11 million
– 11.5 million shares of Harte Gold (HRT.V) - $.60/share or $6.9 million market value
– 1.6 million shares of Sabina Gold (SBB.T) - $3.95/share or $6.3 million market value
– 1.6 million shares of Treasury Metals (TML.T) - $.57/share or $0.9 million market value
– 2.0 million shares of Odyssey Resources (ODX.V) - $.20/share or $0.4 million market value
Total cash and marketable securities are approximately $25 million and the stock is valued at $16 million.
Again, these 3 stocks are more geared towards institutions as the share price would move up considerably on
any kind of buying volume and it may be difficult to exit a position once entered without the stock price moving
down substantially. All of these stocks are deeply undervalued based on current metrics and further discussions
with management may be warranted for those institutions interested in these opportunities. I do not have any
positions in these stocks nor have I been hired by any of these three companies to pursue investment
opportunities.
Petro-reef Resources (PER.V)
Current Share Price (10/22/10) - $.37/share
Outstanding Shares – 39 million
Current Market Cap - $14 million
Website: http://www.petro-reef.ca
Nobody cares about oil/gas juniors but this one was hard to resist
I hesitated about profiling Petro-reef Resources (PER.V) since the market for oil/natural gas juniors are in bear
market territory but I'm willing to take a position in this company while it remains near it's 5 year lows. Two
press releases over the last month indicate Petro-reef should be able to reach 2,000 boe/day sometime in 2011.
The market has been valuing production companies with growing land packages in the $40,000/boe of
production range. If Petro-reef can get to the 2,000 boe/day level next year, they could see a market cap of $80
million less their debt level of $12 million or $65-$70 million which makes the current share price attractive if
one is willing to let the value play out.
Calgary, Alberta, October 7, 2010 - Petro-Reef Resources Ltd. ("Petro-Reef" or the "Corporation") is pleased to announce that the amine facility
discussed in the Sept. 27, 2010, media release was brought onstream as scheduled and has resulted in a substantial increase in production.
Since being brought onstream on Oct. 4, 2010, Petro-Reef's discovery oil well has been producing at an estimated rate of 300 boe/d (barrels of oil
equivalent per day), including 150 bbls/d of crude oil (100-per-cent working interest). As a result of the addition of this well, Petro-Reef's current
production is estimated at 1,000 boe/d, including an estimated 250 bbls/d of crude oil.
Based on the success of the discovery well, Petro-Reef drilled and completed a follow-up location (94% working interest) targeting the same oil zone
earlier this week located one kilometer from the discovery well. Production casing has been set and Petro-Reef intends to commence testing
operations next week. Based on the preliminary analysis, the follow-up location appears to be structurally higher as compared to the discovery well.
As a result of the oil drilling success, Petro-Reef has identified several follow-up locations, two of which are anticipated to be drilled by year end.
Calgary, Alberta, October 20, 2010 - Petro-Reef Resources Ltd. ("Petro-Reef" or the "Corporation") is pleased to announce that it has successfully
tested a follow-up well to its recent oil discovery well in Alexander. In addition to the discovery zone, the well encountered a new oil zone
immediately below the discovery well oil zone. This new oil zone swabbed at rates of 60-80 bbls/d of crude oil with a nominal amount of natural gas.
In addition to new oil zone test, Petro-Reef tested the upper discovery zone in the follow-up well at rates of approximately 2.4 mmcf/d (400 boe/d)
providing evidence of substantial oil and gas reserves associated with the discovery well.
In addition to the new oil zone, Petro-Reef's follow-up well encountered additional uphole natural gas and crude oil zones that are not being
produced on the section. Petro-Reef anticipates drilling twin wells to capture the production from these uphole zones in 2011 with the natural gas
zones being targeted when natural gas prices recover. Petro-Reef intends to bring the new oil zone onstream by the end of November, with two
follow-up locations scheduled to be drilled by year end targeting the same two high impact oil zones.
Continuing with its strategy of focusing on high impact oil prospects, Petro-Reef is pleased to announce it has recently acquired over 10,000 acres of
highly prospective undeveloped land adjacent and on-trend with recent oil resource horizontal drilling activity in the Montney and Nordegg
formations. Petro-Reef has identified a minimum of three locations on the acquired acreage, two of which it anticipates drilling in early 2011. Petro-
Reef intends to continue to acquire additional acreage in this new oil resource corridor as it develops an additional oil resource core area outside of
Alexander.
Metalore Resources
(MET.TO)
The first $100 Junior Gold Stock by 2012!
On the surface this may sound like one of those spam emails
we all get in our inbox every now and then but give me a minute and
hopefully I can convince you to start researching this company like I
have since 2007 to see where I'm coming from. Metalore has the
lowest number of outstanding shares of any resource company on the
Toronto stock exchange – 1.8 million shares with no warrants or
stock options. The President owns over 35% of the shares and if you
check Canadian Insider and look at the trading volume you'll see that he buys almost every share someone sells.
The current share price stands at $8 for a current market cap of less than $15 million.
I started covering Metalore in 2007 and did an initial write-up at http://www.statesidereport.com/2007_-_July_-
_Stateside_Report.pdf. I attended the AGM in September that year and met with George Chillian (the President
of Metalore for over 55 years) and had lunch with Claude LaRouche who is the geo who led the drilling that
produced some fantastic near-surface, high-grade gold results in 2006/2007 at Cedartree Lake including:
14 meters of 33 g/t gold starting at 28 meters from surface
4 meters of 104 g/t gold starting at 49 meters from surface
10 meters of 10 g/t gold starting at 65 meters from surface
The Metalore Cedartree Lake gold property is located approximately 80 km southeast of the town of Kenora,
Northwestern Ontario, about 15 km east of Sioux Narrows, a small village along paved highway #71, between
the towns of Kenora and Fort Frances. From Sioux Narrows the claims are easily accessible by heading east, 12
kilometres, on the Cameron Lake Road.
You can read my initial report above to see the kinds of grades and widths Metalore was hitting in their past
drilling. Almost any other resource company would have done a $10 million private placement in 2007/2008 to
follow-up on these fantastic results and focus on expanding the gold rich targets. However, George doesn't like
to dilute existing shareholders so he decided to focus on expanding the profitable natural gas business in 2008
and 2009 to provide the funding for a two-year gold exploration program in 2010 and 2011 which just got
underway.
The last publicly released assay results were issued in July 2007 from 2006 drilling. Follow-up drilling was
conducted in early 2007 but these results have not been released. I understand they hit similar mineralization in
their deeper holes they were targeting. That brings us to October 2010 as they begin their quest for a major gold
discovery and their stated goal of selling out to a major. The annual report provides a summary of their plans
and a drill location map:
http://www.metaloreresources.com/pdf/MET_Annual_Report_2010.pdf
Please read the first few pages of the “President's Message” to shareholders for additional background
information.
In February 2010, I sent out a quick note to readers to keep an eye on Metalore but suggested not purchasing
shares since there was little indication of any planned activity. That has now changed based on their stated plans
for 2010 and 2011. If one chooses to research this stock further and make an investment, be prepared to tuck the
stock away for two years as this is most definitely not a stock to trade. It does appear there is a “Chillian Put” at
$7 where George steps in to buy if there is any selling pressure but this may or may not continue. Also,
although there are indications that Metalore will be more timely and forthcoming with drill results (they recently
did a complete make-over of their website), past precedence requires patience.
So let's get back to the $100 stock price claim. In order for Metalore's stock price to hit $100, the market will
need to value Metalore at around $180 million. In order for that to happen, Metalore will need to outline a
potential deposit of 1 million ounces or more. Early indications are that the potential is there but this next round
of drilling will begin to show if the high grade gold area can be expanded as they are stepping out considerably
to test additional showings.
There has been considerable staking activity in the area just south of Cedartree Lake as the nearby Rainy River
gold deposit ($500 million market cap) continues to expand and has led many companies to stake ground in this
area. In addition, Coventry Resources started a 20,000 meter drill program on their million ounce Cameron
Lake deposit just west of Cedartree Lake. Bayfield Ventures was recently given a $60 million market cap with
drill results similar to what Metalore achieved in the area. Metalore's market cap stands at under $15 million
even though they have a profitable natural gas operation that brings in revenue of over $1 million a year.
More information can be found at Metalore's website at: http://www.metaloreresources.com/index.html