Jimrockford Blog for 2/27/2013
BXR NR AT CLOSE!!! PP NR! GGX, CJC NR! ALYI, MMX, DRV, APM, etc., etc.
Wow, the week before PDAC is like Christmahanakwankika! (That’s Christmas, Hanukka and Kwanzaa all wrapped into one - so nobody feels left out). BXR should have a very good day tomorrow (see the NR below), CJC just had a record day yesterday (over 5.3 million shares traded and a 100% win on a lotta shares for yours truly) – and GGX and PP are looking like they are headed north….IMHO.
Note two things:
- I absolutely am a fan and/or owner of the first six companies talked about on the blog.
- This blog was written quickly, due to a flurry of pre-PDAC NR’s. As it had to be timely, it does not contain the depth of thought I normally try for and is not as polished as my regular jimrockford blogs. And there is plenty of DD that will have to be in my next blog.
Blue River Resources (BXR on the TSX-V)
BXR just had a NR come out after-market! Here’s a link:
http://www.stockwatch.com/News/Item.aspx?bid=Z-C:BXR-2043740&symbol=BXR&news_region=C
Here are the first three paragraphs of the NR:
Blue River Resources Ltd. has acquired an option to earn a 100-per-cent interest in the Mazama copper deposit, located in Okanogan county, Washington, United States of America.
The Mazama copper deposit has been explored for porphyry copper mineralization since 1963. Inspiration Development acquired the property in 1970, conducted induced polarization and soil surveys, and drilled 15 diamond drill holes.
In 1973, Quintana Minerals Corp. began the most extensive evaluation of the Mazama deposit to date, drilling 47 percussion holes and five diamond drill holes. Quintana calculated a historical resource of 149 million tons grading 0.36 per cent copper and 0.01 per cent molybdenum.
I have done a quick read-over of the NR and have been talking to guys who know the geography and geology a lot better than I do. The DD is still in its infancy, but for now, here are my thoughts in point form:
- This looks to be a great deal for a tiny microcap of BXR’s size – ie. the market cap is still only $4.23 million.
- The price tag in cash is small, in shares it’s more than reasonable, and in work commitments – it’s tiny. I believe this normally would come with at least a $1 million dollar down stroke, a $3 million work commitment – and you’d only get the rights to 75% of the property.
- This property would be waaaay out of BXR’s price range if it was 43-101 approved.
- My DD shows a lot more holes on the property than are mentioned in the NR.
- This NR comes with the words “the Mazama copper deposit” and “historical resource.”
- The numbers in the NR nicely de-risks the play at this SP.
- There is a lot of info for BXR to go through.
- This hasn’t been assayed for gold that I know of – but there are gold mines on the property from the 1800s.
- The grade percentages should improve with gold credits.
More thoughts:
- BXR needs to bring this up to standard, pull up the grade, double the size – and see how much gold is there.
- On first look, the people who had this property must not have been good at raising money.
- I believe this takes the company into another class – from an exploration company to a company with a resource.
Final thoughts:
- 150 million tons of 1% copper is 15 million tons X 2000 = 3 billion pounds. As this historical resource is .36%, they are one third of that = 1 billion pounds of copper.
- If BXR can double the size of their deposit, they can have a mine at 0.36, IMHO.
- Copper Mountain bumped up their number to .4% by baking in the gold credits – and got a mine financed. This looks to be an achievable goal.
- Today BXR moved past its 200-day moving average of 12.6 cents.
Pacific Potash (PP on the TSX-V)
PP had a huge NR today titled, “Pacific Potash Corporation Acquires 100% Right to Undivided Interest in The Amazonas Basin Potash Property.”
Here is the link:
http://www.stockhouse.com/companies/stories/v.pp/8747566
This is a great deal, as it only costs V.PP one million shares and a 1% NSR to get the right to 100% control.
Balbir Johal, Executive Chairman of Pacific Potash stated "Through negotiation with Western, Pacific Potash now has the ability to increase its share of the option to acquire 100% of the Amazonas Basin Claims. This will allow Pacific Potash the ability to market the project to a larger audience of strategic partners and investors. The Amazonas Basin has had a flurry of exciting exploration results over the last few months which have led to greater investment in the area and we plan to capitalize on this activity with some results of our own - the Company plans to complete a drill program by the end of summer this year."
I know that the V.PP boys are coming into T.O. to get the word out during the PDAC. I believe the SP is going well north of today’s SP – and quickly.
Global Green Matrix (GGX on the TSX-V)
I was just inboxed a nice article on GGX. Here’s the link:
http://ca.finance.yahoo.com/news/financial-press-big-heat-makes-big-move-canadian-195500112.html
GGX are improving by leaps and bounds, as my last NR shows. The upward trajectory both fundamentally and SP-wise should continue, IMHO.
Canada Strategic Metals (CJC on the TSX_V)
CJC had a great NR yesterday and ripped from 11 cents to a high of 17 cents yesterday on 5.3 million shares of trading. Profit taking has taken the SP down off that high, but it closed up yesterday and did the same again today.
My DD tells me that this is just the start for CJC. They have a lot of work to do - and the graphite space is on a tear. IMHO, more good times are ahead.
Alternet (ALYI on the otcmarkets.com)
I am feeling very good about March. I have done a LOT of DD on this.
MacMillan Minerals (MMX on the TSX-V)
I know that George Brown is working hard. The provincial Mexican government should give the right doc’s for the drilled holes any time.
Duran Ventures (DRV on the TSX-V)
DD is coming.
Amerix Ventures (APM on the TSX-V)
DD is coming.
Novadx Ventures (NDX on the TSX-V)
- Well, Neil M. finally resigned – a real pyrrhic victory for shareholders. What a disaster he was. When a guy doesn’t play well with others, the lesson learned here is to run as fast as you can in the opposite direction. I did - and I left with my profits.
RS’s Folly
Well, the guy who did the thinking jumped ship – and good on him. This company is a ghost ship.
Cheers.
Jim