BMR weekly: CQXCadillac Mining (CQX, TSX-V)
Cadillac Mining is the newest addition to the BMR Portfolio and it enjoyed another powerful week, climbing as high as 45.5 cents and closing Friday at 41.5 cents on the CDNX (42 cents on record volume on ALPHA) for a weekly gain of 8.5 cents or 26%…volume Friday was 1.25 million shares on the CDNX and 437,000 on ALPHA for a combined 1.7 million…CQXis already up 80% since we introduced it to our readers December 9…aswe look at the “Big Picture” with this company, we can’t help but thinkthis is really just the beginning of something absolutely huge…the“Perfect Storm” has formed here for a variety of very sensiblereasons…first, reading between the lines of Cadillac’slatest news release, the company could be very close to “pulling thetrigger” on a precious metals project (or projects) in the Great Basin…CQX alsorevealed they have been researching opportunities there for the last 2years – they’ve obviously done their homework and put a lot of thoughtinto this, so the potential for a solid and exciting project(s) seemsvery high…second, the company holds 7 strategic and valuable claims (164hectares in total) immediately adjacent to Richmont Mines‘ (RIC, TSX) Wasamac Property where drilling has been ongoing with increasing urgency since last May…Wasamac is a former producer and Richmont is making new discoveries there…more drill results and a new resource estimate are expected in January…what’s particularly interesting is that the principal structure that hosts the Gold mineralization at Wasamac dips northerly toward the 7 claims owned by Cadillac…in addition, from the only hole Cadillachas drilled at its Wasa claims, a hole that they deepened last summer,the company discovered a 300-metre thick altered zone that’s interpretedto be a feeder system typical of those seen under VMS systems in theNoranda camp…it’s clear that Cadillac’s “Wasa” claims,largely untested, hold outstanding potential…it’s a compellingexploration story that could develop in a major way very quickly…third, Cadillac has partnered with Visible Gold (VGD, TSX-V) on over 7,000 hectares of land (excluding “Wasa”) 6 to 30 kilometres west of Gold Bullion’s Granada Gold Property…so not only are Cadillac’s “Wasa” claims in play, but Visible Gold is committed to some major expenditures on CQX’s other properties in the general area…there are many other factors contributing to a “Perfect Storm” for Cadillacincluding a very attractive share structure, strong management withoutstanding mining industry backgrounds, and an intriguing silverproperty (“Silver Streak”) of considerable merit in the interior ofBritish Columbia (less than 30 kilometres west of the massive EquitySilver deposit)…it’s no wonder that even with the sharp rise in Cadillac’s share price, insiders aren’t selling…the volume surge in Cadillac actually started last May (right around the time Richmont commenced drilling at Wasmac) and has steadily increased in intensity (nearly 14 million shares have traded on the CDNXover just the last 9 sessions)…when record volume comes into a stock,you know that something big is up…that’s clearly the case with Cadillac…thestock has come a long way over the last month but all thingsconsidered, the company’s current market capitalization of only $10.4million is a better bargain than anything you’ll find on Boxing Day…