I’m violating my Sunday day of rest belief to provide a brief update on some client companies of mine.
Alderon Resources– Another reason why I always state most people either shouldn’t ownjunior resource stocks or should greatly lower their exposure came via aseries of emails from one person saying something must be wrong withADV since they didn’t release their resource update as they said theywould by the end of March. Uh, tomorrow is only the first trading day inthe new quarter and I would wait at least a few days if not longerbefore I even begin to read anything into this. Despite what you read onchat sites (and again this weekend I had to be told of people postingabout me, defending me, ripping me a new %^&%$#, etc – for God’ssake, stop bothering me with this. I only care what the God of theUniverse thinks of me when I stand naked and alone in judgment beforehim), most juniors are not IBM and can’t and won’t have news not onlyall the time, but within specific time-frames no matter how goodintentions they may have. In ADV’s case, I continue to believe this isson of Consolidated Thompson and am anticipating a good resource update.
Oromin Explorations -Here too a couple of people seem to think the company should churn outnews like IBM or Microsoft. How many times must one say they concentrateon drilling for ore, not investors. Yes, the company is not an IRmachine. THANK GOD they’re not; there’s enough of those juniors outthere already. Instead, they just keep producing new discoveries andgreat drill results. In the end, that’s usually the only measuring stickfor success.
Silver Quest Resources– I’ve stated that SQI is my Yukon Gold Rush play because they not onlyhave a series of projects there that merit ones attention, but unlikemany other players there they have a couple of key assets that IMHOsupport the current market cap. Of special interest late last week wasrumors of a potential deal on their JV partner Richfield Ventures. Such adeal would come as no surprise. But even if one doesn’t materialize,SQI’s 25% participating interest in the Davidson project in my biasedopinion is worth close to the current market cap of the whole company.You get it’s other key B.C. project, all of the Yukon plays and someother exploration projects as a bonus. Again, I’m delighted to go intothe Yukon Gold Rush drill season with SQI as my one entry.
Timmins Gold -It made a valiant and classy effort to make an acquisition but itwasn’t to be. I do think the share price was handicap during thistakeover battle and can now more properly reflect the great corporatedevelopments that I believe have been lost in the mix.
One could expect management now to focus on continuing steadyproduction, adding cash, and drilling 35000 meters every month, whichcan significantly add ounces and mine life this year. Recent great drillresults around the pit is likely going to be extended in alldirections including deeper as the grade is getting better below their140 meter bottom. There appears to be no limit yet to the extend of thisdeposit as it keeps on growing. We can now expect them to spend moneyalso north of the pit where they’ve had very interesting numbers frominitial exploration and also on Cocula and claims next to Goldcorp.