Stockhouse Canadian Small and Micro-cap Stock Report for Wednesday, December 4, 2013 VANCOUVER (SHfn) –
CBM Asia Development Corp. (
TSX: V.TCF,
Stock Forum) gained 8.3% to 6.5 cents on Wednesday after the exploration and development company provided a review of its operations in Indonesia's emerging coalbed methane industry as well as an update on the status of the company's current financing activities. To date the company and its operating partners have successfully drilled and tested a total of eight coalbed methane exploration wells at two Production Sharing Contract (PSC) areas in Indonesia. This resulted in 981 billion cubic feet of recoverable prospective resources net to the company. Given the company has raised a total of $34 million to date, this equates to overall finding costs of approximately $0.03 per million cubic feet. The coalbed methane gas sales price in Indonesia ranges from $7.50 to nearly $20 per million cubic feet. If the company is successful at producing and selling at these prices, gross revenues could range from $7.5 to nearly $20 billion.
Southgobi Resources Ltd. (
TSX: T.SGQ,
Stock Forum) was up 3.6% to 87 cents. The stock is reacting to news that the coal production and development company’s board will meet on Thursday, Dec.12, 2013 to consider and approve the restated financials. The restated financials of the company for 2011 and 2012 will be filed before TSX market open. This follows a review by the company of its prior revenue recognition practices for its coal sales in the fourth quarter of 2010, full year 2011 and in the first half of 2012. This review has been conducted in consultation with PricewaterhouseCoopers LLP (PwC), the company's current auditors, and Deloitte LLP, the company's auditors during the 2010 and 2011 fiscal years.
As a result of this review, the company has determined that certain revenue transactions were previously recognized in the company's consolidated financial statements prior to meeting relevant revenue recognition criteria. These transactions relate to coal that had been delivered to the customer's stockpile in a stockyard located within the SouthGobi's Ovoot Tolgoi mining license area in Mongolia, the location at which title transferred, but from which the coal had not been collected by the customers. The restatement of the company's consolidated financial statements will reflect a change in the point of revenue recognition from: (A) the delivery of coal to the customer stockpiles within the stockyard to (B) the loading of coal onto the customer's trucks at the time of collection.
Focus Graphite Inc. (
TSX: V.FMS,
Stock Forum) was down 3.1% to 31 cents after the miner reported results of the summer 2013 infill drilling program on the company's Lac Knife graphite property, located in the Grenville Geological Province of northeastern Québec. Twenty-four large diameter core holes totaling 2,081 metres were drilled with the objective of upgrading the current inferred and indicated mineral resource to the measured and indicated mineral resources categories. The drilling data is currently being uploaded to the resource model in order to update the resource estimate. Drilling highlights included 67.8 metres grading 21.10% graphitic carbon and 7.2 metres of 27.03% graphitic carbon.
Aldrin Resource Corp. (
TSX: V.ALN,
Stock Forum) slipped 5.9% to eight cents as after the emerging uranium company announced the completion of a ground gravity survey on the Triple M property in northern Saskatchewan. Preliminary analysis has identified gravity anomalies coincident with already identified priority drill targets that are consistent with bedrock uranium mineralization. Aldrin's Triple M uranium property is located adjacent to and southwest of
Fission Uranium Corp. (
TSX: V.FCU,
Stock Forum) and
Alpha Minerals Inc.'s (
TSX: V.AMW,
Stock Forum) Patterson Lake discovery property, in the newly prospective southwestern region of the Athabasca Basin.
Castle Mountain Mining Company Ltd. (
TSX: V.CMM,
Stock Forum) slipped 9.8% to 55 cents after the exploration company announced that RPA Inc. has been engaged by the company to prepare a preliminary economic assessment (PEA) of the Castle Mountain gold project in San Bernadino County, California. The company expects this PEA to be delivered in the first quarter of 2014, and also expects to have a significant cash position remaining in the treasury after completion of the PEA. Currently the Castle Mountain project’s mineral resource estimate includes an indicated resource of 3.15 million ounces and an inferred resource of 1.06 million ounces of gold. "We have elected to undertake a preliminary economic assessment to further de-risk the Castle Mountain gold project,” said Gord McCreary, President and CEO. “Creating economic parameters around the recently defined mineral resource estimate is a critical step in confirming the commercial viability of the project. Given the large scale and high grade of the mineral resource estimate, a mining permit in hand, and a history of production at very low capital and operating costs, we believe the PEA will demonstrate the very high quality of the Castle Mountain gold project."
| Select Canadian Small/Micro-cap Advancers (as of 4:00 PM Eastern) |
| Midlands Minerals Corporation (V.MEX, Stock Forum) |
100.00% |
| IBC Advanced Alloys Corp. (V.IB, Stock Forum) |
21.43% |
| Ballard Power Systems Inc. (T.BLD, Stock Forum) |
16.79% |
| Paladin Energy Ltd (T.PDN, Stock Forum) |
13.10% |
| LX Ventures Inc. (V.LXV, Stock Forum) |
12.70% |
| Select Canadian Small/Micro-cap Decliners (as of 4:00 PM Eastern) |
| RESPECT YOUR UNIVERSE (RYUN, Stock Forum) |
-34.40% |
| Barisan Gold Corporation (V.BG, Stock Forum) |
-11.54% |
| Thompson Creek Metals Company Inc. (T.TCM, Stock Forum) |
-9.16% |
| Horizons BetaPro COMEX Silver Bear Plus ETF (T.HZD, Stock Forum) |
-7.37% |
| Horizons BetaPro S&P\/TSX Global Gold Bear Plus ETF (T.HGD, Stock Forum) |
-5.61% |