Respect for natural resources: It is grudging, growing or all-out.
Here are examples of each:
- Grudging: African Gold Group (TSX: V.AGG, Stock Forum) is publishing what look like potent grades and lengths from its Mali gold project in West Africa. CEO Michael Nikiforuk tells me "our entire technical team is excited about this development." The 17 reverse circulation holes are near surface at the northern portion of the 215-square-kilometer Foroko prospect. Those who follow our subscriber service, Ticker Trax, know I am keen on Ghana, Mali and West Africa. Please see the AGG report. I do not own AGG shares.
- Gradual: Mongolia is where I used to tromp at Oyu Tolgoi’s (TSX: T.IVN, Stock Forum) copper prospect seven years ago. This is from the folks, CEO John Lee and his contingent, at thermal coal operator Prophecy Resource Corp. (TSX: V.PCY, Stock Forum). “Prophecy reached a big milestone by becoming the next (coal) producing company in Mongolia,” Scott Parsons at Prophecy tells me. “The official government commission appointed by the Mongolian Ministry of Mineral Resources and Energy conducted the final permit inspection at Prophecy's Ulaan Ovoo mine site on Oct. 4. We have now begun our first 10,000 (metric) tons of coal as a trial run to power stations in Darkhan and Erdenet, Mongolia's largest cities behind Ulaanbaatar." I do not own Prophecy shares, which are worth $65 million in market capitalization. I am told shipping thermal coal can be problematic and expensive. Still, investors embraced Prophecy this week and sent the shares higher.
Gradual: Altair Ventures: In case you missed this -- Early Days At B.C. Gold Prospect. I do not own shares of Altair (TSX: V.AVX, Stock Forum), a $5 million or so market-cap company spearheaded by Great Panther Silver's Robert Archer. The notion here is a gold prospect in southern British Columbia, Canada, which is sinking drill holes at a time when at least two other gold projects are getting rapid respect from investors. It’s all in the Stockhouse article. The shares (see chart) have gained 80 percent since that article appeared earlier this week.- All-out: Silver. What else is there across the board that has performed as well this autumn? All-out winners include actual producers of the $24 metal. Among producers whose shares I do not own, all-out winners include First Majestic Silver (TSX: T.FR, Stock Forum)in Mexico and Fortuna Silver (TSX: T.FVI, Stock Forum) in Peru and Mexico.
Grudging: Investors are just starting to notice several companies’ leverage to silver. It’s grudging acceptance. Revett Minerals (TSX: T.RVM, Stock Forum) is based in northwestern Montana and has an operating mine that I have visited. CEO John Shanahan tells me today the mine is currently producing around 1.1 million ounces of silver and 10 million pounds of copper “in high-grade concentrates each year.” The Australian-born former commodities banker tells me, “We will see that ramp up as we get into higher grade areas that we recently developed. We also own North America’s largest silver deposit very near to our Troy mine, containing 230 million ounces of silver and two billion ounces of copper.” I own $800 worth of Revett shares.- All out: Gold. Leaders on the gold front in this category include Quebec’s Osisko Mining (TSX: T.OSK, Stock Forum) and Colombia’s Continental Gold (TSX: T.CNL, Stock Forum). I own neither. (Photo is of me at CNL’s Buritica gold project in Colombia.) One I expect to become all-out, after its gradual phase is complete this autumn, is Timberline Resources (AMEX: TLR, Stock Forum) and (TSX: V.TBR, Stock Forum), a Montana/Nevada gold mine developer and contractor. I’ve seen Ron Guill, Paul Dircksen, Randy Hardy and their team at work with heavy equipment and a light touch. They are masterful. (I do not own Timberline shares.)
Finally, a fourth category for deep-value seekers. Let’s call it Stuck in the Mud of its Basin – for now, at any rate. That’s Wits Consolidated Gold (TSX: T.WGR , Stock Forum) and (OTO: WIWTY, Stock Forum). It operates in South Africa’s Witwatersrand Basin. One of these days … one of these days. (No ownership of the stock here either, folks.)
For more, please view Thom Calandra’s Stockhouse articles.
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THOM CALANDRA of Ticker Trax helps his audience find value in a quagmire of investment choices. Thom was founding editor of CBS MarketWatch. He was the voice of Thom Calandra's StockWatch and The Calandra Report. Thom has been covering life-sciences and natural resources since 1988.
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