CALGARY – Outside it is sunny and crisp: brisk. Snow and ice on the streets. Outside, the Canada dollar is rising to its highest point against the U.S. dollar since 2007.
Inside, at an event for public resources companies, we snuggle into a crowded corner of Murietta’s downtown. Browsing the fried spring rolls, executives tell us their hopes for a small-fry stock rally are rising.
“Most of the money sitting in the juniors looks patient,” says Victor Goncalves, who is cobbling together properties and strategies for his own small-fry Quebec gold prospector. “I think these people here, the promoters, the CFOs and CEOs, expect another wave of cash any day now.”
Fresh investment could spring from ordinary folks, who largely have been missing from an 11-years-and-running precious metals rally.
CEO Marcus New of publisher Stockhouse.com tells a large group, including energy and prospecting companies and their Alberta reps, that more Stockhouse.com readers hail from energized Calgary than any other location in North America. The natural resources publisher expects one million registered users in all by year’s end.
Stockhouse’s account director for publicly-traded companies, Michelle Bertram, is based in the Canadian province of Alberta. She tells me companies across the board – potash, copper, gold, oil, gas and service providers – have come knocking on her door these past several weeks. “The Blackberry pings me all day and evening,” she says.
The Stockhouse event and subsequent meetings allow me to refresh my notepad on the subject of several companies, among them Threegold Resources (TSX: V.THG, Stock Forum) and Boxxer Gold (TSX: V.BXX, Stock Forum).
Boxxer Gold in Nevada has convinced me after more than a year to view its main property, less than one hour’s drive from Las Vegas. I expect to rendezvous with CEO Elmer Stewart today (Monday). Boxxer’s Boss property is situated across 14,000 acres of the Goodsprings Mining District, which once was a leading producer of copper and gold in the early 20th century. (See drill targets here.)
Mr. Stewart is perhaps best known for his work as a geologist and CEO of $1 billion Copper FoxMetals (TSX: V.CUU, Stock Forum). His stints include Eurasia Gold and Alhambra (TSX: V.ALH, Stock Forum) these 35 passed years. The Boss project will see about 8,000 meters of exploration drilling this year, he says.
Boss is a porphyry copper deposit with a bit of gold, as much as 0.4 grams per tonne. Some silver also is in that sedimentary rock, the company says. A $40 million fully diluted stock-market value appears to make Boxxer and its other Nevada and Canada properties below fair value. (I do not own shares of Boxxer, nor do I own shares of CUU.)
As for Threegold Resources, itcomes to my attention for the third time in six months after I cross paths at the Stockhouse reception with young Mr. Goncalves, freshly scrubbed CEO. Two years ago, I exhorted then-newsletter writer Victor to accompany me on a tour of Ghana’s Xtra-Gold Resources (TSX: T.XTG, Stock Forum and XTGR) in the Kibi Gold Belt, an area I will have visited four times come this May. Victor returned the favour by sharing notes with me on our 2009 tour of Sandspring Resources’ (TSX: V.SSP, Stock Forum) Toroparu gold-copper property in British Guyana. (Victor Goncalves – Thom Calandra photo)
Threegold on its face looks young and bold. Victor is young: age 29. He says he spent six years studying to become an officer at Canada’s naval academy. Mr. Goncalves is clean cut and sharper than I was at his age. The lad’s knowledge of the province of Quebecand its mining practices and deposits is deep.
Threegold’s Quebec property is about seven miles from Osisko Mining’s Malartic Gold Project (TSX: T.OSK, Stock Forum). On paper, Osisko is one of the planet’s best performing near-term gold producers. As in: stock market and debt market gains. CEO Sean Roosen, geologists Bob Wares and John Burzynski and their Osisko team have notched most of the local, provincial and investor promises they have made these past four years. Their own employees seem to like ‘em, too.
I don’t know whether Osisko is searching for an exploration partner that operates across and adjacent to its Quebecois terrain. After all, Osisko is top-heavy, happily, in prospecting and engineering pedigrees. Still, Victor Goncalves, whose initials are VG, might be a visible candidate. Osisko, if I am correct, has six or seven joint venture partners. Threegold shares just came off a four-month placement hold that raised $1.2 million at 25 cents a share. The stock is now 35 cents or so and volatile.
I see some large blocks moved several weeks ago on rising prices. Let’s hope the buyer of THG is into VG, figuratively and literally.
THG is a $30 million company. (I do not own shares of THG, nor do I own a stake in Osisko. I am, however, a longtime shareholder of Xtra-Gold of Ghana, which I research for Ticker Trax subscribers.)
Coming: Join Stockhouse later this month as we size up how record-high gold prices and new technologies are re-invigorating fabled North American camps in Nevada, Yukon, Red Lake and more.
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Ticker Trax™ is published by Stockhouse Publishing Ltd. Ticker Trax is an information service for subscribers and neither Stockhouse nor Thom Calandra nor Danny Deadlock is a broker or an investment advisor. None of the information contained therein constitutes a recommendation by Mr. Calandra or Mr. Deadlock or Stockhouse that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Ticker Trax does not purport to tell or suggest the investment securities subscribers or readers should buy or sell for themselves. Subscribers and readers of Ticker Trax should conduct their own research and due diligence and obtain professional advice before making any investment decisions. Ticker Trax will not be liable for any loss or damage caused by a reader’s reliance on information obtained in the reports. Subscribers and readers are solely responsible for their own investment decisions. Opinions expressed in Ticker Trax are based on sources believed to be reliable and are written in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. All information contained in Ticker Trax should be independently verified. The editor and publisher are not responsible for errors or omissions or responsible for keeping information up to date or for correcting any past information. Ticker Trax and Thom Calandra and Danny Deadlock do not receive from any companies that may be mentioned in Ticker Trax. Some of those companies are advertisers or clients of Stockhouse, the publisher. Xtra-Gold Resources was at one time a preferred client of Stockhouse for investment relations, marketing and other commercial but not editorial services, which are never guaranteed. Any opinions expressed are subject to change without notice. Owners, employees and writers may hold positions in the securities that are discussed in Ticker Trax. PLEASE DO NOT EMAIL SEEKING PERSONALIZED INVESTMENT ADVICE. Copyright 2011 all rights reserved.