Shots: CMJ, BCRX, XTGR, AGD
- Rising Tide For Planetary Prospects … Spec-Peck on Antioquia Gold
ACCRA, Ghana – We have liftoff. I guess.
Drill results from Nate Tewalt and Bob Carrington’s Colombian Mines (TSX: V.CMJ, Stock Forum) look good regarding gold and copper porphyry Yarumalito in Antioquia, Colombia. Not great. But good. I am concerned that overall grades reported this week do not approach the one gram per metric tonne level that often is viewed as “economically viable” for a working mine. But having been to Yarumalito and its La Escuela Zone, I see the data-verified start to a heap-leachable gold project with possible copper credits. (See results.)
This today (Friday) from CEO and geologist Nate Tewalt: “We are looking at the economic aspects in at least three ways right now: 1) heap leach recovery would be the lowest capital cost and lowest operating cost method, but would recover only gold. Recoveries should be excellent for the oxide (80-90%) and that suggests that we would almost certainly look at an oxide heap leach in any scenario – especially since copper will likely be very low in the oxide and less likely to be a problem; 2) if copper prices and grades favor this processing option, we would look at a milling scenario where you would make a flotation concentrate capturing most of the copper and gold. This concentrate would be shipped to a smelter for final processing. If a new smelter is built in the region that would be really nice, although moving things by boat once you have it on the ocean is pretty cheap; 3) the high-grade component in peripheral veins could be a significant factor as well. If enough ounces and margin can be attributed to the vein potential, you would likely favor a milling scenario to get the better recovery. This could be done alongside a heap-leach operation or as part of the milling and flotation scenario.”
Colombian Mines is a Planetary Prospect of this service. I will be back in Antioquia (more below about a speculative idea from Colombia) in two weeks to review gestating gold properties for our latest Planetary Prospect, Bellhaven Copper & Gold (TSX: V.BHV, Stock Forum).
BioCryst Pharmaceuticals (NASDAQ: BCRX, Stock Forum), our lone life-sciences Planetary Prospect, continues to harvest revenue from influenza antiviral compound peramivir. Bonus: the gout compound that is in human trials appears to be making headway. We here at home now own 72,000 shares of BioCryst. We stick to our contention that the H1N1 influenza is returning across the world and likely is the dominant seasonal flu. If so, this creates great need for peramivir, the BioCyrst antiviral treatment used for hospitalized patients. The gout compound is compelling. Gout, a build-up of uric acid, is growing among modern populations. Also, a leukemia compound is working its way toward what could be excellent human-trial results.
Xtra-Gold: Here at Kwabeng in Ghana, I am learning even more about the Kibi Gold Belt and the dynamics that likely will make Xtra-Gold Resources(OTO: XTGR, Stock Forum) the vehicle for a relatively under-explored Ghana gold trend in a country of red saprolitic soil, granitoid-hosted deposits and shear-zone structures that drew structural geologist Robert Casaceli to the region.
First off – Xtra-Gold, where we are again today in the bush at the small company’s Apapam Concession in eastern Ghana. Says Mr. Casaceli, who also is chief geologist at Franco-Nevada (TSX: T.FNV, Stock Forum): “In the Kibi, you have the same type of mineralization as you do at the other major Ghana gold belts (including the Ashanti Belt). It is also similar to what Newmont had on the Carlin Trend in Nevada and at Battle Mountain – sulfide dips in between or alongside thick crustal sources. This is exactly what the Kibi has there on the northeast side of Xtra’s properties. I think we will see structures on both sides of the Kibi mountain range (actually called the Atewa range).”
We here at Ticker Trax will have the full take from Xtra-Gold consultant Mr. Casaceli when I return from Ghana. Bob Casaceli postulates that Xtra-Gold’s Apapam concession, already having shown good to very good granitoid-hosted gold grades, could have a shear-zone structure that runs through a large swath of the company’s property, according to IP electricity surveys. “We require some more geophysical,” he tells me, “but based on what (in-house exploration chief) Yves Clement already has done on the intersects (from the 68-drill-hole program of 2008 and 2009), we could have a situation here that shows considerable ounces.”
Next week: More from my review of the concessions and the upcoming 5,000-meter drill program for the Apapam Concession. (Please see coverage from earlier this week in theTicker Trax Library. Also see ourStockhousereport from Ghana:Prospector’s Perseus Heights.)
Side note of significance: We just ran into an illegal alluvial operation here, just outside the village of Apapam but on Xtra-Gold property. (Please see photos here.) Mr. James Longshore’s efforts regarding the illegal alluvial operations that are common in Ghana are worthy. I am witness to his negotiating with local contractors on alluvial operations that bring illegal operators into the fold and comply with EPA environmental guidelines for streams, rivers, pits and back-filling of those pits.
Local and illegal operations in Ghana often ravage landscapes, as seen in these photos. “Look, everyone these days is making money off the gold price and growing steadily, so they can afford excavators like these Caterpillars here,” says Mr. Longshore. He estimated this operation, with five mechanical “prospectors,” looked on track to produce 100 ounces a month and perhaps more. “If this one continues, the local chief here, sure, he is providing work and income for his people, but it keeps growing and growing and the land suffers.”
Xtra-Gold CEO Mr. Longshore and his team are discussing a feasibility plan for at least two lease areas for alluvial gold at Kwabeng here. One of the people who visited camp and have agreed to “prove up” alluvial is Ghana’s best known alluvial consultant and once a full-time Xtra-Gold geologist, Kofi Agyemang, a Ghana native. More on this in coming issues. (As we write this, one of the area’s largest mining contractors for small-scale and Minerals Commission-sanctioned lease mining in and around the Kibi Gold Belt is negotiating details with Mr. Longshore about a partnership for Xtra-Gold’s properties.)
“Look, in our outlook, we are a hard-rock prospector,” Mr. Longshore says. “But hey, we already have produced (back in 2007 and 2008) 8,000 ounces of gold from our wash plant here on the Kwabeng Concession (on the Awasu creek). And if we see gold continue its price strength, we have a responsibility to our shareholders to get some value from what we see as quite reliable sources of alluvial at many of our properties in the Kibi. We also have a responsibility to these communities in promoting a safe and sound methodology for what could be a run of galamsey (illegal) miners.”
That speck-peck: We have been to Antioquia Gold’s (TSX: V.AGD, Stock Forum) Cisneros project in Colombia twice. We have written about the company. We are perplexed that investors, since November 2009 anyway, have spurned Rick Thibault, Jim Decker and Brad Van Den Bussche’s prospector and its efforts at Cisneros.
The company’s data reporting practices are excellent. Its links with the surrounding communities of Cisneros are a model for all Antioquia-area miners. It has joint ventures or ties with Bob Allen’s Grupo de Bullet and with B2Gold. And so on.
I have been stockpiling analysis of Cisneros for several months now. The company is not a Planetary Prospect. But because of the coincidence of speaking with Robert Casaceli regarding the Kibi Gold Belt and Xtra-Gold this week, I am able to confirm his looming visit to Cisneros. Next week, Mr. Casaceli will look at Cisneros as a structural geologist.
Mr. Van Den Bussche is Antioquia Gold’s exploration chief. He tells me the company will conduct technical surveys in coming days and weeks. “Ground magnetometer surveys will likely run you about $800 to $1,200 per day for operator and equipment. In foothills or mountainous regions of Colombia, two-line kilometers per day is a good pace, so depending on the size of the survey for total cost.”
He notes as well, “As for the structural geologist, we have Robert Casaceli coming to Colombia next week to work with the team and data focusing on the structure and the big picture in the Cisneros area. Hopefully have some results on this drilling program in about two weeks to report.” (Please review our Ticker Trax coverage of AGD.)
Based purely on cheap – as in sub-$10 million market capitalization (outstanding and not fully diluted) – this is of speculative interest. It is not a Planetary Prospect, and please, no queries or prompts from our esteemed audience about more coverage of this or less coverage of that, as I cannot respond. I am intending to purchase about 10,000 shares of Antioquia Gold (about $3,000 worth)once this report reaches subscribers. There is a likelihood that we never report on the company’s activities again – as we here are focused on research for our Planetary Prospects.
The Planetary Prospects
There are now 13 of them.
- Premium Exploration (TSX: V.PEM, Stock Forum) –Gold in Idaho and Montana. Extremely high grades. Lots of land. California Petsite in Idaho goes for kilometers and kilometers. The Australian fund that bought the bulk of its most recent equity offering still owns it all. Chairman Del Steiner wants to start a drill program that lays to rest any and all doubts about the Idaho prospects.
- Central Fund of Canada (AMEX: CEF, Stock Forum) and (TSX: T.CEF.A, Stock Forum) –Gold and silver repository. Its premiums, being a closed end fund, are rising. Own this one as a money market proxy for real gold and silver – metal that actually might be delivered to investors if ever they want to cash in their paper stakes.
- BioCryst Pharmaceuticals (NASDAQ: BCRX, Stock Forum) –Influenza and leukemia drugs. Gout, too. Biomedical appears to be back in vogue as an investment. I am holding these shares – 72,000 and counting – as The Return of the H1N1 influenza virus plays at hemispheres, nations and regions near all of us.
- Endeavour Silver (AMEX: EXK, Stock Forum) and (TSX: T.EDR, Stock Forum) - Silver in Mexico. On a property purchase tear. I expect Endeavour Silver to purchase a publicly traded silver company this year.
- Endeavour Financial (TSX: T.EDV, Stock Forum) –No relation to Endeavour Silver. This is Neil Woodyer’s Canada merchant bank that is making a big bet on West Africa. The firm just increased its stake in Burkina Faso prospector and producer Crew Gold (TSX: T.CRU, Stock Forum) to 43 percent.
- Xtra-Gold Resources (OTO: XTGR, Stock Forum) –This is the West Africa gold prospector that might follow in the footsteps of successful Keegan Resources (TSX: T.KGN, Stock Forum) .. and Perseus (TSX: T.PRU, Stock Forum) … and Red Back (RBI). I am here on site now at Kibi and am for a second time in 8 months, well, motivated. This is our next CMJ, if you take the meaning. After two days in the field, I have data, photos and perspective and on-record analysis from new consultant and structural geologist Bob Casaceli of Franco-Nevada that make the case for a 2 million-ounce resource … and 3 to 5 times that amount if the growing company can locate the structural zones that created these granitoid-hosted deposits.
- Great Basin Gold (TSX: T.GBG, Stock Forum): This is Ferdi Dippenaar’s South Africa and Nevada company. Please see archives for coverage of Burnstone and Hollister mines.
- Candente Copper (TSX: DNT, Stock Forum) –Joanne Freeze’s Candente has copper in Peru -- Cañariaco. The 7 billion-pound copper project is starting to get the attention of manufacturers and bankers. Yet Candente Copper’s shares sell for a value of only a penny a pound for its in-situ copper. Candente Copper is among the cheapest things (based on ore in the ground) on this list, along with Avanti Mining. The Candente companies’ properties in Peru also include poly-metallic prospects that might some day package into a third separately traded company.
- Candente Gold (TSX: T.CDG, Stock Forum) - This separate company’s shares were distributed to predecessor Candente Resources’ shareholders four months ago. CDG is our No. 13 Planetary Prospect as of today. We issued a full report on Candente Gold’s Peru prospects two weeks ago. I hope to visit CDG’s El Oro in Mexico next week if scheduling works out.
- Great Panther Silver (TSX: T.GPR, Stock Forum) –Silver in Mexico. Robert Archer is the CEO. The Panther is on the prowl for assets. GPR’s rising silver grades and low stock valuation compared with other Mexico silver producers make the company a value here.
- Avanti Mining (TSX: V.AVT, Stock Forum) - Cheap and aspiring molybdenum mine at Kitsault in British Columbia. Avanti’s Craig Nelsen and AJ Ali raised $17 million Canadian for the company. It is the cheapest proposition on this list. Few in the world of specialty metals will give this company respect until Avanti shows it can line up financing and possibly off-take agreements for the mine’s easily reached moly. (Moly is an important additive in armored tanks – the kind that are used in wars. I don’t want war. I do want Avanti to become the $300 million company its metrics merit.)
- Colombian Mines Corp. (TSX: V.CMJ, Stock Forum) –CMJ has one of the widest property holdings in Colombia for such a tiny company: some 300,000 hectares. Bob and Gloria Carrington and Nate Tewalt’s company is on fire right now in terms of stock price performance. We might see a joint venture announced in coming weeks.
- Bellhaven Copper & Gold (TSX: V.BHV, Stock Forum): Our newest member. Panama and Colombia. Stay tuned. We here at home now own 1.4 million shares at a price that is higher than its current 21 cents. Please see the Ticker Trax Library for our reporting on this company.
We here at Ticker Trax cannot and will not address queries about any company or prospect/theme that is written as part of Ticker Trax or our Stockhouse reports but is not a Planetary Prospect. We stand firmly behind our Planetary Prospects and back them with our own money here at home. Unless something in the picture blurs. As for reporting on other companies, the ideas are there for all to view and consider. Just do not expect that Ticker Trax will support these subjects with research, on-site visits and so on. Feel free to contact these companies, be they Nevada prospectors, Canada miners or Peru and South Africa companies.
For an entire explanation of our strategies, research methods and disclosure procedures regarding all aspects of Ticker Trax and our Stockhouse reports, please visit our readily available Stockhouse articles – especially this one: Core Box Revealed.
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(All photos by Thom Calandra. Thom and his family own shares of each of the 13 Planetary Prospects. Thom’s personal holdings are available for all to see on Stockhouse, the Canada publishing company. He has no intention of selling any of the Planetary Prospects at present … with the exception of Central Fund of Canada, which he regards as a gold-silver money market fund. Subscribers are informed well in advance of any shift in research regarding Planetary Prospects.)
Ticker Trax™Please see tickertrax.com to learn more about this wealth service and its Planetary Prospects. For an index of free Thom Calandra articles, please click here. For an entire explanation of our strategies, research methods and disclosure procedures regarding all aspects of Ticker Trax and our Stockhouse reports, please visit our readily available Stockhouse articles. Please see this one in particular: Core Box Revealed.For the password-protected Ticker Traxlibrary, please see: www.tickertrax.com/Login.aspx.
HOLDINGS: Thom’s holdings are listed for Stockhouse members at www.Stockhouse.com under the “portfolio setting” for user TCALANDRA. It is public and free to view. He and his family own recently minted gold and silver coins and shares of about 22 public and two private companies. As with each of the Planetary Prospects, Thom Calandra owns Colombian Mines, Xtra-Gold Resources and each of the other Planetary Prospects researched in this report.
THOM CALANDRA of Ticker Trax helps his audience find value in a quagmire of investment choices. Thom co-founded CBS MarketWatch and MarketWatch.com. As the voice of Thom Calandra's StockWatch and The Calandra Report, Thom pegged $300-ounce gold as a long-term hold in 1999 and in 2000. He has been covering life-sciences and natural resources since 1988.
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