Mineral Mountain Resources

Bringing you undervalued, high growth opportunities...

Mineral Mountain Resources… Going For Gold

MineralMountainResources MMV

SP… $0.54
Shares Out… 36.6M
Fully Diluted… 47.2M
Market Cap… $20 million
Management Owns 42%

Coverage (Sept ’10) @ $0.41 +$0.13 / 31.7%


Just like our Canadian athletes earlier this year went for gold and stole the show last winter’s 2010 Olympics, Mineral Mountain is “Going For Gold” in an entirely different type of race. A race to be one of Canada’s next generation of microcaps turn billion dollar miners. Just like the Canadian athletes at the Olympics stole center podium, Mineral Mountain wants to dominant the podium in the mining industry with their eyes not on 1, but 3 potentially company making projects. Imagine Creso, Rainy River, and Atac all rolled into one and that is the potential you have with Mineral Mountain. Having the chance to get in on the ground floor of an operation like Mineral Mountain in a grassroots campaign are opportunities that only come once in a lifetime. Or twice now, as far as the Baker’s are concerned as they are the ones who started Rainy River from a $0.65 cent company and turned it into the $1B company it is today. They are now doing it all over again with Mineral Mountain Resources.

The Baker’s are becoming an iconic name in the mining industry as the family has their names on some of the best discoveries in Canada in the past 30 years. For some people, mining and exploration and prospecting run through the blood and in this family it runs deep. These guys are the ‘true grit’ type folk in the mining industry that will get the job done at every angle and have some of the best noses in the industry for prospecting economical deposits. Nelson Baker in his own right has had great success with the discovery of the Rainy River Gold Project and subsequent development of what was thought to be an uneconomical deposit into the current 5M oz resource, but in reality Nelson Baker and the rest of the family’s story starts with the prospecting genius of their late father Walter Baker.

Walter is the man who many consider the Godfather of the Hemlo discovery who first discovered a 3,000 ft long gold bearing shear zone in 1961 that later would become the core of claims that would host the Hemlo Discovery. Walter would have stake the claims himself, but thought it would be a conflict of interest with his employer, but suggested to Donald McKinnon to look into the claims in the area, which Donald did. Walter was awarded with prospector of the year in 1987 in recognition of the Hemlo discovery and also awarded the lifetime achievement award for tremendous discoveries and successes in the field. He also discovered Canada’s largest Platinum Palladium mine in Lac Des Isle.

Walter was so adept at prospecting it is said that he could tell if deposit was economical just by panning it. In any case, it is obvious that Walter passed his genius down to his sons as proof of development of the Rainy River Gold Project. This family is becoming an iconic name in the Canadian mining industry with everything they touch turning to gold. The Baker’s can accomplish whatever task they set before themselves as proven by exploration success after success and they have now turned their sites to building a grassroots mining company from the ground up. In this industry it all comes down to finding the project to prospect and develop, and this family has shown that time after time they find the right project. They have some the best noses in the industry.

Mining, exploration and prospecting run deep in the Baker family.

If anyone is going to pull off doing it twice… It’s going to be the Baker family. Walter Baker’s boys Nelson and CJ are carrying on the family legacy of exploration in Canada and following in their father’s footsteps with success in discovery. Although the 30M oz gold discovery still eludes these boys. To discover something as big as Hemlo and have their names beside their father’s as one of the biggest discoveries in Canada is the grand prize for Nelson and CJ.

Rainy River isn’t a 30M oz Hemlo or a 16M oz Platinum and Palladium mine so the boys are still hungry to find the ultimate in deposits like their father did. Success of one gold find is not enough and Nelson and the crew are doing it all over again at Mineral Mountain. Except they are thinking bigger this time… much bigger. One discovery is not going to satisfy this family as mining and prospecting run deep through the blood of all 3 Bakers. They also make the perfect team with Nelson as an engineer working in exploration, CJ with his masters working for the majors, and Brad, Nelson’s son who worked in the financial aspect of mining are all specialized and compliment each other with great synergies in human capital. They came together and did once already with Rainy River and now they are thinking bigger with Mineral Mountain.

If there ever was a family that success in discovery seems to follow wherever they go… It’s the Bakers.

Key Management Traits…

• Exploration – hands done one of the best prospecting families in Canada
• Skilled at finance & business management as demonstrated with Rainy River and initial funding of Mineral Mountain
• Ability to develop strategic partnerships and acquire projects with world class potential in acquisitions in Shining Tree and Straw Lake Project and Kootenay Arc

Whether it be the widespread gold targets in Shining Tree, to the past producing Hemlo style target at Straw Lake Beach Mine, or the Kootenay Arc Project with Carlin Trend type mineralization and bonanza silver veins… All 3 projects are camp like in nature and are worthy of being flagship properties. With 3 potential properties that could all be mines in the future, Mineral Mountain has their sights set on a VERY BRIGHT & BIG FUTURE.

ALL THREE ARE DISTRICT SCALE & CAMP LIKE IN NATURE.


Shining Tree

Developing the Next Timmins Style Gold Camp

Shining Tree is the first major project on the block to be aggressively explored by Mineral Mountain. Before Nelson started Rainy River, one of his choices at the time was joining Golden Harp in Shining Tree. Obviously Mr. Baker chose well with Rainy River, but now he is back in Shining Tree and has come together with Golden Harp jv’d their properties that make them one of the biggest landholder’s in the area with over 145 square kilometers in the heart of the district. Shining Tree has the potential to host several multimillion ounce gold deposits being on a major regional fault which is the west extension of the Larder Lake Cadillac Break and hosts world class deposits in Quebec such as Canadian Malartic and the Kirkland Lake deposit east of Shining Tree in Ontario. This area is drawing a lot of attention lately with Creso’s rich discovery at Minto and Trelawney’s potential World Class Cote Lake Discovery about 40km west of Shining Tree along the same regional fault structure.

Out of the 3 properties, Shining Tree is the first because it is the most advanced staged drill ready project waiting to add value to Mineral Mountain’s inventory. Shining Tree is one of the most cost effective places to drill in Canada with costs all in of about $125 per meter and is a year round story. With significant gold bearing targets already in place and one of the cheapest, lowest risk projects to add material value, Mineral Mountain is ready to deliver up materially in 2011 in respect to their Shining Tree projects. Creso Exploration’s discovery at Minto this summer has expedited many exploration plans in the area with companies initiating drill programs this winter along with Mineral Mountain, but MMV has some of the best targets in the district out side of the Creso’s Minto discovery.

The property hosts a north westerly trending package of Archean rocks that host numerous geological settings favorable for gold deposits. Mineral Mountain’s Shining Tree Properties have at least 3 regional gold bearing faults that cut across the property and are at least 20km in strike length. MMV has several drill ready targets in Shining Tree with 2 high priority targets in the GoldenSylvia Zone and the Cook Zone..

The Cook Zone (Block A)

The next Minto?

The most recent discovery on the property is the near surface high grade Cook Zone where gold mineralization is associated with felsic porphyry dikes intruded in brecciated calc-alkalic volcanic rocks which is of similar geology to Creso’s Minto deposit. The Cook zone is near theTyrrell Shear Zone which is a regional break that runs through Shining Tree similar in nature to the Destor-Porcupine and Cadillac Breaks. The Cook Zone is an exciting new discovery with above average economic potential. Just recently they announced thecommencement of a 10 hole 3,500 meter drill program to expand the high grade intercepts in the Cook Zone which is 6km to the East of the Minto Deposit.

Very good high grade shallow results include…

• 8.5 meters @ 5.03 g/t au
• 3 meters @ 21.41 g/t au
• 5.5 meters @ 11.9 g/t au

The Golden Sylvia Zone (Main Block)

A near surface bulk tonnage target

The Golden Sylvia Zone has potential to be a near surface bulk tonnage target and is a 200 meter wide gold bearing banded iron formation with a 4km strike length which has so far been defined for about 10% of the formation to a shallow 100 meter depth. The deposit is open in all directions and has significant potential for expansion with3.5 km of potential strike length to explore. So far The Golden Sylvia Zone has been defined along a 450 meter strike to a 100 meter depth. Historical IP and Mag surveys define numerous high priority targets that require follow up. MMV is planning an extensive drill program for the Golden Sylvia Zone to delineate a compliant NI43-101 resource in 2011.

The fall 2010 exploration program included…

• Grid line cutting
• Geological mapping
• 20km induced polarization survey over the Golden Sylvia Zone

Previous drill highlights include…

• 14.23 meters @ 2.57 g/t au
• 12.24 meters @ 3.56 g/t au

Mineral Mountain’s Shining Tree Property has numerous high priority targets that are yet to be investigated, 2 other targets that stand out on the project are…

The MC Zone (Block A) is a new partially defined gold zone that is the western extension of the Tyrrell Shear Zone which host the Temex 1.2M oz Juby deposit and Goldeye’s Big Dome Zone. The MC Zone is a 300 meter wide zone with near surface bulk tonnage potential and higher grade intersections at depth. The MC Zone has only been tested near surface and further evaluation is warranted to test the gold zone to its full potential.

The MC Zone is Highlights include…

• 43.75 meters @ 0.90 g/t au
• 61.8 meters @ 0.43 g/t au
• 7 meters @ 4.5 g/t au

The Copper Hill Zone (Main Block) has VMS potential which is located 200 meters south of the iron formation that strikes across the property. The Copper Hill Zone is an extensive altered zone with a known strike extent in excess of 5 km with copper values ranging from 0.634% cu to as high as 9.26% cu and gold values as high as 1.26 g/t. The Copper Hill Zone is hosted in a Rhyolite unit that is in a similar geological environment as the Sel Baie deposit in Quebec.

The Shining Tree Property is littered with gold and the MC zone and the Cook Zone were literally discovered right along the highway. The area is so rich in gold that previous operators literally pulled off to the side of the highway and started exploring. They didn’t even have to go in the bush! This indicates to me that the sweet spots and best parts of the zones are still waiting to discovered as the gold mineralization is traced further along strike and to depth in these rich gold zones. The gold zones in Shining Tree may prove to be very rich. If this camp is anything like others in the region, then most of these deposits will run very deep and will be mines for years to come.

Shining Tree is a great place for MMV to add material value developing advanced stage projects at a cost effective price without diluting the stock. The Shining Tree gold zones are low risk, established zones with huge exploration upside as Shining Tree being a vastly underexplored famous gold district that is now just receiving modern day exploration techniques after close to a 30 year ban in the area. Shining Tree is the perfect place for Mineral Mountain to kick off company operations and a few discoveries in Shining Tree and further delineation of these highly prospective gold zones towards economical resources, will add material value to MMV. Mineral Mountain could easily be a $1 stock upon discovery in the Shining Tree District. These projects alone merit Mineral Mountain’s $20 million market cap.


Straw Lake Mine Project

A Hemlo style target

Mineral Mountain recently optioned the Straw Lake Mine Project which is located some 60km northeast of Rainy River and south of the 1M oz Cameron Lake deposit near the Rainy River Gold Camp. Nelson and the gang believe after pouring through numerous historical data and making several trips to the property, that they may have a Hemlo style target at the Straw Lake Property. The property is at the intersection of 3 regional faults which is ideal for a large gold deposit and the mineralization at Straw Lake is associated with sericite-schist which is Hemlo Style mineralization. Straw Lake is a high grade historically producing mine at >10g/t before the mine was shut down due to World War 2, which is the same story in the Shining Tree District.

Straw Lake is a virtually untested property that has yielded significant intercepts and the rock surrounding the high grade material is untested representing significant lower grade ounces surrounding the mine. There have been several high grade intersections not followed up on and an extensive low grade interval 1 km from the deposit on the property that has never been followed up. The high grade intersections never followed up on include one intersection ofgreater than 60 g/t au over 3 meters.

From discussions with folks at Mineral Mountain, they believe they have at least a duplicate of Rainy River in a 5 – 10M oz gold project that could potentially rival Hemlo with a lot of resemblances to Hemlo style mineralization. If anyone can find the next Hemlo project, it’s the sons of who many consider to be the Godfather of the Hemlo discovery. The Straw Lake Mine Project is a project in itself that could be in the very least, another Rainy River and being at the intersection of not 1 but 3 regional faults puts Straw Lake in the right geological environment for a major gold deposit that could rival anything discovered in Southwestern Ontario to date… including Rainy River.

Straw Lake is a World Class Discovery in the making.



The Kootenay Arc Project

Carlin Style Mineralization

Last but certainly not last by any standards is Mineral Mountain’s flagship project, Kootenay Arc. Kootenay Arc has the greatest potential of them all and could be Shining Tree and Straw Lake combined. Mineral Mountain is appropriately named after this project and adequately describes the grand scope of the Kootenay Arc Project, literally, a mountain of minerals. Kootenay Arc has the potential to rival Atac’s recent carlin type Rackla Belt discovery and thecarlin type gold deposits in Nevada.

The Kootenay Arc Project covers an area 70 kms long by 15 km wide and is district scale in nature like Atac’s Rackla Belt. The project covers 80,000 hectares of Carlin-style mineralization that includes several high grade gold zones that are strike for up to 10 kilometers in scale. The scope of the Kootenay Arc Project is massive in scale and is where the long term viability of Mineral Mountain is long after the Shining Tree and Straw Lake Deposits have been exhausted.

The project is the site of an historic exploration rush in the region where high grade silver and placer gold were discovered in the area in1893. For the following 20 years prospectors mined the bonanza grade silver veins with ore that averaged more than $3000 a ton at today’s prices. The veins on the property average 1 – 10 meters in width and some have been traced for more than 1 kilometer in strike and have produced grades of up to 6,000 g/t of silver and 15 g/t gold. The Kootenay Arc project was considered one of the greatest mining camps of its time at discovery in the 1890’s, but the area has seen virtually no exploration since World War 1 and is a massive camp scale project that has the potential to host several world class discoveries.

The property is absolutely elephant in size, includes 5 former high grade silver producers and is virtually undrilled with only 8 short drill holes sunk into the entire 80,000 hectare property. Mineral Mountain has already identified 5 large tonnage prospects on the property. Just recently the company announced results of their summer exploration program which included defining several large Gold-Silver-Arsenic targets including a gold-arsenic anomaly 1000 meters long with up to 36.98 g/t au in grab samples and 8 g/t in soils which is very high grades for soil samples.

Results of the summer program include…

• Discovery of 7 new gold showings
• 25 new soil and rock geochemical anomalies
• Impressive soil samples with gold ranging from 4 g/t to 13 g/t and silver vales from 100 g/t to 200 g/t

The project’s greatest potential is the sediment hosted carlin style mineralization bulk tonnage target on the property that is similar in nature and scope to that of Nevada and the Yukon. Kootenay Arc is an elephant in the making and is a potential World Class Project with 80,000 hectares of virgin, untested land.

Just look at this color anomaly...

Mineral Mountain has 3 potential World Class Canadian Projects

Mineral Mountain is on track for success exploring and “Going for Gold” in 3 highly prospective areas in Canada. All in historical regions that have received little modern day exploration since the early 1900’s and all properties being strategic company building projects that cover district scale highly mineralized belts. Each project Mineral Mountain is aggressively exploring could be a company maker and are worthy of flagship project status. MMV has plans on aggressively exploring and developing all 3 and have carefully selected what they believe represent the best chances at multiple material and economical discovery in Canada.

MMV has one of Canada’s iconic exploration families at the helm, with discoveries such as Hemlo, Lac Des Isles and now Rainy River accredited to the Baker family name. The Bakers are at it again building a company from the ground floor in hopes of bringing not 1 company makers, but 3 massive projects to table. Mineral Mountain could be Canada’s next mining giant if the Baker family’s track record of success continues. Nelson and CJ are driven to make a discovery just as big as their father Walter’s Hemlo discovery back in 1961 and have found 3 potentially the best targets for a multiple multimillion ounce gold discoveries in Canada.

An investment like Mineral Mountain Resources only comes along once in a lifetime and is a great opportunity to get in on the ground floor with one of Canada’s iconic mining families doing it all over again building on their success with Rainy River. This time they are looking to build a mining giant with 3 district scale projects that could potentially make Mineral Mountain an iconic mining name for generations to come. If there ever was a family to blindly follow in this industry. It has gotta be the Baker family name.

Mineral Mountain is a solid buy at $0.50 going forward and is a company set on aggressively bringing material value to its shareholders “Going for Gold” in 3 up and coming mining districts in Canada.




Christopher Skidmore

Reporter for Beat the Market Stock Picks




Beat the Market is not a reporter for hire! Reprints rights are available to purchase for any of Beat the Market Stock Picks material.

NioGold Mining (NOX)

Bringing you undervalued high growth opportunities...

Follow The Money With NioGold Mining

NioGold Mining (NOX.V)

SP…$0.305

Shares out…72M

Capex…$22 million

Every once in awhile you come a cross a gem… A company that is extremely undervalued and positioned to grow well into the future at current prices and is almost a no brainer multi bagger, if there is such a thing. A company that is cheap, which already has ounces in the ground and is sitting beside a major that has a multi million ounce gold project. A company that is positioned well for the future, with low risk, and is just beginning to spread the story about what they have and what they are doing. A company that has done a major deal with a well established mid tier producer that virtually takes almost all the risk and potential dilution out of their hands.

NioGold Mining (NOX) is looking like that diamond in the rough, and at only a $23 million market cap is cheap for having almost 1 million ounces in all categories on the past producing (600k oz’s) Marban Block. One way to be successful in investing in exploration is by following the money. The money is pouring into NioGold’s Marban Block Property which sits near Osisko’s 9 million ounce Malartic Project.

I have followed Osisko since they boldly stated back in 2006 that they were coming up with a 5 million ounce resource, and almost 5 years later they have done much better than that. On trend to and near such a major recent discovery in a major gold camp that has produced 170 million ounces since 1908, makes NioGold’s properties very attractive. NioGold’s properties, including the Marban Block (which was recently jv’d to Aurizon) are truly something special covering 20km of gold mineralized fault system in the heart of the Cadillac, Malartic and Val d’Or mining camps. It certainly gives NOX leverage to a major discovery and I am not the only one to think this.

Earlier this summer NioGold struck a deal with Aurizon Mines and Aurizon has paid a steep price to get into just the Marban Block which is only 10% of NioGold’s total holdings in the area. Being beside Osisko’s Malartic, the potential here is absolutely blue sky in nature.

Why do they like it?

To date NioGold has drilled 72,000 meters and come up with an existing resource of960,000 oz’s in all categories. This includes open pit resources as well as underground resources and both have very good potential to expand at depth and near surface. There is also significant upside potential as only 20% of this trend has been drilled and Aurizon plans on funding 200,000 meters of drilling over the next 3 years. NioGold’s Marban Block truly has blue sky potential. If gold mineralization is consistent along this trend and does continue at depth, NioGold can indeed prove their near term objective of…

“Outlining resources/reserves of several million ounces of gold through the generation of new geological concept models, focused exploration and definition drilling.”

Aurizon, just to get a 50% interest in the Marban Block project (which is only 10% of NioGold’s land position) has to pay $20 million in exploration expenditures over the next 3 years with a minimum of $5 million the first year, including be responsible for the N43-101. They can also earn 10% by delivering a feasibility study and another 5% by arranging financing. Now some might think that this deal is giving away a great treasure, already having 1 million ounces near Malartic, but this joint venture works great for both companies. NioGold will not have to go through any dilution over the next 3 years. This deal assures minimal dilution to NioGold and at current share price… $20 million could have effectively more than doubled the dilution of the company over the time period anyway, effectively giving away 50% of the company to the public. This way they get to keep it in the family, save dilution, keep the share structure relatively tight and still get paid per oz discovered on top of retaining at least 35% of the project, if they do delineate a multimillion ounce deposit.

Not including that, are costs required in delivering an independent feasibility study and trying to arrange financing. They mitigate all these risks by having a great partner in Aurizon, risks which are better suited for a company that is producing and has skills at bringing projects into production. NOX is an exploration company and suited at exploring, not bringing a project into production. Plus they will get paid for 50% of total ounces, so they are not giving them away in the jv. $30 - $40 per ounce for indicated resources and $20 - $30 per ounce for inferred, depending on POG.

Aurizon has given NioGold’s management a huge vote of confidence as well, having NioGold run the jv over the 3 year opt in period. Actions speak much louder than words and this speaks volumes about management’s expertise and qualifications in the area. Most companies throwing that kind of money at a project would insist that they be the operators, and seeing ARZ defer to NioGold as operators over that period tells me everything I need to know about NioGold’s management team. In addition, NioGold hasn’t given up all their exploration potential in the area retaining 100% interest in 90% of the properties, giving NOX blue sky potential with other discoveries in the area on what they call the Golden Highway in Quebec.

NioGold in my opinion has the best of both worlds. What are some other advantages to hooking up with Aurizon? The fact that if they do find a major deposit similar to Malartic, it almost guarantees NOX being swallowed up by Aurizon or doing a friendly deal, they get to rely on Aurizon’s technical expertise, and have a solid partner for the future.

High Growth potential…

Here is an example of the potential of NOX… 10 million ounces (test case)… with gold above $1560 3 years from now (no brainer) assuming Aurizon earns all options…

• 3.5 million oz’s at $150 minimum takeover price… $525M value
• 5 million oz’s at $40 max…. $200M value

Total estimated value at best case scenario 10 million ounce discovery… $725 million.

At current fully diluted prices that would be almost $9 per share. Now depending where the price of gold is 3 years from now, the $150 takeover price for the 35% could be much higher than that… I just suggest that price as a test case.

Extremely undervalued…

Here is the thing… Even if they only come up with 2 million ounces… which is a very good chance they will…

• 700,000 oz’s at $150… $105 million
• 1,000,000 oz’s at $40… $40 million

A total of $145 million market cap.

NOX’s value at $150/oz takeover price is still $145 million capex and at 82 million fully diluted shares is valued at $1.75 /share which is currently much higher than .30 cents NOX commands in the open market. I have no doubt they come up with at least 2 million ounces.

This is not a statement that NOX has 10 million ounces at the Marban Block, I am just trying to show you the potential that NOX has, that this company is both undervalued and has extreme high growth potential. The blue sky for this company is limitless if they hit big like OSISKO has done across the highway. The potential NOX has in a worst case scenario is still much higher than it is currently valued and that the deal works out well for both companies in the long run. I believe NOX’s Marban Block is positioned well for discovery, but in the end only the drill bit can prove what is in the ground.

This is truly an undervalued high growth opportunity, which is the best of both worlds in the investing community.

What are the great things about Aurizon’s deal with NOX?

• Limited dilution
• Limit exploration risk
• Part of deal works on price per ounce discovered… NOX isn’t missing out
• Technical Expertise of Aurizon
• Partner increases chances of buyout if successful
• Partner has expertise to bring Marban Block into production
• NioGold still retains 90% of land and 100% exploration potential of another discovery along the Golden Highway
• Aurizon is only interested in developing Marban Block

Following the money in this industry can make you big money and just like other articles where I have mentioned to follow the money, it is paying off… I am sure it will pay off big here as well. In fact, this project has much less risk than my other follow the money pick as they haven’t drilled a hole into the TPK property and that company is worth much more, yet NOX have drilled 72,000 meters and have a resource here. NioGold is truly a undervalued explorer and is going much higher over the coming months. What adds even more value to NioGold is there 100% owned Malartic block, which adjoins the Marban Block to the West, is on trend with Marban and is easily 3 to 4 times the size of Marban. NioGold is positioned better than any one else in this historic mining camp for the next major discovery.

Aurizon likes Nio's potential with such a steep price paid. They aren’t just going to throw that kind of money at nothing.

In addition I have been in contact with management at NioGold and the timing seems great. They were happy to report to me that assays are in the lab and the cores that they were bringing up look great with some extended zones of mineralization and that assays were expected at the beginning of November with some pretty long intervals expected. So that puts as early as next week. If assays are good I would expect an early morning Tuesday release date.

Follow the money with NioGold and I am sure you will be well rewarded owning a piece of this historic gold belt. At .30 this company is ridiculously cheap and are as much a lock as it gets in exploration.

NOX is in a proven and historic gold camp, is in one of the most favorable provinces for mining, no political risk, will receive a premium in a takeover because of the district and is already positioned to be on the verge of a major discovery with potential for other material discoveries in the area. NioGold comes in as a top pick when analyzed on a risk vs. reward basis.

Beat the Market with NioGold Mining.

Happy Trading :)

Christopher Skidmore

Top 5 Developing Gold Stories

Top 5 Emerging Deposit Development Stories…

Small caps tend not to correlate as well to the everyday market, as the majors and midtier do and most of their losses will happen on the worst sell-off days but rebound quick if ST prospects are bright and adding material value. At the current price in POG a 10% move is immaterial to many of these companies and will move only on the worst days down with POG but will tend to snap back very quick if the company is adding material value through a drill program or is undervalued in the first place.

I consider myself a reporter. Maybe a prospector at best… I am not a geologist, I am not an analyst, I am certainly not someone who I would take as the final say about any project. I even have a tendency to fall in love with certain stories. What I do best, is find a very good stories to follow, stories that hopefully unfold from small cap explorers to at least mid tier developer stories. This week I am going to focus on my TOP 5 emerging deposit development stories.

A lot of you guys want me to rank my favorite stocks and I would rate as strong buys on weakness. All these stocks may go down over the next month or so as we enter into tax a season combined with the new fundamental shifts over the last couple days and some already have peaked and come down a bit. If you can get any of these along the 50MA’s, consider yourself lucky. Remember, even if POG drops $100 from here, that sort of price move over the next month is not material, although they will respond to day to day fluctuations in the market. So here it goes. Remember… This is just about Gold.

All 5 stories are District Scale potential.

Things I look for in an emerging story…

• Large potential area (district scale)
• Shallow (fast track production potential)
• Consistent grade ( easy economics)
• High grade bonus (high grade always the best)

Gold Canyon GCU.V $1.44


Is probably one of the best development plays going in Red Lake. When I say development please don’t confuse that with developing a mine, not yet anyway. I am talking about developing a solid resource to the stage where the decision is made to produce (a very risky point in the investing stage).

The Portage zone follows a 6km structure south that is proving to be very large. Widths of the zone up to 150 meters wide with the north part pinching to 50 meters or so but most of the zone is 150 meters wide. Not only that but this deposit is open at depth and so far it is up to 350+ meters deep at the south end and 230 meters at the north end with the rest of the fall program mostly focusing on extending the depth of the north zone with one hole left at the south end of portage to be reported. Theory is that historical holes missed the zone south and from historical analysis of drill holes from previous operators is interpreted to have hit the edge of the zone.

Gold Canyon is stepping out this winter once the lake ices up and will be following the Alkaline Porphyry structure south. Further long intervals this winter will add material value to this deposit. I recommend this a very strong buy on weakness this month between $1 and $1.30.

Gold Canyon also has a highly prospective REE project that contains up to 12% TREO in the US, as well as a Gallium project which has the potential to be the biggest gallium project in the states. I would expect at some point the REE project could be spun off into a different company to recognize the value and start developing the project along the lines of a Rare Element Resources. GCU’s REE project is a hidden gem that not many know about and at this point is given no value to.


Keys to this deposit are that it is…

• Dimensions
  • Shallow(lake bottom)
  • Deep and open at depth of 370 meters
  • Wide most of it at 150 meters.
  • 6km of potential strike… only 800 – 900 meters defined.

• Consistent Grade
  • There grade at Portage is very consistent making it amenable to mining. Eradic deposits pose problems for flowsheets.

• Its in Red Lake
  • Solid mining friendly jurisdiction
  • Premium on takeover if it happens

Someone of note who follows this story… Bob Moriarty


Followed @ 0.25 (Mar ‘10)
Public @ 0.41 (Aug ‘10)
Coverage @ $0.70 (Sept ‘10) +$0.74 / 106%



Pelangio Exploration PX.V $1.05


Right now PX is my top international story and has corrected nicely and is a great buy anywhere under $1. In these times I don’t want too much international exposure, especially across a large body of water, and I see Africa as a battleground for economic loyalty, but I see Ghanaas being about the safest places to invest for the West in Africa.

They are working on a couple huge projects in Ghana called Manfro and Obuasi.

Manfro is the project to get the party started which is a low risk value added project and so far has been a success with drill intersections confirming both high grade gold and bulk potential low grade gold in 4 parts of the property within a 1km by 4km geochemical soil anomaly. This project is shallow and has the potential to be fast-tracked to production in mining friendly Ghana. Newmont prepped the property and packaged it to Pelangio to drill which so far has been a success.

The Obuasi Property is the potential company maker. The property lies adjacent to and on strike with AngloGold Ashanti’s World Class 60 million ounce Obuasi gold mineand so far PX has outlined 15km of the same structure that hosts Obuasi’s mineralization. Pelangio is continuing to further define this structure. The object is to find shallow Obuasi like mineralization on their property.

Not only that but PX has claims that are on strike and adjacent to LSG’s Thunder Creek discovery and in most likelihood hosts the same mineralization on their claims. That is one very rich discovery which is just one more reason to buy this stock. LSG will come knocking for that claim eventually.

Someone of note who follows this story… Jay Taylor.

Covered @ $0.55 (Sept ’10) +$0.50 / 91%



North Country Gold NCG.V $0.97



NCG has gone on a great run and is a very promising emerging story out of Nunavut Territory. They are the premiere land holding in the territory that covers 300km of strike length of potential targets similar to the Three Bluffs Project. They are sitting on the underexplored Committee Bay Greenstone Belt in Nunavut territory that truly has world class mining camp potential. North Country Gold owns all of it!

Nunavut was once thought to be too remote and the seasonal aspect of drilling has kept the Committee Bay Greenstone Belt one of Canada’s best kept secrets. That is soon about to change as NCG continues to make headlines and develop Three Bluffs. The area is now seen to be viable with Agnico-Eagle’s 3M oz Meadow Bank deposit going into production. Meadow Bank going into production demonstrates that the area is economically viable for production. With Meadow Bank in production, it will bring a lot of much needed infrastructure to the area such as roads, airstrips and other key infrastructure developments that make exploration in the area much more economically viable.

Currently the resource at 3 Bluffs stands at 750k oz’s at 6 g/t, but are working on at least 1 million oz’s at 3 Bluffs in Nunavut. Not only that, but the true potential of 3 bluffs is just beginning to be realized after releasing the results of their Titan 24 survey of 5km strike from Three Bluffs to Hayes revealed very prospective targets and confirmed IP map with drilling to date. This project is open at depth and has the potential to be at least a 3 – 5M oz deposit. NCG is currently targeting Three Bluffs open pit potential to be fast-tracked into production. Currently at 6g/t resource, the open pit potential is very attractive mine starter with depth potential for an underground mine that could be operating well into this century.

I cannot stress enough the district scale potential of NCG’s Nunavut property. A common theme among my top picks is the district scale potential that all these companies provide for exploration upside. North Country Gold has the biggest prospective land position of all my top picks. Three bluffs is the first of many targets on North Country Gold’s massive property with district scale potential in NT. NCG has 4 other targets that are just as impressive as 3 Bluffs.

Why do I like NCG so much? Undervalued on 3 Bluffs potential alone. Then add 4 more high grade projects like 3 Bluffs and NCG’s market cap is a tiny spec of sand for what it could be if they define four more 3 Bluffs over the next 3 or 4 years. IF NCG can define 5 deposits all between 2 – 5 million ounces, then North Country Gold’s market cap will be more along the lines of ATC’s in the Yukon.

NCG could be on Agnico-Eagle’s shopping list considering they are in the area.

Someone of note who follows this story… Hoesgen

Covered @ $0.48 (Sept. ’10) +$0.49 / 102%



Atac Resources ATC.V $8.00


ATAC Resources I have followed since fall of 2009 somewhere around $1, I liked the Tiger Zone so much that it is in my 2009 Gold Discoveries spreadsheet, but seriously didn’t start looking at other Yukon discoveries until after Underworld was bought out. I posted about ATAC in early August at $1.80 when they started releasing very good results from the Tiger Zone, little did I know what they were about to hit at Osiris at the other end of the property.

What is significant is that ATAC is on this belt that forms a geological contact but two major formations which is ideal for gold mineralization. The reason why ATC seems overvalued to many is that they only have one drill hole. What most don’t realize is that that one drill hole pretty much confirms ATAC’s theory that the whole Rau belt is mineralized form one end to the other. That is close to 160km of continuous strike length of this project for which only a small portion of the trend has been explored for gold. The discovery at Osiris confirms this theory and makes ATC extremely prospective for gold for multiple gold discoveries.

I really think Kinross has their eyes in the Yukon and ATAC has got to be on Kinross’ wishlist as well as Victoria Gold who is a near term producer in the Yukon. VIT also has a very nice high grade discovery on the Eagle Gold Property that is similar in nature to ATAC’s discovery. If the writing was ever on the wall, it looks like Kinross could be the premiere player in the Yukon if they snapped up Victoria or ATC… or even both!

ATC is in my top five stocks even at $8 for the prospective nature of the whole 160 km belt that is starting to be considered the next Carlin Style Trend. ATC didn’t release results last week and I doubt they will release results this week with the negative outlook on the markets and POG. I would look to see results closer to the end of November or early December now. ATC is a major buy on weakness.



Someone of note who follows this story… The Coffin Brothers

Followed @ $1 (Oct. ’09)
Covered @ $1.81 (Aug. ’10) +$6.19 / 342%



Trelawney Mining TRR.V $1.97


Trelawney Exploration is quickly becoming a favorite and has been quickly bumped up into the top 5 in new discovery development stories. Trelawney is the story that is the closest to near term mine potential than any of the others, but still with huge upside discovery potential on their Chester Property which hosts 12 known gold mineralized structures. The Chester property sits between the Timmins and Sudbury Mining regions in a greenstone belt that is though to be the south west extension of the Abitibi greenstone belt and is just north of the Larder Lake Cadillac Belt which hosts Kirkland Lake’s World Class Gold Deposit.

Cote Lake and its near term shallow bulk tonnage potential has excited the market, but the Chester 1 deposit could be up and running early 2011 with an average grade of 13.4 g/t gold. Chester 1 has a non compliant Measured resource of 159,000 tons @ 0.43 oz/t for 68,400 oz’s of gold. This high grade project already has a 5,500 foot production ready decline to a vertical depth of 500 feet which was done in the late 80’s but never put in production. This is about $30 million worth of infrastructure for a production ready resource. Trelawney drilled to 1000 feet downdip and hit the same mineralized structure with grades from 3.26 g/t to 36.67 g/t gold. This virtually doubled the depth of the Chester 1 and gives it even more potential at depth.

In addition to Chester 1’s measured resource, TRR has another 200,000 oz’s indicated at Chester 2 and 3 and an additional 200,000 oz’s inferred at 0.19 oz/t. Their plan is to produce an initial 33,000 oz’s per year at Chester 1 while driving a drift to Chester 2 and double initial production from Chester 1 of 250 tons a day to 500 day bringing annual production to 66,000 oz’s per day within 24 months.

Just recently Trelawney announced that their Cote Lake Deposit on which they have had very good success this year has shallow bulk tonnage potential of 3 – 6 million oz near surface deposit. Open pit projects in my opinion have the best potential to be fast-tracked into production. Trelawney is well positioned to take advantage of high gold prices with projected near term production well in excess of 100,000 oz’s gold per year in 4 -5 years time if Cote Lake gets the go ahead. Cote Lake is the western extension of Chester 2 and is open at depth and would be the next logical step for expansion of the underground mine.

Just on Chester alone, Trelawney is sitting an a major undefined gold deposit that will have short term production potential from 2 sources. A shallow bulk tonnage low grade deposit and an underground high grade mine at Chester which already has $30 million worth of infrastructure and is just waiting for the key to turn to start production. Chester looks like it is going to run very deep and could be a high grade mine that will be in operation for years to come.

I don’t want to put any targets on the Chester Properties but for sure it is World Class with potential to host at least 10 million oz’s on just this property alone. Trelawney is positioned very well for success and could be the next LSG type story with this little bulk tonnage Cote Lake as a bonus for near term success.


Someone of note who follows this story… Kevin O’ Leary

Followed @ $0.79 (March ’10)
Coverage @ $1.30 (Oct ’10) +$0.67 / +52%



Top 5 Grassroots Exploration – all these companies I got onto before the drill bit hit the ground.


Harte Gold Corp HRT.V

SP… $0.72
Followed @ $0.275
Coverage @ $0.55 + 0.17 / 31%

• Just drill validated their ip map. This is more and more looking like a major discovery in the Hemlo region.

Mineral Mountain MMV.V

SP… $0.52
Covered @ $0.41 + 0.11 / 27%

• Acquired 3 highly prospective properties. Shining Tree, Rainy River and Kootenay Arc. Kootenay Arc to me is the potential company maker.

Soldi Ventures SOV.V

SP… $0.32
Covered @ $0.20 + 60%

• Have acquired a very prospective land position in the emerging Rainy River Gold Camp.

Northern Superior SUP.V

SP… $0.53
Covered at $0.37 + 0.16 / 43%

• RainyRiverdrilling TPK property which is District Scale in nature. LSG took a significant position in SUP which confirms prospective nature of TPK Property.

New Dimensions Resources NDR.V

SP… $0.22
Coverage @ $0.18 +0.04 / 22%

• Recently acquired a property along the same geological belt that ATAC’s Rau property follows. Confirmed historical samples on the property make it highly prospective, but very early in nature. Also have a property in Peru that is very near FDN and hosts rocks that are similar to FDN in nature

Recent Discoveries… Always do your DD when investing in something new…

Top Stories… These guys are now drill validated…

Avala Resources AVZ.V

SP… $1.55
Coverage @ $0.70 +0.85 / 121%

Avala is going to be huge in my opinion. Every country is going to want to have their gold deposits developed because in my opinion it will add value to their countries material wealth in the new world which will eventually see a shortage in every commodity in the future if current growth rates and consumption rates keep up. Avala Resources has one massive sediment hosted deposit and now that they have validated this one with the drill is a clear buy.

Great Trench results… could be another Avala if the drill bit wins!

Dorato Resources DRI.V


Momentum play for next week, still investigating… DO YOUR DD!!!

Bonterra BTR.V$0.69 – Announced very high grade results in the Quebec. This area is full of gold and BTR.V could drill have upside momentum. I start following it at .50 cents but was hesitant to mention it because it spiked so high and was late on the news. If BTR is too expensive then try SLT at .09 as they acquired property right next to BTR’s discovery.

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Soldi Ventures an Undervalued Explorer in the Rainy River Gold Camp

Bringing you undervalued, high growth opportunities...

Soldi Ventures SOV.V

SP… $0.39

Shares Out… 9.6M

Capex… $3 million

Followed @ $0.17 +0.22 / 129%

I have mentioned Soldi Ventures a few times early back when I was talking about the Rainy River Gold Camp and Ontario exploration in general. SOV is my early stage exploration pick to be a big winner in the area. Since initial coverage you could have picked this one up between .17 and .20 and has now recently gone on a good run. Even at .30 I think this company is materially undervalued for their prospects and the attractive land position in the area that they have put together. Soldi Ventures is a newly formed public company that looks to be going places next year as they start to kick off their exploration programs and not many know about Soldi yet, so the story is very new and in most aspects hasn't even begun to hit the presses yet or on many peoples radar screens.

Obviously Mineral Mountain MMV.V has a very nice property that they are exploring in the Rainy River Gold Camp and is a top pick, as well as you can never go wrong with Nelson Baker at the helm, but they have 3 highly prospective properties that could all be company makers. Shining Tree, Kootenay Arc and Rainy River...

So my top pick for one company that is solely focused in grassroots exploration in the Rainy River Gold Camp is Soldi Ventures. At $3 million market cap, this company is extremely undervalued for the potential, does not have many shares out and could rise materially on a moments notice. SOV has put together a very attractive package announcing today that they staked an additional 50 claims bringing the Rainy River Block B total to 16,000 acres.

These properties include greenstone type targets as well as shear zone targets. To date they have 4 properties that include…

CameronLakeBlocks A & B (3,040 acres)

• Cover several km’s of Pipestone-Cameron Shear Zone (major regional structure)
• Structure hosts Cameron Lake Deposit 1.3M oz @ 1.84 – 2.77 g/t au which is 2km from SOV border
• Property covers 2 additional connecting shear zones (2^nd & 3^rd order) with known gold occurrences connecting to another gold deposit on the adjoining property

RainyRiverBlock A (1160 acres)

• Straddles major regional fault 5km southwest of Rainy River Deposit (5M oz’s)
• Structure pinpointed to 100 meters
• No drills have hit the structure to date

RainyRiverBlock B (16,000 acres)

• Covers 21 km strike length of a greenstone belt beside a major regional fault
• Highly prospective for volcanogenic gold and VMS mineralization

RainyRiverBlock C (800 acres)

• Adjoins Rainy River’s Off Lake Property
• Prospective for VMS base/pm type occurrences

Soldi Ventures is very early stage, but they have now finished acquiring and reviewing an impressive portfolio of properties and I expect that this winter’s exploration programs will start to unlock the value and the potential of these properties. I see Soldi Ventures as extremely undervalued going forward. They have 2 types of exploration targets going after Greenstone type deposits like the RR’s 5 million ounce deposit as well as district scale shear zone targets like the Cameron Lake Deposit (1.3M oz’s). They have known gold occurrences on their properties and are ready to tackle the next step in making a quality exploration company. Develop their properties into ones that host attractive deposits.

SOV is an extremely undervalued grassroots exploration company in the Rainy River Gold Camp that I highly recommend and could be the next company to be onto something material in Rainy River. This may be the next Rainy River if they hit big and at $3M market cap sitting in the same area on highly prospective targets as a company that will soon hit $1B market cap, is definitely priced right.

I like those chances...

I really don’t need to imply a share price value, but if they do find the next 5M oz deposit in the area and manage the share price well and minimize dilution… SOV could end up being a $10 stock on a material discovery. That is all depending on how the drill bit turns out though. SOV is in the right spot and priced right. If RR gets bought out and SOV starts making progress on their properties hitting gold, a lot of that money will pile into SOV.

Soldi Ventures SOV is a solid buy on any weakness and looks like it may already be breaking out to the upside in a material way.

Christopher Skidmore

Reporter for Beat the Market Stock Picks

North Country Gold

NCG.V October 28/10 SP... $0.87 Initiated coverage at $0.48... +.39 / +81.25% gain in 3 weeks! Shares out.... 65M Capex... $57 million I have mentioned North Country Gold a couple times as a very highly prospective pick... And today the news is huge in my opinion. Best news of the day actually as it validates my theory about NCG.V and their property. NCG.V continues its onslaught of upward momentum as they released results of the Titan 24 survey. This is a state of the art survey technique that when combined with existing results in the same surrounding geological area is almost a can't miss. Remember, I say almost a can't miss. Obviously the market reacted to well to the news pushing up the price to a new all time high as the map shows extensive potential high grade gold mineralization. I now have enough information to write up a great article on North Country Gold so look for the upcoming article. I consider NCG.V a very strong buy at current prices. When looking at the map and the drill results it is clear to me the major potential NCG.V offers. NCG.v has 700k ounces indicated and inferred which doesn't include this years drill program. They also haven't even begun to test this at depth, but NCG.V's mandate is to look for a shallow open pittable resource so I doubt they will. NCG is looking better and better everyday. There is some very good momentum opportunity over the next few days as the market takes in this information and realizes just how good this little gold exploration stock is. So you look at existing resources and the bright spots all over the map and I dare you to tell me there isn't extensive mineralization in the area and that this isn't a $2 or $3 stock by the end of next year, if not more. News is below. North Country Gold Corp. Completes Titan-24 Geophysical Survey at Three Bluffs Project

2 cracks at another Hemlo style deposit near Hemlo...

Jiminex Inc. (JIM)

Oct. 8, 2010… $0.14

Shares... 28.5M
Capex… $4 million

Most of you know how high I am on Hart Gold’s chances to be the next big thing in the Hemlo region. When analyzing these explorers you always have to be on top of your game taking in all new information that becomes available. I have mentioned Jiminex (JIM) briefly in the past being so close to Hemlo and their theory about their Northern Eagle Property 15km west of Hemlo. I have mentioned how most of Hemlo is (90%) below the 500 meter level, how Hemlo’s near surface mineralization is mostly to the West in orientation with the rest of the deposit, how Teck’s property 2.5 km to the west has Hemlo style near surface mineralization much like Hemlo. Teck has pulled some very good intervals, but has never issued an N43-101 for the property. For Teck’s internal purposes, they really don’t need to.

Now I know this is still a long shot, but JIM has identified some very prospective zones for deep drilling this winter on their Northern Eagle Property 50/50 JV with Beaufield (BFD).

They released news least week that make JIM move up the list…

They have identified 2 high priority targets with potential for mineralization from near surface mineralization to greater than 500m along with 2 secondary targets. They have also identified 2 high priority targets at a depth of greater than 500m to greater than 1200 meters which is the limits of the geophysical survey at 1500 meters. These targets seem to be spatially related and structurally controlled.

Geophysical surveys do not always predict mineralization, but they do show you potential zones of mineralization and/or alteration. The Titan 24 survey which they used is state of the art and expensive as the total cost for 14.4 kilometers was $185k. Northern Tiger used a Titan 24 survey this summer and missed, so it is never 100% until you drill. It makes it much easy to target when drilling blind.

The market will slowly wake up to JIM and the potential for discovery near Hemlo and think for its prospects will rise in anticipation of great results and market psychology that they might miss the next big thing. The prudent investor, would wait for results on a property that has never really been drilled to depth, but at current prices, even if they miss, there is great opportunity for a trade before results. It’s just too cheap for the projects they are working on. One other thing about mining stocks, good news is sometimes hard to keep a lid on or a stock gets such highly anticipated that the stock is fairly valued on expected results, so identifying a good story and getting in early mitigates a lot of the risk with these explorers. They all go up on a good story.

I think JIM is still a long shot until they have some results, but I am sure at current prices the community will see this as very positive news indeed and drive JIM higher.


So here you go… 2 cracks at Hemlo.. JIM is deep drilling Titan 24 targets with a $4M capex in a high risk high reward play 15km west of Hemlo, while Hart is a much safer bet clearing ip’s that are now all proving to be associated with high grade gold in disseminated sulphides on surface but with a $70M capex. A much safer bet to get high grade drill results on the first pass, but 20 times the value. 2 completely opposite approaches to finding the next Hemlo.

But both very valid theories.

JIM isn't just banking on the northern Eagle property, although it is the best shot at a major discovery. JIM is very busy this coming year. Checkout the news below.

Happy Investing

News for Northern Eagle property, Snow Lake, and Pickle Lake

http://www.newswire.ca/en/releases/archive/October2010/04/c7644.html

http://www.newswire.ca/en/releases/archive/October2010/05/c8170.html

http://www.newswire.ca/en/releases/archive/October2010/06/c8510.html

Undervalued Near Term Prodcuer

Andean American Gold (AAG)

Oct. 8, 2010.... $1.00

Shares... 101M

Capex... $101 million

Portfolio @ 0.92 +0.08 / 8.7%

Over the course of looking at many companies with projects and different phases of development. I have come across some great companies that are cheap for their resources and outlook going forward, and Andean American Gold (AAG) is no exception.

This one looks like a great for one for the kids' college fund. One strategy to find great investment opportunities is to identify projects that are entering into the next phase from exploration to mine development. If you can identify an explorer that has a project that will be entering production in the near term (12 - 18 months), some good money can be made as historically those companies market caps perform well as they get revalued from and explorer to a developer as production nears.

Andean American Gold certainly falls into this category, AAG is working on developing the Invicta project in Peru. This is a near term project that is currently negotiating final financing and going into building a mine at Invicta and be in production within 12 months. The project has robust economics, an initial 5 year mine life, with annual free cash flow of $65M, and a NPV of $265M discounted at 8%. Considering that AAG is negotiating financing to construct the mine, have hired staff and made a public announcement that they are changing focus from exploration to development, the Invicta project looks like it will go ahead in Peru. At around a $100M market cap currently, based on the economics of the 5 year project, AAG.V is undervalued considerably and should trade closer to $2. AAG.V anticipates commissioning The Invicta Project in the 4th quarter of 2011. These econmics ingore the continuing soaring price of metals and at today's prices looks even better.

What bodes well for the AAG and its Invicta soon to be mine is that it is based on only the Proven and Probable category which is 7.8M tonnes at 2.14 g/t au, 18.76 g/t ag, 0.52% cu, 0.38% Pb, and 0.3% Zn. The total resource is indicates much more and drilling will continue while the mine is in production to upgrade inferred resource as well as include new recent high grade discoveries. Even with the lower grade inferred resource it averages $69 / ton rock which is still much higher than the projected $28/tonne operating cost. This all indicates that the Invicta Project will be in production for much longer than the initial 5 year mine plan. Especially with the new high grade discoveries on the property. AAG.V looks like a steal for the Invicta Project alone.

Total Resource at the Invicta Project is outlined below including 1M oz's of gold, 10M oz's silver, 200M lbs copper.

Structure	Tonnes	Density	Gold	Silver	Copper	Lead	Zinc	Gold
			(g/t)	(g/t)	(%)	(%)	(%)	(oz)
Measured	868000	2.77	2.71	31.26	0.69	0.73	0.61	75724
Indicated	9866735	2.73	1.99	14.74	0.40	0.28	0.27	632336
Inferred	14224661	2.75	0.67	11.20	0.36	0.24	0.15	306913

AAG.V also has a 60% interest in the Sinchao Property. This is a lottery ticket. The Sinchao Project in Peru is potentially going to be a monster. It has a very good profile and also ties into my investment theme of buying value. Sinchao Metals Corp (SMZ) owns the other 40% of this monster project. At $20M market cap is probably better upside to this massive low grade project.

Currently inferred resources are measured at 217M tonnes grading 0.47% Cu, 0.49 g/t Au, and 12.1 g/t Ag. That is 2.45B lbs of Copper, 3.73M oz's of Gold and 92M oz's of Silver. At current metal prices is $62 per ton. The Sinchao Project is another one of those low grade projects whose economics are starting to look very good.

Not only that but recent geological interpretations have indicated that the Sinchao property could have an additional resources of...

Epithermal Zone

400 - 600M tonnes @ 0.3 - 0.5 g/t Au, 0.4% - 0.6% Cu, 6 - 8 g/t Ag

• 3.85M oz - 9.64M oz Gold
• 3.2B lb - 7.2B lbs Copper
• 77M oz - 154M oz Silver

Rock that has a potential to be worth $45 - $69 per tonne at today's prices.

Skarn Zone

400 - 600M tonnes @ 0.2 - 0.3 g/t Au, 0.1% - 0.3% Cu, 4 - 6 g/t Ag

• 2.57M oz - 5.78M oz Gold
• 800M lbs - 3.6B lbs Copper
• 51M oz - 115M oz Silver

Rock that is potentially worth between $18 - $38 per ton.

Hydrothermal Breccia Zone

700M - 1B tonnes @ 0.2 - 0.4 g/t Au, 0.2% - 0.4% Cu, 10 - 12 g/t Ag

• 4.5M oz - 12.9M oz's Gold
• 2.8B lb - 8B lb Copper
• 225M oz - 386M oz Silver

Rock that is worth $29 - $53 per tonne.


The Sinchao project is a project that could an absolute monster and certainly has potential to become a major mine for years to come at current metals prices. As Gold, Silver, Copper all continue to extend their multiyear rallies, the Sinchao property cannot be ignored going forward.

So to recap... Andean American Gold looks to be a no brainer buy going forward. With plans to be in production next year and robust project economics, as well as a lottery ticket exposure to the absolutely mammoth potential and value of the Sinchao deposit, Andean American Gold is a solid buy going forward and will move up in valuation no matter what price gold goes over the short term b/c it is cheap and they are moving forward with their mine.

Another positive development of note is that an insider bought 20,000 shares for indirect ownership at .92 cents which speaks volumes of the confidence in AAG.V going forward.

If you want just a pure play on the giant Sinchao deposit, SMZ.V is the way to go at $20M market cap. Before the collapse, this was another company that was trading 300 - 400% higher and at .25 looks like a great investment. These low grade deposits are going to be eventual mines and as more of the market realizes that the world has seen the last of cheap anything and prices are not coming down anywhere near historic levels. Projects like Sinchao, Whistler, Pebble become very attractive feasible mines for years to come. The high grade stuff is nice, but it never lasts and mines that survive for decades, make oodles off the low grade ore.

Review AAG.V feasibility study...

http://www.andeanamerican.com/PROJECTS/Invicta/Feasibility-Study/default.aspx


Happy Investing