Commerce Resources hits 586.92 meters grading 2.10% TREO

Commerce Resources Corp. (TSXv: CCE FSE: D7H OTCQX: CMRZF) has hit the jackpot at the Ashram Zone pulling one of the longest and highest grading intercepts ever for a rare earth company. The recent winter drill program has been a huge success as Commerce has released the long anticipated results from the first four holes from their winter drill program completed earlier this year. From the news today, the delay was well worth the wait with Commerce releasing some of the best holes to date. Commerce is hitting consistently higher grades as they trace the zone north with an intersection of 36.99 meters grading 3% TREO. Hole 48 hit several samples with grades of 4% TREO with a peak value of greater than 9% TREO.

In four holes they hit...

• 586.92 meters grading 2.10% TREO
• 554.46 meters grading 1.86% TREO
• 588.46 meters grading 1.42% TREO
• 316.03 meters grading 1.06% TREO

Some points to note...

The average grade of the four holes.... 1.68%. Combine that with the fact they have drilled the mineralized envelope over 600m x 500m and up to 600 metres depth. Add your density (tonnage factor) of 3 equals 540,000,000 tonnes within the box. I am not saying the next resource calculation will come out with 540Mt, but the potential is there and much more as Commerce continues to define the deposit. So far the deposit geometry is pointing to an open pit where mining would be cost effective and Commerce could focus on higher grade and heavy rare earth enriched areas and stockpile the lower grades.

The next resource calculation will dwarf the current report making Ashram just as big as Avalon, if not BIGGER!!! With a much better grade.

Commerce has another three holes to report from the Ashram and an exploratory hole 1km to the north. So there is another set of results after this as well as continued summer drilling further defining and developing the limits of Ashram, which so far seem limitless. Ashram is also unique in the fact that for a carbonatite light rare earth (LREE) deposit, it is host to a consistent 7% medium to heavy rare earth (M/HREE) content throughout the deposit. This is unique for most carbonatite deposits which are almost strictly LREE. Commerce also has elevated neodymium when combined with grade gives you more PPM's than some other recent high content neodymium discoveries. Within Ashram there are enriched zones of 10 - 20% M/HREE content. These zones so far make up two distinct types of mineralization in the deposit. The higher grade 1.2% - 1.45% TREO with 12%-20% M/HREE is associated with the center of the deposit and the lower grades of around 1% grading 10%-15% M/HREE forming a halo around the deposit. What is significant about the lower grading M/HREE enriched zone is that the mineralization is course grained which may be favorable to processing.


With the high grades and continued success in developing the M/HREE enriched zones and a consistent 7% throughout the deposit, it is apparent that Commerce has a very material rare earth discovery in the making that will rival some of the biggest projects set to go online over the next five years in size and grade. If Commerce can continue moving the Ashram forward with metallurgical work and processing and create a product that manufacturers want then Commerce can make a serious bid to be considered with the next tier of potential rare earth producers. It might even be an attractive acquisition. At the current prices Ashram is a potential bulk tonnage open pit mine with high grades set in favorable geology in an area soon to have the infrastructure needed to develop the project. The Ashram Zone cannot be overlooked as a serious contender in the race to supply rare earths.

Looking Forward To...

1. Results pending for four holes.
2. Metallurgy on core from the 2010 drill program.
3. Infill and exploratory drilling
4. New resource study
5. Preliminary Economic Assessment PEA

COMMERCE RESOURCES CORP. | Commerce Resources Corp. Drills 2.10% TREO over 586.92 metres including 3.00% TREO over 36.99 metres at the Eldor Property, Quebec

Cap-Ex Ventures CEV-V

Bringing you undervalued, high growth opportunities...

Cap-Ex Ventures CEV-V

Fast-Tracking Iron Ore Production in the Labrador Trough

Share Price… $0.52
Shares Out… 41M
Fully Diluted… 58M
Market Cap… $21.3 million

Cash… $14 million
Fully diluted cash position... $27 million


“Cap-Ex Ventures is a rare investment opportunity that does not come around very often, it is an opportunity to invest on the ground floor of a company that is focused on fast-tracking DSO iron exploration and production in the Labrador Trough.

All the stars are aligned perfect as the timing to invest couldn’t be better for this $20 million market cap company exploring one of the dominant iron ore land packages in Schefferville. Cap-Ex is aggressively developing their properties this summer in hopes of proving up the next big DSO iron ore deposit in the Labrador Trough.

There is no better“second chance” on the market than Cap-Ex Ventures currently trading at prices which are less than when initially acquiring the original Schefferville DSO properties in January. With Cap-Ex trading at 50% of the recent private placement, this is truly a rare opportunity to make a material investment in a premium DSO iron ore development company with a management team that is second to none.

Long Term Iron Ore Fundamentals Have Not Changed

The long term fundamental drivers in the iron ore industry have not changed nor will they change as long as the developing world continues on its path of modernization. With global iron ore demand set to double in the next 15 years, there are significant opportunities for iron ore development projects to meet the upcoming surge in demand that is expected to continue in China and also gain steam in countries like India over the next couple of decades. Iron ore is the backbone of everything we build and the developing world requires the infrastructure to continue its path of western style modernization.

Iron ore investment highlights…

• Spot price still trading at a lofty $169 price.
• Asian steel companies investing in long term multi billion dollar partnerships with Canadian iron ore companies.
• Double dip fears overblown
• Iron ore demand expected to double over the next 15 years.
• Developing world drivers not set to abate for at least another 15 years with Indian demand seen as another big demand driver putting pressures on the market

Canada’s Labrador Trough… The Last Frontier for Iron Ore

Canada’s Labrador Trough is a mineral rich area in northern Quebec that has the potential to be significantly scaled up for iron ore production. Over the next few decades, the largest iron ore producing nations are either facing declining resources at a faster than predicted pace (Australia) or are restricting exports for their own purposes (India). Only Brazil plans to significantly increase iron ore production doubling total output by 2015 to almost 800Mt. In Australia, their once limitless iron ore reserves discovered in the 1970’s now have estimates lasting only until the 2050’s or 60’s. With close to a billion tonnes of iron ore extra supply needed over the next 15 years including Brazil’s planned increase, there is a serious impending shortfall. Most of the supply will come from the Big 3, but the Labrador Trough is a major solution to this supply problem and could be a potential buyout area once fully developed. It is one of the last frontiers for iron ore production and exploration which was ignored largely in the past due to remoteness and harsh conditions of the north. Currently Canada produces around 50Mt – 60 Mt of iron ore per year where compared to almost 400Mt per year for the top producing nations of Brazil and Australia. Canada has a significant opportunity to become a major player in the industry containing a large portion of the world’s undeveloped iron ore resources in the Labrador Trough.


Direct Shipping Ore DSO… The Holy Grail of Iron Ore Exploration

The Holy Grail in iron ore exploration is Direct Shipping Ore (DSO) material. This is usually found as high grade hematite mineralization grading 55% or better. DSO can be mined and shipped with little or no beneficiation process which greatly reduces the costs of mining operations, enhances profitability, and speeds up the time to production. The capital required to start DSO operations is much less when compared to mining and processing lower grade magnetite deposits which requires large and capital intensive processing plants. DSO hematite is much rarer than magnetite and occurs in smaller concentrations than their larger magnetite cousins.

Finding DSO greatly increases the odds of having a project that can be fast–tracked to production and significantly increases a company’s value when discovered. A company with only 50Mt of DSO can be worth more than a company with a 5Bt resource of magnetite because DSO projects can be easily put in production, are cash cows for the operators, and financing is much less a fundamental risk for a company developing DSO.

The DSO advantage…

• Much less capital intensive
• Faster timeline to production is faster (fast –track nature)
• Higher operating margins
• Little financing risk

Cap-Ex Properties Are Favorably Located By Major DSO Projects

Cap-Ex Ventures’ primary focus is exploring and developing DSO production on their

properties in Schefferville. They hold one of the dominant land positions in the Schefferville area comparable to New Millenium NML or Labrador Iron Mine LIM. CEV has two highly prospective DSO land packages in the trough. The Capex properties are contiguous with both LIM’s and NML’s DSO projects and has multiple DSO showings continuing on strike onto their properties from both LIM and NML DSO deposits. Cap-Ex’s properties are in prime location for a major DSO discovery right next to the 2 biggest DSO projects in the trough. If Cap-Ex makes a discovery in this strategic area of the Trough that is being fast-tracked back to production, they will go from a $20M market cap explorer to $200M market cap developer overnight.

Block 103

Cap-Ex’s flagship Block 103 is situated between NML’s combined 100Mt @ 59% DSO projects north of Schefferville. Block 103 has some of the best magnetic responses in the trough and recent interpretations indicate not only DSO potential but potential for large volume high grade magnetite deposits which are on strike with NML’s LabMag and KeMag deposits to the north and west of Block 103. The Holy Grail is DSO which is CEV’s first priority which Block 103 is highly regarded and strategically situated just a few kilometers downt he road from NML’s future processing plant.

Having DSO deposits on either side of your border on strike with your own DSO showings within the major iron ore trend in Schefferville bodes well for CEV delineating a significant high grade hematite and high grade magnetite. Magnetics and location make Cap-Ex’s Block 103 one of the most prospective properties in the trough for significant DSO quality mineralization. Cap-Ex has identified 16 DSO targets and 7 magnetite targets on Block 103.

In a report by PGW, a highly respected firm out of Toronto concluded…

“Block 103 covers some of the most intense positive magnetic responses in the iron ore belt. This is good indication that the volume (and possibly concentration) of magnetite is higher than in most parts of this belt.”


Redmond and Block 44

Redmond and Block 44 surround the southern half of Labrador Iron Mines 150Mt @ 57% DSO claims to the south of Schefferville. The DSO mineralization from LIM continues onto the Redmond Property confirmed with multiple DSO showings on strike to LIM’s deposits. Fifteen DSO targets have been identified on the Redmond Property. The Redmond Property boasts the added advantage of excellent infrastructure with a rail line running through part of the property connecting to LIM’s DSO plants further north. A DSO discovery next to LIM’s operations will have the added advantage of extremely low capex costs with a rail line already running through the property.

Cap-Ex has two high priority DSO properties in the Trough. Between them they have as much potential for as much DSO iron ore mineralization as NML and LIM have defined on the properties at the heart of a re-vitalized district in Shefferville.


Lac Connelly

Lac Connelly is located 250km north of Schefferville, is somewhat remote but boasts two historical targets including a 3,200 x 200 x 60 meter hematite formation grading between 46% to 61% Fe. Lac Connelly historical reports also mention a 10,000 meter long magnetite formation with widths up to 1,000 meters. A recent survey of Lac Connelly has yielded 17 high priority targets. Lac Connelly is in a less priority area than the Schefferville Properties, but a proposed northern railway line will connect Schefferville with the Ungaava Bay which will make these properties much more feasible at a later date. This rail line will provide the much needed infrastructure for several projects along this mineralized corridor in northern Quebec.


The Australian Factor

Cap-Ex has the best in the business when it comes to management with Brett Matich at the helm. He was the person that brokered the Schefferville Properties to Cap-Ex in the first place which was essentially a reverse takeover of Cap-Ex with Brett owning a controlling interest. Brett Matich brings the Aussie factor to Cap-Ex, Australians are the top iron ore miners in the business and are the experts when it comes to building iron ore mines. Having Australians sniffing around the tough looking for the next iron project speaks volumes for the potential in the area.

Mr. Matich has built a mine not once, but twice. He identified a dormant iron mine and returned it to production and is a 3Mt per year producer. He also identified a dormant nickel mine in 2002 and returned it to production by 2004. Brett Matich has a track record of success in bringing mines into production and has brought his Australian iron ore expertise to Canada. Brett has raised a $100M in financings and has put Cap-Ex in a position of being well financed with $14 million in the treasury and another $13 million worth of warrants and options to keep the treasury full. Brett is a man that has shown he can do it and has created a company that is positioned perfectly for success developing their iron properties around Schefferville.


Cap-Ex is extremely undervalued

Cap-Ex is selling at an extremely discounted price considering they have a land position in Scheffervile that rivals LIM or NML and borders on both major DSO projects planned to come on line over the next couple years. This makes Cap-Ex’s properties the next logical choice for development of DSO production in the trough and properties that will be fast-tracked for production once significant DSO is delineated on the property. CEV’s share price is trading at more than 50% its cash value with $14 million in the bank or $0.34 per share. CEV is well financed to develop their DSO resources and will not take a large DSO discovery to put a significant premium on Cap-Ex. A 50Mt DSO resource near Schefferville would give CEV an implied value of almost a $200 million market cap and more once the iron market heats up again. CEV is aggressively exploring all 3 of their high priority DSO properties this summer with initial drilling to start mid-summer. A $0.50 buy is a screaming deal and won’t last long as this aggressive iron ore company ramps up their exploration programs this summer. An early summer buy here could yield some of the best returns of any company on the market today. Certainly the in the iron market there is no better opportunity.

CEV has all the intangibles in place. It comes down to the three P’s.

• The people – Brett Matich
• The place – Schefferville Properties
• The product – DSO hematite

Cap-Ex at $0.50 is an extreme value proposition with an incredible growth profile if they execute on their plan and is a chance for the retail investor to get in at discounted prices that the institutions didn’t even get with well over $11M be bought at over a $1 in the last financing. The current prices are a BLOWOUT SALE which won’t last long trading at 50% the fair value of the company. Nothing material as changed. Cap-Ex Ventures is hands down the best grassroots iron ore company in the trough with the best chance at creating millions in shareholder value fast-tracking DSO potential in the trough. It is also hands down one of the best priced stocks on the market on the verge of making a material discovery. CEV is a great opportunity to get in on the ground floor of an aggressive iron ore exploration and development company that is on track to becoming the next LIM in the Labrador Trough.



CEV @ $0.52 is rated as a ‘panic buy’


Christopher Skidmore


Beat the Market Stock Picks

Top Early Developers

Gold Stocks… The Most Undervalued Asset Class on the Market

The time to buy gold stocks is now. Never before has there been such divergence between an asset class and the related spot price of the metal. I firmly believe that the divergence between the spot price and the underlying asset class will be resolved with a massive resurgence in share prices of gold stocks to the upside. All gold stocks will at least challenge 52 week highs in the last half of the year and many will take the lead and make new highs come late fall. Double dip worries have lead to a fleeing of risk-on type assets which has led to a major selloff in a gold related name for the last 4 or 5 months while the spot price of gold has remained very strong. This is giving investors an unprecedented buying opportunity in the sector. Many gold developers and explorers are at their 52 week lows, which is a very strong contrarian buy signal. On top of a strong contrarian buy signal we also are entering into a period of seasonal strength for gold stocks and POG at the end of July which makes this the best entry point of 2011 for all gold related investments. The best value lies in the junior producer, developer and exploration categories.

The fundamentals have never been better for Gold

Right now it’s a win/win situation for gold. Either way you look at it or what ever direction markets take this summer and fall, the macro conditions are set for POG to increase in value. NO MATTER WHAT HAPPENS TO THE MARKET. It is clear if a double dip recession happens, it will be predicated by global developed world debt woes which will result in a massive devaluation of currencies worldwide.

Where do you go in a situation like that?

US treasuries? I don’t think so…

Buy gold, buy silver, buy any commodity that is scarce ad has strategic value.

The conditions right now are set for gold to go up to at least $1700 this winter as the markets are at a crossroads with either extreme outcome pointing to a further rise in gold. Debt crisis comes to a head and causes a currency crisis… You bet your bottom dollar you want to own gold in that environment. A debt crisis will send gold through the roof to astronomical levels if it comes to head when we are not prepared for it, like now. If there is no other asset of safety, if there is no other currency in the world we can trust…. every person in the world will want their savings denominated in gold in silver.

If it is the status quo with continued debt monetization and a QE policy for the developed world… gold still goes up because of inflation and monetary asset debasement. You will see a rise in gold at the pace it has risen for the last 2 years. It will keep the same pace to match the steady debasement of currencies in the developed world. You get inflationary factors coming from Asia and other parts of the developed world pushing gold higher. Developing countries are also buying precious metals to replace treasuries to protect themselves for a coming debt crisis that will implode the western world if not dealt with properly. With no other alternative currency to go to while everything is weak… just keeps gold moving higher on a pace that suggests it is going to grind it out much higher no matter what the pundits say. Monetary debasement of global currencies keeps gold from crashing. We are now on what I call the duh facto gold standard as the global market continues to buy gold as the only alternative currency of choice. As long as these conditions exist, there is no reason to believe gold is anywhere near a top.

If you see debt problems coming to a head sometime in the next 5 years…. one of the few things you can do to protect yourself is to buy precious metals. Duh.

Gold will not fall in a market crash

• Instead of a liquidity crunch we have too much liquidity flowing through the system.
• Gold trades as a monetary asset in addition to an inflationary hedge.
• Gold is trading as a duh-facto currency
• Any crash on debt fears will push gold higher in fears of defaults and restructurings of global balance sheets.
• US treasuries less and less a safe haven asset. Gold more and more a safe haven asset. Developing alternative to US treasuries… GOLD and SILVER!
  • At least you get a real rate of return if you buy gold

Developed world debt problems not getting any better… they are not going away!

The USA is at the point where if they don’t borrow more money, they will default on their interest payments. That is pretty much as duh facto bankrupt as you can get. DUH! Let me repeat… if USA government cannot borrow more they will default. DOH!

Let me say this one more way… If the US doesn’t borrow more money… they are insolvent. DUH or DOH? I dunno?!?!?! One thing is for sure… it is the Homer Simpson of America (self entitled baby boomer) that is killing it.

Welcome to HOMER SIMPSON LAND!!!

They can’t increase revenue, they won’t cut spending (not in a meaningful way), they won’t reduce obligations like pensions, perish the thought of even asking them to reduce their military spending… the only solution for the US government is to borrow more money to solve the governments current liquidity problems. They think they can just sail away and do what they want because they are in Homer Simpson land and nothing bad ever happens to Homer even though he seems to be always just narrowly avoiding disaster. If you don’t think the US government has a liquidity problem you are fooling yourself. But who cares!!! Everything just keeps falling into place for good ‘ol Homer despite all the narrowly avoided disasters along the way. One of these days Homer won’t be able to avoid the nuclear meltdown that is on the horizon if things don’t turn around in a big way. Sluggish growth is not going to do it because at some point… the rates are going to have to come up. How Homer is going to avoid the bond vigilantes is going to be an entertaining story. So the USA better take advantage of time while the getting is still good and while the still can, because some day… they will not have free reign of the financial world.

Ask yourself this… what if?

The US problems are much worse than most people realize. Think about this, what if no one bought their debt? Of course they will sell another round of treasuries in August, but at some point the USA will have the same problems the Greeks are having. No one will fund their debt. The bond vigilantes won’t put up with a negative rate environment forever. They will just buy gold and watch the dollar fall cuz no one wants it. Of course the vultures will step in at some time… but where? Probably around 10 or 20 cents on the dollar… if it ever got to that. Hopefully not because $5,000 gold will be a small number if it gets to that point, especially if there is no alternative financial system to save us.

What if the USA couldn’t borrow anymore money this summer? What if they raised their debt limit but couldn’t sell a dollar of their T-Bill sale? What happens at that point? Who in the developed world comes in to save the USA and issue debt to do it? Sounds like the Euro game… issue debt to pay back debt. Sounds like a fun game. How long can it go? It can go as long as the kings of the game want it to go. It will go on far as long as the cash rich individuals in the developed world can continue to draw blood from the lifeless dying corpses we call our economies and broke governments that run them.

At some point the money runs dry and it seems to me that most of the cash these days is in the Far East, cash that is in the hands of the governments, anyways. There is a lot of cash swimming around in the developed world, but it is just not in the hands of government. So when the developing world stops buying the developed worlds debt. We may have a problem because then it all becomes a game of hot potato and pass around the ugly ball of debt until it the potato blows up. If and when the world’s debt problems blow up… it will look more like a nuclear bomb than potato blowing up. Keep the monetizing please. It really is our only alternative unless we want Armageddon and a US peso tomorrow.

This is the best entry point on you will get as the entire sector is a screaming juicy buy.

Gold isn’t going down any time soon. Anytime someone sells, there is a buyer to quickly replace the seller. Anyone short past July in gold will get severely burned. It may still be range bound for another 6 weeks or so but I expect by mid August the POG will be challenging all time highs. There is undeniably no other asset class on the market that screams as much a value buy than the gold explorers and developers category. The developer and exploration categories host of whole portfolio of premium tier stocks that are trading at or near their 52 week lows which are screaming value. POG is trading within 5% of its all time highs and the gold stocks cannot remain this oversold for much longer. At some point this asset class turns around in a big way. Something has got to give and I am convinced that it will be the gold stocks that resolve to the upside.

So why are gold explorers and any risk on type of gold asset trading at such undervalued prices?

1. Seasonality.
2. Last years over achievement in the group means more severe and prolonged selloff.
3. QE indecision.
4. Belief gold bubble about to burst. Thank you very much for Prechter and Soros.
5. General fear of a severe market correction appearing after a 2 year bull market run.
6. General slowdown in global markets appeasing inflation worries.
7. BRIC nation’s fiscal tightening – risk-off.

Beat the Market’s Premiere Developers

The development projects are where the producers will look to add the ounces and grow reserves as well as production. This category offers the best risk adjusted returns as these companies all have significant resources in the ground, but offer substantial growth in several areas.

1. Resource expansion potential
2. Projects that offer leverage to the spot price of gold (1 – 2 g/t au open pit projects)
3. Projects that offer material revaluation as they are developed towards feasibility

All these grassroots projects have 5 – 10 million ounce potential. This asset class is where the producers will look to add cheap easy ounces to their inventory and increase production.

North CountryGold
NCG-V $1.59
$154 Million Market Cap

Premium @ $0.48 +$1.16 / 242%

3 Bluffs Project, Nunavut

Indicated… 508,000 oz
Inferred… 244,000 oz
Total… 752,000 oz

• High grade banded iron formation gold deposit >5 g/t au
• 6 drill rigs delineating resource along 4.1km Walker Lake Trend
• District scale potential with multiple 2 – 5 million ounce targets
• Significant resource expansion potential (3-5M oz potential)
  • Current resource only to 100 meter depth and small portion of the overall strike
  • Titan 24 indicates impressive depth profile to 300 plus meters.
• Impressive management team (Kaminak related)
• Valued @ $204 per ounce

Trelawney Mining & Exploration
TRR-V $4.20
$600 Million Market Cap

Premium @ $1.30 +2.84 / 218%

Cote Lake Project, Ontario

Inferred… 4,200,000 oz

• Potential to be >10M oz gold deposit
• Successfully extended initial resource 300 meters (43%) to 1000 meter overall strike length
• Open long strike and at depth
• 4 drill rigs currently defining deposit
  • 1 drill focused on infill drilling
  • 3 drills focused on resource expansion drilling
• Small scale gold production from underground Chester mining operations
• Management shows ability to raise non dilutive capital
• Valued @ $143 per oz

Gold Canyon Resources
GCU-V $2.66
$255 Million Market Cap

Premium @ $0.41 +$2.29 / 559%

Springpole Lake Project, Red Lake Ontario

Indicated… 45,000 oz
Inferred… 197,100 oz
Total… 242,100 oz

• Low grade alkaline porphyry intrusion >1 g/t au
• Current drilling indicates a 4 – 6M oz deposit
  • Greater than 1km strike
  • Depths in excess of 350 meters
  • Widths average 100 – 150 meters
• Drilling from 2 barges this summer
• Testing Portage Zone to depths of 700 meters
• NI 43-101 resource calculation fall of 2011
• Valued @ $63 per ounce (@ 4m oz)

Belo Sun Mining Corp
BSX-V $1.00
$210 Million Market Cap

Premium @ $0.80 +0.22 / 28%

Volte Grande Project, Para State, Brazil

Indicated… 1,307,000
Inferred… 2,136,000
Total… 3,443,000

• 11 drill rigs in operation designed to upgrade and expand existing resource
• Low grade >5 million oz potential @ >1g/t au
• Increased project area by 700% to 1,305 square kilometers
• Valued @ $61 per ounce

Volta Resources Inc
VTR-T $1.27
$170 Million Market Cap

Kiaka Project, Burkina Faso

Indicated… 1,384,000 oz
Inferred… 480,000 oz
Total… 1,864,000 oz

• Focused on fast-tracking Kiaka
• Typical West African low grade ~1g/t au
• Commenced prefeasibility in H1 2011
• Ongoing 50,000 meter drill program
• Initial resource indicated single open pit to 200 meter depth
• Significant resource expansion potential >3M oz
  • Doubled depth to 400 meters
• Updated NI 43-101 for Kiaka at the end of June
• Positive initial metallurgy with expected recoveries >90%

Gaoua, Burkina Faso

Inferred… 1,072,000 oz au
725,000,000 lb’s cu

• Initiated 15,000 meter drill program
• Property covers 35km porphyry trend
• Nassara Main Zone target is a mineralized sheared contact between low chargeability volcanics and highly charged sediments
• Valued @ $58 per oz

Lydian International Ltd
LYD-T $2.25
$213 Million Market Cap

Amulsar Gold Project, Armenia

Indicated… 1,100,000
Inferred… 1,400,000
Total… 2,500,000

• Gold soil anomaly covers 9 square kilometer area
  • Resource covers 1/3 the anomaly
  • Hug potential for increased global resource
• Low grade ~ 1 g/t au open pit heap leach project
• 30,000 meter drill program initiated in May targeting anomaly 2km to southwest of current resource
• Deposit is open in every direction and to depth
• Initial optimization studies show robust economics
  • Low strip 2 – 3:1
  • Low cash cost of $300 - $400 per tonne
  • Low cap –ex costs
• Valued @ $85 per ounce

Midas Gold Corp
IPO end of June @ $3.50
$360 Million IPO Market Cap

Golden Meadows Project, Idaho

Indicated… 2,050,000
Inferred… 3,737,000
Total… 5,787,000 oz

• Golden Meadows project is one of the largest undeveloped gold projects in North America today
• Low grade 1.5 – 2 g/t au open pit projects
• 30,000 meters of drilling planned designed to upgrade and expand known resources
• Economic studies and baseline environmental work planned for the rest of 2011 into 2012
• PEA planned for early 2012
• The deposits that make up Golden Meadows…
  • Yellow Pine (2.4M oz)
    • Limited resource due to lack of drilling to the west
    • Open along strike and to depth
    • Silver, antimony, and tungsten credits
  • Hanger Flats (1.9M oz)
    • Previous drilling intercepted
      • 177m @ 2.4 g/t au
      • 163m @ 2.2 g/t au
      • 56m @ 4.0 g/t au
    • Deposit is open at depth and to the north where it has been traced over a 1.5 km strike
  • West End(1.5M oz)
    • Previous drilling intercepted
      • 33m @ 3.4 g/t au
      • 39 meters @ 2.8 g/t au
    • Open along strike in both directions at to depth down dip
• Valued at $62 per oz

Company	Project	Ounces	Grade a(u)	$/oz
North Country	3 Bluffs	0.75M	~ 6 g/t	$204
Trelawney	CoteLake	4.2M	~ 1 g/t	$143
GoldCanyon	Springpole	4M(e)	> 1 g/t	$63
Belo Sun	Volte Grande	3.44M	> 1 g/t	$61
Volta	Kiaka	1.86M	~ 1 g/t	$58
Midas Gold	Golden Meadows	5.79M	~ 2 g/t	$62
Lydian	Amulsar	2.5M	~ 1 g/t	$85

Early stage development projects
Minimum 3 million ounce potential

Canaco Resources Inc
CAN-V $3.40
$675 Million Market Cap

Handeni Gold Project, Tanzania

• Magambazi zone was one of the biggest discoveries in 2010 fast tracked for production
• Defined along a 900 meter strike and open within a 1.4km structure
• Open at depth
• Quality ounces with shallow high grade discovery with open pit potential
  • Low capex – close to infrastructure
  • Low cash costs – high margins
  • Favorable mining jurisdiction in Tanzania
  • Excellent recoveries 94%
• Drill results include…
  • 56.2m @ 6.39 g/t au
  • 37m @ 12.54 g/t au
  • 48.6m @ 14.81 g/t au
  • 53.2m @ 9.51 g/t au
• Initial resource calculation targeted Q4 2011
• Prefeasibility in 2012
• Feasibility in 2013
• Construction and production 2014 - 15

Batero Gold Corp
BAT-V $2.85
$135 Million Market Cap

Quinchia Gold-Copper Project, Colombia

• La Cumbre zone gold copper porphyry mineralized from surface to 600 meter depth and open (currently drilling 1,000 meter vertical hole)
• High grade zone start from surface vertical hole 10 meters from surface assayed
  • 135.7 meters grading 1 g/t au and 0.16% cu
• Area drill covers 500 meter by 300 meter
• Bulk tonnage open pit potential with high grade starter pit
• Massive bulk tonnage project with 250Mt plus potential
• Phase 1 drilling highlights include…
  • 460 meters @ 0.7 g/t au and 0.12% cu
  • 407.5 meters @ 0.64 g/t au and 0.13% cu
  • 519.7 meters @ 0.8 g/t au and 0.14% cu
  • 452 meters @ 0.6 g/t au and 0.12% cu
  • 458.5 meters @ 0.64 g/t au and 0.12% cu
  • 602.5 meters @ 0.45 g/t au and 0.12% cu
  • 510 meters @ 0.45 g/t au and 0.11% cu
• 24,000 meter phase 2 program underway
• Significant near surface zone of secondary enrichment showcase La Cumbre increasing La Cumbre economics early in the mine life.

Almaden Minerals
AMM-T $2.95
$169 Million Market Cap

Ixtaca Epithernal Gold & Silver Project, Mexico

• Blind epithermal gold and silver discovery in 2010
• Defined along a 550 meter strike length
  • Somewhat constrained to the north
• Open at depth and potential for higher grade feeder zones
• Drilling highlights include…
  • 133.34 meters @ 0.71 g/t au and 48.9 g/t ag
  • 81.55 meters @ 0.29 g/t au and 24.2 g/t ag
  • 165.07 meters @ 0.83 g/t au and 50.8 g/t ag
  • 203.65 meters @ 1.01 g/t au and 44.3 g/t ag
  • 158 meters @ 0.94 g/t au and 61.1 g/t ag
  • 302.41 meters @ 1.01 g/t au and 48 g/t ag
• Multimillion ounce gold and silver deposit if continuity persists at depth