Capitalizing on the Yukon Gold Rush 2011

Beat The Market Investment newsletter

Bringing you undervalued, high growth opportunities... Capitalizing on the Yukon Gold Rush 2011 “The discovery of gold on Rabbit Creek in the Klondike district by George Carmack, Tagish (Dawson) Charlie and Skookum Jim on August 16, 1896 sparked the world's biggest 'gold rush'.” - Yukon: Energy, Mines, and Resources The Yukon is on the verge of a massive boom Today the Yukon is on the verge of another massive gold rush as high gold prices and recent gold discoveries in the Yukon have brought a bought of gold fever onto those that seek the scarce precious yellow metal. This sickness has brought a new generation of men straight to the Yukon seeking their fortunes with this gold rush shaping up to be the start of a repeat of the famous Yukon Gold Rush in the early 20th century. The Yukon has produced 12.5M oz’s of gold since 1885 with a large portion of that being from placer claims, to date only 3 sources of the placer gold have been verifiably found leaving the opportunity to find several material deposits that could be the source of the placer gold that literally line the beds of every creek in the Yukon. Recent discoveries of Underworld’s 1.4M oz Golden Saddle, Kaminak’s Coffee Project and ATAC’s Carlin Style Osiris have come together to create the perfect storm and set the table for another unprecedented gold rush to the Yukon that may be labeled one of the greatest of this century and is certainly the biggest and most hyped area play staking rush since the postulated theory of the Carlin Mineralization in Nevada in 1966. The 2011 summer exploration season is expected to be the biggest in history as over 100 companies have staked a piece in this latest rush to the Yukon that is certain to lead to a booming Yukon for years to come. The Yukon is a largely under explored territory and has seen several boom and bust periods since the original gold rush and is largely dependent on high metals prices. With high metals prices here to stay for the foreseeable future, the Yukon is now a lucrative place to be and makes the mineral rich Yukon projects worth billions and worthy of the extra capital cost to develop these opportunities. The Yukon had been widely overlooked as prime exploration country despite all the placer gold because it has never been easy to locate. Many parts of the Yukon are un-glaciated which makes soil samples a very reliable method for discovery of these regional structures. Unfortunately, over the century since discovery of placer gold, prospectors have not been able to successfully find the lode source through soils. A layer of dirt had blown into the region over the millennia that covered the original soil so when explorers took soil samples; they were unknowingly sampling foreign soil. A local Yukon prospector Shawn Ryan caught on to this theory and decided to take his samples from a bit deeper in the soil horizon. When he sent these samples in… the areas he was sampling started lighting up like they never had before and these major structures started appearing right before his eyes. The non gold bearing soils had fooled some of the best minds in the business and most had just assumed that the placer deposits had been largely eroded… but then why would you keep getting new placer gold year after year? Shawn Ryan started locating these huge systems with his new technique and options the property that eventually Underworld drills and voila, Kinross sees a high grade shallow gold deposit that has enormous growth potential and comes in and snaps up Underworld before they can barely get 100 holes in the ground which starts the frenzy in the district. The timing for this discovery in the Yukon couldn't have been better shining a light back onto the Yukon at just the right time. ATC and KAM then follow up Underworld’s discovery in 2010 with Kaminak’s Coffee Project discovery and Atac’s Carlin Style Mineralization discorey near Mayo. Soils are extremely important for indicating the size of a structure and with discovery after discovery happening within these soil grids, explorers have finally developed a reliable exploration technique that leads to discovery in the Yukon. Over time, a deposit decays, erodes and breaks down into the soil horizon above. Where ever you find gold in the soil, you will usually find gold in the rocks below, especially in areas where the terrain has not been glaciated like large portions of the Yukon and in tropical areas. Soils are a very important tool to locating significant deposits!!! When looking at Yukon companies, by far and away the easiest method choosing companies with the best potential are the ones with the most intense soil maps, as they are the ones that will have the biggest systems underneath. There are other variables like the depth of the deposit, location, grade and metallurgy, but soils will time and time again reveal the biggest systems underneath fro early exploration. Soils can also reliably gauge a general width and strike of the structure and indicate the best spots to drill. Since this new theory has been proven in the Yukon, these very large gold systems are appearing across the Yukon. There is now very real lode mining potential in the Yukon with companies starting to locate the lode source of the placer deposits. There are also several major discoveries and several mines coming online this decade so the Yukon will see an influx of capital of all kinds from infrastructure, to human capital, to financial aid of all sorts. The Yukon is as mining friendly as it gets and is a growing place to be which will see Whitehorse boom over the next 10 years. The Yukon represents a unique opportunity It was often thought too remote, no infrastructure and not enough population to support these projects, but in a case where everyone is getting gold fever; if you build it, they will come. Lack of many things may be true now as the there always seems to be a shortage of something in the Yukon, but the cyclicality of the industry itself shows that the Yukon has been subject to several boom and bust periods and the trend is showing that the Yukon is at the beginning of another boom period that could rival Nevada’s Carlin Style discovery and over the next 20 years may be a source of significant global gold production. Combine the recent discoveries with the current super cycle in commodities that we are experiencing and the fact that the climate is generally becoming less harsh in the winter in the north; the Yukon represents an excellent opportunity for growth in many aspects, not just mining. If you continue to see discovery after discovery in the Yukon, the individual towns will start to grow to support the mining industry which is entering into the Yukon in a big way. This will open up many more spin-off business opportunities throughout the Yukon. The Yukon was thought not much more than just placer deposits whose source had long been spent, but considering placer production in the Yukon has been alive and well for over 100 years, the sources of all this placer gold is out there somewhere. 100 companies have set their sights high on finding the next big gold deposit like Underworld’s 1.4M ounce Golden Saddle which was promptly bought out by Kinross in its infancy. When a company makes a discovery in the Yukon, all it takes is one holes like ATAC to add hundreds of millions to the market cap of a company, Gold Fever has truly struck in the Yukon in a big way. So how do we capitalize on this opportunity? The hype this year in the Yukon will be the start of the great hysteria curve and over the next 2 months is the last time you will see these stocks relatively cheap for the hype unitl gold starts to come down. Obviosuly it will be a rocky rdie for many of these explorers, but generally, one can throw a dart at a board this year and will double one's money before any of these explorers sink a drill hole into the ground. The timing is now!!! If you buy now while these stocks are relatively cheap you will make bags and bags of cash in 2011 going forward. That being said, I like to pick quality companies and I will give you a small report on my top Yukon Pick and a brief rundown of few other plays that are portfolio quality. My #1 Pick for 2011 Golden Predator GPD-T $0.83 Shares Out… 81.8M Fully Diluted… 118.7M Market Cap… $67 million Premium @ $0.64 +$0.19 / 30% Golden Predator is my top pick going into the 2011 Yukon summer season. After careful review of several companies, GPD-T should be on the top of everyone’s shopping list. When looking at GPD’s market cap, its projects, potential revenue stream, Golden Predator is a unique opportunity in the Yukon that is well financed with quality drill ready projects, excellent infrastructure and million ounce potential that can easily be fast track to production. They are currently focusing on 2 projects, Grew Creek and Brewery Creek which have seen excellent results in a small fall drill program confirming historic drill holes. GPD has 4 projects that are just off the highway and Grew Creek where the power line runs right over the property and the main highway runs through it for 30km and is 900meters from the drill site. Golden Predator is uniquely positioned with advanced drill ready projects with some of the best infrastructure in the entire Yukon. You often hear of ‘location, location, location’, well it is certainly true in Golden Predator’s case. Not only will capital costs of a potential mine be lower than other projects in the Yukon, but GPD can put more holes in the ground per exploration dollar than any other company in the Yukon. The excellent infrastructure close to the highway also gives GPD a leg up on everyone else in the Yukon in terms of being able to drill year round. So when looking at getting the full potential for your exploration dollars, Golden Predator doesn’t mess around and are drilling as o February. Recent results from Grew Creek include… 146.3m @ 1.72 g/t au (251 total grammeters) 132.18 m @ 1.21 g/t & 31.75m @ 2.08g/t (226 total grammeters) hole bottomed in 9 g/t material 60.85m @ 1.93g/t au & 8.5 m @ 1.89 g/t au (133 total grammeters) Results from Brewery Creek Include… 50.5m @ 2.79 g/t au - 141 grammeters 56.5m @ 3.2 g/t au – 181 grammeters 27.5m @ 1.15 g/t au – 32 grammeters 38.1m @ 1.48 g/t au – 56 grammeters Brewery Creek has small resource of 287,000 oz’s in all categories grading between 1g/t and 2 g/t gold. Drilling on these 2 high priority targets is expected to bring significant increases to the resources on both Grew and Brewery Creek as remodeling of the deposits has shown significant potential to add a lot of tonnage to both projects. Not only is GPD well financed with quality projects that are set to add material value, GPD currently has a royalty revenue stream of $1M that is expected to grow to $10M in the next 3 years as expected mines come into production from their large 70,000 acre Nevada land package which will greatly aid in funding exploration in future years and keeping dilution to a minimum when making a production decision vs a vending decision. GPD also has a large pipeline of Yukon projects that should generate new excitement and has one of the largest land packages in the Selwyn Basin near ATC’s recent discovery at Osiris. This is not a drill ready project, but it is an area that saw a major staking rush and is now one of the premiere holders in the area next to ATC. GPD will be aggressively exploring this area and refining targets to the drill ready stage for the 2012 and 2013 seasons. Other companies of note in that particular area that have peaked my interest are EXU and NDR. The Selwyn Basin is much more remote than GPD’s current focus, which is defining potential shallow bulk tonnage targets that can be fast tracked to production. With the excellent infrastructure and initial results from their 2 flagship projects, Grew Creek and Brewery Creek are high priority targets that if continue to yield consistent results will add material value to Golden Predator. Golden Predator is truly a must have stock for the Yukon. They are the first to be drilling, will be the first to deliver results and will lead the pack this year with the excellent projects they have acquired to develop and advance. Golden Predator is the best Yukon stock to own $10M /yr estimated royalties in 3 years Bluesky discovery potential with Selwyn Basin near the eastern End of ATAC’s Massive project with Gold Dome looking for partner 2 quality lead projects in Grew Creek and Brewery Creek Excellent infrastructure on majority of projects including… 900 meters from highway power line Gentle topography (rolling hills) Drilling year round N43-101 on Grew Creek and Brewery Creek by 3rd quarter 2011 LOW RISK / HIGH REWARD PROJECTS The Rest of Beat the Market’s Yukon Portfolio Northern Tiger Resources NTR-V $0.48 Shares Out… 83.8M Market Cap… $40 million Northern Tiger went on an excellent run last year and then the SP collapsed when results from the Sleeping Giant zone showing that the mineralization pinches off at depth. Fortunately for NTR, Sleeping Giant is the smallest of the anomalies and there are 3 other highly prospective identifiable zones to aggressively target this summer on 3 Ace. The Main Zone on the 3 Ace property showed excellent results last year and should produce more good results as they define this extremely high grade vein structure. With a nugget effect of this system it’s hard to reproduce the surface results, but it shows the extremely high grade nature of the system and I expect NTR to pull some very good results this summer. I expect some spectacular results from 3 Ace this year including some eye dropping high grade intercepts as they hit some big nuggets on 3 Ace. Their Sonora Gulch project in the White Gold district has also yielded some very excellent gold results, although the buried porphyry target still eludes NTR at Sonora Gulch. That being said, the Titan 24 survey has shown many highly prospective targets that warrant further investigation. Northern Tiger should have another very good run going into next year with 2 highly prospective projects on the go that could lead to a grassroots material discovery. Ryan Gold Corp RYG-V $2.00 Shares Out… 82.6M Market Cap… $165 million The question everybody is asking themselves is… Did Yukon prospector Shawn Ryan save the best for last? Another question everyone is asking… Can Ryan translate prospecting success and parlay it into a quality exploration company? I for one am not going to bet against him. How can you not have Ryan Gold Corp in your tier 1 Yukon Exploration Portfolio, considering this is the guy that started this gold rush off? I do not know much about Ryan’s projects yet, but what I do know is that they have recently defined a very large soil anomaly trending 4 km in a north south direction and a 1km in an east west direction on the Ida Oro Property and recently acquired all of Shawn Ryan and Wildwood Explorations Gold properties. Could Ryan have saved the best for himself? I am betting he probably did as the initial exploration results look like there might a very large system on Ida Oro. Ryan Gold carries a super huge premium at a $165M market cap, but could be worth it in the end. Pacific Ridge Exploration PEX-V $0.305 Shares Out… 52.4M Market Cap… $15 million PEX’s Mariposa property could be the company maker which covers has some very good undrilled soil anomalies and also covers over 10km of highly prospective Altered Quartz Mica Schist (QMS) structure that is highly prospective for White Gold style mineralization. In addition to the QMS structure, PEX has a large AU-Sb-Bi Cu-Mo soil anomaly rough 2 km north of the QMS rocks. Pacific Ridge has several other highly prospective projects on the go that should generate some excitement. At a $15 million market cap, this company is dirt cheap. Kestrel Gold KGC-V $1.10 Shares Out… 26.7M Market Cap… $29 million The King Solomon Dome Project in the Yukon is 4050 foot peak that is believed to be the one of the sources of the gold fields that sparked the Klondike Gold Rush. Kestrel’s properties cover 3 main anomalous zones at least 1km in length and varying from 25m to 400m in width with soils grading as high as 0.9g/t au. The property has anomalous arsenic, antimony and lead geochemical signature which is common with other White Gold projects such as Kinross’ Golden Saddle and Arc projects. Recent trenching of these anomalies have encountered numerous high grade zones including14.7 g/t au over 1.9 meters , 8.1 g/t au over 1.9 meters, and 40.7 g/t au over 0.7 meters and also revealed wider zones of mineralization between 1 to 2 g/t gold. Recently Kestrel located a zone of bonanza grade altered schist that graded up to 51.2 g/t au. Strategic Metals SMD-V $3.21 Shares Out… 79M Market Cap… $253 Strategic Metals is basically the best play you should own in the Yukon if you want a hand in pretty much everything. If you can’t decide, buy SMD because they are the Pinetree of the Canadian Northwest. They optioned most of ATC’s properties and Silver Predator among many others and are one of the premiere land holders in the Yukon and have working interests in over 150 projects in the Yukon and BC. They also manage a large portfolio of shares that it has acquired through its various options and sales agreements. Alexco Resource AXR-T $7.94 Shares Out… 59M Market Cap… $469 million You can’t own a piece of the Yukon without owning this company as everyone knows the historic Keno Hill is one of the richest silver projects in the Yukon. If this high grade pure silver Yukon play isn’t in your portfolio, then you need to do more research on the Yukon. Alexco has big plans for the Keno Hill district and putting this historic old silver mine back into production. At still less than $500M market cap, it may seem expensive, but this may be the one larger cap that goes nuts when silver takes off being a pure silver player in the Yukon. Full Metal Minerals FMM-V $0.31 Shares Out… 147.5M Market Cap… $45 million These guys aren’t really in the Yukon, being based out of Alaska and have other projects on the go such as their Pyramid Porphyry Project in Alaska, but I have decided to include FMM because they have the Underworld team as well as postulated the theory that White Gold style mineralization runs onto the Alaskan side of the border at their Rolling Thunder Project in the Alaskan White Gold District. Considering geology knows no political borders, I am interested in FMM proving up this theory this summer. They are very close to the Yukon White Gold District located on the Alaskan side of the border and Beat the Market has put FMM into this tier 1 group of stocks. Taku Gold Corp TAK-V $0.385 Shares Out… 67M Market Cap… $25 Taku is one of the largest land holders within the White Gold District and their Rosebute property looks highly prospective with a 2.2km long soil anomaly and max values of 0.2 g/t au. They have also defined a second 450 meter long anomaly with values up to 84ppb and a third anomaly that runs 1.1km in length and max values of 0.154 g/t au. Taku has several properties that they will be continuing to explore and advance to drill ready stage, but the 3 anomalies on Rosebute are so far showing the most promise for a large gold system. Atac Resources ATC-V $6.62 Shares Out… 92M Market Cap… $609 million ATC remains a popular bet and a strong buy going forward into the 2011 exploration season with an aggressive drill program designed to delineate ATC’s new discovery in the eastern end of their Rackla Belt. RAU is a couple potential multimillion ounce deposits and the new discovery at Osiris has the market extremely excited for ATC’s prospects. This is a stock for the big boys at its current price, but no portfolio is complete without ATC and its big discovery last summer. Kaminak Gold Corp KAM-V $3.32 Shares Out… 63M Market Cap… $209 million Kaminak is the discovery from last year that still offers pretty good leverage in my opinion. If they continue to expand last years discoveries on the Coffee Project along strike and at depth, Kaminak offers a great risk reward buy at current levels. They have proven they got something in the ground and are still cheap compared to others in the Yukon. This company probably has the least premium of the more advanced Yukon explorers. Christopher Skidmore Reporter for Beat the Market Stock Picks Beat the Market offers an in-depth strategic feature company service for the above mentioned companies in the Yukon. Beat the Market is not a reporter for hire.

Calibre Mining Corp

Beat The Market Investment newsletter

Bringing you undervalued, high growth opportunities... Calibre Mining Corp CXB-V warrants & options = $21.4M cash @ average $0.26 Share Price… $0.175 Market Cap… $21 million Shares Out… 122.5M Fully diluted… 204M Mmgt & Insiders… 13% Sun ValleyGold… 10% Yamana Gold… 10% Developing a World Class Gold Camp in Nicaragua Covered in Premium Edition @ $0.125 + $0.05 / 40% Every once in while in mining, events come together to create the perfect opportunity for a low risk home run. An opportunity so good, you just can’t pass it up. An opportunity that provides unlimited upside while offering substantially reduced risk at current valuations. Opportunities don’t come along every day that present a chance at a former prolific gold region, a chance at joining one of the brighter teams in the business and a chance at a ground floor opportunity in the redevelopment of an industry in a country starved of foreign investment for years. A company with projects so good that they show gold across the entire camp scale properties. So much gold, that the hardest task isn’t finding the gold, but choosing which projects to develop. A company with gold projects so compelling that it’s 100% interest in two of three past producing mines in the district, made up the core of production that helped tiny Nicaragua become the 15th ranked gold producer at the height of production during the mid 20th century. An historic gold camp with mines that went out of production not due to depleting reserves, but social and political instability due to a civil war and to this day remains undervalued due to the misconception that Nicaragua is still an unsafe place to do business. That opportunity is Calibre Mining Calibre Mining is centered at the heart of the historic Golden Triangle in Central America. This once famous past producing gold region helped Nicaragua become the 15th ranked gold producing nation globally in the mid 20th century until internal strife forced the shut down of the entire sector during the 80’s. Nicaragua has a rich gold mining history, but whose mining industry was driven into the ground when it was nationalized after the civil war in 1979 -81. By 1988 there was virtually no mining industry left in Nicaragua as the Nicaraguan Civil War had decimated the country and had left it poverty stricken, disease ridden, polluted and without any infrastructure or investment to rebuild. Only in the past few years has investment come back into the country. Nicaragua is a former prolific gold producing nation that went into decline, not because of depleting reserves, but loss of infrastructure and investment after 1979 and only since 2001 has anyone decided to think about investing in Nicaragua. The mining sector did not fully open up until 2001 when the government passed new mining laws that made foreign investment in the sector in Nicaragua profitable for foreign enterprises. The industry had only recently (1997) made owning a concession legal and since has slowly seen investment in the sector increase in the past decade. From 2000 to 2008, foreign direct investment in mining sector grew almost a thousand percent from only $4.4 million to $39 million. One reason explained for the slow development of Nicaragua, is a common misconception that country is still communist. Nicaragua has been adopting capitalist policies regarding private ownership and made huge strides in the last 10 years in adopting policies that make them one of the more attractive developing nations to invest in today in the western hemisphere. Nicaraguais now an attractive place to invest Since 1990 Nicaragua has seen four peaceful government transitions, but is still largely misconceived as an unsafe place due to the very public and graphic nature of the civil war including the public murder of a US news reporter and the fact that the communists won the war and there has not been insurrection since. Current conditions would describe investor’s misconceptions as completely false as Nicaragua is now one of the safest emerging markets to invest in. Communist rule fell in 1990 and since that time have slowly adopted policies in the country aimed at attracting foreign investment. Nicaraguans have realized that without foreign investment to help rebuild their country, it will never become the place of manicured front lawns and paved roads that 1930 - 50’s produced in Nicaragua. Some key investing facts in Nicaragua… Investors have the same rights as private citizens, Right to ownership Convertible currency Freedom to expatriate all capital and profits Fair mining tax regime 3% NSR 30% net profits Special tax laws which give incentives which allows any investment with an industrial focus and is export oriented to operate without taxes in Nicaragua for 10 years and can be renewed for another 5 years. Fair mediation system to bypass potential corrupt judicial system that uses private mediation run by international renowned companies that appoint impartial judges for mediation which gives investors much more assuredness of objectivity Companies doing business in Nicaragua include… Kraft, WalMart, Target, Pizza Hut and Gap Caliber has a camp size position in the Prolific Golden Triangle The Borosi Concessions make up 2/3 of the Golden Triangle Calibre Mining is truly one of the best positioned gold companies in Nicaragua to capitalize on this unique opportunity in an underexplored prolific gold region. Considering Nicaragua has been underexplored for more than 30 years with mines that were at the height of production when they went out of production at the time of the civil war, CXB is well positioned for a material discovery. They have acquired a commanding land position at the heart of a historic producing gold camp called the Golden Triangle. Calibre’s Borosi Concessions cover 867km of highly prospective land that straddle a regional fault running northeast to southwest. . The Golden Triangle is named after 3 former past producing mines on either side of this fault system named La Luz - Siuna, Rosita, and Bonanza. These 3 mines have historically produced 5 million ounces of gold. Calibre’s claims cover 2 of the historical producers, (La Luz – Siuna and Rosita) that have a combined historical production of 2.5M ounces of gold, 4M ounces of silver and 305M pounds of copper. In the last two years CXB has spent well over $3 million in exploration work on the Borosi Concessions including 140 line km of soil sampling, 1160 meters of trenching and 5200 meters of diamond drilling and is now positioned to reap the benefits of 18 months of groundwork. Some Golden Triangle facts… Historical Production Historical Resource Mine Gold (oz) Copper (lb) Silver (oz) Gold (oz) Copper (lb) La Luz Siuna 2,273,000 672,210 820,000 Rosita 177,737 305M 2,630,000 320,000 328M Bonanza 2,626,533 611.131 *Resources are historical in nature and do not comply with NI43-101 standards There are 2 main types of mineralization on the Borosi Concessions, low sulphidation epithermal systems and gold and copper skarn associated with porphyry mineralization. The area is cut by a regional fault that divides the claims geographically between east and west and within these camps there is the west side containing the Bonanza and Siuna camps and the East side of the fault containing the Eastern Epithermal and Rosita camps. From the production stats of Bonanza, it’s the epithermal targets that look to be providing the most reward and upside in the Golden Triangle. Low Sulphidation Epithermal Systems generally tend to run 300 meters to 600 meters deep and on the Borosi concessions, the veins have been mapped for miles. Borosi East The east side of the Borosi Concessions is what has got B2Gold involved and interested in Borosi with a $8M dollar 51% option over a five year period with Calibre having completed year one of the option and are currently in year two. Calibre believes there is another 3 million ounce low sulphidation epithermal system similar to the camp potential of Bonanza on the east side of the fault and the option covers most of the east claims. Since the option was signed, CXB acquired the former producing Rosita Mine and the highly prospective Riscos de Oro which are 100% Calibre in the east Borosi concessions. CXB recently announced a high grade discovery at Santa Maria(BTO jv) which sent the stock soaring up over 50% with the stock holding those gains since. Extremely high grade rock samples confirmed a soil grid that shows a very large strike on this epithermal vein and possible splays and open along strike in both directions. Riscos de Oro Riscos de Oro is an epithermal gold / silver deposit that has tons of promise as it was a former underground mine from ’77 – ’81. It looks like it was a promising new start up mine in the region when the civil unrest ultimately forced its closure in 1981 when locals ransacked the mine and burnt out the workings. The deposit is open along strike and at depth. Riscos is apart of a vein system of multiple parallel veins that trend for 7kms and are mapped out over a cumulative strike of 15km. Historical trenching 4km from Riscos returned12.4 g/t over 2.4 meters confirming that these veins are part of a larger system that run for miles. The underground workings at Riscos de Oro were driven over a strike of 450 meters and to a depth of 100 meters so there is lots of ore left in this deposit. The recent drill program tripled the known depth of Riscos to 300 meters and extended the strike to 600 meters in length. Some better results at Riscos de Oro… 8.53m @ 11.34 g/t au eq 4.1m @ 18.45 g/t au eq 7.5m @ 13.13 g/t au eq 6.62m @ 12.44 g/t au eq 3.79m @ 17.71 g/t au eq The gold equivalent grades are very good at Riscos de Oro pointing to an excellent opportunity at an underground gold / silver mine that could be in production for years with a very good depth profile over a material strike. If the Civil War hadn’t hit Nicaragua, Riscos might be in production today with this profile. 2,500 meters of HQ drilling is planned at Riscos de Oro in February to continue to expand on this highly prospective target. Riscos has million ounce potential Within the current dimensions of Riscos, which certainly needs a lot of infilling, the current holes average 36.6 grammeters over 15 available holes and if multiplied over the 300 * 600 meter dimension could easily end up with half a million ounces considering a standard tonnage factor of 2.6 for a quartz vein. I am not considering true widths in this calculation, but just want to give you an idea of how much gold is in the ground if these veins remain consistent along this 7km mineralized trend. With standard depths going to 600 meters in these types of deposits, it is easy to count a million ounce potential within a 1km strike at Riscos. Within the dimensions of 1 km strike and 400 meter depth at an average of 30 grammeters… gives you 1 million ounces. Santa Maria(49% CXB, 51% B2Gold) All the excitement in the share price has been about Santa Maria. Without question the samples confirmed the high grade nature of this very large vein system and the multi element soil anomalies indicate that CXB may be on the verge of a material discovery at Santa Maria. Santa Maria has a gold, copper, zinc, lead multi-element soil anomaly that so far extends for 1km in strike, is open at both ends and looks like it has possible splays. Santa Maria is on a hill so could be a potential low cost underground operation driving an adit horizontal into the hill and dropping the ore down. The vein has been confirmed over 600 meters within an overall inferred 2km strike and represents a high priority target that will move up the priority list with the very high grades discovered at Santa Maria. Quartz vein samples along a 600 meter strike of this vein graded very rich… Gold (g/t) Silver (g/t) Copper (%) 64.1 109 0.211 9.59 9.2 0.106 20.4 56.1 0.276 20.9 109.0 0.096 12.6 13.5 0.125 22.3 26.4 0.280 11.0 66.0 0.513 14.05 93.1 0.413 I cannot stress how important soils are in defining mineralized systems. Without soils, an explorer or prospector is completely blind as to how big the system is or where it is most intense providing key clues where to drill, especially in unglaciated terrain. Santa Maria is an exciting new discovery that gives B2 its first bona-fide prospect in the triangle. This target may be drill ready in the summer according to Calibre’s on site geo. Borosi West On the west side of Borosi(100% Calibre), the claims surround the low sulphidation epithermal deposit Bonanza to the north which is the only other operational gold mine in the country other than B20 Gold’s two mines. Calibre’s recently announced discovery Northeast Bonanza, is the discovery of the Bonanza vein system striking onto Calibre’s claims to the northeast of the Bonanza mine. To the south the claims also cover La Luz – Siuna which is a high grade skarn system with a historical resource of 820,000 oz’s gold. CXB has recently acquired 2 claims (Asa and Pis Pis) between these targets that make the concessions contiguous. La Luz – Siuna La Luz – Siuna is a high grade gold skarn at the south end of the property which is at the intersection of two major fault structures making it highly prospective for a major gold deposit. Past production includes over 2.27 million ounces of gold at an average grade of 4 g/t au. Drilling at La Luz- Siuna has identified mineralization along a 1.5 km strike length. Historical drilling at La Luz – Siuna has outlined a historical resource in excess of 800,000 of gold. This mine was a producing open pit that was flooded out when a damn burst. La Luz – Siuna has two targets. The Cerro Potosi prospect was where past open pit production was focused. There is a large body of wide mineralization on the east side of the deposit not mined and the whole target may represent expansion to the open pit. Highlights of past drilling include… 32 m @ 2.5 g/t au 16.2m @ 4.18 g/t au 15m @ 1.78 g/t u The Cerro Aeropuerto prospect is a very high grade target 500 meters in length at the south end of La Luz – Siuna that hit multiple high grade zones including… 3m @ 19.72 g/t au / 24m @ 5.75 g/t au 2m @ 25.08 g/t au / 2.2m @ 16.94 g/t au 4.95m @ 2.5g/t au / 5m @ 7.23 g/t au / 2.5m @ 6.56 g/t au Together these 2 targets make up La Luz – Siuna and provide Calibre with a low risk / low cost opportunity to add material ounces to the inventory on the Borosi Concessions and a potential open pit target that could easily be out on the fast-track road to production as long as dewatering the pit presents no problem. You certainly don’t want to drill just to add inventory. You drill to gather enough information to mine, but considering La Luz – Siuna was in production at 4 g/t and there is still a substantial resource historically indicated as well as expansion potential, La Luz – Siuna is an excellent opportunity to add shareholder value. Northeast Bonanza Northeast Bonanza is an exciting discovery because it extends the Bonanza vein system on to Calibre’s concessions. They recently released results of a trenching program with highlights of 7.3 g/t au over 4.7 meters and 1.35 g/t au over 10.90 meters. Trench results confirm that Bonanza mineralization extends at least 600 meters and soils extend the vein an additional 800 meters for a total inferred strike of 1.4 km. Northeast Bonanza is a set of ne trending parallel veins that give Calibre another exciting target that is on trend and contiguous to the Bonanza Group of Mines operated by the private company Hemco. If CXB can present enough economical veins surrounding Bonanza, CXB’s superior capital position may represent an opportunity for both parties for ramped up expansion at Bonanza which currently produces 42,000 oz’s of gold a year. Most of the region surrounding Bonanza, the gold mineralization is related to topographical highs and if this geographical/mineralization feature remains consistent, then the claims surrounding Bonanza to the north and east have high chance of hosting extensions of the Bonanza mine. Calibre has identified 4 priority targets on Borosi The Borosi Concessions have four priority targets ready to be advanced. Two targets are at drill ready stage, and two targets are at discovery and will be delineated for potential drilling later in the year. In addition to these exciting gold targets, there are many regional prospects with multiple gold showings and active artisans. Calibre has identified a systematic approach to exploring this gold rich area and has targets at all stages of the exploration pipeline. Whether it is an initial regional stream sediment sampling program for the recently acquired Asa and Pis Pis concessions, to soils and trenching programs or finally drilling, Calibre is adding value to all its projects at all stages. CXB has the gold rich targets, is in the right area, and the systematic approach to get it done in evaluating this once prolific gold camp. 2,500 meters of drilling at Riscos de Oro will kick off the glitzy part of Calibre’s first half exploration program for 2011 in February, but it is the groundwork that leads success which Calibre has already laid the foundation to. Calibre’s Borosi Concessions will yield up a pipeline of high quality gold targets for years to come as modern day exploration techniques and theories are applied to this underexplored, but once prolific gold region in Central America. Good things come in pairs Calibre’s Borosi Concessions cover two former prolific producing mines Have two advanced, drill ready 1M oz targets (100% Calibre) Have two recently announced discoveries Acquired two additional claims that complete a large portion of the West part of the Borosi Concessions. The concessions are regionally split in two along the fault Are looking for Bonanza’s 3 million ounce twin. The Right Partner in B2Gold B2Gold has partnered with Calibre for the chance at an elephant on the other side of the fault opposite Bonanza. This discovery of an epithermal vein system at Santa Maria could be part of a very rich multi-element vein system if initial samples are any indication of the vein beneath. The market gave ‘a big thumbs up’ and reacted extremely positive towards this announcement. The theory is that these large gold systems usually are deposited on either side of these regional faults and that Bonanza’s twin is somewhere on the east side of the fault. The deal with B2Gold is an initial 51% interest in most of Calibre’s East Borosi concessions for $8M in exploration expenditures over 5 years as Calibre as the operator. To date Calibre has completed $2.9M in expenditures on the joint venture properties. B2Gold has the option to increase the interest to 65% on a specific deposit by funding a prefeasibility study. The option is deposit specific and Calibre has the reciprocal right to deposits on the jv property. B2Gold operates the only 2 gold mines in the country other than Hemco which operates the 42,000 oz per year Bonanza and have made a serious work commitment to the East Borosi Concessions. B2Gold is committed to Nicaragua and developing the gold mining industry in the country and committed to Calibre as a premiere exploration company that has one of the best land packages of any gold explorer in the country. Considering the heavy investment made and B2Gold’s commitment to Nicaragua and the highly prospective nature of the properties, B2Gold is the best partner one could have and is the only legitimate miner in the country. Their finance, expertise, and commitment to Nicaragua can only help CXB move the Golden Triangle properties forward and back into production and have put a huge vote of confidence in Calibre’s management to do this. The chance at discovery of another Bonanza type mine that can be in operation for decades has got B2Gold very interested in the East Borosi concessions funding a rich exploration program. Calibre has an ongoing soil survey program in the joint venture properties with sampling and mapping to be initiated again in late February, followed up with trenching this spring. Top ‘Calibre’ Management When it comes to investing in the resource sector, top management is vital in bringing a successful project along. A quality deposit will stay just that without the right people in place to develop the deposit, secure financing, bring value to shareholders and be a leader in creating great relations in the communities they are operating. Calibre has management that covers all aspects of a premiere exploration company preparing its projects for future development. Calibre’s CEO Rob Brown is one of the best and brightest minds in the mining industry and is proven by has rapid ascent in the community now leading a highly prospective exploration company with projects that have the potential to be put in production in a quick timeframe. Rob is very astute at identifying early stage projects. He took Barrick’s $5 million small cap exploration portfolio and turned into a small fortune worth over $100 million as the company’s exploration manager. In addition to an up & coming young CEO who has had success in all aspects of his career, the Featherstone guys are behind Calibre Mining in a big way. Featherstone is a premiere financier to the resource industry. Having representation from Featherstone shows that this project is highly prospective and indicates they have a high degree of confidence in Calibre’s Borosi Concessions. Featherstone just doesn’t pick any company to load their people on to. Hon. John Reynolds is also a member of the board who is a member of the Queens Privy Council and is the person you want on your side in a diplomatic dispute. The honorable Reynolds has played important roles in mediating conflict disputes in the past including helping resolve the disputed iron ore claims near Ungava Bay in Quebec. Hon. Reynolds sits on the board of Oceanic Iron where they are now moving forward with the iron ore project at the north end of the Labrador Trough. CXB has the management with the key qualities to make a successful gold company in this historic gold region. Management with a track record of identifying quality projects and developing them, management that has the right industry partners in B2 Gold and Featherstone, and has one of the best representatives a board could have in the Honorable John Reynolds. CXB has all the key components in management to position a gold company for future success. Calibre is a Leader in Social & Environmental Responsibility Calibre has made it a corporate policy to be a positive social influence in the communities they are serving. Social responsibility was one of the first things management mentioned when I sat down and interviewed Rob, and Calibre is determined to be a community leader in social responsibility, health and safety practices, and environmental policies similar to those in place in Canada. This is especially important in jurisdictions like Nicaragua where a company could abuse lack of policies that help sustain the communities where they are operating. Over the long run, having such policies will only impact positively in the community and help sustain the community. These policies will bring community support when it comes to developing a project into a mine. Calibre plans on being a mining presence in Nicaragua and policies like these will make Calibre a friend to the community. As a part of Calibre’s commitment to the community they having an ongoing program of helping keep the local hospital supplied with the basic essentials that they were lacking before. Low Hanging Fruit Columbia was a country with low hanging fruit. Nicaragua is the same. Lack of promotion of Nicaragua’s rich natural resources, stable political environment, safe jurisdiction and favorable tax laws have led to this country being left largely undiscovered while billions of investment dollars pour into Nicaragua’s neighbors. This lack of promotion is a good thing for investors as it represents a ground floor opportunity to get into a former prolific gold producing nation acquiring prolific gold properties at a bargain basement price and at the beginning of the investment cycle in Nicaragua. Calibre is at the heart of this historic district where it all started way back in the 1930’s and is well positioned for discovery in the Golden Triangle. The Golden Triangle has been vastly underexplored for the last 30 years and represents a country with low hanging fruit. Nicaragua has a gold rich history and literally several projects that are worthy of production at gold prices five years ago, never mind today. Nicaragua has all the same fundamentals that Columbia had a few years ago. It is a cheap place to invest due to prior civil unrest and has been relatively underexplored for years by modern techniques because of lack of investment which creates opportunities for discovery. Investment went into Columbia 5- 8 years ago and now you are seeing the product of those investments with multibillion dollar gold discoveries like Ventana Gold Corp’s La bodega Project or the creation this year of Continental Gold developing the extremely high grade Buritica Project. Nicaragua is part of the same geological greenstone belt, and whose political, economic, and social conditions are virtually the same as that of Columbia today although have not seen close to the same exploration dollars despite the rich gold history. Companies like Calibre and B2Gold who are laying the ground work in Nicaragua are going to be the beneficiaries of discovery in gold rich Nicaragua over the coming years. Calibre has already extended the Bonanza veins north and now has this new high grade target in Santa Maria as well as Riscos and Siuna, both million ounce targets that could have been put in production 5 years ago. Nicaragua is a country with low hanging fruit and Calibre is now set to pick some of that low hanging fruit. Considering CXB can easily define a million ounces at two separate targets in Siuna and Riscos… Calibre is set to reap the benefits of Nicaragua’s low hanging fruit. Calibre is Positioned for Exploration & Development Success in Nicaragua The task is big, methodically exploring and choosing the best targets to delineate for potential producing mines in Nicaragua, but CXB has the odds in their favor developing projects that were shutdown due to external forces and not due to depleting reserves or low gold prices. CXB has an up and coming mining mind in CEO Rob Brown when it comes to identifying early stage material targets for advancement. They also have the finance people to back them up. Both Sun Valley and Yamina have significant positions in Calibre and are watching CXB’s progress very closely in this gold rich region. When Calibre does make that big discovery or brings a project along to the point where it looks like a lucrative producer, there will be very keen interest in CXB. Nicaragua represents a place of easy production ounces and would be potentially a country where a major could easily ramp up production. With the investment climate increasing, and social and political climate in Nicaragua stable for the past decade, now is the time to get into this country on the ground floor that is beginning to grow in leaps in bounds. Calibre is literally sitting on one of the best and most prolific undeveloped gold camps in the world. The Golden Triangle has already yielded 5M ounces and chances are there is at least another 5M easy ounces before you even think about looking deeper in the camp. In such an underdeveloped gold camp that will yield a pipeline of quality gold targets with a potential production profile lasting decades, Calibre is truly an undervalued and hidden gem ready to be brought out and dusted off as they start to advance these highly prospective projects towards production decisions. Calibre’s Golden Triangle has rich vein systems that literally run for miles and is sitting on a unique geological sequence that forms this gold rich area known as the Golden Triangle. The Golden Triangle is truly one of the last places in the world with low hanging fruit as Nicaragua’s gold projects were put on ice while the rest of the world’s deposits were depleted at a much lower price. Nicaragua had gold projects that competed with projects a generation ago. The bottom line, the quality of Calibre’s projects is just that much better than those in the rest of the world, being left virtually untouched for the last 30 years. Calibre is sitting on a world class >10M ounce high grade gold camp just waiting to be defined and put back in production with 2 projects that have 1 million ounce potential and new and exciting discoveries being announced all the time like the high grade discovery at Santa Maria. CXB is set to add material value in the 2011 exploration year. Calibre is rated as a very strong buy with both early stage grassroots discoveries and high potential historical targets. MGMT = 5 stars Value = 5 stars Growth = 5 stars Christopher Skidmore Reporter for Beat the Market Stock Picks