CuOro Resources CUA-V

CuOro Resources CUA-V


Fast tracking copper production in Colombia


Share Price… $2.15
Shares Out… 22M
Fully Diluted… 25.4M
Market Cap… $47 million

Key Stakeholders…

Hudbay Minerals fully diluted 15.8%
Dundee Precious Metals 6%
Insiders 35%

Financial Position...

Cash… $10.5 million
Warrants and options… $5.8 million


It is not often you get an opportunity to invest in a grassroots project and see it through to production in the mining industry. Very few projects actually make it to the production stage from discovery, with time being one of the biggest killers of a project. In most commodities cycles, by the time it takes a project to go into production (usually 10 years) the high prices are done, the party is over and the project that was worth billions while metals were trading at all time highs is no longer attractive at the other end of the cycle and is back on the shelf waiting for the next boom. There are many other factors that can kill a project, but in the end it is a numbers game.

When you can identify a project that has fast tracking production capability, you have found a project where you have eliminated one of the biggest risks for a project, time to production. The best risk/reward investments that provide the highest returns are projects that have been identified for timely production to best take advantage of high commodities prices. Not many projects have a short production profile so if you can find a project that is being pushed aggressively towards a production decision, you are going to have a company that will experience material growth over a shorter period of time than other companies. One company with a project that has been identified for the production fast lane is CuOro Resources CUA-V. CuOro is an emerging Colombian resource company focused on fast tracking copper production in Colombia.


Colombia… the land of opportunity for natural resource exploration and development

After being ignored for more than 30 years because of political instability, Colombia has turned the corner the last decade and become one of the safest places to invest in the Americas. The significant change in political climate has opened the door to Colombia’s untapped rich natural resource sector to boom into the 21^st century. While most countries have been developing their resources over the past half century, Colombia received little investment and Colombia’s rich natural resources were left underexploited and undeveloped for years. This has led to a major turnaround in the sector over the last decade as investors see a major opportunity for exponential returns developing projects in Colombia. These are projects that most investors see as having a decided fundamental advantage over other parts in the world where the natural resources have been worked over and depleted. This leaves a blue-sky opportunity throughout the country of Colombia for material discovery and high quality development projects. Many of these high grade projects are extremely lucrative at today’s record high prices for most commodities.

Over the past few years the focus has been on Colombia’s traditional resource gold. The country has been the land of opportunity for gold exploration. No other country has yielded more significant gold discoveries in the past 5 years. A company like Ventana Gold going from a $0.35 cent stock to the $13+ takeover price it received 2 years later proves that the returns that Colombian exploration and development companies offer are truly unmatched. At only a 3.5M oz deposit, this represents a huge premium on the defined ounces in the ground. It speaks volumes of the exploration upside to a project like La Bodega where they believe they are only scratching the surface and points to the fact that investors are willing to pay a premium for the high grade/high return projects that Colombia offers.

Another highly touted Colombian gold stock that has seen success from the outset is Continental Gold which did an initial IPO at $2 in mid April of last year. CNL promptly went on a run to $11 before cooling off and consolidating in the first quarter of this year. CNL and VEN are just 2 examples of the massive influx of dollars into gold projects in Colombia and are now billion dollar gold companies without even producing an ounce of the yellow metal. Some might argue that this sector is overbought and overvalued, but the steep prices paid for these gold companies shows that resource rich Colombia is just getting started. Thirty to forty years of exploration does not get done in three to five years.

Colombia will continue to be an attractive sector to invest in as long as the country stays a safe place. Colombia has projects that are worth billions to the country’s natural resource sector and with the extensive exploration dollars being attracted to underexplored Colombia, they will discover and delineate several large high grade deposits. The low hanging fruit may have arguably been plucked by companies like Ventanna that were into the sector early or have been established, but there are still large areas of the country that have received no modern day exploration. Modern day exploration has not even begun to scratch the surface in this natural resource rich South American country. Nor have many of these deposits been tested to depth. Colombia remains an attractive place to invest to best position your investments for a material discovery and developing grassroots projects.

• Colombia one of the most underexplored country in the Americas
• Resource rich in gold, copper, silver
• One of the fastest growing mining jurisdictions
• Qualified workforce
• Developed infrastructure
• Steady GDP growth
• Rated high for both personal safety and investment protection

CuOro Resources is focusing on Copper in Colombia

CuOro Resources CUA-V is a brand new exploration company assembled for the purpose of developing significant assets in Colombia. While most of exploration is focused on gold rich targets in Colombia, CuOro is taking a different approach and focusing on the other metal that is rich throughout South America, copper. Not to say that they aren’t looking for gold with one of 2 properties being a high grade low sulphidation epithermal gold and silver system, but the near term focus is on adding low risk shareholder value through developing their Santa Elena Copper Project with a goal of outlining more than 1 billion pounds of high grade copper and advancing the project to a feasibility decision by early 2012.

Colombia is in an ideal setting for CuOro to make a significant copper discovery. Even though Colombia is historically known for its gold, it is set along the Ring of Fire in the same geological setting that created the huge porphyry districts in Chile, Peru, Mexico, BC and Alaska. Porphyries are massive ore bodies that occur at depth and intrude into the Earth’s crust. Since these massive deposits occur at depth and are often buried, exploration for porphyry deposits is much more intensive and for the most part has been bypassed for the easier shallow gold targets. Artisanal miners are also not interested in porphyry mineralization as they only look for high grade material leaving Colombia’s porphyry potential in the country virtually untapped.

Near surface mineralization is excellent for near term production potential and is a great way to start the Colombian mining industry, but the long term sustainability of any mining project or industry is being able to mine to depth and increase the scale of a project. Porphyry deposits answer this need of scalability. CuOro has an exciting opportunity in Colombia developing a high copper project that has all the early indications of buried porphyry deposit at depth.


The Santa Elena Copper Project

CuOro’s Santa Elena Project is the near term focus of the company confirming a historical high grade VMS system outlined by Noranda Mining. This project has all the earmarks of a project on track for production and the company thinks that all geological indicators point to a possible buried porphyry at depth. If the company’s theories are proven, Santa Elena has both near term high grade production potential and the scalability that a porphyry deposit offers. Santa Elena has all the textbook indicators of a potential copper gold porphyry system at depth and is classified as a porphyry and poly-metallic deposit project. The project has a historical resource of 27Mt @ 1.88% cu containing 1.153 billion pounds of copper worth a staggering $5 billion dollars at today’s prices. CuOro has also sampled significant gold, silver and zinc values which give this project an extremely high grade flavor and potentially give the Santa Elena project a negative cash cost for copper once credits are considered. With 27Mt of potential ore worth $160 - $200 at today’s price, that is a lot of very valuable rock considering costs should not exceed $40 per ton.

At $2 CuOro is worth less than 1% of its conceptual insitu value giving CUA a lot of room for growth as they advance Santa Elena to production. CuOro believes they will be able to identify several more targets greatly enhancing the high grade tonnage potential of the project. With a drill ready historical rich polymetallic VMS system just waiting to be defined with geology indicating a textbook porphyry system underlying it all, Santa Elena is a very lucrative project with near term cash flow potential, long term staying power and the scalability of a potential bulk tonnage target that a porphyry deposit offers.



What makes Santa Elena textbook Porphyry?

Location

Santa Elena is located in a proven gold copper porphyry belt in Colombia. They are in the same trend that hosts Sunward’s massive Titribi and Murindo copper gold porphyry projects. It is also host to Medoro’s 9.7M oz Marmato deposit and almost a stone’s throw from Continental Gold’s Buritica Project and Greystar’s 15M oz behemoth around 150km north of Medellin. CuOro’s Santa Elena Project is in the right trend in a proven porphyry district lying between some of the biggest deposits Columbia has to offer.

Geology

In addition to being in the right spot, geology supports the theory of a buried porphyry at Santa Elena. In fact, Santa Elena could be a textbook example if this theory is proven. The rich VMS replacement style mineralization contains a large stockwork system with an iron cap on top of the massive sulphides outcrops which can potentially indicate an underlying porphyry system.

Think of a porphyry body as a big giant molten ball of rock that intrudes into the Earth’s crust. The resulting cooling and reheating process of this giant ball of magma interacts with the environment and forms a great amount of pressure against the surrounding rock. When the pressure gets to great it erupts into the surrounding rocks and creates these conduits to the surface where the rock type is weakest. This can appear along faults, in breccia’s and disseminated within the surrounding rock type if it is porous enough. In simple terms, it is an underground eruption and what happens to the mineralization depends on the rocks surrounding the porphyry. This is exactly the same geological environment that has taken place at Santa Elena with the VMS style mineralization.

Santa Elena has all the textbook indicators of a buried porphyry intrusion.


The focus on Santa Elena is potential fast track VMS production

Finding and delineating a massive porphyry body at Santa Elena is one of the long term objectives of the company. CuOro has it sights set on fast-tracking Santa Elena’s near term VMS production potential to take advantage of today’s record high metals prices. With excellent infrastructure in place, Santa Elena is ideally situated for near term production potential. CuOro has struck important deals with Hudbay investing a 15% fully diluted interest in CuOro giving CuOro a solid financial partner and $10.5 million cash in the bank to aggressively develop Santa Elena. Hudbay is the largest Canadian miner of VMS projects and arguably the 3^rd largest VMS producer in the world. Hudbay is the best in the business when sniffing out VMS projects and CuOro represents a great opportunity for Hudbay to gain exposure to the growing Colombian mining sector if the conceptual targets at Santa Elena are met.

The Santa Elena Project has huge upside for its VMS potential alone. Santa Elena’s conceptual 1 billion pound target currently makes up 4 TEM conductors. A TEM survey is a type of survey that measures the conductivity of the zone and initial responses on all 4 targets indicate economical size. These targets were the focus of the historical resource and TEM survey and only make up less than 10% of the property. In the last property visit, they identified 2 additional mineralized outcrops which could potentially significantly increase the target resource for CuOro. CuOro will be conducting a systematic property wide TEM survey to find all buried VMS conductors on the 1,287 hectare property. Santa Elena has significant potential to add to their VMS inventory and potentially increase the tonnage to at least 40 - 50Mt.

Santa Elena has excellent infrastructure for fast track production capability with a paved road to the property gate, 2 hydroelectric plants within 5km and an abundant water supply. Lack of water can kill the best of projects. CuOro’s Santa Elena boasts some of the best infrastructure for a potential mine which significantly reduces the capital costs required to build a mine as well as reduces the time to production. A 25 – 50 Mt high grade resource could easily support a 5,000 to 10,000 ton a day operation milling $150 - $200 rock which would translate into 60 – 120 million pounds of copper produced annually plus gold, silver and zinc credits. A 100 million pound copper operation bringing in potential cash flows in excess of $500 million a year with negative cash costs for copper production in mining friendly Colombia is very lucrative indeed.

Infrastructure points…

• Paved road to the property gate
• Ample power supply nearby
• Abundant water supply
• Experienced workforce

With a few more VMS conductor discoveries on the Santa Elena Property, CuOro could easily double the 27Mt conceptual resource to 50Mt plus target and easily have the scale they need for a 10,000 tpd mill. The geophysical work being conducted this spring should bring the full potential of Santa Elena more into focus. If CuOro comes close to demonstrating these types of numbers and expansion potential at Santa Elena, they will certainly be an attractive target for Hudbay to gain entry into the Colombian mining industry. Developing a potential emerging VMS camp is what Hudbay excels at and is what attracted them to the project. A porphyry underneath would be icing on the cake for Hudbay. At the very least Hudbay will be there for continued investment to see this exciting project develop into a mine, but with a potential a 30Mt plus VMS camp emerging in Colombia processing close to $200 ore, this might be a project that Hudbay may just want for themselves.

The Santa Elena Plan

The Santa Elena fast-track schedule includes 25,000 meters of drilling in 2011 for a decision to proceed with feasibility by the end of the year followed by a production decision the next. A feasibility study will take 2 or 3 quarters into 2012 which would lead to a production decision by mid to late 2012.

A rough outline for 2011…

• Conduct systematic geophysical work on Santa Elena including IP and TEM geophysical surveys and identify all anomalies on the property. This work is planned for Q2.
• Conduct an initial 10,000 meter reconnaissance drill program to establish boundaries and validate the deposit. 2 rigs planned for operation at the beginning of Q3.
• Conduct a 3 rig 15,000 meter definition program in Q3/Q4 for a N43-101 resource estimate. Proceed with environmental studies, metallurgical work and a scoping study for feasibility decision by Q1 of 2012.

CuOro Resource.s Santa Elena Project is a potential high grade copper project set for the production fast lane. It is the obvious reason why Hudbay is involved. Having their technical and financial support can only be an asset to CuOro. In addition to Santa Elena having the support of one of the most prolific VMS miners in the world in Hudbay, Santa Elena has the all the infrastructure needed right on the doorstep. With a 27Mt historical resource at close to 2% copper and the potential to be sitting on an elephant underneath, CuOro’s Santa Elena is a project that has a superior growth profile stemming from an excellent exploration upside and fast track production capability. It is a project that stands out among the rest.

I am sure in most people’s minds… Santa Elena has production stamped on it.


Barranco de Loba

Barranco de Loba for most other exploration companies would be a flagship project in itself. For CuOro, this is just the sweetener. Barranco de Loba is a highly prospective undrilled low-sulphidation epithermal system situated in Colombia’s most prolific gold belt, the Segovia Gold Belt. This area has a mining rich history with over 500 years of continuous production. Preliminary geological mapping has identified 26 vein structures up to 6 meters wide sampling as high as 52 g/t gold and 242 g/t silver.

Barranco de Loba is adjacent to a small producing gold mine to the south. The Gloria Mine currently boasts 1,500 artisanal miners mining 3 separate veins grading up to 300 g/t gold. Even with only 50% recoveries and an average cut-off grade for the small mills of 15 g/t gold, the Gloria Mine manages to produce 2,500 ounces of gold a month. The 3 main veins of the Gloria Mine have been traced onto Barranco de Loba and present an opportunity for CuOro to define a significant epithermal gold resource on their property.

In addition to the low sulphidation epithermal system identified on the property, the type of mineralization is hosted in swarms of mineralized veins and veinlets which is interpreted as stockworks. This leads CuOro to believe that there is significant potential for a larger style disseminated gold system on the property. If CuOro can key onto a bulk tonnage target at Barranco, then CuOro will have two highly sought after projects. Barranco could potentially be a 50,000 to 75,000 ounce producer as a low sulphidation system, but discovering a bulk tonnage near surface target at Barranco would greatly increase the scalability of the project, thus making Barranco much more attractive target as the economics increase with the scope of the project increasing.

Even if CuOro doesn’t find the ideal bulk tonnage target on Barranco, if they can consistently drill values in excess of 30 grammeters with an average rating of 50 or more, CuOro could rack up significant ounces tracing these veins along strike and to depth. A fifty grammeter true width average rating traced over 1km strike up to a 300 meter depth, which is the minimum depth of a typical of low sulphidation epithermal systems, gives CuOro a cool 1.25M ounces. Another bonus for these types of gold deposits is that they are easy to mine being amenable to low cost mining methods and simple metallurgy.

Considering 31,000 oz’s a year is being produced on the property adjacent CuOro in an operation that is largely inefficient at only 50% recoveries and mineralization traced onto CuOro’s Barranco de Loba, Barranco could potentially be a 50,000 to 75,000 ounce producing mine if mineralization is consistent on CuOro’s land. A minimum of 26 veins have been identified on the property with values as high as 52 g/t gold so the chances are very good that Barranco does have the same mineralizing features and the same source on their property to the north.

• Three veins graded bonanza at 52.4, 47.9 and 30.1 g/t au.
• Two more veins mapped on surface graded 11.80 and 11.55 g/t gold.
• Four more veins graded better than 5 g/t au

CuOro is aggressively exploring and developing Barranco with an initial program scheduled for Q2 including mapping and trenching soil geochemistry. After CuOro has refined their drill targets at Barranco they will be following it up with a $2.5 million 10,000 meter drill program in the third quarter. Barranco de Loba is highly prospective for a multimillion ounce low sulphidation epithermal gold system and could potentially host a bulk tonnage disseminated low grade target which is indicated by the type of mineralization present at Barranco de Loba.

For most exploration companies, Barranco would be a flagship. For CuOro, Barranco is what they call the sweetener…. another low risk, undeveloped gold system just waiting to have the ounces counted on the property. A system with million ounce high grade potential in the heart of Colombia’s most prolific gold region gives CuOro a legitimate two pronged threat in developing grassroots projects that have real production potential.


CuOro has the Mgmt and Insiders to make it happen

The Right Mgmt

If anyone can deliver two N43-101 compliant resource estimates on separate projects in the same year, it is CuOro’s CEO Robert Sedgemore. Mr. Sedgemore has over 25 years of international operating project experience in senior management positions in a diverse range of commodities all over the globe. Mr. Sedgmore is man with big picture thinking previously with IFC – International Finance Corporation, a branch of the World Bank. At IFC he was the Senior Industry Mining Specialist providing technical and economic valuation on global mining investments. Robert Sedgmore has extensive experience analyzing projects from an investment perspective, has managed scoping studies, feasibility studies and engineering services for capital projects for up to $2.5B. If Santa Elena has attracted the attention of man with a resume like Mr. Sedgmore, Santa Elena must have real potential for Mr. Sedgemore to devote his time and energy to CuOro Resources.

Mr. Sedgemore is complemented by an exceptional management team including notable names such as Nick DeMare, a director of Mirasol Resources, Tasman Metals, and Batero Gold. John Seaman CFO of Premier Gold Mines is also director and chairman of the Audit Committee. The rest of the team is made up of top notch geologists specializing in projects in South America.

Key Colombian Advisors

It doesn’t stop at all star management for CuOro as they are working hard to bring on key Colombian advisors. They have strong relationships with the former Minister of Defense for Colombia and key relationships with top mining professionals in Colombia that will help realize CuOro’s goals of bringing Santa Elena to production as fast as possible. Having key contacts within the industry is a huge key to success as these connections will help navigate CuOro through the Colombian political system.

Key Financial Partners

CuOro has the best partner a VMS explorer can have in Hudbay Minerals. Hudbay owns 15% of CuOro on a fully diluted basis which provides CuOro with an excellent financial position to advance their properties in 2011 and beyond. In addition to Hudbay’s significant position in CuOro, Dundee Precious Metals Fund owns 6% of CuOro. CuOro is well financed to complete the majority of their exploration programs this year and has 2 partners that want to see this project succeed.

CuOro has top notch management, the right political associates and financial backing from the 2 of the best in their respected sectors in Hudbay and Dundee. CuOro is set up for success with the best in the business driving Santa Elena and Barranco forward.


CuOro's Santa Elena is set for the production fast lane

When you consider the high caliber high grade projects, the management team that CuOro has assembled, the financial partners with Hudbay and Dundee, and the key contacts in Colombia to see this project through, there isn’t a better positioned company to significantly add shareholder value over the next couple of years bringing a high grade copper resource into production. Santa Elena is a high grade copper project close to all the necessary infrastructure needs that facilitate timely and cost effective production. CuOro is an investment that just makes sense. Management has identified the right properties, brought on the right partners and have laid out a concrete plan to develop Santa Elena into a near term producer. Santa Elena is a project that is low risk, has excellent infrastructure in place, and is in the right jurisdiction. With 6 identified VMS conductors on the property and only 4 of those making up a conceptual high grade 1 billion pound copper resource, Santa Elena is in the very least a high margin VMS project poised for the production fast lane in Colombia.



Christopher Skidmore

Beat the Market Stock Picks

Beat the Market Quarterly Report: April 2011

Beat the Market Featured Company Report

Quarterly Report: April 2011

The market has spoken!!! We have one more leg up! Even Mr. Elliot Wave who went bearish again a few weeks ago admits that the market could grind higher over the short term. I am certainly very wary of an extended correction come May and the dog days of summer, but until then... it is one more leg up! I am betting that precious metals will also participate in this rally with targets of $1480 to $1500 gold going forward. With the way gold is trading, it is having a hard time breaking out, but at the same time, the floor for gold keeps rising and at some point the buyers are just going to overwhelm sellers at the tough resistance channel of $1430 - $1440.



Gold Canyon Resources GCU-V

Share Price… $3.38
Shares Out… 89M
Market Cap… $294 million



Initial Coverage Aug 2010 @ $0.41 +$2.97 / 724%


Gold Canyon’s infill program is full of pleasant surprises as results are pointing to an impressive high grade zone at the core of Portage.

Gold Canyon’s winter infill drilling program continues to impress as shallow vertical holes released in March show a high grade component to Springpole’s Portage Zone. In 3 vertical holes along 200 meters of strike Gold Canyon assayed…

• 28.5m @ 19.75g/t au within
  • 100.5m @ 7.23g/t au
• 4.5m @ 36.21 g/t au within
  • 111m @ 2.03g/t au
• 30m @ 5.69g/t au within
  • 150m @ 2.56g/t au

This indicates that there is a significant near surface high grade section which can be the focus of a pit for a prefeasibility study. This will increase the project economics in the early years as well as greatly reduce the payback period being able to mine shallow high grade in the early years.

High Grade Open at Depth

The results are also pointing to this high grade zone being open at depth. At the south end… holes 22 and 24 hitting 47 meters @ 3.47g/t au and 27 meters at 4.64g/t au respectively with hole 42 (drilled 100 meter above) only hitting 1 meter at 17.83g/t au. This indicates that the high grade zone opens up at depth and gives excellent potential for Gold Canyon to hit long high grade intervals at depth when they begin testing Portage at depth in early April.

Bonanza Grades at Portage

Before hitting a meter of 126.51 g/t in hole SP10-033, the highest grade intercepts were between 10 g/t to 15 g/t gold. So hitting 1.5 meters at 167.66 g/t gold, 1.5 meters at 92.57g/t au, and a meter at 53g/t au along a 200 meter strike is very good news showing that the Portage Zone has potential for typical Red Lake bonanza grade mineralization in an atypical Red Lake geological setting.

Bonanza grades at Springpole make Gold Canyon that much more lucrative as an investment and now puts GCU’s Portage Zone on par with Rainy River. In my opinion, GCU is much more attractive a project than Trelawney’s Cote Lake Being much more continuous and having consistently higher grades.

Gold Canyon’s current results increase the overall grade of the project and start to add up the ounces at GCU which is currently estimated to be a 5 million plus ounce deposit which is the current size of Rainy River and 20 - 25% larger than TRR’s Cote Lake. With typical gold deposits in the Canadian Shield persisting to depths in excess of 1km, it is very easy to see GCU attaining 10M ounce status quickly if the Portage Zone continues to depth. Geology is also in favor of Portage persisting at depth because gold porphyry’s are known to be massive intrusive bodies that can extend to depths of over 2km.

Gold Canyon is as cheap as it gets when comparing it to similar projects like TRR and RR. Add that to the fact that GCU is now coming up with very impressive shallow bonanza grade intercepts, it makes the early years of this project very attractive indeed. GCU is a very big buy and is still rated my top buy in my featured company list based on current momentum and sentiment indicators. Gold Canyon’s high grade intercepts will make the economics very attractive and make GCU one of the premiere development stories in Canada.

Technically GCU is making a push to $5 and beyond over the short term and would not be surprised to see GCU trading above $10 by this time next year as Springpole so far looks like she is not done yielding her treasures. $3.30 is a very big mark for a penny stock to attain and since GCU has now closed it a second time, I expect this area to become a solid area of support and a floor for the SP. Gold Canyon is also going to start to attract a new investment crowd. As the market cap grows, it enables institutions that play larger cap development stories to join the party at GCU.

GCU continues to be my top stock and is priced much better than Trelawney with 4.2M ounces at $600M market cap and a much lower grade. GCU has more ounces than TRR, is higher grade and is HALF THE MARKET CAP OF TRR!!! Even after this impressive recent RUN-UP… GCU is still cheap!!!

Insiders also think GCU is cheap with another 100,000 shares bought on Friday. Insiders continue to be on a major buying spree with GCU as literally millions of shares have been bought on the open market since Christmas by insiders. Mainly Sheldon Inwantesh and Pinetree.

GCU is my top gold stock and it has been for a reason…. Because SPRINGPOLE is a MONSTER!!!

Can you hear that? It’s last call!!!
ALL ABOARD!!!

Last call for before this train leaves.

Next stop… $5





Mineral Mountain Resources MMV-V

Share Price… $0.50
Shares Out… 48M
Market Cap… $24 million

Initial Coverage @ $0.41 +0.09 / 22%


Mineral Mountain continues to deliver results that point to an economical deposit at the Cook Porphyry Zone in Shining Tree. So far the drill program following up on Golden Harp’s initial program in 2009 that hit 32.9m @ 1.93g/t au, 21.2m @ 3.56g/t au and 3m @ 21.41g/t au has replicated the initial discovery and Mineral Mountain has increased the drill program to 10,000 meters.

Mineral Mountain’s better results include…

• 14 meters @ 4.66g/t gold
• 15 meters @ 3.17g/t gold
• 13.25 meters @ 3.46g/t gold

What is impressive about MMV’s Cook Porphyry Zone is that it is an alkaline intrusion much like GCU and the results of the latest 3 holes are within intervals that average 103.5 meters grading 0.483g/t au. If the Cook Porphyry comes together at depth, MMV could come up with a pretty good initial resource. 100 meter 0.5 g/t intercepts will give a substantial near surface deposit. If the Cook Zone is typical of porphyry’s, this should come together with higher grades at depth. The results are not market moving on their own, but I am impressed with the results to date in Shining Tree that Mineral Mountain is producing and expect MMV will continue to pull increasingly better results as they start to understand the geology better and find these feeder structures. Shining Tree is the cheapest place to drill in Canada and is the most advanced drill ready target so was the obvious place to start to add value to low risk value. So far the Cook Zone Porhpyry is coming out with results that help establish an initial resource.

Mineral Mountain is not putting all their hopes in the Shining Tree Projects as they continue to accumulate land in the Straw Lake Beach Mine area which they believe has Hemlo style mineralization. The Straw Lake Beach Mine may be another Rainy River type story in itself and the Mineral Mountain gang is just finishing up acquiring all the land the can before they start to explore and develop this highly prospective property.

The real exciting news for MMV is that they are going to drill their Kootenay Arc Project this summer with an initial 3,000 meter drill program on 4 high priority targets. The Kootenay Arc Project is the company maker in my opinion, is what attracted me to MMV in the first place, and is the best chance at another Carlin Style Mineralization type discovery this summer.

The targets they are drilling are absolutely massive including Black Warrior, 8km long and open, Pulley Creek, 9.5km long and open, Spine Mountain, 12km long and open, and Butte Bonanza which is a 950 meter long gold in soil anomaly with gold in soils up to 36g/t. Mineral Mountain’s Kootenay Arc Project is the company maker and will generate some excitement and news worthy results that will start to attract the mining community as they start to explore this highly prospective region in BC just outside of Revelstoke. Mineral Mountain will continue to add value for shareholders and I am expecting them to make a big grassroots discovery on the Kootenay Arc Project.

MMV is the best chance at a grassroots Carlin Style type discovery like ATAC and if MMV hits this summer in the same type of setting, they could see the same type of share price appreciation that ATAC saw. From the above mentioned targets, they are absolutely massive in scale, just as big as ATAC’s Rackla Belt and Mineral Mountain will be looking to make The Kootenay Arc another household name in exploration in the west. Carlin Style deposits attract a premium and 2 companies that have this type of mineralization are ATC and AVZ. Both command market caps that are well in excess of $100M and in ATAC’s case well over $500M.

At $0.50 MMV is a steal having already added value this winter in their successful drilling of the Cook Zone and is now aggressively exploring properties that have the potential to increase MMV’s value exponentially upon discovery. Mineral Mountain is significantly de-risked having successfully drilled a project this winter. With them exploring high leverage projects this summer, currently MMV is a very good deal at market.

MMV at $0.50 is a bargain and a great entry point for further share price appreciation in 2011 as the Baker’s try to make another Rainy River type story all over again with Mineral Mountain Resources. My bet is it comes out of the Kootenay Arc.



Calibre Mining Corp CXB-V

Share Price… $0.16
Shares Out… 131M
Market Cap… $21 million

Initial Coverage at $0.125 +$0.035 / 28%


Calibre Mining is priced right for another good run come this spring. It has been a pretty quiet month in the news for Calibre and got hammered with the rest of the correction and is one of the few stocks not to have picked back up yet in share price. I am quite surprised that CXB is back trading under $0.20 as they announced 900,000 ounces of gold equivalent which gives them a value of $23 per ounce in the ground. The market is currently giving minimal value to Calibre’s high potential projects and 750,000 high grade ounces at La Luz should command a higher premium in itself. Not too mention that Riscos de Oro is already a 400,000 to 500,000 oz project that just hasn’t been reported. Add to the fact that Riscos is at least million once potential, there is a lot of hidden value in Calibre that will be unlocked this year as they move their projects forward. With 2,500 meters of drilling at Riscos and the exciting high grade discovery at Santa Maria, and over 900,000 ounces of equivalent gold ounces… the future looks bright for Calibre Mining.

B2 Gold released record profits recently from which a good portion can be attributed to their Nicaraguan operations which demonstrate that Nicaragua is full of high potential projects that are worthy to be fast tracked to production. Nicaragua’s projects are very enticing. They are on par with projects that were in production in the 70’s and 80’s so in my opinion, when put in production, should be that much more profitable than the lower grade projects that are being considered today. Calibre already has 2 potential mines with multimillion ounce potential right in their lap with La Luz and Riscos. Both are worthy of 50,000 to 100,000 ounce producers in one of the best underexplored land positions in one of the most prolific historical gold regions in the world. Calibre in my mind is an extreme opportunity and people just don’t understand the story at Calibre and are still afraid to invest in Nicaragua because of poor marketing of the country. Tiny Nicaragua was 15^th on the list for gold producing nations in the mid 20^th century. With projects that have literally been on ice for the last 30 years, Nicaragua is full of low hanging fruit ready for someone to pluck off the ripest ones and enjoy the this country that is literally overflowing with gold.

At $0.16 Calibre is a story that will prove up considerable resources in Nicaragua and hopefully bring a couple of these projects to production decisions over the next couple of years. Calibre has projects that should be fast tracked. This is another fire sale opportunity and a great second chance to ride CXB back up to the $0.20’s. Calibre is a company that has the best leverage of the bunch with projects that should have been producing 30 and 40 years ago. Technically CXB is changing trend and now testing that breakout. There is very strong support at $0.15. This stock is a must at current prices with very little downside risk.




NioGold Mining NOX-V

Share Price… $0.415
Shares Out… 72M
Market Cap… $30 million

Initial Coverage @ $0.30 +$0.115 / 38%


NioGold Mining is busy adding value at all spectrums of the company in 2011. Whether it be developing a gold mine in the Marban Block JV with Aurizon, discovery of a significant REE deposit in Quebec or drilling their 100% owned Malartic Project across the highway from Osisko. NOX is adding value at several angles this year. We haven’t heard any new drill results out of the Marban Block JV with Aurizon, but ARZ usually likes to release the results in batches so another batch of results should be due out soon. It does not mean that NOX hasn’t been busy as their share price has seen a consider jump the past month and even traded above $0.50 for a few days as there has been some excitement from a couple other projects.

In early March NOX announced that they are drilling the other end of their Malartic property which is 100% owned and directly adjacent to Osisko’s 10M oz Canadian Malartic Project. This area is highly prospective for possible Malartic extensions and represents an area that received little exploration in the past due to little outcropping. If NOX is successful in drilling this section of their property, then NioGold should start to appreciate at a much faster rate with exposure to another potential gold discovery. It may also increase interest from Osisko at that point who could buyout NOX and get good exposure to Aurizon’s Marban Block Project. If I was an Osisko exec, it is something I would be considering if NOX hits across the highway this spring and summer.

At this point it certainly looks like the Marban Block could host a 2 million ounce resource to depth. At the very least, current drilling will greatly expand the near million ounce project.

What has really got the market excited about NOX is their exposure to GeoMega Resources Montviel Project which is showing very large intervals of rare earth elements which has seen GMA’s share price go from $0.35 to the current $4.41 on the project which they optioned from NOX for a total 75% interest. GMA recently released the best interval on the project to date with 1.44% TREO over 485.45 meters. With GMA’s market cap at $80M, one can assume that NOX should have an implied value $25M for the Montviel REE project. Before the discovery NOX had market cap of $25 million which would give NOX an implied worth of close to $50M or $0.69 a share. NioGold has 3 high potential projects on the go with 2 quality partners in ARZ and GMA and a 100% project right across the highway from Osisko that could prove to be the next major discovery along the Golden Highway. NOX is in position to continue to unlock shareholder value over the next year with 3 major projects on the go.

Niogold is another company that is loaded with value and high potential projects in the portfolio and is on track to unlock that value. $0.40 seems to be a new floor for NioGold and is a great entry point after all thy hype and momentum has died down. When I initially featured NioGold, I described it as a low risk steady climber that will let you sleep at night while still participating in a high leverage opportunity. So far NOX has played out to these expectations exactly.



Edgewater Exploration EDW-V

Share Price… $0.82
Shares Out… 50M
Market Cap… $41 million

Initial Coverage @ $1.10 -$0.28 / -29%


Now is the time to buy EDW. At $0.80 this story will not get any cheaper. They currently have 1.2M ounces at Corcoesto and the drill program at Corcoesto has been highly successful and expanded the zone along strike and at depth. EDW should easily upgrade the resource in size, grade and confidence with the recent drilling successes. EDW’s current valuation is receiving $34 an ounce for its in situ resource and doesn’t include the potential expansion to a 1.5M to 2M ounce resource where EDW becomes dirt cheap. Now look to Ghana and their Enchi Project with a 40km shear zone that is covered in anomalies which extend from one end of the property to the other and Edgewater is a beast that is about to be woken up very soon.

Recent results at Corcoesto which follow up 1.1m @ 148g/t au within 10.72 g/t over 17.0minclude…

• 13.3 meters at 2.66g/t au
• 8.5 meters at 2.7g/t au

Results like this continue to demonstrate significant potential for expansion and the potential for more bonanza grade intervals like the 1.1m at 148.5g/t au. The 2.66g/t intersection over 13.3 meters is a 150 meter down dip extension of the 10.72g/t au over 17 meter intersection. This intersection will help add a lot of ounces to depth. Corcoesto is open along strike as well and should very easily hit EDW’s 2M ounce target set out for Corcoesto over the next couple of years. EDW was also granted a 90 year mining license in the area so everything is in place to take this project to production when a decision is made.

Initial drill results coming in from Ghana include the highly prospective Boin Zone. Boin is a highly prospective 10km gold in soil anomaly with consistent mineralization across the entire length.

Results from Hole #2 in a 35 meter section from 32m to 67m hit 3 sub parallel zones of gold including…

• 9 meters at 2.74g/t au
• 4 meters at 1.9g/t au
• 5 meters at 0.85g/t au

With an aggregate rating of 36.5 grammeters, early indications are showing that the Boin Zone will certainly shape up to deliver a decent size resource. 717 meters have been completed at Boin in 8 holes covering 10% of the known strike length of the zone.

At Nyam EDW has had some decent results, but the grades are not as high as Boin which was to be expected from historical drilling. The best results to date for Nyamebekyere are in Hole #1 with 8 meters at 1.25 g/t au and 14 meters at 1.13 g/t au.

All holes have hit mineralization and 1879 meters of drilling in 21 holes have been completed at Nyam. Current drilling at Nyam has covered 35% of the 1600 meter known strike of the project within the 14 km long gold in soil anomaly that makes up Nyamebekyere.

Edgewater is in the process of aggressively drilling out 3 large gold structures in Ghana that will make the base of an initial resource for this world class gold property. At $0.82 Edgewater is priced right, is at a place of solid support and is the perfect opportunity to take a sizable position. Another buy hint is that they switched Featherstone guys and they granted options to the new director Douglas Forster so this looks like a bottom for EDW. If this switch was in the cards for awhile, it explains the prolonged bearish pattern over the first quarter.

With 35,000 meters of drilling planned at Enchi in 2011. I would expect a steady news stream coming out of Ghana for the rest of the year as EDW unlocks the value of Enchi.
Enchi was Red Back’s top exploration property before they found Chirano and got bought out by Kinross. Enchi is a project where the sum of the parts is greater than the whole as so far there doesn’t look to be any one single one huge deposit, but several small pittable targets that will feed a central mill and will easily add up to million plus ounces once included in a N43-101 calculation for a feasibility study.

Edgewater should change trend for Q2 2011 and make its way back up to $1.40 high it made in 2010.




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