Friday, April 29, 2011

Acceleware announces completion of arrangement

Acceleware Corp. (the "Company") (TSX VENTURE:AXE) a leading developer of high performance computing solutions is pleased to announce that the previously announced court supervised plan of arrangement (the "Arrangement") involving, among others, the Company and an arm's length private company ("Privateco"), pursuant to which the Company completed a reorganization transaction to create a new company named Acceleware Ltd. ("New Acceleware"), closed effective April 26, 2011. New Acceleware has also received non-dilutive financing of approximately $900,000 as a result of the closing of the Arrangement. New Acceleware will use the new financing to accelerate its product development efforts, to increase its marketing and sales presence in its target markets, and for general working capital purposes.The Arrangement
Pursuant to the Arrangement and on the Effective Date of the Arrangement: (i) the Company transferred all of its assets (with the exception of the benefit of its tax pools which by their nature cannot be transferred) and liabilities to New Acceleware, a new company incorporated under and governed by the Business Corporations Act (Alberta); (ii) holders of the Company's common shares received common shares of New Acceleware on a pro rata basis consistent with their relative percentage holdings of common shares of the Company immediately prior to giving effect to the Arrangement; (iii) the share capital of the Company was amended to create four different classes of shares; (iv) the newly created Class A common shares of the Company were converted into newly created Class B voting, non-participating common shares of the Company (the "Class B Shares"); and (v) the Class B Shares were consolidated so that they are held by ten or fewer shareholders of the Company. Following the completion of the Arrangement, the Company completed a transaction with Privateco whereby the Company acquired a 99.99% partnership interest in a wholly-owned subsidiary limited partnership of Privateco (the "PrivateLP") and Privateco was issued Class B Shares so as to acquire 49.75% of the voting shares of Acceleware and was also issued newly created Class C non-voting participating convertible common shares of the Company (the "Class C Shares").
Effect of Arrangement
As such, pursuant to the Arrangement: (i) New Acceleware will conduct exactly the same business formerly conducted by the Company with the same assets and liabilities of the Company (with the exception of the benefit of certain of the Company's tax pools which, by their nature, cannot be transferred and have remained with the Company); (ii) the shareholders of New Acceleware are the same as the former shareholders of the Company, holding the same number of common shares of New Acceleware as that number of common shares each held in the Company immediately prior to the closing of the Arrangement; (iii) New Acceleware is a reporting issuer and the common shares of New Acceleware will be listed on the TSX Venture Exchange (the "TSXV"); and (iv) New Acceleware received a net cash infusion of approximately $900,000;
Pursuant to the Arrangement: (i) the Company holds a 99.99% partnership interest in the Private LP; (ii) the Company has ten or fewer post-consolidation shareholders who hold 50.25% of the Class B Shares and therefore maintain voting control of the Company but have no economic interest in the Company; (iii) Privateco holds (a) 49.75% of the Class B Shares and (b) 100% of the Class C Shares which entitles it to 100% of the economic update of the Company via the LP; and (iv) the common shares of the Company will be de-listed from the TSXV and the Company will apply to cease to be a reporting issuer.
TSXV Listing
Pending the final acceptance of the TSXV, the common shares of New Acceleware are expected to begin trading on the TSXV approximately three to five business days following the date hereof under the symbol "AXE".

I think that looking forward this arrangement will be a stepping stone towards a bright future for AXE and their pursuit of ever more business. The collection of companies is growing to include some very prestigious names in their various sector. Acceleware solutions are deployed by companies worldwide such as Philips, Boston Scientific, Samsung, Kodak, General Mills, Nokia, LG, RIM, Medtronic, Hitachi, Fujifilm, FDA, Mitsubishi, Sony Ericsson, AGC, NTT DOCOMO, P-Wave Seismic and Renault to speed up product design, analyze data and make better business decisions in areas such as consumer electronics, industrial design, seismic data processing, imaging for the medical, industrial testing and security, defense, financial and academic research.

At the present share price I see a tremendous potential for upside in this company. As with all investments everyone needs to do their own due diligence and I would suggest that the companies website would be a very good place to start. Acceleware has a website at www.acceleware.com and any contact information regarding the company is easily accessed from this site.

For disclosure purposes I have not received any compensation of any kind for this post. I do own shares in Acceleware and I intend to buy more in the near future.

Wednesday, April 27, 2011

Copper sure getting a solid vote with Barrick's offer

In case you have not heard yet Barrick Gold (TSX:ABX) has just trumped Minmetals bid for Equinox Minerals Limited (TSX:EQN)(ASX:EQN). This comes as somewhat of a surprise to some as the worlds largest gold producer makes a friendly bid to make a solid entrance into the copper sector. At present Barrick has very minimal  exposure to copper. Some say this bid may not be well received by those who had been shareholders in ABX for the pure gold investment approach. Others say it gives a clear indication that copper is poised to rise even further in price possibly and is apparently not viewed to be in danger of falling back to previous levels for quite some time. I tend to think the latter is quite likely the right viewpoint as I cannot imagine Barrick offering $7.3 billion dollars for a copper company if they were of the opinion copper would be dropping in price anytime in the foreseeable future. I would expect we may see some levelling off regarding copper prices in approximately 2 years when we will see some of the first new copper mines come into production. After that a lot of where copper prices may go is dependent on the global demand and this is where I think we will see demand remain very strong resulting in prices for copper staying very steady and possibly increasing.
Irregardless I see this latest takeover as a good catalyst for copper stocks and I believe some of the junior explorers will benefit from this as well. As copper becomes something to talk about amongst the pundits and talking heads as a result of this Barrick offer I believe it will open some opportunities for possible profits from any of the explorers that are hitting good intercepts of copper.

There are several companies that could have the potential to meet these requirements and one that I feel is definitely a company with such potential is presently trading at a very low price. White Tiger Mining (TSXV:WTC) has accumulated a number of claims into one holding under one company and is currently involved in a drilling program to try and determine just what the size of the mineralized area is. The first hole they received assays back from was very good and to everyones amazement the price actually declined. I have looked as thoroughly at this whole situation as closely as I could and after conferring with everyone I thought might hold pertinent information I have come to believe that this was not a decline that was warranted by the results. Furthermore the second hole has assays due back possibly this week yet but I was told they may be next week if there is insufficient time for the company to review the results before releasing them. Judging from what the IP surveys show in comparison to what the results were from the cores obtained from the first hole in this round of drilling I see huge potential here.

The flagship project for White Tiger Mining is known as the Marshall Lake project and this is a brief introduction to this property.
The Marshall Lake Property is an extensive Volcanic hosted (VMS), mineralized, land package of approximately 10km by 16km in size covering over 20 significant showings of Copper, Zinc, Silver and Gold. The previous work had been completed by competently known companies of the day (Billiton, Falconbridge Copper etc.).

Historically, these companies conducted exploration efforts on small mineral tracts within their own portion of the Property, but for the first time the entire Property has been compiled under one owner in a single camp package. In addition, during the time of these historical efforts, those companies were exploring with little infrastructure based on the assumption of a $0.30-$0.60/ lb. copper market and a $35/oz. gold market.

Given the current copper and gold markets, as well as the positive outlook predicted by many industry professionals, White Tiger’s Marshall Lake Property is well positioned in a newly formed property package that is comparable in size to the Noranda Camp, Ontario, which currently has 31 operating mines. White Tiger intends to further advance the Marshall Lake Property in a similar fashion.

Another notable change in further exploring the property can be attributed to the advancement of exploration technology, which has allowed White Tiger to more accurately target historical zones, provide extensions of these zones and develop new zones that were not previously identified.

Additionally, the Marshall Lake Property is well located to infrastructure – 30 km west of Nakina, Ontario with access by all weather gravel road from Highway 11 and the main CNR rail line is within 22km to the south of the Property.

Since it is not possible to know what truly lies beneath the ground at this property one must patiently wait for the drill to tell us just how large this deposit is and for assays that will determine just how economically viable this project is. For those who have a risk tolerance that will allow them to, I suggest you go to www.whitetigermining.com to start some due diligence into this company. Remember those who get in at the ground floor will be the ones making the largest returns if this project continues to prove itself.

For the purpose of disclosure I have not received any compensation of any kind for this post. I do own shares in White Tiger Mining and I reserve the right to purchase more shares which I expect to do in the near future.

Monday, April 25, 2011

Just how valuable might graphite become

With the world recognizing that graphite is becoming so critical to so many uses in our lives it is easy to see the future of graphite climbing significantly. The US has already added graphite to its critical minerals list which in essence makes the urgency to find new sources of supply paramount. This comes on the discovery, that similar to rare earth elements, graphite is at least 70% or more controlled by Chinese supply. The Chinese have stated recently that their graphite deposits are falling behind in production to the point they have added graphite to a list of products that may not be available for export as they consume all they can produce. There is at present only a couple of companies that are nearing a position to bring a graphite deposit into production. So as the Chinese approach the problem of their graphite deposits becoming depleted and the demand for graphite only continuing to grow globally it is clear the effect of this imbalance could turn any company with a world class deposit of graphite into a very lucrative endeavor.

Graphite, although not really that rare, is not something that is worth enormous prices unless it meets certain specifications. As with many minerals the purity amongst other factors determines just how viable any particular deposit may be. Most known graphite deposits at present have a carbon content in the range of  approximately 2% to 3.5% with a select few being possibly slightly higher. The higher the carbon content, the higher the profit margin becomes. Now this is only one factor, another aspect we need to examine is the content of flakes in the graphite and what size is the flake. Since graphite has been introduced to the high tech sector of the world it has gained popularity immensely. What they refer to as large flake is one of the most sought after grades and this does seem to be rare. Therefore the premium that companies will pay for large flake graphite is exponentially higher than for any of the lower grade graphite's. To bring this into some numbers so we can gain an actual appreciation of just how much higher this price can be let's first look at the average price of what we will refer to as regular graphite, which currently sells for between $2,000-$2,500. Now compare that to what large flake graphite has brought recently in sales that have seen the price at $10,000-to$35,000. This is not expected to become a top at all but rather as the Chinese have added export limitations along with value added taxes in the amount of 17% along with an export duty of 20% and all this amid calls for even further export limitations. Meanwhile the global appetite for graphite is growing at about 4% to 5% annually.

Graphite can be used in an ever increasing amount of applications. In light of the recent disaster in Japan in regards to the nuclear power plant suffering from meltdown conditions we see that graphite can and is being used in the next generation nuclear power plant. China is currently installing this new technology in their continuing push to bring multiple nuclear power generators on line in an effort to reduce their carbon emissions. This next generation nuclear generator is, according to the experts and engineers, nearly meltdown proof as the graphite pebble bed that replaces the heavy water approach can sustain temperatures of  >3,000 degrees Celsius. The implications here are astounding to say the very least.

Another use for graphite that I am sure we can all relate to quite well is the upcoming push for electric vehicles. Most car manufacturers have adopted the lithium ion battery as it far exceeds anything the previous batteries offered in terms of both weight and the length of time the charge would last. What many people do not know is that to make a lithium ion battery it takes 20 times as much graphite as it does lithium. The graphite to be used must be purified to a point of 99% in order to be used for these batteries and the only graphite capable of this is large flake graphite. In the US alone, President Obama has stated he wants at least 1 million electric vehicles on the road by 2015. That's only 4 years down the road so it is hard to not see this the new becoming trend and one which is going to continue to build momentum.

As I stated in the beginning, there are only a very few companies with a world class deposit that has all these requirements. The one company I have done an over abundance of due diligence on is Focus Metals and I truly believe this company is well on it's way to becoming a giant in the graphite space. The management is working very diligently in their efforts to bring this project online as quickly as possible and I feel the entire management team is top notch at what they do. I strongly urge everyone to please take the time to do some due diligence on this company and to think whether this is something that fits into your medium to longer term investment needs. I am confident you will appreciate what you discover as you delve into this company. The company has a web site which I encourage you to explore at www.focusmetals.ca.

Thursday, April 21, 2011

Will uranium start to make a comeback

Before I get started on the uranium subject I would like to address White Tiger Mining briefly first. It is starting to appear that one or more people may have intentionally manipulated the stock by selling a large amount of shares short to drive the price down while simultaneously bashing the results. This is about as low as it gets if in fact this is what happened. I still stand strong in my belief that WTC had a very good news release, and that the grades reported may not have been as stellar as some had kept pumping to everyone, but I would be skeptical now of why they were trying to pump grades that were not usual. The following is the grades and as you can see they are quite good in my opinion considering that many mines are mining copper that is graded at 0.2% to 0.5%.

RMZ11-21: RM Zone
Hole Number       From(m) To(m)Width(m) Cu%   Ag(g/t)     Au(g/t)
RMZ11-21132190581.004.40.084
Including149182331.536.80.127
And15516053.7316.40.308
Including15816026.2528.600.540
Including15916018.8538.60.826
The true width of the mineralized zones is estimated to be 66% of the mineralized intersection.
The assay results for the Lease Zone portion of drill hole RMZ11-21 are as follows:
RMZ11-21: Lease Zone
Hole NumberFrom
(metres)
To
(metres)
Width
(metres)
Cu (%)Ag (g/tonne)Au (g/tonne)
RMZ11-211295830.301.30.037
Including1230180.592.80.091
And1272600.371.70.045
Including192561.085.40.183
Including687241.305.70.081
The true width of the mineralized zones is estimated to be 66% of the mineralized intersection.
So as you can see these are relatively good returns and I believe that the next hole with assays coming back (RMZ11-23) should be quite possibly even better. I would have to conclude that this must be quite appealing to some if they are prepared to resort to this strategy to gain an entry. There is no proof I have that would prove this is what happened but rather this is only my speculation. I do know that if you check the records you will find there was a large short sell order processed at this time.

Everyone is urged to do their own due diligence on any stock you may want to invest in, and I personally have done mine and I remain long on WTC at this time.

Now on to uranium. With the recent unfolding of events in Japan many have fled the uranium sector completely. Me being very much a contrarian, I see this as a buying opportunity. First if we really are convinced that all future nuclear power stations will be scrapped then fleeing uranium is the smart thing to do. I for one absolutely do not see this happening. China has already stated they are proceeding with most of their projects and they have many on the books in the very near future. Also planning on going ahead with their nuclear power plans is India, amongst several other countries.So if uranium is going to remain a desirable source of power that would indicate to me that we are right back where we were pre-crisis Japan. That being said, we need to look at which companies might stand to see the most potential for upside movement.

A company that was doing extremely well right up to the disaster in Japan is Hathor Exploration Ltd (TSXV:HAT). Here is a brief overview of HAT.
Hathor Exploration Ltd. is a junior uranium company focused on exploration projects in the Athabasca Basin of Northern Saskatchewan, Canada. Hathor's goal is to discover, advance and develop high grade, world class uranium deposits.

Hathor's main exploration properties are located within the eastern corridor of the Athabasca Basin which hosts all of Canada's producing uranium mines and accounts for approximately 23% of global production.

Hathor is currently advancing its Midwest Northeast Project (Roughrider), the only major discovery ever made in the Basin by a junior company.

As you can see they are positioned in what is arguably one of the worlds finest uranium areas. The assays this company has to show from their exploration to date are impressive to say the least. With this type of mineralization I fully expect Hathor will either eventually make it to actual mine status or they may become a prime takeover target. Here is a little info on where this project is located.
 The Roughrider project is located in the preeminent uranium mining district in the world, the Athabasca Basin in Saskatchewan, Canada. The property is 8.5 km north of the community of Points North and the Points North commercial airport, the main service hub for northeastern Saskatchewan. It is within 25 km of operating uranium mine, mill and tailing's facilities established at Rabbit Lake and McClean Lake during the past 35 years of production in the Basin. Neighboring companies include Fission/KEPCO's Waterbury property, Areva's Midwest deposit and Cameco's Tamarack deposit.
The Roughrider deposit contains a significant uranium mineral resource estimated at 17.2 million lbs
of U3o8  in the indicated category with an additional 10.6 million lbs in the inferred category. This is from their most recent 43-101 dated Jan. 12, 2011. SRKHathor indicate the
existence of various untested exploration targets.

Hathor Exploration has several properties in their property portfolio but with what appears to be a potential large deposit the Roughrider project is the main focus of the company at this time.

For all who are interested I urge you to do your due diligence as soon as possible as the price of HAT has started to climb over the last several trading sessions. A good place to start doing your DD would be at www.hathor.ca.

As always please do not rely on what I post but rather do your own due diligence and seek the advice of a professional if you feel that is appropriate. I have received any compensation of any kind in regards to this post. I own shares of WTC. I own no shares of HAT at this time. I have no intentions of changing my position in either company within the next 72 hours. 




NumberFrom
(metres)
To
(metres)
Width
(metres)
Cu (%)(g/tonne))

Hole NumberFrom
(metres)
To
(metres)
es)Cu (%)Ag (g/tonne)Au (g/tonne)

     
       
         
          
        
        


       
       
          
         
         
         
          
         
         

An amazing day in regards to White Tiger Mining

I have spent many hours poring over the results contained in the news release and cannot see what would create people to literally stampede to the sell button. the grades that were reported are well within the grades that anyone would expect to see. This came as a complete surprise to myself and several others I have talked to today. I do know that this should have been a rally today on results that contained several sections of mineralization. In an effort to try and rationalize this reaction I would venture to say that, as can sometimes happen, too many people were hyping the stock up to unrealistic levels. It is nice to be a little excited, for lack of a better word, but when anyone becomes over enthused it can turn into basically what is known as a pumping mode. Now I do not like to treat any stock like that myself since it will climb just fine on its own when management releases good news. When people pump it up too much it can attract a lot of attention by either new investors or people who have no idea on the proper course of performing some due diligence. Unfortunately this can have extremely detrimental effects on the share price. This only becomes compounded when we are faced with a company with a share structure that is as low as this one is.

Looking forward I will say I believe that when the results for hole 23 are released we should be in a much more stable atmosphere. Also if we experience any similarities with hole 23 in regards to assay results that we saw in hole 21, I would expect the lower sections assayed should be just as high or higher in grade. According to the results released today the lower zone was the highest grade and since hole 23 was drilled even deeper than hole 21 we could see an even higher assay result at depth.

One thing I found encouraging was the support the share price displayed just before closing. I expect that WTC should rally back to near the same levels it was pre-news, in a relatively short time frame. If the results come in for hole 23 and show as good or better mineralization then I fully expect this to rally up and quickly. That being said I must remind everyone that as soon as you think that you have seen it all the market will throw one more curveball. So I will leave it up to everyone to decide if this play is for your own specific risk tolerance. Personally I sold none and as far as I have found up to the time of this post no insiders have sold anything. I will stand by my original thoughts that I believe this company is well worth looking at and doing due diligence on. This is probably not an investment for the feint of heart, and I do not say this because I have lost faith in the company, but rather because the volatility added to a company with such a low share float can display extreme fluctuations.

Everyone do your own due diligence before investing.and let's hope that tomorrow lets this stock regain it's rightful position. For those who are interested, these are probably good buying points right now. One other thing I should add is that the results were for hole 21 only and there are more results pending, not to mention that this drill program has a lot of drilling to happen yet.

Wednesday, April 20, 2011

This could be likened to a fire sale price

Recently I had alerted you to White Tiger Mining. Today they released assay results on hole RMZ11-21 which were really not that bad at all, although not completely stellar. There has been so much noise lately from many different people on several of the chat boards that everyone had come to expect grades that are not usually seen in any large producing mines. As a matter of fact many mines are operating quite profitably at grades of 0.20%, some may be slightly higher, but when you add in the gold, silver, and zinc credits this news should have been received much differently than it was. At present if one wants to get in on this company at a huge discount I would encourage you to act quickly and do some due diligence as these prices will not last I doubt.

This is one company that I believe could be a life changer

We all dream of hitting that one stock that will change our lives financially. The chances of hitting one of these is not something that can be achieved easily. Every once in awhile one does come along and I believe this company has what it takes to quite possibly be the next one.

For those of you who may not have heard of this company let me introduce you to Focus Metals.
Focus Metals Inc. is a Canadian mineral exploration and development company incorporated under the Canada Business Corporations Act. The Company is engaged in the acquisition, exploration and development of mineral properties in Quebec, with the aim of discovering commercially exploitable deposits of minerals (primarily base metal and industrial minerals) which can either be placed into production by the Company or disposed of for a profit to companies that wish to place such deposits into commercial production. The Company intends to be pro-active in the evaluation and acquisition of new base metals and industrial minerals opportunities within its current areas of operations in the Quebec North Shore and northern Québec areas and in other emerging mineral districts of the Province. Common shares of the Company are listed for trading on the TSX Venture Exchange (‘‘TSX-V’’) under the symbol "FMS". Focus’ head office is in Ottawa, Ontario.

The companies flagship project is known as Lac Knife and this is a graphite deposit. Here are some facts on graphite and why I believe this company is destined for greatness as mines go.                Focus Metals and Graphite Mining

With our entry into the graphite exploration and mining industry,
Focus Metals Inc. (FMS) plans to become one of the largest
developers of high grade, graphite flake in Canada, and North America.

In a global market dominated by production in China, Focus Metals
provides a significant, new, large, long-term strategic graphite source
from its Quebec-based property as demand continues to grow to
meet manufacturing needs.
$10,000 and $35,000 U.S. per ton


From a commercial development perspective, prices for the best quality
graphite range between $10,000 and $35,000 U.S. per ton.
With infrastructure - electricity, water, communications and road access
to markets - our Quebec North Shore property brims with positives.
Aviation and Automotive Use


The timing of the global green initiative perhaps is the single most
important driver of our decision to develop our graphite field now.
New manufacturing techniques in the United States and elsewhere
have revolutionized the use of graphite film used for the production
of solar panels; anodes for lithium-ion batteries; fuel cells; semi
conductors, and; for heat-resistant applications used in nuclear
reactors for power generation.

Additionally, traditional applications and demand for graphite remain
constant for aviation and automotive use, steelmaking and plastic
products, bearings and as lubricants in oils and greases.

Graphite is a natural carbon element from the same family as diamonds
and coal; has extremely high temperature (>3,000 degrees Celsius)
protective properties and is a core component of high temperature
industrial furnaces.
Closing The Supply/Demand Gap


The change in production from analog to digital LCD and LED televisions,
computer screens and mobile telephones during the last 15 years has also
greatly improved demand for graphite.

Current global demand for natural graphite is estimated at 1.1 million tons
annually, with China producing some 80% of supply for mainly domestic
consumption, but with production in China in marginal decline, and demand
growing 4-5% annually, Focus Metals Inc. sees its operations as significant
in closing the supply/demand gap.


Another extremely big point everyone should know about is the fact that there is 20 times as much graphite in a lithium-ion battery as lithium. The only graphite that is suitable for this is large flake graphite of which the majority of Focus's deposit is

I might add that most graphite deposits in the world have a carbon content of between 2% to 5%, while Lac Knife has a carbon content of 17%. This is not only the worlds largest known deposit but also the only known deposit with grades this high. The advantage that Focus Metals will reap from this in regards to profit are quite clear for everyone I am sure.

Management plays an extremely important role in any company and can make the difference between success and failure. The management of Focus is second to none in my opinion. The CEO Mr. Gary Economo is completely focused on unlocking shareholder value in this company and has brought Focus Metals this far in their journey in just one year.

Obviously I cannot, nor would I,  attempt to make any guarantee's but I personally believe this is of all my picks the one I think is worth how ever much time each and every one of you need to invest doing your due diligence. For those who get in on this company stand the chance to recognize some above normal returns.
I strongly urge everyone to go to the company website at www.focusmetals.ca and if I can help answer any questions please feel free to ask.


There are many forward-looking statements contained in this post and this could lead to a material difference in the outcome of this company. I have not received any compensation of any kind in regards to this post. I do own shares in this company and will most likely be adding more within the next 72 hours.

Tuesday, April 19, 2011

Shaping up to be a somewhat similar day for many stocks again today

There are not as many bargain prices as there were yesterday but many are still very nicely priced for anyone wanting to enter. Of course there are a few that are just running away the last couple of trading sessions. Probably the one that stands out the most would be Intertainment (TSXV:INT). This tiny little tech company has struggled for quite some time but looks like it has finally paid off. The price has risen from a 52 week low of $0.08 to an all time high of $3.45 at one point in this mornings trading. It seems that there are many people taking some profits off the table now as the price has drifted down to about the $2.66 level at the time of this writing.

Again I view today as a nice buying day as many stocks are experiencing a trading pattern that I believe leaves them oversold. If a person has already done their due diligence on any companies they would like to enter then days like this are what we like to help us make as low of an entry as possible. Obviously the lower one can enter the higher the profit when it does start gaining. Always be careful not to let greed weigh too heavily on your entry point as greed will tend to make you wait until the price has already started back up. Once this happens, many people will wait hoping the price will come back to where it was, only to find themselves chasing the price. Trying to time a perfect entry is extremely difficult to say the least if not impossible.

I have some previous engagements for today so I will do my best to publish another post later today. In the meantime I hope everyone keeps a vigilant eye on companies that you may want to get entered into and I wish everyone the best of luck with all your investment choices.

Monday, April 18, 2011

Today is a good bargain shopping day for many stocks

Some days the market likes to play chicken little and the herd tends to sell heavily when they hear the sky is falling. I suppose it could be, however I like days such as this on occasion as it affords me some buying opportunities that I may not have had otherwise. I know I said I was wanting to talk about a silver play or two which I will touch on in a bit. First I would like to point out some extraordinary deals in my opinion.

A really good example of this is Copper Mountain (TSX:CUM), which has seen a recent pullback in the price of copper and with it a somewhat retracted share price. Copper Mtn. is just putting the finishing touches on construction and will be in production in June of this year. That means they will be mining copper in approximately 6 to 8 weeks from today. The mine is located about 20 km's SW of Princeton, BC Canada, so it is situated in a very stable mining area both politically and environmentally. The company owns 75% of the project while the remaining 25% is owned by Mitsubishi Metals of Japan. This is a unique partnership in that Mitsubishi Metals bought into a 25% holding of the company so as to ensure that all copper concentrate will be shipped to them. This means that Copper Mtn. does not have to worry about trying to compete out on the spot market as all copper mined is already spoken for.

Copper Mtn. also has their cost worked out to about $1.30/lb and with copper having a slight pullback they still stand to produce huge profits given that copper is currently about $4.20/lb. With the demand for copper most likely to increase looking forward and the price most likely to make a comeback and possibly even rally higher I would say Copper Mtn. is at a very nice discount today. Currently the price is about the $6.83 level. This is definitely worth a look. The companies webpage is at www.cumtn.com.

Okay, now for silver. One company I like is called Kootenay Gold (TSXV:KTN) and don't let the name fool you. This company has a whole list of high potential properties. Many they have entered into joint ventures with other companies and some they still remain in 100% control of.

The flagship property for Kootenay is called Promontorio and is a silver project situated in Mexico. Located in Sonora Mexico leaves them with some very impressive neighbors in the area. This whole area is dotted with either exploration projects and many mines both present and historical. At present Kootenay has a 43-101 compliant resource of 10m ounces of silver. This is expected to expand significantly as the company is drawing close to the end of a 10,000m drill program. Many intercepts have been rich with mineralization but there are many results pending yet which would indicate there is the potential for even further expansion of resources. The CEO has stated that this property has shown indications that the potential is there to see 100 million ounces of silver. I might add that in addition to the silver there are is also both lead and zinc credits to be had. The total recoverable metal value from the last 43-101 report is stated as $320,000,000.00. Depending on the results that are still pending this resource could be potentially anywhere from double to quadruple. Kootenay Gold has never been the fastest to release news but I would expect that some news may be forthcoming in the not to distant future. This is only based on my opinion and not on any knowledge I might have.

The management is a team of experienced people that have all proven themselves to be more than competent in what is required to bring this project right through to production. For more information on this company and the host of properties they hold including Promontorio please go to the company website at www.kootenaygold.ca.

My next company of interest for a silver play is Great Panther Silver Ltd. (TSX:GPR). This is a Canadian based company but unlike Kootenay this company has two producing mines in Mexico. The Guanajuato Mine Complex is Great Panther Silver's flagship operation. The property consists of 28 claims, totalling 1,107 hectares. The concessions are 100% owned by Great Panther's Mexican subsidiary, Minera Mexicana El Rosario, S.A. de C.V. The main claim block covers 4.2 km of the highly significant Veta Madre vein structure and is located on the Central Plateau of Mexico in the State of Guanajuato. The City of Guanajuato, where the mines are located, is 380 km by road northwest of Mexico City and is serviced by an international airport near the city of Leon.
 
Exploration Program & Resource/Reserve Estimate


The Guanajuato property overlies the core of the prolific Veta Madre silver-gold structure. These world-class low sulfidation epithermal deposits to date have total production of over one billion ounces silver and 4 million ounces gold over a 450 year mining history. One marvellous aspect of world class deposits is their defiance of typical size due to multiple phase, overlapping events. This is borne out by structural studies and fluid inclusion work. The fluid inclusion work has shown that boiling horizons (and associate silver-gold deposition) occur over a vertical range of at least 600 metres below the present surface.

There are consistent structural aspects between the various deposits on the Guanajuato property, which include bends, step-over and cymoid loops.

Presently, Great Panther Silver has:
  • Discovered gold rich mineralization at Santa Margarita (hanging-wall structure to the Veta Madre structure in the Rayas area)
  • Discovered blind silver-gold mineralization 600m below surface (drill holes EUG10-057 intersected 2.15 metres grading 576g/t silver and 1.33g/t gold). See news release dated September 7, 2010.
  • Extended (and is exploiting) two zones to depth (Cata and Los Pozos)
  • Defined and mined a previous discovery at Guanajuatito

Of the four kilometres of Veta Madre strike length covered by the Guanajuato property only 500 metres (250 metres at Cata and the same to date at Rayas) have been adequately tested from the 400 to 600 metre depths. This deep drilling is ongoing at Rayas, and will start at Valenciana in 2011. A newly commenced drill program at Guanajuatito will focus on the 100-300 metre level depths through 2010 and 2011 until former deep development is rehabilitated and deeper drilling planned.

To a certain degree deep extensions of mineralization can be found by following known deposits down plunge to depth. Drill hole EUG10-057 has shown that systematic drilling can discover new "blind" mineralized zones. Many zones at Guanajuato are relatively small, but as history has shown, conditions are primed for world-class low sulfidation epithermal silver-gold systems. Since the bottom of the silver-gold mineralization has not been reached the Company is optimistic that with diligent, systematic work any deep large silver-gold deposit will be found with the 2010-2012 deep drilling.

Resource/Reserve Estimate

When Great Panther acquired the Guanajuato Mines in 2005, there were no NI43-101 compliant resources and the Company had to rehabilitate the mine in order to begin establishing a new resource base at depth.

On December 15, 2010, Great Panther announced the completion of an updated NI 43-101 compliant mineral resource/reserve estimate on the Cata Clavo, Los Pozos, and Santa Margarita zones. The new Measured and Indicated mineral resource, using a cut-off grade of 135 g/t silver equivalent, contains 5,455,650 ounces silver equivalent (Ag eq oz). Inferred mineral resources are estimated at 2,676,924 Ag eq oz. The Measured and Indicated mineral resources include 4,372,701 Ag eq oz categorized as Proven and Probable mineral reserves, using a cut-off grade of 185 g/t silver equivalent.

This is the first time that NI 43-101 compliant reserves have been estimated for the Guanajuato Mine and is a positive step in confirming the long-term viability of this historic operation. The new resource base represents a 53% increase over the previous resource estimate (for just the Cata Clavo; see news release June 30, 2009), even after deducting the production from that zone over the last year and a half. This demonstrates the ability to not only replace what is being mined, but to increase the resource base and extend the mine life with additional drilling.


October 31 2010 Proven Mineral Reserves
Zone TonnageAUAUAGAGAgEq
Ktg/tozg/tozoz
Cata - Madre44.01.281,800344486,000603,000
Cata - Alto 130.52.212,170296290,000431,000
Pozos65.41.292,720309650,000827,000
Santa Margarita BX7.34.471,050215,00073,000
Total Proven 147.0 1.64 7,740 303 1,431,000 1,935,000



October 31 2010 Probable Mineral Reserves
ZoneTonnageAUAUAGAGAgEq
Ktg/tozg/tozoz
Cata - Madre2.10.916018713,00017,000
Cata - Alto 121.61.02710225156,000202,000
Cata - Alto 1a21.62.491,730605420,000533,000
Cata - Alto 212.32.33920721285,000345,000
Pozos68.61.032,280262577,000725,000
Santa Margarita BX30.46.696,5401515,000441,000
Santa Margarita FWSTK16.64.802,5601910,000177,000
Total Probable 173.2 2.66 14,790 265 1,475,000 2,438,000
Total Proven & Probable 320.2 2.19 22,530 282 2,906,000 4,372,000



October 31 2010 Proven & Probable Mineral Reserves
ZoneTonnageAUAUAGAGAgEq
Ktg/tozg/tozoz
Cata - Madre46.11.251,860337499,000620,000
Cata - Alto 152.11.722,880266446,000633,000
Cata - Alto 1a21.62.491,730605420,000533,000
Cata - Alto 212.32.33920721285,000345,000
Pozos134.01.165,0002851,227,0001,552,000
Santa Margarita BX37.76.267,5901720,000514,000
Santa Margarita FWSTK16.64.802,5601910,000177,000
Total Proven & Probable 320.2 2.19 22,530 282 2,906,000 4,372,000
Notes
  1. CIM definitions were followed for Mineral Reserves.
  2. Mineral Reserves are estimated at a cut-off grade of 185 g/t AgEQ.
  3. Mineral Reserves are estimated using an average gold price of US$1150 per ounce and an average silver price of US$17.67 per ounce.
  4. The minimum mining width is 1.5 metres.
  5. Bulk density is 2.65 t/m3.
  6. Numbers may not add due to rounding.
October 31, 2010 Measured Mineral Resource
Zone
Volume
Density
Tonnage
Au
Au
Ag
Ag
Ag Eq
(K m3)
(t/m3)
(Kt)
(g/t)
(oz)
(g/t)
(oz)
(oz)
Cata
34.7
2.65
91.9
1.71
5,050
338
999,000
1,330,000
Los Pozos
32.7
2.65
86.7
1.27
3,540
303
844,000
1,070,000
Santa Margarita
3.47
2.65
9.20
4.43
1,310
22.0
6,520
92,000
Total
70.8
2.65
188
1.64
9,910
306
1,850,000
2,495,000
October 31, 2010 Indicated Mineral Resource
Zone
Volume
Density
Tonnage
Au
Au
Ag
Ag
Ag Eq
(K m3)
(t/m3)
(Kt)
(g/t)
(oz)
(g/t)
(oz)
(oz)
Cata
26.3
2.65
211
2.55
4,150
474
1,060,000
1,330,000
Los Pozos
34.7
2.65
91.8
0.98
2,900
252
743,000
932,000
Santa Margarita
18.8
2.65
49.8
6.42
10,300
18.9
30,300
701,000
Total
79.7
2.65
211
2.55
17,300
270
1,830,000
2,956,000
October 31, 2010 Measured and Indicated Mineral Resource
Zone
Volume
Density
Tonnage
Au
Au
Ag
Ag
Ag Eq
(K m3)
(t/m3)
(Kt)
(g/t)
(oz)
(g/t)
(oz)
(oz)
Cata
60.9
2.65
161
1.77
9,210
397
2,060,000
2,660,000
Los Pozos
67.4
2.65
178
1.12
6,440
277
1,590,000
2,010,000
Santa Margarita
22.2
2.65
59.0
6.11
11,600
19.4
36,800
792,000
Total
150.5
2.65
399
2.12
27,200
287
3,680,000
5,450,000
October 31, 2010 Inferred Mineral Resource
Zone
Volume
Density
Tonnage
Au
Au
Ag
Ag
Ag Eq
(K m3)
(t/m3)
(Kt)
(g/t)
(oz)
(g/t)
(oz)
(oz)
Cata
Los Pozos
2.53
2.65
6.70
0.53
113
149
32,200
40,000
Santa Margarita
77.6
2.65
206
4.52
29,900
105
694,000
2,640,000
Total
80.1
2.65
212
4.39
30,000
106
726,000
2,678,000


More information on the mineral resource/reserve estimate can be found in our news release of Dec. 15, 2010.

For more info please go to their website at www.greatpanther.com.

So that about does it for today and I hope this has been helpful to some of you. It is nearly impossible to predict with any certainty what the short term trend will be in regards to the market but I highly encourage those who are looking for investments to pay close attention to prices over the next several days. I do not expect this correction to be sustained at all, but rather I expect that the long term trend will continue to be a rally upwards.

I have received no compensation of any kind for this post. I own shares in Copper Mountain and Kootenay Gold. I do not own shares at this time in Great Panther Silver.

Saturday, April 16, 2011

A look back over the past week

Well it sure has been a busy week, and with several companies either expecting news or other possible catalysts that may stir some movement in the share price I expect it could keep me busy watching all these, plus continuing to look for even more possibilities.

Stealth Minerals  (TSXV:SML) saw an increase up about one and a half cents but has returned to its previous level. This does not surprise me as this is a longer term plan here I believe. The Toodoggone area, which is where SML is planning on doing exploration work this year, will not be accessed until late June to July of this year according to the last time I talked to CEO Mr. Bill McWilliam. I still see this project holding an immense amount of potential, but this project is only just beginning. That being said this truly could go either way, although with the exploration coupled with the fact that there are existing and historical mines in this area suggests that chances are good for the discovery of more resources. Another thing that is noteworthy is the fact that management has bought 1,880,000 shares on the open market between Sept 14, 2010 and Jan 20, 2011. Anytime management buys this many shares it is a good show of faith, and in this case all these shares were purchased by the CEO. The management holds much more than this in total so I would view this as a positive aspect. I would assume we may have a while to see significant moves, but for those who get in at these levels, one could expect to see huge returns if the company has a successful drilling program. For those of you wanting to look at Stealth their website is www.stealthminerals.com.

White Tiger Mining has seen a huge run up in share price over the past two weeks. The share price was only $0.30 about two weeks ago and at closing on Fri. it closed at $0.80, and this is after reaching as high as  $0.98 in intraday trading one day. The company could be on the verge of discovering a mammoth size deposit. The length of mineralization in the cores from the first two holes in this phase of drilling are outstanding to say the least. Presently the company is awaiting assay results from the lab as to the grade. If these results are stellar this company could be prepared to climb exponentially. Some of the reasons why this company could really lift off is the market cap at present is a mere  $8.7m, add in the fact that there are only approx 15m shares fully diluted and you have a recipe for a company that could reach multiple dollars extremely quickly. The management is well experienced and the area of the Marshall Lake project, which is currently where they are drilling, falls into an area that is described as a possible candidate for a deposit similar to those found in the Noranda Mining Camp. Here is some history on the Noranda Mining camp.
The Noranda mining district is one of Canada’s nation builders, having been the key for opening up northern Quebec for economic expansion and regional development. Over an 85-year period, 20 economic volcanogenic massive sulphide (VMS) deposits have been discovered by prospecting, geological, geophysical and lithogeochemical techniques. Besides VMS deposits, the Noranda District is also host to 19 orogenic Au deposits and several intrusion-hosted Cu-Mo deposits and occurrences. VMS deposits of the Noranda District occur in the Noranda formation of the Archean Blake River Group of the Abitibi Subprovince. The majority of deposits are hosted within the Noranda Cauldron, an asymmetric volcanic depression filled with effusive basalt and basaltic andesite flows and subordinate rhyolite flowdome complexes. The Noranda Cauldron is floored by a large, multiphase subvolcanic intrusive complex that is hypothesized to be the heat engine responsible for development of much of the VMS and porphyry mineralization in the district. The VMS deposits are hosted by two distinct lithofacies, flow and volcaniclastic, where volcaniclastic includes primary pyroclastic deposits, and those that are re-deposited and syneruptive. Of the 20 past producing VMS deposits, 17 are hosted by flows (8 with mafic and 9 with felsic flows) whereas volcaniclastic rocks host the Horne, Bouchard- Hebert and Corbet deposits. The largest massive sulphide deposits occur within the felsic volcaniclastic strata at the margins of or directly overlying the Noranda Cauldron. The Noranda VMS deposits typify the bimodal-mafic type, where the majority of the host stratigraphy is composed of a mafic volcanic flow succession in which discrete felsic dome complexes are situated over major synvolcanic faults. These fault systems are also defined within the Noranda Cauldron by discrete dyke swarms originating from the underlying subvolcanic intrusive complex. The inferred primitive rifted arc environment  typical of this deposit-type is best characterized by a large volcanic edifice within the present-day Kermadec and Tonga-Fiji suprasubduction tectonic zone of the western Pacific.
Overall this company is quite possibly about to uncover a deposit of the magnitude that can really change not only the company but also the lives of those invested. The link to their website is www.whitetigermining.com.

Accelewarewww.acceleware.com. I realize they have not had much movement of late and I attribute that to the fact most investors could be holding off to see just how this will affect the company once this restructuring starts and the company receives the $900,000.00 from this deal. Personally I already took a position in the company so as to maximize any upside.

Copper Fox had a very good day on Fri. closing at $2.43 for a gain of 2.97%. This company in my opinion is definitely destined to be one of the largest mines yet. The resources they have proven up todate are massive and with the province announcing the go-ahead on the power into that area it is very difficult to see much else in their future. One thing we must not do though is allow ourselves the luxury of simply considering it all a done deal. As everyone should be aware of there is always risk involved in any investment, but I do see the risks here to be minimized substantially. For the website of Copper Fox go to www.copperfoxmetals.com.

Some people have been talking about the price of copper dropping further and I see this being possible but I do not see this being a long-term trend. Short-term a small pullback is possible, however with the continuing growth in China and with the rebuilding that will take place in Japan shortly, add this to the fact that the demand for copper has and is continuing to grow while the supply portion of this equation is dropping, and long-term I only see the price of copper climbing at this time.

Next week I plan to share at least one and possibly two silver plays. This is another metal that I see some huge possibility as to upside.I hope everyone has a great weekend and I look forward to sharing more with everybody next week.

For the purpose of declaration I have received no compensation of any kind for this post from anyone. I own shares in all of the companies mentioned in this post.