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Canadian Stock Exchanges... SANTA BABY MAY BE GOOD TO FELLOW ARCTIC EXPLORERS

BY E.A. SCHILLER

While Canadian Christmas shoppers applaud their appreciating dollar against the former almighty US green back when they do cross border shopping, we can report that some good news is coming out of the North Country that should please some junior resource stock investors. Well maybe not due to Santa’s help but maybe he provided some divine influence – if you are a Santa believer. An area that has come to life and not fully appreciated is the success coming out of Nunavik, Quebec by nickel explorer Canadian Royalties Inc. (CZZ-TSX). (And do not confuse Nunavik with Nunavut – Nunavik is a partially self governing body that occupies the northern 1/3 part of Quebec made up of 11,627 inhabitants, of which 90% are Inuit whereas Nunavut is a defined Canadian Territory carved out of the former Northwest Territories and a self governing entity).

Canadian Royalties have assembled an impressive land position in the vicinity of Xstrata’s successful nearby Raglan nickel/copper operation, a former Falconbridge project now under the control of the Swiss - based mining conglomerate. CZZ under the mandate of geologist and Chairman Glenn Mullan have shown that there are other Raglans around and based on some recent drill results this seems to be the case. Current drilling on the Allammaq project intersected some impressive nickel/copper values highlighted by 49.5 meters running 1.28% Ni, 1.46% Cu, 0.72 g/t Pt and 2.97 g/t Pd. With platinum selling for about $1460.00 an ounce and palladium selling for about $360.00 an ounce this equates to about $50.00 a tonne just for these two precious metals. Given the strength of nickel and copper prices and their assumed continuation, Allammaq has to be given serious attention. This hole demonstrated that a mineralized body with a strike length of a minimum 200 meters has been delineated. Allammaq is one of several nickel/copper deposits that have discovered and sure to add to the potential viability of the company’s holdings. CZZ has traded in the 3.00 to 3.50 range and in late November came off to $2.75.

Moving westward to Nunavut, remember not Nunavik, Shear Minerals Ltd. (SRM-TSX-V) and Stornoway Diamond Corp (SWY-TSX) recovered an impressive 5.43 carat diamond from the second phase of processing of a 400 tonne bulk sample extracted from the Kahuna kimberlite dike on their Churchill project. The diamond is a broken fragment of a larger stone estimated to have been originally about 14 carats. Further sample processing is in progress with additional diamonds expected to be recovered. This project comprises the diamond rights to more than two million acres near the communities of Rankin and Chesterfield Inlets where land and sea access is available.

The market did not respond with much enthusiasm as Shear and Stornoway traded unmoving in60-65 and 70-75 cent range respectively. Farther west on the Afridi project in the Northwest Territories within the Lac de Gras diamond district, Shear and partners confirmed that eight initial geophysical targets suggestive of kimberlites are ready for drill testing. The Afridi project adjoins the operating Diavik diamond mine and several known diamond-bearing kimberlites. Another Nunavut project worth mentioning is a joint venture between Forum Uranium Corp (FDC-TSX-V), Superior Diamonds Inc. (SUP-TSX-V) and Tanqueray Resources Ltd. (TQY-TSX-V). Preliminary results from their summer exploration program discovered new uranium showings that yielded values up to 0.16% U308 in a variety of rock types not dissimilar to ores contained in the other nearby deposits. AREVA Resources Canada Inc. Previous samplings yielded mineralized showings up to 1.07% U308. The 118,000 hectare Tanqueray property is located 40 kms west of Baker Lake and 40 kms east of the Kiggavik-Sissons uranium Project of AREVA. The AREVA project has resources of 130 million pounds of U308 from rocks that grade 0.33 to 0.52 % U308. The Nunavut uranium activities referred to as the Thelon Basin setting has some similarities to the Athabasca Basin of Saskatchewan where world class uranium mines are in production.

Forum trades in 50 cent range, Superior in the 30-35 cent range and Tanqueray in the 10-12 centsrange. For share holders of Miramar Mining Corp (MAE-TSX) some joy came forth with the offer by Newmont Mining B.C. Ltd. To acquire all of the outstanding common shares of Miramar. The company has been a diligent and successful gold explore near Hope Bay where Indicated Resources totaling 36,014,000 tonnes grading 4.51 g/t and Inferred Resources totaling 46,605,000 tonnes grading 3.64 g/t and been delineated. Hope Bay is along the Arctic Coast and comprises an Archean greenstone belt typical of several Canadian gold camps such as Yellowknife, NWT and Red Lake, Ontario. The Newmont offer is valid until Dec.2/07 at a price of $6.25 Canadian. The market and many observers did not like this offer as the stock immediately traded to around $6.50 with the expectation that a higher offer would appear by Newmont or maybe by others. Moving south to an area with less severe winter conditions but within a snow belt of southern British Columbia much progress is taking place at the Max molybdenum south of Revelstroke in the Monashee Mountains. Roca Mines (ROK-TSX-V) have commenced production this fall and when fully operational will produce 72,000 tonnes of high grade Mo ores.

Underground development work is taking place and mill fi ne tuning underway with first concentrates to be shipped in the coming days. Measured and indicated resources on HG zone are 280,000 tonnes grading 1.95% Mo in addition to approximately 43 million tonnes grading 0.20% Mo. Recently five diamond drill holes totaling 4,800 meters were directed to depth extensions of the now mineralized body. Significant alteration and visible molybdenite mineralization were intersected 200 meters below the know resource. Assay results are pending and should provide extremely important information on the full potential of this deposit. Roca stock has been trading in the plus $3.50 range but in late November settled back to around $3.00- 3.05. A buying opportunity for those for those that like molybdenum and the belief that the Max deposit has much more ore than quantified to date.

For those who jumped on the moly bandwagon a couple years and heard it here from “moi” and are now reaping the rewards for such stocks as Adanac Molybdenum Corp (AUA-TSX-V) and Idaho General Mines and now renamed as General Moly Inc. (GMO-AMEX) I am happy to mention that both companies are preparing for production. Adanac has traded recently in the $1.50 range but currently is around $1.25 whereas General Moly has performed like a champion trading today (Nov. 22) in the $10.35 (US) range. A couple of years ago AUA was well below a dollar and GMO was just under a dollar. General Mining has just concluded a strategic relationship with ArcelorMittal S.A., the world’s largest steel producer. ArecelorMittal purchased 8.257 million shares of GMO at $8.50 a share. As zinc and copper prices have sagged these days, molybdenum has remained firm at $33.00 a pound. With Christmas just around the corner those wishing some of the Santa’s help in improving their portfolio better be good.

Ed Schiller is a consulting geologist. He can be reached at Box 28048 R.P.O., E. Kelowna, B.C. Canada V1W 4A6. Or via email at: eschille@shaw.ca. Mr. Schiller writes for several national and international business and resource magazines. Opinions expressed are those of Mr. Schiller and do not necessarily reflect those of the management of the Miners News.