CANADIAN STOCK EXCHANGES – A LOOK AT SOME JUNIOR GOLD STOCKS WITH SOME EXCELLENT POTENTIAL
The market showed a little resilience in September especially in the precious metal sector with gold
hovering around $1770 an ounce and silver at $ 34 -ish an ounce then in early October edged slightly
above the $1770 mark. Platinum and palladium remained firm mainly due to the disruption of mine
workers in South Africa. The Canadian dollar exceeded $1.03 temporarily against the US greenback then
back see-sawed around the $1.02 level in late September. This is good news for snow birds heading
south for winter retreats but not for Canadian exporters of widgets or water skies. For hockey diehards
the NHL dispute has reached a stalemate with players fleeing to Europe for ice time positions. And to
stay in sports a moment the Seahawk-Packers game in Seattle incited a lot of discussion about
replacement referees and the financial outcome of that 14-12 Seahawk victory. Las Vegas the Mecca of
sports betting gained some $15 million more from that win due to the Seahawk victory and worldwide
much more went to the pockets of the odds makers (according to a ABC news report the world wide
figure was between $150 to 250 million). This comment also applies to the other lucrative professional
sports where a baseball slugger or a three point basketball player quarterback makes more money than
a cardiologist or an astronaut.
The move by Ford to reduced rare earth metal uses in their hybrid and electric cars and moving to
lithium batteries rather than nickel-metal hydride batteries signifies some major re think as to the
potential of lithium over REE's. In the next issue I will address this topic as it signifies a change in
thinking on battery innovation.
With the summer field season coming to an end, the most joy for exploration successes' was in the
Yukon. For starters ATAC Resources (ATC-VSE-V) made a major new Carlin-type gold discovery with the
Nadaleen trend on its 100% owned 185 km long Rackla gold project. Called the Anubis the discovery
hole is 10 km west of the important gold-bearing Conrad, Osiris, Isis and Isis East zones. The Anubis
discovery is a major milestone for the company as it now confirms the district-sized potential of the 40-
km long Nadaleen trend within the 185 km long Rackla gold belt. In addition to a one-km gold soil
anomaly and high grade surface samples up to 139 g/t Au, a drill hole intersected 8.51 meters grading
19.85 g/t Au. Further drilling is underway on this new zone and three drills continue to test the Conrad
zone 10 kms to the east of the Arubis zone. ATC stock trades around $2.55, not showing any gains with
Dropping a bit south into British Columbia I have to mention Pretium Resources Inc (PVG-VSE-T and
NYSE)and their Brucejack gold project in the Valley of the Kings north of Stewart and south of Eskay
Creek where one of BC's famous gold mines is located. High grade gold intersections are reported every
few weeks at Brucejack that are overwhelmingly fabulous. Like on September 18 hole SU-502
intersected 8,151 grams of gold per tonne uncut over 0.50 meter or 237.7 ounces per ton over 1.64 feet.
Last month they reported hole SU-510 intersected 4,673 g/t Au over 0.59 meters. Previously reported
holes were consistently thousands of grams over less a meter in width but indicated a jewel box is at
Brucejack. An April of this year indicated resources were 8.9 million tonnes grading 17.3 g/t Au and
inferred resources of 10.4 million tonnes grading 25.5 g/t Au. Upgrading of these resources are
forthcoming and additional tonnes and ounces are assumed. A very promising gold project is underway
immediately north of Brucejack at Snowfield. At the moment both properties are only accessible by helicopter but road and power facilities are now under construction. Pretium stock trades around
$12.70 and has been higher and lower recently.
Moving eastward I take you Nunavut and the Inuit community of Whale Cove on Hudson Bay 70 kms
south of Rankin Inlet and north of the Manitoba/Nunavut border. To the west and north of Rankin is the
thriving community of Baker Lake, and 70 kms north again the Meadowbank producing open-pit gold
mine of Agnico-Eagle Mines Limited (AEM-TSX). Meadowbank has proven and probable reserves of 2.2
million ounces contained in 24.5 million tonnes grading 2.8 g/t and almost another 2 million ounces of
gold of indicated and inferred resources. Northquest Ltd (NQ-TSX-V) released some drill results on their
Pistol Lake Bay Victors project near Whale Cove that caught my eye and the eyes of astute investors.
Hole PB-12-10 intersected a whopping 163.22 meters of 5.61 g/t gold that included a 30.05 meter of
11.23 g/t Au. The target is an elliptical, one-km-diameter gabbro-diorite intrusive complex within
silicified schist and mylonite of the Pistol Bay Corridor. Ten drill holes (2,200 meters) have been
completed and about 14 more drill holes (3,000 to 3,500 meters) will be completed at the Victors target
by the end of the drilling season which you can imagine located north of the 60th parallel will be well
before Christmas. A second drill has now been positioned on the property to accelerate the program.
The property has been expanded through the acquisition of recently staked 13 claims (98 sq.kms or
24,250 acres) which cover the western extension of the Pistol Bay corridor. The corridor is a two-km-
wide, northwest-trending, deformation zone containing multiple gold occurrences including the Vickers,
Sako and Bazooka targets. The company has projects underway in Mali and Myanmar. The company has
entered in an agreement with a group of financing companies to raise up to $5 million through a
combination of flow-through and regular units at 75 cents and 65 cents respectively. The stock in early
September was 34 cents and then moved to 80 cents in late September then back off to the low
seventies in early October.
From the far north I take you to western Ontario and my favourite stock east of the famous gold
camp of Red Lake. If my readers were paying attention you will have noticed I mentioned Gold Canyon
Resources several times in the past. President Akiko Levinson and her very capable staff have the midas
touch as witnessed with their Springpole project and continued reporting of lengthy gold intersections
on their Portage Zone. Last month hole SP 12-162B intersected 367.4 meters of 1.47 g/t Au or a
whopping 1,205 feet of 0.043 oz/t Au. For those of you who might not appreciate what 0.043 oz/t Au
represents, this kind of grade is what some of the gold mines in Nevada mine and some even less than
0.043 g/t Au. Environmental baseline studies and geotechnical aspects of the project are in progress.
The company has an ongoing REE joint venture exploration project in Malawi with JOGMEC (Japan Oil
Gas and Metals National Corporation). In mid-September the stock broke $2.00 up from under $1.50
earlier in September then settled in at around $1.80 later in early October.
So to all you gold bugs if you like the current rally in gold stocks and you want genuine companies
run by very legitimate directors and officers and exploring prospective projects I refer you to the above.
Happy investing and good luck.