CANADIAN STOCK EXCHANGES – NOVEMBER – 2013

By: E. A. SCHILLER

WILL WASHINGTON GET THEIR ACT TOGETHER?

With so many issues affecting our planet earth, ranging from US government debt-ceiling/Obamacare, Syria and heaven forbid Canada spying on Brazilian internet connections dealing with mineral resources it is no wonder the stock market here in Canada as in the US is tough to reconcile. The collapse of precious metal prices provided little help to the many juniors chasing these metals. Companies with sound projects and well financed when they release favourable drill results the stocks react by moving nowhere and in some cases downward. My favourite project involving Fusion Uranium Corp. (FCU-TSX) and Alpha Minerals Inc. (AMW-TSX) at Patterson Lake South (PLS) in northern Saskatchewan released an impressive hole PSL13-099 in which they intersected 144 metres total composite mineralization including eight meters total composite off-scale radioactivity on line R945E zone. The interval intersected was from 101.0 to 281.0 metres. This hole represents the largest accumulation of mineralized intervals in any drill hole at PLS to date. As reported previously the mineralized trend or corridor extends over a strike length of 1.035 kilometres. The two companies are in the process of a plan of arrangement to amalgamate with Fusion as the surviving entity and the formation of separate spincos of each company holding non-PLS uranium properties. In mid-October Fusion hovered around $1.15-20 down from $1.45 and Alpha around $6.15 down from plus seven dollars earlier this year. Saskatchewan uranium producer Cameco (CCO-TSX) trading around $18.00 in mid-October was down from plus $22 this past summer. As the flag ship of the uranium fleet in Canada the market is a little nervous on the destiny of uranium as indicated by CCO’s stock price.

The only joy I can see is in the Northwest Territories with Mountain Province Diamonds (MPV-TSX-V) and Kennedy Diamonds (KDI-TSX-V) where the two neigbours have advancing diamond projects with partner De Beers. Mountain Province and their Gahcho Kue project claim to be the world’s largest and richest diamond deposit in the making has seen its stock trade firmly around $5.15. Kennedy Diamonds recently released a successful $9 million dollar hard and flow-thru financing to continue exploration on their Kennedy North project on the Kelvin and Faraday kimberlites and 39 high priority geophysical targets with kimberlite signatures. KDI stock trades around $5.50 and has held up extremely well in this uncertain market. There seems to be no doubt that these two projects will lead to producing diamond mines and with De Beers as a common partner to both projects it could lead to considerable benefits to both MPV and KDI. Even though positioned north of Yellowknife and serviced by an ice road with limited access during the height of winter they both will join the ranks of the other three producing diamond mines north of them, Ekati, Diavik and Snap Lake, all winter ice road serviced and very successful operations.