Company: Gold Reach Resources
Symbol: GRV (TSX-V)
Share price: $0.68 (Close on Feb 13, 2012)
Shares outstanding: 23,572,884 and 34,043,266 FD (At Jan 19, 2012)
Market cap: $16,029,561
Cash & Cash Equivalents: $56,285 (As of Sept 30, 2011) *

* Estimated to have $1million in cash from warrant and option expiry (See Below)

Gold Reach Resources – 1 Year Chart

We first uncovered Gold Reach Resources during a recent video lesson we shot for our members area that shows how investors can find area plays for big gains.

After the video, we dug a little deeper and found out they have two great properties 100% owned and one property has Gold Reach management knocking on their neighbours door to take them to production.

Ootsa Lake Property

The property is located 120 km southeast of Houston BC and only 8 km east of Imperial Metals (TSX: III) 50% owned open pit copper/molybdenum Huckleberry Mine that produces approximately 15,000 tonnes per day.

What’s exciting  is they are quickly proving up their property and in January 2012 announced an impressive 400% increase in copper, gold, molybdenum, and silver at the Seel deposit on the Ootsa property.

Some skeptics might argue that a 0.20% CuEq cut-off is too low, but that is exactly what the Huckleberry Mine is using for their resource estimates and they have been producing since 1997.

What excites us the most about this increased resource estimate is the possibility of  being acquired by Imperial Metals (TSX:III) or perhaps the start of discussions with the Huckleberry Mine for milling and crushing of their Ore.

In any case, with a $7 million drill program of 20,000m planned for 2012 the company should have some good news flow from Ootsa and with any luck  be able to increase this already impressive resource estimate.

Auro Property

The company started acquiring and staking claims (The Auro Property) in January 2010 as an area play to Richfield Ventures (TSXV:RVC) who was then acquired in June 2011 by New Gold (TSX: NGD) for $550 million.

Hoping to capitalize on the extra attention the area was getting, Gold Reach quickly drilled 9 holes in 2011 that didn’t provide stellar results, but gathered important geological data which will help with this years drilling.

According to the website “The next round of drilling will target Gold Reach’s northern border with New Gold which is only 3km from their Blackwater discovery which has recently increased their indicated and inferred resources to 6.5 million ounces of gold.”

 Worth Mentioning:

• 712,000 options @ $0.20 with an expiry date of January 4, 2012 were most likely all exercised
• 3.5 million warrants @ $0.25 that expired December 31, 2011 were most likely all exercised
• Assuming they were all exercised the company should have about $1 million in cash
• Need to finance their 2012 drill programs
• Lack of liquidity (low trading volumes)

Near Term Catalysts:

• Takeover by Major or Mid-tier (Possibly Imperial Metals??)
• Private Placement Announcement
• Announcement about an agreement with Huckleberry Mine to mill and crush their ore
• Start of 2012 exploration programs at Ootsa and Auro
• 2012 drill results from Ootsa and Auro

The Bottom Line

Two great properties, a small market cap, and a tight share structure are all ingredients of a great company in the making. However, it will be very important for investors to keep an eye on warrant and option expiry moving forward and the overhang of cheap shares the recently exercised shares have already created.

If the company can manage its share structure and place shares in friendly hands at reasonable prices for the upcoming financing for the 2012 drill program, then investors have a great opportunity to make great returns from these levels with Gold Reach Resources (TSXV:GRV).

More to come on Gold Reach Resources and our last pick!

Still a long ways from production, the Rob Project’s early exploration results are encouraging and continue to build on results from 2007 and 2008 which saw  high grade results in other areas of the property.

Aimed at evaluating the bulk tonnage potential of the Michigan area, which until now had never been drilled before this round of drilling didn’t disappoint.

Why the lack of market reaction then?

•  Freegold is still a relatively under-followed company
•  Lack of promotion and news distribution
• Overhang of warrants set to expire March 16, 2012
• Non-Flagship property results

Despite the lack of market reaction this was good news for Freegold and perhaps investors are simply waiting for results from their Golden Summit property or a resource update from Vinasale. Time will tell, but with the recent breakout above $0.70 on the charts and many more near term catalysts to come, we are still expecting good things from Freegold Ventures this year.

Company: Rockhaven Resources Ltd.
Symbol: RK.V (TSX-V)
Share price: $0.40 (Close on February 6, 2012)
Shares outstanding: 46,304,976 and 59,380,663 FD (At November 2011)
Market cap: $18,290,465
Cash & Cash Equivalents: $10.4 Million (As of July 30, 2011)

Rockhaven Resources Ltd – 1 Year Chart

As gold broke through $1,7000/oz in late January we wanted to find a  junior exploration company with good management, quality projects, a tight share structure and a company that has multi-bagger potential.

Discussed at length in our book Mining Stocks Guide, mulit-baggers are companies that provide investors with many multiples of their initial investment. They aren’t easy to find, but all of them have 3 key ingredients.

1. People
2. Projects
3. Good Share Structure

RockHaven Resources Ltd (TSX-V: RK) is a company with all three of these going for them and more with a  primary focus on their Klaza Property in mining friendly Yukon.

People

When the company is a part of the Strategic Exploration Group of companies you know you are in good hands and the management team in place at RockHaven is capable of taking projects from exploration to development.

Projects

The 100% owned Klaza Gold -Silver Property is the company flagship property located 50km west of Carmacks, Yukon in the Dawson Gold Belt.  The property was acquired in November 2009 for cash and shares from Atac Resources (another Strategic Exploration Group company) and hosts high grade vein and bulk tonnage showings in four parallel  1 to 75m wide structural zones.

The company recently released final drill results from their 2011 diamond drill program and continue to piece together the 4 zones to collectively form a 1.5km wide by 8km long northwesterly trending structure. If they can prove up the land in between the four zones that is one nice property.

Share Structure

According to the companies latest quarterly financials the company has  approximately $10 million in cash and cash equivalents and another $4 million in marketable securities. With only 46 million shares outstanding the company has almost $0.20/share in cash value without giving any merit to their properties.

With this sort of cash position and share structure the company shouldn’t have to return to the market for financing anytime soon.

Worth Mentioning:

• Strategic Metals (TSX-V: SMD) owns over 12 million shares or 26% of RockHaven.
• 2.8 million warrants exercisable at $0.60 expire April 15, 2012
• February 2010 RockHaven contributed 5 properties to form Silver Predator in exchange for shares
• Owns 2.5 million shares of Silver Predator (TSX: SPD)
• Own 16.6 million shares of Mill City Gold Corp (TSXV:MC)
• Own 20% of West Point Resources (Q2 2012 IPO)

Near Term Catalysts:

• Exploration results from other Yukon companies
• News from their optioned properties
• Adding new advanced stage projects to its portfolio
• High gold prices
• Breaking through 50 day moving average and finding support at $0.41
• Quick start to a 2012 drilling season due to extensive prep work in 2011

The Bottom Line

RockHaven is a well funded junior exploration company with a tight share structure run by experienced management. As gold continues higher you can expect RockHaven to follow suit and bounce of its recent lows to provide investors with potential multi-bagger returns from here.

More to come on RockHaven Resources and our last 2 top picks!

]]> http://miningstocksguide.com/2012/02/pick-3-has-multi-bagger-potential/feed/ 0 http://miningstocksguide.com/2012/02/pick-10-news-release/?utm_source=rss&utm_medium=rss&utm_campaign=pick-10-news-release http://miningstocksguide.com/2012/02/pick-10-news-release/#comments Mon, 06 Feb 2012 16:39:16 +0000 jstar http://miningstocksguide.com/?p=2210 Pick #10 Great Basin Gold

Issued a news release out this morning on its Preliminary Fourth Quarter and Full Year 2011 Operating Results.

So far the market does not like it with GBG down 8% to $1.06 on the trading day. GBG is still up from our initial pick.

The reason for this is again issues with the the Burnstone Mine in South Africa.  Both mines also missed forecasted production in 2011.

“Quarter-on-quarter, ore development rates and production from stoping were however less than plan due to the impact of the December 2011 Christmas break as well as underground flooding of a number of development ends through fissures following an unusually high seasonal rainfall In December 2011. Permanent water reticulation infrastructure is under construction for completion in Q2 2012, with interim measures implemented to manage the water balance in the short term.”

President and CEO Ferdi Dippenaar commented: “Whilst our Nevada operations returned a much improved performance compared to 2010, our Burnstone Mine continues to face challenges in its production build-up programme. The focus will be on improving the ore development rate required to deliver on the production plan and with the benefit of the infill drilling completed over the past 9 months which has improved our understanding of the ore body and the good progress which is being made in improving the underground infrastructure, we are looking forward to a much improved 2012.”

If Great Basin Gold can get the Burnstone mine on track you should see a much higher share price in 2012 as discussed in our pick #10 post here

To view the news release at the Great Basin Gold website click here

Symbol:  PNP (TSX)

Share price: $1.77 (Close on Jan 30, 2012)

Shares outstanding: 136,547,273

Market cap: $247,151,000

Cash: $206,000 (as of Sep 30,2011)

Warrants trading: PNP.wt, PNP.wt.a, PNP.wt.b

Pinetree Capital 1yr chart

As many of you know 2011 was a tough year for investors in the junior mining sector. Looking ahead in 2012 we are expecting a rebound in junior companies and one of the best ways to play the rebound is a basket of junior companies held by Pinetree Capital.

Pinetree capital is a diversified company that holds positions in small cap junior resource companies.  Pinetree’s strategy is to identify companies with good potential properties and reserves and invest heavily in advance of the projects being developed.

The Pinetree portfolio consist of companies in different resource sectors including precious metals,base metals,oil and gas,potash,lithium,rare earth,uranium, and coal. Precious metals is the biggest percentage of the portfolio at approx 54%.

Pinetree has several interesting companies to watch including GCU (Gold Canyon Resources), CMA (Cream Minerals ltd), MAT (Matamec explorations),  and UGD (Unigold) which has doubled this year.

To view their latest portfolio click here

Things to note:

• The Uranium sector will be something to watch in 2012. Uranium demand continues to outpace supply. The sector should rebound after the disaster in Japan. Uranium was the `talk` of the Vancouver Cambridge Show.

• The NAV (Net Asset Value) of Pinetree is always above the value of the share price.

• Management is well experienced in resource investing and is led by Sheldon Inwentash. Sheldon has over 25 years experience investing and is one of the top guys to follow in the resource world. Management is one of the keys discussed with our premium readers.

• Pinetree takes part in many private placements which provides them with warrants which offer greater upside leverage for investors.

The TSX venture was beat down pretty good last year and if you see any sort of a rebound Pinetree will definitely be a leader to watch.

The Bottom Line:

If you are looking for a well managed and diversified company that has  a piece of each resource sector focused on early exploration plays, Pinetree capital is hands down your best bet.

More to come on Pinetree Capital and 3 more top picks!

]]> http://miningstocksguide.com/2012/02/pick-4-a-basket-of-junior-companies/feed/ 0 http://miningstocksguide.com/2012/01/pick-6-newstrike-update/?utm_source=rss&utm_medium=rss&utm_campaign=pick-6-newstrike-update http://miningstocksguide.com/2012/01/pick-6-newstrike-update/#comments Sat, 28 Jan 2012 19:24:40 +0000 jstar http://miningstocksguide.com/?p=2065 Our top pick #6 Newstrike Capital issued a news release yesterday.

The headline was :

Newstrike Capital Intersects 72.95 Meters Of 1.54 G/T Au At The Ana Paula Project

Now the stock did not react much to the news and closed at the exact same price as Thursday ($2.69). I was a little surprised on no movement as the news release was excellent in my opinion.

Lets do a brief case study on the news release.

1) Newstrike was reporting on the last holes drilled in the 2011 program.  The holes they reported were step out holes which as explained in our ebook for premium members are very important when defining a deposit.

2) Newstrike reported 4 drills holes in this new release with each hole hitting gold.  Drill hole AP-11-76 was the best with 112 gram m/t (72.95m*1.54g/t). With our premium membership  readers understand what a good drill hole is and how to watch for potential red flags.

The bottom line from this news release is that the deposit continues to grow as Newstrike steps out with the drills.

P.S. Here is a link to our original post on Newstrike

Company: Endeavour Mining
Symbol: EDV (TSX)
Share price: $2.46 (Close on Jan 26, 2012)
Shares outstanding: 244,609,949 and 295,372,875 FD (At Dec 19, 2011)
Market cap: $601,740,474
Cash & Cash Equivalents: $200.1 Million (As of Sept 30, 2011)

Endeavor Mining Corp – 1 Year Chart

In our quest for a junior gold producer with significant upside and the ability to bring more ounces into production as the price of gold heads higher in these tough economic times we bring you Endeavor Mining Corp.

Endeavor Mining Corp is a gold production and exploration company with reserves of 2 million ounces and currently producing at about 170,000 ounces per year from two operating mines. With near-term mine construction decisions and ongoing exploration work their goal is to produce 250,000 ounces/year by the end of 2013.

Many of you might remember Endeavor from its banking days when it advised many mining companies on their finances. It was these experiences that led Endeavor to trade in the suit and tie for a hardhat and go mining.

After you have seen as many merger and acquisitions and company restructuring deals as Endeavor has, its only a matter of time before a deal comes across the desk that you can’t ignore and take action on.

And that’s exactly what happened.

1. Acquired Etruscan Resources (Sept 2010)
   
2. Completed merger with Adamus Resources Limited (Dec 2011)

Etruscan Resources Acquisition

Etruscan Resources was an emerging junior gold producer, but it didn’t have its financial ducks in a row and hoped Endeavor could help them get things on track. They did and made a big investment in the company before eventually taking over the company in September 2010.

Adamus Resources Limited Merger

Announced in August 2011 and completed in December 2011, Endeavour and Adamus combined through an all-stock merger of equals transaction creating a new growth focused West African gold producer (“The Company”). As a result the company has double the shares outstanding  post merger, but the pros of the deal far outweigh their still respectable shares outstanding count for a junior gold producer.

Mid-Tier Producer in the Making

As defined in Mining Stocks Guide a mid-tier gold company produces anywhere from 200,000 million to 1 million ounces of gold per year and Endeavor is well on its way to graduating from junior miner status. The company is forecasting 2012 gold production of 172,000 ounces from its two mines (Youga and Nzema) and if all goes well with their advanced-stage Agbaou project 200,000 million ounces is in the cards.

Worth Mentioning:

• Increasing leverage to gold via planned $100M de-heding
• They have cash costs of $575 – $625
• Q3 2011 reported record gold production of 24,047 ozs
• Endeavor has an “A” warrant (EDV.WT.A)  with an exercise price of $2.50 and expiry of February 4, 2014 that closed at $0.71 on January 26th, 2012.

Near Term Catalysts:

• De-hedging news
• Growth via further M&A Activity
• Q4 Results (Guidance 84,000 ounces at $610 to $650/oz)
• Agbaou Construction Decision Q1 2012 (Production late 2013)
• Mid-Tier Status in 2013
• Breaking thru 50 DMA on the chart
• Possible Takeover Target

The Bottom Line

Endeavor is a seasoned financial company that has gone from merchant bank to miner because they know a good deal when they see one. They are financially sound with great growth potential and should definitely be watched closely as they go from Junior Gold Producer to Mid-Tier status.

More to come on Endeavor Mining Corp and 4 more top picks!

]]> http://miningstocksguide.com/2012/01/one-of-the-sectors-top-merchant-banks-turns-miner/feed/ 0 http://miningstocksguide.com/2012/01/canaccords-2012-mining-stocks-watchlist/?utm_source=rss&utm_medium=rss&utm_campaign=canaccords-2012-mining-stocks-watchlist http://miningstocksguide.com/2012/01/canaccords-2012-mining-stocks-watchlist/#comments Mon, 23 Jan 2012 18:02:11 +0000 cvac01 http://miningstocksguide.com/?p=1958 Canaccord recently announced it’s top mining stocks for 2012 and one of our top 10 picks for 2012 made the list.

Their 2012 watch list have been selected based on a wide variety of criteria, including:

• capable company managements
• 2012 work programs
• project potential
• leverage to metal price movement

Here are the 22 exploration/development/mining companies on Canccord’s 2012 Watch List that they believes could provide above average speculative potential in 2012 (listed in alphabetical order):

1 Abzu Gold Ltd. ABS TSX-V

2 Armistice Resources Corp. AZ TSX

3 Balmoral Resources Ltd. BAR TSX-V

4 Castle Peak Mining Ltd. CAP TSX-V

5 CB Gold Inc. CBJ TSX-V

6 Chalice Gold Mines Limited CXN TSX

7 Columbus Gold Corporation CGT TSX-V

8 CuOro Resources Corporation CUA TSX-V

10 Esperanza Resources EPZ TSX-V

11 Ethos Capital Corp. ECC TSX-V

12 Freegold Ventures Ltd. FVL TSX

13 Global Minerals Ltd. CTG TSX-V

14 Happy Creek Minerals Ltd. HPY TSX-V

15 Marathon Gold Corp. MOZ TSX

16 Pachamama Resources Inc. PMA TSX-V

17 Panoro Minerals Ltd. PML TSX-V

18 Pilot Gold Inc. PLG TSX

19 PNG Gold Corporation PGK TSX-V

20 Rugby Mining Ltd. RUG TSX-V

21 Tembo Gold Corp TEM TSX-V

22 Tigray Resources Inc. TIG TSX-V

We were able to track down the original report released December 21, 2011 that provides more detail on the 22 companies listed above and more.

Download it here: Junior Mining Weekly_2012-Watch-List

Premium Members also get access to the live chat, a detailed list of our top 10 picks for 2012, and the video lessons we started adding  to the members area.

Of course they also get a copy of Mining Stocks Guide, free lifetime updates, and exclusive members only bonuses.

If your cheap make sure you check back often for always free content before it moves to our premium section.

If your not then grab yourself a premium membership and get Mining Stocks Guide as your roadmap for mining stocks.

Top 10 Mining Stocks 2012 – Pick #6 Newstrike Capital Inc

Symbol:  NES (TSX-V)

Share price: $2.78 (Close on Jan 18, 2012)

Shares outstanding: 104,215,208

Market cap: $283,465,000

Cash: $18.6 million (as of July 31,2011)

Newstrike Capital Inc 1yr chart

Newstrike capital is a gold exploration company proving up a  massive gold deposit in Mexico. Mexico is one of the worlds top jurisdictions for mineral exploration.

The Ana Paula project is located in the Guerrero Gold Belt and was acquired from Goldcorp. This is the focus project for Newstrike.Newstrike is the largest land holder in the Guerrero Gold belt with over 88.950 ha. The area is well known for gold deposits with Goldcorp and Torex Gold developing projects.

When the project was acquired it already had north of 1 million oz proven and that is growing higher with the high grade intercepts Newstrike has been hitting.

Some of these intercepts are below.

Nov 23rd,2011 - Newstrike Capital drills 135.4 m of 5.57 g/t Au at Ana

Aug 3rd,2011 – Newstrike Capital drills 120 m of 4.6 g/t Au at Ana

June 27th, 2011 - Newstrike Capital drills 190.15 m of 3.52 g/t Au at Ana

June 6th, 2011 - Newstrike drills 112.90 m at 2.51 g/t Au at Ana Paula

April 20th, 2011 - Newstrike Capital drills 230.9 m of 7.5 g/t Au at Ana

Newstrike currently 4 drill rigs turning for the 2012 exploration program.

Things to note:

- Lukas Lundin and Sun Valley Gold are major shareholders

- The burn rate is less than 1 million a month (usually around 800k)

- Management is well experienced in Mexico co founding the Goldcorp Filos project and the Torex gold project

Potential catalysts in 2012 include:

1)  Resource estimate expected Q1 2012

2) Continuation of long intercepts of high grade drill holes

3) An increasing gold price

4) A possible takeover?

More to come on Newstrike Capital and 5 more top picks!