Terreno Resources Corp (V.TNO) $0.11
Shares Outstanding: 56.8 million
Market Cap: $6.25 million
Cash position: ~$2.0 million
http://www. terrenoresources.com
Corporate Presentation (PDF)
Trading near it’s 52-week low, we are initiating coverage on shares of Terreno for a variety of reasons. 1) Experienced management team, 2) Institutional, sophisticated and insider share ownership (at 0.15/share), 3) Enough cash to advance key projects and generate news flow, 4) Four excellent projects (Argentina – copper, silver, gold) in various stages of exploration, with a fifth potential company-maker (Brazil – potash, phosphate, bauxite) under negotiation.
News flow has been non-existent since August 2011, causing short-term investors to move elsewhere. This has, in our opinion, created an undervalued opportunity for new shareholders looking to capitalize on an exploration and drill campaign which is sure to generate excitement in the coming months. Please refer to corporate presentation in the link above for a more detailed overview of their projects.
We are inserting TNO onto our Coverage list at 0.11/share.
Artha Resources (V.AHC) $0.08
Shares Outstanding: 66.2 million
Market Cap: $5.2 million
Cash position: ~ $1.0 million
Corporate Presentation (Nov 2011)
http://www.artharesources.com
Artha Resources has assembled a large portfolio of projects in a grossly underexplored region of Northern Argentina – 2,100 square km in total. The projects are well diversified in mineral content – gold, silver, copper and rare earth elements (REE’s) – Light & Heavy. As modern exploration techniques have not been applied to this area of the world, the company has generated an extensive array of follow-up targets, systematically advancing them toward drill-ready stage. With five projects on the go at various stages of exploration, we can expect a steady flow of news and updates from the company in the coming months. One project in particular is worth highlighting in this brief update - The Crosby and Pirquitas Norte prospects, adjoining Silver Standards 190 million ounce silver-tin-zinc mine, features “coincident geochemical, geological, structural and geophysical anomalies suggesting it could be a satellite system along strike from the Pirquitas mine mineralization.”
Kobex Minerals (KXM.V) $0.65
Shares Outstanding: 46M (50M fully diluted)
Market Cap: $30M
Cash position: $38M
Corporate Profile
http://www.kobexminerals.com
What do you get when you combine a treasury of $40 million, a stock trading below cash value and a management team that would make the most robust mineral companies envious? A damn good investment. In September 2009 Kobex merged with IMA Exploration and Int’l Barytex to form a powerhouse of a junior exploration company, if you dare call it that. Currently the market is placing zero valuation on two advanced mineral projects located in the prolific and currently in vogue Yukon. The ‘Main Zone’ of the Mel property alone currently hosts an Indicated Mineral resource of 6.78 million tonnes of 7.1% Zinc, 2.03% Lead and 56% Barite (most commonly used as a weighting agent for drilling fluids in oil and gas exploration to suppress high formation pressures and prevent blowouts.) The Main Zone remains open at depth. The news front has been eerily quiet as the company is assuredly evaluating projects befitting of it’s cash position and level of experience. In a time where raising capital is the #1 challenge for junior exploration companies, KXM stands out like a beacon… or a panther waiting to pounce on the perfect meal. We are placing KXM on our Coverage list at an entry price of $0.65.
Ethiopian Potash Corp (FED) $0.65
Shares Outstanding: 107.9 million
Market Cap: $70.1 million
http://www.ethiopianpotash.com/index.htm
Competitive Valuation Sheet (pdf)
We wrote up Ethiopian Potash (FED) on November 22, 2011 at $0.72 when it broached our volume/price check and the radar blipped “Interesting Development.” Shares in FED look to be very undervalued when put up against it’s peers in Ethiopia. The company recently renewed its poison pill, underlining the importance of protecting shareholders at this price point. As such, FED earns a spot on our coveted Evolving Coverage list. Official entry price: $0.65. Risk analysis forthcoming.
Cap-Ex Ventures (CEV) $1.27
$ Chg: 0.27
% Chg: 28%
Volume: 3.75m
Shares Outstanding: 43.7 million
Market Cap: $54.3 million
http://www.cap-ex.ca
CEV continues it’s charge forward, up nearly 100% from our Market Movers report of 10/31/2011, based on exploration success on it’s iron ore projects in Quebec. CEV yesterday announced it is adopting a poison pill.
Ethiopian Potash Corp (FED) $0.72
$ Chg: 0.13
% Chg: +22%
Volume: 975k
Shares Outstanding: 107.9 million
Market Cap: $77.7 million
http://www.ethiopianpotash.com/index.htm
FED currently has 281 m/t grading 21% potash on it’s 481 sq km concession in Ethiopia. The company is more than midway through a drill program aimed at adding 1 billion tonnes to the resource estimate. FED is targeting 2 billion tonnes in total. Allana Potash (AAA), also in Ethiopia, has 673m/t M+I @ 18.7% potash – recent PEA valued the project with a NPV of $1.85 billion and a 36% IRR. FED market cap at only $77.7 million merits a closer look.
Ryan Gold (RYG) $1.15
$ Chg: 0.15
% Chg: +13.9%
Volume: 187,200
Shares Outstanding: 116.1 million
Market Cap: $133.6 million
http://www.ryangold.com
Ryan Gold is an advanced explorer controlling extensive land holdings in the Yukon – 290,000 hectares, representing 11% of the claims in the Province. In May 2011, The company closed a $52.2 million institutional financing at $2.00/share, and has since initiated a comprehensive $15 million exploration program; primarily preparing the 24,000 Ha Ida Oro property for drilling.
Prodigy Gold Inc (PDG) $0.74
$ Chg: 0.10
% Chg: +15.6%
Volume: 6.28 million
Shares Outstanding: 237.5 million
Market Cap: $175.5 million
http://www.prodigygold.com
Prodigy resumed trading, having announced an updated Indicated resource of 2,176,000 ounces (1,721,000 Inferred) on its Magino mine gold project in Northern Ontario. The preliminary economic assessment (PEA) will be updated later this year. The current PEA gives Magino an NPV of $351 million using $1,000 gold, generating an IRR of 49%; and an NPV of $691 million using $1,300 gold, with an 80% IRR.
Giyani Gold Corp (WDG) $2.00
$ Chg: +0.20
% Chg: +15.6%
Volume: 320,000
Shares Outstanding: 34.6 million
Market Cap: $69.3 million
http://www.giyanigold.com
Shares in Giyani Gold have once again ignited on the heels of a binding agreement being executed with the State Mining Company, as announced on October 28. The company has been working toward consolidating a robust package of gold projects along the Giyani Greenstone Belt, the third largest in South Africa, with a multi-million ounce discovery potential.
Red Eagle Mining Company (RD) $0.88
$ Chg: 0.13
% Chg: 17.3%
Volume: 865,000
Shares Outstanding: 35.8 million
Market Cap: $31.6 million
http://www.redeaglemining.com
Red Eagle has a 20,000m drill program under way on its Santa Rosa gold project in Columbia, located 70km NW of Medellin. The company is well funded, having completed its IPO in July 2011, raising $14 million at $1.25/share. While the focus is currently on the Santa Rosa project, the company holds a portfolio of properties throughout Columbia.
Cap-Ex Ventures (CEV) $0.69
$ Chg: 0.12
% Chg: 21%
Volume: 418,000
Shares Outstanding: 43.7 million
Market Cap: $30 million
http://www.cap-ex.ca
Cap-Ex is focused on exploration and development of iron ore projects in the Labrador Trough, located near Schefferville, Quebec. Exploration success has fuelled CEX shares to an increase of 100% for the month of October.
1. Global Minerals (V.CTG, $0.98), which we have been covering since 0.15 in October 2010, recently announced the acquisition of the remaining 30% interest in their flagship Strieborna silver project in Slovakia. At the time of this writing CTG is trading at 0.98, up 21% on the day; and up over 500% since our coverage began (“Is CTG Ready This Time?”). The past several months have seen Global Minerals attract high profile management, financiers and development partners (Esperanza Resources V.EPZ); at long last, bringing to fruition many years of painstaking work in Slovakia, and taking advantage of strong metal prices.
2. Crescent Resources (V.CRC, $0.36) has an option to earn 100% of the Uncle Sam gold project, located in a world class gold belt hosting several multi-million ounce deposits. Significant upside lies in the fact that a large portion of the property is yet to be geochemically tested, while magnetic data suggests favorable structures continue in these areas. An aggressive Spring exploration program will build on the existing three drill-ready targets. Always important to see significant share ownership particulars – Management holds 25%, Millrock (optionee) holds 9.8% and a handful of prominent brokers took about 2.2 million shares of a recent 10MM share private placement at 0.35, giving them 13% total ownership. With a multi-million ounce deposit being targetted, CRC’s $6.8 million market cap gives plenty of room for upside as the company moves the project forward. Full presentation located here .
In it’s most ambitious move to date, Artha Resources is preparing to embark on a comprehensive 10,000 meter drill program covering three key projects in Argentia. From the full news release below: “The exploration programs will run in unison with three geological crews mobilizing to the Vallecito precious-base metal project, the Rosario gold-tin properties and the Susques rare earth properties.”
While the stock is up approximately 50% in the last month, we believe the company’s extensive, and growing, project roster coupled with a sustained and aggressive exploration initiative will continue to attract investor attention.
Artha Resources to drill 10,000 m in Argentina
2011-03-03 12:23 ET – News Release
Mr. Todd McMurray reports
ARTHA TO RESUME AGGRESSIVE EXPLORATION IN ARGENTINA
(more…)
Compass Gold Corp (CVB trading on the TSX Venture Exchange, 0.16) appeared on our radar in April ’10 with the acquisition of an option to acquire 51% of Africa Mining. Africa Mining beneficially owns 100 per cents of the rights to over 900 square kilometers of strategically located gold concessions in Mali.
While the share price of this junior exploration company has remained in a tight range since April 2010, we believe the timing is right to bring CVB to our readers attention.
A number of factors make CVB an extremely attractive investment at current prices.
- Mali is the 3rd largest gold producer in Africa
- Experienced, on-site management team responsible for discovery of several world class gold mines in Mali.
- Recently bumped up financing in progress from $1.2 million to $2.0 million (0.12/share with half warrant @ 0.20)
- Attractive share structure (will have approx. 44 million post-financing)
- Successful phase 1 exploration program has identified several high priority drill targets – Drill program imminent.
Important to note comparative valuation to Great Quest Metals (GQ, TSX Venture Exchange). GQ holds 254 sq. km of gold concessions in western Mali and 737 sq. km of phosphate concessions in eastern Mali. With 42 million shares outstanding, the current market cap for GQ stands at $119 million vs. CVB’s $7 million (post financing market cap, with $2 million cash).
CVB is on the doorstep of a drill program, and working toward their stated goal of eventually acquiring 100% of Africa Mines.
We believe the fundamentals, timing and price are aligned to deliver potentially spectacular gains for shareholders over the next six to nine months and are therefore adding CVB to our watchlist.
Compass Gold Corp.
http://www.compassgoldcorp.com/
We initiated coverage on Artha Resources (AHC, 0.26) on October 20, 2010, where it was trading at 0.185 at the time. The company has recently closed a quick $3 million private placement, and added renowned rare earth elements (REE) expert Alex Knox to the board.
By way of background, Artha focus is in Argentia where it holds over 1,500 square kilometers of properties prospective for silver, gold, base metals and rare earths. Two core silver projects adjoin Silver Standard’s Pirquitas Mine, one of the largest primary silver mines in the world, on three sides. Phase 1 and 2 field work and IP geophysical studies continue to produce high priority drill targets, and have added considerable value to the project.
Artha’s second key project, also in Argentina, weighing in at over 900 square kilometers, is prospective for a variety of light and heavy rare earth elements, including yttrium.
Freshly financed and ready for follow-up drilling, we are bumping AHC up on the priority list.
A recent increase in activity on the stock suggests the broader market is starting to move in ahead of drilling action.
