I usually would put company coverages on my monthly pages-January Update 2010. But, I descide it would be best to explain the Exeter Resource -XRC story on my Home Page. Please feel free to and visit LexCorp on www.facebook.com. I usually update my Facebook daily.
Exeter’s Caspiche Project in Chile (option to own 100% from Anglo American Chile Limitada) is a gold-copper porphyry system, a type of deposit common to many of the world's largest open pit gold-copper mines. It is located 15 kilometres (8 miles) south of Kinross Gold's Refugio mine (+6 million ounce gold resource), and 10 kilometres (6 miles) north of the very large Cerro Casale gold-copper deposit (24 million ounce gold resource), jointly owned by Kinross Gold and Barrick Gold.
In October 2009 Exeter announced an updated National Instrument 43-101 (“NI 43-101”) compliant mineral resource estimate for Caspiche, for all drilling conducted to end 2008-2009 drill season. The inferred resource is 19.6 million ounces gold, 4.84 billion pounds of copper, and 40 million ounces of silver, or 32.4 million gold equivalent ounces (refer to October 20, 2009 News Release). The additional 12.8 million ounces of gold equivalent is calculated using a copper conversion price of US$2.00 per pound, a silver price of US$12.00 per ounce and a gold price of US$800 per ounce (assuming 100% recovery). The resource estimate leaves the deposit open for expansion to the southeast and to depth.
Drilling re-commenced at Caspiche in October with a programme that will build to a total of four drill rigs and will continue through to May 2010. The drilling program has been designed to expand the resource, to in-fill the highest grade area to improve the status to “indicated resource”, and for infrastructure, metallurgical, engineering and environmental studies. The Company has budgeted C$13 million to conduct this program from September 2009 through to September 2010.
Since my last post we have seen a crazy sell off in the markets and especially in gold/silver/copper stocks. I don't know if this downtrend is over yet but I believe tomorrow gold stocks will be in the green. We are seeing alot of gold stocks over sold. I did take a position today in a few. I purchased XRC-Exeter Resources, Galway Resources-GWY, Nevsun Resources-NSU, Golden Star Resources-GSC and Taseko Mines-TKO. I believe all these stock have big upside, if gold has finished it downward trend. If you are bullish on gold long term then I believe these stocks that I bought today will do just fine. All of these stocks are still trading at very attractive levels this may change soon. Evaluate your risk levels because 2010 is looking like a bumpy ride.
Why Exeter Resources-XRC is one of my top holdings watch the CEO talking on BNN: http://watch.bnn.ca/#clip259646 I am going to take a guess here. I believe GoldCorp or Barrick Gold will take out Exeter Resources after they split the company. JMHO
I am also watching AVR-Avion Gold, TMM-Timmins Gold and B2Gold-BTO. CRK-Crocodile Gold has been holding up well lately. Some of the oil plays are also starting to look attractive-I am watching ALE, CNE and IAE. Platinum play ELR-Eastern Plat. is also looking very attractive.
George Soros mentioned today that gold is the "ultimate bubble". Old age must be kicking in fast for poor George that he doesn't know what a bubble is any more. If you remember the "tech bubble", everyone knew and heard of Nortel. Everyone's mother/father/brother and sister were investing during the tech bubble. If knock on your neighbor's door and ask he/she if they ever heard of Barrick,Kinross or Gold Corp I bet you the answer will be no. Another thing to remember is that the U.S Dollar has been oversold for months. Sooner or later it would need to have a bounce up. This is what we are currently see and this is what is bring down the price of gold. The President also mentioned yesterday that he wants to double exports. To make U.S products attractive for exporting,...the U.S dollar will have to be very low levels. This makes the product more affordable and attractive to foreign buyers.
The current drop in gold prices is temporary folks. China is still growing and will need lots of metal to build their cities. The U.S Dollar long term will head much lower and investors will look to gold as a safe haven. Be selective on your investments and do you due diligence.
Here is some technical analysis on gold:
http://jsmineset.com/wp-content/uploads/2010/01/January2810Gold.pdf
What Peter Schiff had to say about the "State of The Union Speech".
http://www.youtube.com/watch?v=yUu7_WL4948
You can also visit Lex Corp News Letter on Facebook. Type: LexCorp
Over the next few trading days I will be watching the price of gold very close. I believe gold has entered into a downtrend. Today we saw gold alittle higher today but all the major gold producer had a sell off?? The TSX barely finished in the green. I have also looked at a few dozen of gold stocks and found the charts all have similar downward trends. Today, I sold off my position in 4 gold stocks. AVR-Avion Gold, CRK-Crocodile Gold, Timmins Gold-TMM and Galway Resources-GWY. It was very painful to sell these stock because I believe longer term they will be trading much higher and they have excellent projects. But, I believe in uncertain markets you should sometimes take the money and run. I was up between 20%-50% on these stocks and made a nice profit. I believe the markets are going to have a major sell off and gold -with most commodities will join the ride. In the short term the U.S Dollar will be on the move up. I hope I am wrong but for now I have my Bear outfit on. Holding on to "Cash".
Today we saw most commodities in the red. Gold fell as much at $27.40 U.S causing a sell off in alot of the gold producers and exploration stocks. Silver, Copper and Oil stocks also took a big hit today. Platinum has also finally pulled back. For those wondering I did sell my position on Eastern Platinum-ELR and made a nice profit. I will most likely re-purchase ELR again when I see some more weakness in the stock. I am not concerned about the pull back in gold price yet! The only time I believe investors should be concerned is if gold breaks below $1000. This will be very negative and I will most likely be a seller in some of my holdings. There is a chance gold might touch $1050 as the U.S Dollar strenghthens. Those investing in the U.S Dollar are eventually going to realize that they might as well buy toilet paper. I believe they will eventually have paper money backed up by gold in the near future. When and if this happens you will see a gold price in the thousands. Robert McEwen believe we will see $5000oz one day. When we have days like today, investors should be buying quality stocks and taking advantage of lower prices. Any day now gold should be setting up for it's next leg up. This is a temporary U.S Dollar bounce that won't last.
Stocks Purchased Today: Today I took a position in SQI-Silver Quest Resources. I follow and respect Peter Grandich's opinion. He posted on Agoracom.com site that he purchased in his account 400'000 shares of SQI on Monday. At todays price that is aprox. $140'000. That is not pocket change even for someone like Peter Grandich. So, he must have high hopes for this stock. Just like he has for Continental Minerals-KMK.
Read his blog here: http://grandich.agoracom.com/page/2/
The company did a private placement which brought the share price lower. I believe this is an opportunity to buy cheap shares while you can. SQI is coming up with some excellent drill results at their Capoose-(100% interest) and Davidson Project which has been optioned to Richfield Venture-RVI. Silver Quest Resource is rated as a Strong Buy.
On Oct.3rd 2009 Bob Moriarty -321Gold.com wrote an article called "The Next Big Thing". He mentions Silver Quest Resources in the article and Richfield Ventures. I highly recommend reading it. Here is the link: http://www.321gold.com/editorials/moriarty/moriarty100309.html
Tomorrow, I will mention on my January 2010 Update Page a stock that all my readers should consider buying. I recommended it in the past in one of my update pages. I believe the stock is up over 100% from the time I recommend the stock. I am looking at repurchasing the stock again based on some positive news that came out yesterday.
In the fourth quarter AVR should be producing 32,000 oz. So, if this continues into 2011 we should see 128,000oz in 2011. I believe they could be producing as much as 40,000oz a quarter in 2011 for a total of 160,000oz. Remember their goal is to be a 200,000oz gold producer. Avion Gold Corporation (TSX VENTURE: AVR) ("Avion" or the "Company") announces record monthly production of approximately 8,100 ounces of gold in December 2009 from its Tabakoto/ S?gala operations in Mali, West Africa, and record quarterly production of approximately 21,300 ounces of gold in the fourth quarter of 2009 at a preliminary cash cost of less than US$495(1) per ounce of gold. The total annual production for 2009 was approximately 51,300 ounces of gold and exceeded the previous forecast (50,000 ounces), at a cash cost expected at less than US$530(1) per ounce of gold. Since starting mining operations in the first quarter, the company has recorded the following production highlights (see table): - Quarterly Gold Production has steadily increased - Ore Grades have increased - Mill Recoveries have improved 100,000 Ounce Production Planned in 2010
Avion Announces Record Production in Q4-21,300 Ounces
Commenting on the 2009 production numbers, Avion's President and CEO, Mr. John Begeman, stated: "Avion's focus on this mine has resulted in a highly successful new start up, and has set the stage for Avion's continued growth in 2010 and beyond."
Plans for 2010 include open pit mining at the S?gala Main and NW deposits, and mining a small open pit at the Tabakoto deposit. Underground development of the Tabakoto deposit is planned to be well underway during the year. Gold production is estimated at approximately 23,000 ounces per quarter for the first three quarters, increasing to 32,000 ounces in the fourth quarter as the amount of development ore from Tabakoto underground increases.
Here is what was posted today on my www.stockhouse.com blog: LexLuthor2 Also, remember folks that LexCorp is now on Facebook.com
As I write this update. My order just got filled on Explor Resources-EXS. EXS has some very interesting properties that could come up with some big discoveries. They should have some drill results out this month. For those who don't follow Greg McCoach. It's one of his top 10 favourites. If you are interested in subcribing to his news letter visit www.miningspeculator.com I will have coverage on Explor Resources and Abacus Mining and Exploration on my January Update Page in the coming days.
I am recommending my regular readers look at GBG-Great Basin Gold. I am recommending this as a Strong Buy at current levels. Buy on weakness if possible.
I am Bullish on Oil for 2010. I like companies like Antrium Energy-AEM, Sea Dragon-SDX, IE-Ivanhoe Energy, Ithaca Energy-IAE and Speculative Play-big disovery potential-WZR-Westernzagros.
Lex Corp News Letter Stockhouse.com Blog- Todays Posts
LexCorp take position in Explor Resources-EXS "Exploration Upside"
EXS has alot of exploration upside. We should have some results out this month. They are currently drilling their Timmins Property next to West Timmins. Drilling starting in Nov.2009. They got 2 drilling turning on this property. If results are similiar to West Timming drill results- "Watch Out". The other property I like is Kidd Township Property. If results from the Kidd Property are impressive I am sure that will catch Xstrata's attention.
http://www.explorresources.com/operations/
"The property is located in Kidd Township approximately 1.5km south from Xstrata's Kidd Creek mine in the Abitibi Greenstone Belt, which is composed mainly of meta-volcanic rocks cut by faults and deformation zones that lie in a northwest to southeast direction. Previous drilling by Xstrata, South of Explor's property yielded anomalous Cu-Zn values".
On The Radar Sea Dragon-SDX Up 12% Today
To my regular readers: If you are day traders you should be happy with the 12% gain within 2 days. I covered the stock on my website on Jan. 6th 2010. See Jan. 2010 Update Page for coverage on SDX. Turn the speakers on if you want to have a laugh at the music I attached to the coverage page.
I am holding on longer than 2 days. I have a longer term hold for SDX.
Great Basin Gold-GBG Breakout Above $2.00
I mentioned on my website that the breakout GBG had this week on Jan 6th above $2.00 was very positive buy signal. The stock is currently trading at $2.05 and gold start to go into positive territory today. GBG was one of the biggest underperformers in 2009. This is one gold producer that didn't participate in the gold rally last year. Look what happened to IamGold who was a lagger at one time. GBG is producing and should be producing from their Burnstone Project in 2010. GBG has take over written all over it.
"Burnstone is the first new mine to open in the Witwatersrand region for more than 30 years. It is a shallow, low cost, low risk mine with a 19 year mine life and is fully financed. Production and commissioning of the metallurgical plant is targeted for June 2010. Anticipated average annual production is 254,000 oz at a cash cost of US$319 per oz., with a substantial upside potential for later phases of development that will position Great Basin Gold as a leading mid-tier gold producer."
With both mines in production GBG will be producing aprox. 375'000oz of gold.
AME-Abacus Mining and Exploration "Still Early To Buy"
Here is some info. about AME - I believe this stock has alot of upside. At .20cents it's cheap. I will have coverage on my website this week.
Highlights (All figures in US dollars and pre-tax)
In June 2009 Abacus completed a compliant positive preliminary economic analysis on the Ajax property, after a series of successful drill programs from 2005-2008. The results of the PEA indicate the potential for a robust mining operation capable of processing 60,000 tonnes of ore per day. Metal prices used for the base case are US $2.00 per pound copper and US $700 per ounce gold.
The Ajax property comprises eight 100% owned Crown grants including the historic Ajax East and West pits. Also included is an interest in claims between the pits acquired as a result of a joint-venture agreement signed with New Gold Inc. The Ajax area lies nine kilometres southeast along an existing haul road from the Afton mill, shop facilities, tailings area, and water rights which Abacus agreed to purchase in 2005 from Teck-Cominco.
I have updated my January Updates 2010 Page today. I have coverage on Sea Dragon Energy-SDX. I took a position in this stock today and I am hoping to see a higher share price in the coming weeks as oil prices strengthen. I also took a position in Abacus Mining and Exploration-AME. They have 2.71bil.lbs of copper and 2.48mil.oz of gold. They have put a study out that they could achieve an annual production of 106mil. lbs of copper and 99'400oz of gold. At .20cents the stock is cheap. I also took a position in Copper Fox Metals-CUU. I believe Tech. and NovaGold will proceed with the Galore Creek Project which should give a boost to CUU's share price. Copper Fox Metal still has a world class deposit and at .18cents their is still alot of upside. I have also increased my position in GBG-Great Basin Gold. The technicals look great. Today we saw the stock mover up above $2.00. This is a very positive signal. GBG has been a lagger in 2009 and should shine in 2010.
I have to say that late 2008 and early 2009 looked very scary in the market. There are still alot of investors out there who is still staying away from the stock market after the financial melt down. I believe these investor will start entering the market in 2010. As the economy starts improving in 2010, investor convidence should turn positive. The flow of new investors should push the market up in 2010 to new all time highs. Here are some of my predictions for 2010.
Oil Prices will reach $100 and should stay in a trading range between $90-$100 for the rest of 2010.
Gold - this metal will make a new highs in 2010. I predict gold will reach $1800 by the end of 2010. I also believe it will be a rough ride getting there. The U.S dollar has been oversold and as the U.S economy improves world economies might start buying U.S Dollars again which could give it a temporary jump. A break down below $1000oz will be very negative for gold. In 3-5yrs I believe gold will be trading closer to $2500-$3000.
Silver- I believe this metal will finally break above $20.00. I expect to see a trading range between $20-$23 in late 2010.
Copper- This metal has recovered nicely in 2009 and will make new highs. I believe Copper will reach a high of $4.25 by late 2010. Making stocks like Equinox Minerals-EQN, Capstone Mining -CS and even small little juniors like Revett Minerals-RVM will be very profitable.
Stock That Will Shine In 2010
CRK-Crocodile Gold -is one of my biggest holdings. Management is doing a great job bring their projects into production. see December Update Page. -News Dec.29th First Gold Pour.- Plus, just today Peter Grandich came out with his report: http://grandich.agoracom.com/
AVR-Avion Gold- is acquiring property, and is a gold producer that is still in the early growth stages. AVR has alots of growth and I believe this stock will be trading 100% higher from todays prices-(.65) in 6mths. They have excellent management. Stan Bharti who is well known in the mining world sits on the board. They should be producing over 100'000oz by 2012. Sprott Asset Management also own 19% of this company and is one of their top holdings in their small cap fund.
Ecometals-EC - is drilling in 2wks at their Rio Zarza Project in Ecuador. This project is next door to Aurelians/Kinross Gold Discovery 13mil.oz+. I believe this could be a big year for Ecometals and shareholders.
Galway Resources-GWY is drilling their property next to Ventana Gold and Greystar. We saw what happened to Ventana Gold this year! The same could happen to Galway Resource if the drill results are similiar. Expect some drill results in the first quarter of 2010. Could be a very exciting year for GWY and shareholders.
IAE-Ithaca Energy- "NEW" -I have taken a position in this North Sea's oil producer. This company has over $30mil. in cash and no debt. They are currently in production and should move higher as oil prices move much higher in 2010. I will have coverage on IAE in my January 2010 Update Page. Cheap Stock!
EQN-Equinox Minerals- should have a big move up in 2010. Should be in full mode production. The market will eventually pay attention to this stock in 2010. It's under appreciated.
PRE-Pacific Rubiales - will finally break $20.00 in 2010. Keep a watch on this growing oil producer.
KMK-Continental Minerals - will eventually be taken out in 2010 for $3.25. Some investors will grow impatience and sell the stock. They will lose out!
NSU-Nevsun Resource -at current prices $2.50 the stock is very attractive. The stock has pulled back from $3.66 only a few weeks ago due to U.N Sanctions. These sanction shouldn't impact the project but could impact the debt facilities. Management already has financing alternatives. Investors got scared and sold. NSU will be producing late 2010-mills and crushers have been delivered.
TMM-Timmins Gold - Should be in full production in January 2010. They will be producing between 80'000-100'000oz per year at a cash cost of $412.
I would like to wish everyone a very profitable 2010.
"Happy New Year"
I now have Lex Corp News Letter on Facebook. If you are a Facebook member. Type Lex Corp in the search area. http://www.facebook.com/
For those who are watching CRK and AVR. Both stocks had a great day today. I highly recommend watching EC and GWY. These could be big movers in 2010. RVM-Revett Minerals also had a great day today. Stock reached .37cents today and was recommend at .15cents.
Gold had a solid day today. AVR-Avion Gold, Crocodile Gold-CRK both finished up nicley today. I believe these 2 stock will be leaders in this gold bull market. Ecometals-EC also finished up nicely today. EC could be sitting on a deposit similar to Aurelian/Kinross in Ecuador. Drilling is starting in 2-3wk. AHR-Amarc Resources who is part of the Hunter Dickinson Group has found a new gold zone. This management has a great success record. I recommend taking a position in AHR as drill results should be out very soon. Galway Resource-GWY is drilling next door to Ventana -VEN. If results are similiar to VEN or Greystar's deposit you will see a major run up in the stock.
I would like to wish all my readers a wonderful Christmas and peace to all men, women and children of the world.
I have updated my December Update Page. I finally have coverage on Crocodile Gold -CRK which trades on the TSX. This is a new up and coming gold producer that just got listed on the TSX and is starting to attract alot of gold bugs and the market.
I would also like to mention that I have been increasing my position in Avion Gold-AVR. This stock is currently trading at .49cents and is doing well as gold pulls back. Sprott Asset Management who owns a big position in AVR is well known for home run stocks and I believe AVR is one of those. At .49cents and production growing this stock is currently undervalued. I highly recommend accumulating on down days.
I have also increase my position in KMK-Continental Minerals. This is currently my biggest holding in my trading account and I also own this in my retirement trading account. Two Chinese companies hold a big position in KMK and I believe the stock will be taken out in the new year. Peter Grandich is also a big shareholder, making KMK his biggest holding. He has mentioned it more than once on his blog that KMK management won't except anything under $3.00. I believe they will get taken out between $3.00-$3.50.
I highly recommend keeping GWY-Galway Resources and EC -Ecometals on your radar. Both these companies are drilling and should be coming out with news in the next few weeks. Both of these companies are drilling next to very big finds.
More updates to follow.......
It's been awhile since my last update. I have just came back from Las Vegas and I am slowly trying to improve my website. I have been providing updates to most of my readers on my blog on http://www.stockhouse.com/ site. For those of you who are not familiar with stockhouse.com I highly recommend checking out the website. On the stockhouse.com home page you will see a section called "Top Rated Members". I am Lexluthor2. You can read all my posts and see my public portfolio by clicking on my member name. I should also have a December Update Page available on my site this week.
Gold has hit an all time high of $1,217 this month and has recently pulled back. If gold falls below $1050 then I will be concerned. I believe $1050 could be the bottom for gold. A break down below this price will be very negative for the price of gold and gold stocks in general. I will start thinking about taking some profits if gold prices weaken any further.
I highly recommend checking out the Gold Investor.Com Website. You will find alot of articles and useful information. Jay Taylor also provides valuable content on this website.
Returning To The Gold Standard
We all have to remember that India bought 200 metric tons of gold from the IMF-International Monetary Fund. India did purchase the gold at an average price of about $1,045 an ounce. The reason they purchaed all this gold is because India believes the U.S Dollar is heading much lower levels. If we have a weaker U.S Dollar we should have a higher gold price. Over the weekend, the Russian Central Bank also announced that they are buying 30 tonnes of gold from the State repository who was planning to sell gold in the open market. Central Banks worldwide have also been building up their gold reserves at current prices. I believe they are all doing this because they see a devaluation in the U.S Dollar. Currently, the U.S. Government can print trillions of U.S dollars with nothing to back it up. Maybe, we should all have a printing press at home? At one time the U.S Dollar was backed up by gold until President Nixon removed the gold standard on August 15th 1971. Watch Video: http://www.youtube.com/watch?v=iRzr1QU6K1o People, investors, and the world economies have lost confidents in the U.S Dollar. Other currencies like the Canadian Dollar and the Euro have been increasing in value and attracting investors. Investors are looking for a safe haven and I believe long term gold is the answer. The only way I believe the U.S Dollar will survive is when the gold standard is brought back. In the mean time be cautious with your investments and take profits. You will have pull backs and buying opportunities. Long term gold should move much higher.
Stock Updates:
Crocodile Gold-CRK has been doing great. I recommended it as a buy on my blog-stockhouse.com at around $1.18. This is an up and coming gold producer that has been recently been listed on the TSX. It reached a 52wk high last week of $1.70. This move up was mainly due to Peter Grandich who has now has a relationship with the company. I will have coverage this week on my December Update Page.
Visit Peter Grandich's Blog at Agoracom.com : http://grandich.agoracom.com/
Posted by at 8:46 AM on Wednesday, December 9th, 2009
I’m very pleased to have been engaged by a very significant emerging producer Crocodile Gold (CRK-TSX). I continue to favor emerging gold producers. The company is backed by one of Canada’s premier private merchant banks, Forbes & Manhattan. What Crocodile Dundee was with a knife, Stan Bharti may be with resource companies. A detailed report will follow in the coming days.
Avion Gold-AVR is another one of my favourites. This is a gold producer that should be producing over 100'000++ in a few years. Currently, they expect to producer aprox. 80,000oz. per year. I have coverage on my October Update Page. I have recommend this stock between .28-.35cents. Currently, the stock has pulled back from .52cent to .42cents. This is very cheap gold producer with future production growth. Also, make note that Sprott Asset Management hold a 19% position in this stock. It's one of their top holdings in one of they funds. I recommend buying this one on weakness.
KMK-Continental Minerals-This company is a take over target. They currently have 2 major Chinese gold companies who are shareholders. One or both will eventually takeout KMK so that they can develop the Xietongmen Copper/Gold Project. Also, make note that Peter Grandich also owns a very big position in this company. I believe he probably own over 200,000 shares. I recommend reading Peter's posts on Agoracom regardind KMK. I will be increasing my position on weakness.
I have also taken a position last month in B2Gold-BTO and in Timmins Gold-TMM. BTO is a gold producer with excellent managment and TMM has finally pour their first gold bar. Since my recommendation on my blog BTO is up 13% and TMM is up 11%.
Galway Resource-GWY- I believe this company is sitting on a multi-million oz. gold deposit similar to Greystar. Drilling has started and now they will have to prove it. This is a very exciting time for GWY shareholders. I recommended this on my blog around .83cent and the stock currently trades at $1.71.
EC-Ecometal- See my October Update Page for more information. I have recommended this stock around .42cents and it's currently trading at $1.14. This is a very speculative stock with big upside potential.
more updates to follow......
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Early last week I recommended buying EC-Ecometals Limited and GWY-Galway Resources. Both these stock have moved up nicely since my recommendation. Both these companies have excellent projects that are next to big gold discoveries. I have provided coverage on my October Updates Page.
Gold is finally pulling back, but I believe it's time to head up again. The dollar doesn't know how to stay down for the count. This dead cat bounce is temporary and I expect gold to move much higher in the next few weeks. Remember folks, we are going into November and December which tend to be very good months for gold. Take advantage on pull backs but don't be scared to take profits.
Short but brief and few predictions: GBG-Great Basin Gold came out with some great news today. I believe this is still one gold producer that hasn't enjoyed the run up in gold. I recommend buying the stock. Equinox Minerals-EQN is still my biggest holding and I believe it's heading much higher. I believe copper prices will reach $3.50 by Spring 2010. KMK-Continental Minerals will be taken out by Spring 2010. Amarc Resource-AHR which is part of the Hunter Dickinson Group is currently drilling. The management team should turn this company into a home run. RVM-Revett Minerals- is undervalued, is a copper and silver producer and has over 220mil.lbs. of silver and over 2bil.lbs of copper. If copper and silver prices stay strong into the new year I expect to see RVM trading between .50-$1.00 next year. GPR-Great Panther Resource- has lots of production growth- $1.00 soon. TRX-Terrane Metals- is moving forward with their Mt.Milligan Project and GoldCorp is their partner. I believe TRX still has alot more upside. By next year you could see TRX trading over $1.50. AVR-Avion Gold - Production is increasing and costs are improving. AVR is another gold producer will alot more upside. Best of luck and happy trading.
September was a great month for gold and the market in general. What will happen in October. If you see my October Update Page. I have a bar graph that shows gold always underperforms in October and jumps back up nicely in November and December. I believe this time it could be different. Everyone is talking about a U.S Dollar rally, and that the U.S Dollar is oversold. This might be true, but the fundementals are terrible. I believe the U.S Dollar will have a "Dead Cat Bounce" http://www.break.com/usercontent/2008/6/Dead-cat-resurrected-to-life-521681.html
This will cause a temporary pull back in gold, but like I said it's temporary. We are going into very strong seasonal months for gold -Nov./Dec. which is only a few weeks away. Today, gold is up $14.00 -$1016. This might be the next leg up.
Looking at the chart below, you can see gold testing $1000 between Feb-March 2009. Then it test $1000 again in June 2009. Then in the month of September it test and passed the $1000 at least 4 times. Todays, big move up might finally mean gold is on the next leg up.
Updates:
I have updated my October Updates Page and I have added a New Page on my site called "What's The Rock Worth?". I took a position today in Richfield Ventures-RVC-"Hush Stock". This stock has very little exposure and the market hasn't yet taken noticed. They could be onto a new discover in British Columbia, possible the biggest gold discovery ever found in B.C. I have coverage on Richfield Venture on my October Page.
I have also covered Revett Minerals-RVM and Carpathian Gold -CPN on my October Update Page. I own positions in both these stocks.
I also believe that oil will start making a move up again. PRE-Pacific Rubiales is one of my biggest oil plays. I believe in 12mths this will be a $20.00 stock.
I also want to mention that Conquest Resources-CQR is another "Hush Stock". When drill results come out I expect to see a move up in the stock price.
"Hush Stock"- Means the market isn't aware or following this company -very little coverage. These companies may be also be coming out with excellent news and the market hasn't picked up on it yet.
Today I took a position again in NGD-New Gold. I bought it in my trading account and bought it for my retirement portfolio. Take note: I did sell this stock on Wed. at $4.05. If I sold it again today it would be a nice day trade in my trading account! In my retirement portfolio I plan to hold on to NGD longer term. Unless, I see a big reversal in the U.S Dollar.
I also bought Continental Minerals-KMK. I am a big fan of the Hunter Dickinson Group. Just last week I picked up shares of Amarc Resources-AHR -new addition to the Hunter Dickinson Family. Which I believe will have great success-Amarc Resources in now drilling 3 projects.
Now back to Continental Minerals-KMK. Yesterday another Chinese mining company -Zijin Mining- took a position in KMK. This will be the 2nd Chinese mining company to do so. The other mining company that holds about a 14% position is Jinchuan. Also, make note that Taseko Mines owns 6% of the shares-another successful Hunter Dickinson Managed Company. I have been watching KMK when the stock was trading around .80cents but after yesterdays news release and reading Peter Grandich comments over the past few months, I believe the stock is a take over target "Big Time".
news release link:http://www.hdgold.com/kmk/NewsReleases.asp?ReportID=366101&_Type=News-Releases&_Title=Continental-Announces-Private-Placement-To-Raise-25-Million
Corp. Presentation: http://www.hdgold.com/i/kmk/KMK_Update_Sep2009_WEB.pdf
Another company I have been watching for some time now is CPN-Carpathian Gold. The stock trades at .25cents and should be in production by the end of 2010. They should be producing just over 100'000oz per year at a cash cost of aprox. $428oz.US. This is for their RDM Gold Project in Brazil which has aprox. 1.3mil.oz of gold. This mine has a 7yr mine life.
Their other property/project in Romania they have hoists a global resource over 10mil.oz of gold-plus this deposit is still open. Also take note that Dino Titaro -CEO sits on the Yamana Gold board. Carpathian Gold also has a highly experienced board members.
Video Interview with Dino Titaro -http://www.blinkx.com/video/capathian-gold-on-board-talk/HUDo8OPBGxTFKlFsMlpIyw
Corp. Presentation:http://www.designdevi.com/CPN/CPN_September09.pdf
I will also have this info. available on my website. I will be covering Carpathian Gold and Continental Minerals on my October Update Page soon
Another stock I am watching is Minera Andes- MAI - big news came out today. This is one to watch.
After recommending and taking a position in Revett Mining -RVM a few people have emailed me saying- "they never heard of this small copper/silver producer and how did I come across them?"
I was looking at insider buying the other day and Revett Mining showed up. Alot of insiders have been accumulating the stock during the month of Aug. and especially Sept. So, I looked into this company and found they are a small copper/silver producer-1.4mil.oz silver per year and 12.6mil.lbs of copper per year. But,..what really stood out was the resource of their Rock Creek Silver/Copper Deposit. They currently have 229mil.oz of silver and 2bil.lbs of copper at Rock Creek. Here is a fact sheet link: http://www.revettminerals.com/documents/Revett_RC%20_FactSheet_3.26.09.pdf
This is a big silver deposit that can't be ignored and with this stock trading at .15cents I believe it's cheap.
I would also like to mention Great Basin Gold -GBG is dirt cheap.
I just updated my Peter Schiff Commentary Page and my Stock Chart Page.
Yesterday, I mentioned on my stockhouse.com blog that MNV-Mexivada Mining is one to keep watching. I took a position at .16cent on Monday. I usually don't like buying stocks on the run up because usually the run up doesn't last. After reading the news release, I took a position because I knew that this company is in elephant country and might be sitting on a massive gold deposit. Here is the most important part of the news release: "Mexivada has discovered a diatreme volcanic pipe intrusive body located near high-grade (39 g/tonne) gold-quartz float mineralization sampled at the surface on its wholly-owned Goldstorm property in Nevada. The Goldstorm property comprises 3700 acres located 18 kilometres ("Km") northeast of Newmont's giant, +20,000,000 oz. Twin Creeks gold mine and 18 Km northwest of its Midas gold-silver mine. Dioritic rocks in this young diatreme pipe body look similar to rocks at the Goldstrike mine of Barrick. Gold-bearing diatremes can be excellent, high-grade bulk-tonnage gold targets, such as are present as the giant Fruta del Norte gold deposit in Ecuador of Kinross-Aurelian."
This is still a very early stage discovery that still needs drilling. I believe management will put this project on full steam ahead. Stay Tuned for more news. According to the news release we should see some news in 30days. In the mean time, don't be scared to take some profits.
I just started coverage on Jinshan Gold Mines-JIN. I believe they still have alot more upside as they ramp up production. To all my regular readers. I added a picture of myself with the folks from Jinshan. It's an old picture taken a few years back. I also increased my position in EET-Etruscan Resources and Conquest Resource-CQR today-see September Update Page.
My Twitter: http://twitter.com/LexCorporation
Here is a great read for new investors who want to learn about investing in mining stocks. I have read the book and found it to be very helpful in my researching.
Founded by James Fraser and Kevin Pederson
Today Exeter Resources-XRC came out with their updated 43-101 for their Caspiche Project.
News Release Video: You Tube Link
http://www.youtube.com/watch?v=neiYP6VTz54
| Exeter Reports Resource Estimate of 19.6 Million Ounces Gold and 4.8 Billion Pounds Copper for Caspiche Project in Chile |
 |
Exeter's Chairman, Yale Simpson, stated "This updated resource estimate places Caspiche firmly among the world's largest gold-copper discoveries in recent years and clearly supports our decision to aggressively drill the property, despite the global economic decline. "We expect that the very substantial copper and silver credits will be extremely important, and will markedly impact the potential viability of Caspiche. Specifically, using metal prices of US$2.00/pound copper, US$800/ounce gold and US$12/ounce silver, the 4.84 billion pounds of copper and 137 million ounces of silver are equivalent to 12.1 and 2.0 million ounces of gold respectively. As shown in Table 1 above, these by-product metals increase the resource estimate to 33.7 million gold equivalent ounces(i). "Our recent drilling has defined what appears to be a coherent higher grade central zone associated with a definable early stage diorite intrusion. We expect this zone will be important in developing various mining and economic models for the project. "Assuming favourable weather conditions, drilling is scheduled to recommence early in October and is expected to carry through the southern summer until May, 2010. The program will have two objectives: firstly to expand the resource estimate by drilling to the southeast and to depth, and secondly to upgrade the higher grade central zone to "indicated resource". |
|
I hope everyone is the U.S and Canada are having a great Labour Day Holiday. I would also like to mention my Baby Luca-aka:Baby Lex turned 1 today.
I am currently working on my September Updates Page. I hope most of you are following my Blog on http://www.stockhouse.com/. I have recommended a few gold stocks that I bought last week. These stocks are mentioned on my September Update Page.
Best of luck and happy trading.
I finally took a position in Crowflight Minerals -CML. I am noticing the stock has some nice volume today. This is a new nickel producer that is debt free and is now generating cash. They are working on try to sustain full production rate between 1000-1200 tons per day. Remember, when you have a new mine nothing runs smooth at first. CML is my junior nickel play. Great project and excellent management. Coverage on my August Updates page is coming soon.
Lex is finally back with an update. Life is busy when you have a baby. I have been updating my http://www.stockhouse.com/ blog on a regular basis, so any new buy recommendations would also be posted on my blog.
I recommended buying Taseko Mines -TGB .us and TKO.to when the stock was trading around $1.70. This week I sold my position. It's had a great run up and I believe we might be seeing a 20-30% market correction in 4-6wks. I have also sold my position in Nevsun Resources-NSU.to. They have a great project and I still believe they are a take over target but the stock isn't reacting the way I expected. I am waiting with some cash on the side to buy NSU on weakness. I have also sold my position in Aura Minerals-ORA.to. You have to remember something folks,...there is nothing wrong making money or taking profits. The only gold stocks that I am currently holding are Great Basin Gold-GBG -undervalued-, Rusoro Mining-RML and Conquest Resources which I just bought this week. I am sitting on cash now waiting for a buying opportunity. I currently have about 20 stocks on my radar which I will be ready to buy on weakness. Rusoro Mining has been a fustrating one to hold but I believe this one will surprise everyone one day. Conquest Resources is my new buy recommendation. I highly recommend doing your due diligence on this one. I will have coverage on Conquest Resources -CQR on my August Updates Page.
For those who bought Western Copper-WRN and NCU-Nevada Copper on my recommendations. I highly recommend either selling your position or take you initial investment. "Pigs Get Slaughtered".
The only copper stocks that I still hold are EQN-Equinox Minerals and CS-Capstone Mining. I have taken profits on Capstone Mining. I am currently riding CS for free.
I still own Pacific Rubiales -PRE. This is currently one of my favourite oil plays. PRE has strong forecast production growth. Aprox. 70% in 2009 and 50% in 2010. Cash flow growth is impressive. Consesus estimates $2.46 in 2010.
This was taken from the July 22nd news release- "Line filling will start during the second half of August 2009. The initial capacity of the pipeline will be 170,000 bbl/d (pipeline grade)
blended Rubiales heavy oil and can be upgraded to 260,000 bbl/d of blended oil
by adding booster pump stations". http://www.pacificrubiales.com/ I highly recommend looking at PRE and take advantage of any weakness.
I also bought Gran Tierra Energy -GTE.to. I like the stock technically and fundementally. On the technical side I see a break out over $4.00. I also believe the stock is cheap. On August 18th they came out with this very important news release which I believe the market ignored.
News Release
Crude oil transportation operations on the Ecopetrol-operated Trans Andean Pipeline resumed on August 10, 2009. Gran Tierra Energy subsequently restored production in Colombia over several days and is currently averaging approximately 21,770 barrels of oil per day (BOPD) gross, or 18,000 BOPD net after royalty. During the 32 days of reduced production due to pipeline repairs, from July 10, 2009 to August 10, 2009, oil production averaged approximately 6,500 BOPD gross. Over the same period oil sales averaged 3,440 BOPD net after royalty.
I have been day trading alot lately. Been in and out of Citigroup many times over the past few weeks. Alot of money can be made playing some of these U.S financial stocks. I have recently bougth WEN-Wendys/Arby for my retirement portfolio and EM-Emdeon. I also own alot of GE call option $17.50 strike price expiration Jan 2011. I also repurchased FEED-AgFeed Industries- see April Updates.
I just want to let my reader know that I will try to update my site twice a month. If any of you want to contact me to ask me a question, please feel free to send me a message to my inbox on http://www.stockhouse.com/
Best of luck and be cautious.
Lex
Ok folks I have finally had a chance to update my site.
It's been a wild week for some of the gold stock I follow especially VEN-Ventana Gold which is up more than 150%. With such I be run up, I am recommend my readers to start taking profits. The next stock to watch is Aura Minerals-ORA- which I will be covering on my June Updates Page. I am also putting Duluth Metals -DM on my watch/buy list. They have a huge deposit that keeps getting bigger and bigger. I also took a position in Donner Metal- DON.v. I believe great news is just around to corner-Scoping Study- Xstrata is their joint venture partner. Copper Fox-CUU also had a nice run this week,..keep it on your radar. They have a world class deposit that can't be ignored. I also took a position last week in Vast Exploration- VST. I believe this oil stock can eventually be a 10 bagger- very speculative. I will have coverage on Vast Exploration also on my June Update Page. I also took a position last wee in Transcontinental -TCL.a which pays a nice div. .08cent a share every quarter. Their earnings did beat the street and I expect to see $15.00 in 6mths.
Today my position was increased in R-Romarco Minerals and I purchased NSU-Nevsun Resources. Both these companies have big upside. I believe in 12mth both these companies will be trading 100% higher from current levels. Romarco Minerals keeps adds gold oz. to their Haile Gold Mine Project. They have a very aggressive drill program in 2009 with 4 drills. Romarco currently has 3.26mil.oz, no debt, and $25mil. cash. I believe their Haile Gold Project will have a resource north of 5mil. oz. I am sure Gold Majors are watch closely.
Nevsun Resources Ltd. is a gold and base metal explorer/developer with a focus on developing mining projects in Africa. Nevsun is currently focused on advancing its high grade gold, copper and zinc Bisha Project in Eritrea. The Bisha Mine will be a low cost gold producer for its first two years of production (approx. 430,000 ounces gold per year) and a low cost high grade copper concentrate producer (containing approx. 75,500 tonnes of contained copper metal per year) for a further three years. Thereafter the mine will produce separate zinc and copper concentrates.
Peter Grandich who I highly respect also came out with an Alert that he has added Nevsun Resource to his Model Portfolio. You can read this article here: http://grandich.agoracom.com/
Peter does mention Sunridge Gold-which I also like, but I believe Nevsun is a less speculative buy because production in near term.
May 22nd, 2009
This is for High Risk Speculators only!!! - I’m going to add Nevsun (NSU-ALtnet) to my model portfolio right now on the belief they’re very close to completing the rest of their financing for their Bisha mine in Eritrea. If this occurs, I believe it can set two things in motion:
1 – Nevsun becomes a very attractive takeover target and could see a 100% share price increase.
2 – Sunridge Gold (SGC-TSX-V – a client of Grandich Publications) could see a major bump up as the perception could be Eritrea is once again a good place to explore and mine. Believe it or not, I believe SGC has potentially better deposits than Bisha. There’s been zero promotion and the company still has about $7 million in cash. I’m biased due to my working relationship but I believe SGC has some of the best exploration targets in the world today. If you can only choose one of these, my suggestion would be SGC because of more upside potential but it comes with more risk. May I suggest you call Greg Davis or Don Haliday at Sunridge Gold for more information.
Remember folk to do you due diligence. I should have some more info. on both these companies in my June Update Page.
Check out this website: National Debt Clock http://www.usdebtclock.org/
To all my regular readers. I have been providing short but brief updates on http://www.stockhouse.com/ on my blog. The past weeks I have been day trading alot of U.S Bank Stocks. I also trade the URE-Ultra Real Estate Proshares daily. Day trading has kept me away from updating my website lately. I have sold DML-Denison Mines at $2.85 to make a .40cent profit in 2 days. I am looking at the stock again because it's looking attractive again. I did sell Ventana Gold-VEN and made a .50cent profit. I might regret selling VEN because I still believe they are a take-out target. Rusoro Mining came out with some great news today. RML will eventually be a 500'000oz.++ gold producer in a few years. I believe investors with patiance will do well holding on to RML shares. I believe Rusoro Mining will take-over Crystallex, and eventually with both these companies combined they will make a more attractive offer to Gold Reserve -GRZ. With all three company combined into one-(Rusoro Mining) will have a resource over 30'000'000mil.oz. Lately,..insiders have been buying up shares again, and the volume last week was very high -one day had over 20mil. vol. Keep RML on your radar. The other gold producers I am still holding onto are CGA Mining-undervalued 200'000oz per year gold producer, and IAU-Interpid Mines another undervalued gold producer with over $30mil. in cash, no debt and unhedged.
I have recently bought Sunlife Financial-SLF - in my retirement trading account- they pay a very attractive dividend. I am still holding onto BMO-Bank of Montreal with an average of $27.50 -they also have a very attractive dividend. I still recommend buying FEED-AgFeed Industries-(see April Update Page) The stock had a nice run up today.
I have also taken a position in CNO-Conseco and RF -Regions Financial. I believe these 2 U.S financial stocks have alot of upside,..but these are short term play in my portfolio. I have also taken a position again in Taseko Mines -TKO/TGB-u.s.
Regarding oil plays. I have PRE, BNK, BQI-us, HEU, HOU on my watch list. I am also looking at MAA-Mag Industries.
Remember to take profits folks,..the market has moved up fast in the past month-April. Expect a pull back and a buying opportunity. I won't have a May Update Page, but I will have a June Update Page on the website. Some of my readers will also notice that I have removed some guestbook posters. I like to keep my guestbook and forum clean from junk posts.
Best of luck and happy trading. Remember to visit my blog on http://www.stockhouse.com/ (lexluthor2) I usually update my daily buys on my stockhouse blog.
Lately, I have been playing the bank stocks. I have sold some of my position in some of the stocks that I have mentioned on my last update. AGF.b AGF Management Ltd paid me a nice dividend onf .25cents per share on April 20th. Since my last update the stock went on a tear ran up more thatn $2.00. I sold my position on the stock on Monday. I will revisit this stock again on weakness and hope to enjoy another dividend payment in the near future. I still own BMO which was recommend on March 1st at $27.50. BMO is trading over $39 today and pays a nice dividend. I still own Wells Fargo Call options for $27.50 -earnings are out tomorrow and should be good. Platmin Ltd I sold and made a nice profit. I originally bought this stock at $1.00 and then averaged down when the stock went to .66cents. I believe there is anothe opportunity to buy the stock below .80cents. Longer term this stock should do well at plat. price move higher. WRN-Western Copper was also a great pick when I mentioned it as a buy on stockhouse.com at .44cents. The next day the stock ran up to .65cents. I sold my position on the stock recently and made a nice profit. I believe you will see another buying opportunity below .50cents. Longer term the stock should do well. I am still holding on to VEN-Ventana Gold. I believe sooner or later Greystar will make an offer to take over this company. I believe Ventana Gold is sitting on a similar size gold deposit 10mil. oz +. Rusoro Mining should be on your radar. The market isn't giving this gold company any credit for their current assets. Stay tuned,...news should be coming out soon. CGA Mining has been disappointing me lately. It's been lacking news and the stock isn't performing great. CGA Mining should be producering just over 200'000oz per year at a cash cost of $306/oz. At current levels I believe the stock is cheap. IAU-Interpid Mines will surprise the market when they release their next earnings report. IAU has cash, no debt, unhedged, and great assets. At .24cents the stock is cheap. I also came across another company that looks very attractive -Ticker: FEED AgFeed Industries - They are one of the largest hog producer in China. I believe the stock is cheap at current levels. It had a nice run up lately so wait for a pullback as a buying opportunity. The April Update Page should be up very soon.
I am in the process of updating my April Update Page. I will have coverage on Northern Dynasty Minerals-NDM, Platmin Ltd-PPN, WRN-Western Copper and VEN-Ventana Gold.
Off Topic Trade: (non-commodity): On friday I took a position in Apple Inc. Call Option Jan.2010 strike price $27.50. I believe these option are cheap and have alot of upside. I am also looking at Wells Fargo Call Options for $27.50 strike price and Research In Motion RIMM $100 call options Jan 2010. I usually don't play options but I believe money can be made playing these options. I also bought AGF.b AGF Management Ltd last week. They pay a nice dividend of .25cents per share. I believe this is another financial stock that has been beaten up to very cheap levels.
I also increased my position in Intrepid Mines-IAU which is currently trading at a discount. I believe the next earnings release will surprise the market. Unhedged, no debt, and has lots of cash. I am also calling CGA Mining a very strong buy at current levels. Take advantage on weakness.
Rusoro Mining-RML has been quiet on news lately. The financing is complete and I believe something must be brewing. The stock is cheap at .51cents. RML will be producing 170'000-190'000oz of gold in 2009 at a cash cost of $315/oz. I also own alot of warrants because I believe they are dirt cheap at .06cents.
"The rumours are spreading but the truth will be told soon."
Chavez gives Las Cristinas to Rusoro
By James West
Thursday, January 15, 2009
http://www.midasletter.com/news/09011502_Chavez-gives-Las-Cristinas-to-Rusoro.php
Rusoro is having one spectacular year when most other companies are facing funding difficulties or even bankruptcy. Hugo Chavez just announced that he was going to develop the Las Cristinas gold deposit in a joint venture with Rusoro Mining (TSX.V:RML)
This coming on the heels of Rusoro's announcement on Wednesday of a record quarter at its Choco 10 mill, where 38,868 ounces of gold were produced at a cash cost of US$358 per ounce. The Choco 10 mill produced 14,261 ounces of gold in December 2008. This marks the third consecutive month of record gold production and can be attributed to high volumes of ore processed from the Choco 10 mine which produced 9,234 ounces of gold with the other 5,027 ounces of gold coming from ore processed from the near-by Isidora gold mine.
click on the above link to read the rest.
Rusoro Mining April 2009 Corp. Presentation: http://www.rusoro.com/i/pdf/CP2009.pdf
This is still one of my biggest holdings. The company released their 2008 year end results. They will be paying down their debt fast and the cash is now rolling in and copper prices are starting to head higher. I still believe this is a very cheap stock that will be taken out one day at a premium.
Equinox recorded consolidated net income for the year ended December 31, 2008 of $172.7 million, or approximately $0.30 per share. This compares to a consolidated net loss of $29.4 million, or approximately $0.05 loss per share, for the corresponding year ended December, 31, 2007. The primary variances arose as a result of other income/(expense) which was higher than the previous corresponding quarter mainly due to derivative instrument fair value gains of $361.0 million (2007: $nil) as a result of the copper price dropping to $1.38 per pound at December 31, 2008, offset by derivative instrument losses transferred from equity of $89.5 million (2007: $nil) following the discontinuation of hedge accounting. Exploration expenditures were $10.3 million for 2008 (2007: $7.1 million) resulting from work carried out on the Lumwana UFS and exploration activities elsewhere in Zambia. General and administration costs were $8.4 million for 2008 (2007: $11.2 million), the reduction due to the 2007 figures including some large one off payments. Financing costs associated with the Lumwana Project debt facilities, other than capitalized interest and commitment fees, were $3.7 million for 2008 (2007: $2.6 million).
As at December 31, 2008, Equinox had cash resources of $51.3 million, an undrawn Contingent Funding Facility totalling $45 million and an undrawn Nederlandse Financierings-Maatshappij voor Ontwikkelingslanden N.V. financing facility of $25 million (which remains subject to conditions precedent). Project and fleet debt facilities outstanding total $639.7 million. On March 26, 2009 the Company reached agreement with its debt financiers to restructure the debt repayment schedule. The effect is that the 2009 calendar year principal repayments are significantly reduced to $138.4 million, with $104.4 million payable in September 2009. See "Amendments to long term debt repayment schedule" below.
The mark to market value of the hedge book, which could be closed out subject to financier approvals and utilization of those funds to repay debt, is approximately $137 million as of March 26, 2009, based on a copper price of $1.78 per pound. In addition, the Company expects to receive project insurance proceeds following the fire incident that occurred in July 2008.
The Company expects that it will produce 170,000 tonnes (375 million pounds) of copper metal in concentrates in 2009 at a cash (C1) operating cost of $1.15 per pound. As can be expected, unit production costs are anticipated to be higher in the early part of 2009 until steady state production activities are reached, which is expected by mid-2009. Considering the un-drawn facilities available, the Company expects to generate positive cash flow in the next 12 months sufficient to fund ongoing operations, including discharging the Company's current obligations in the normal course of business.
Amendments to Long Term Debt Repayment Schedule
On March 26, 2009, the Company reached an agreement with its debt financiers to restructure its senior debt repayment schedule. The main terms of the agreement are intended to smooth the principal debt repayments more evenly over the life of the loans without changing the tenor of the various facilities. The effect is that the 2009 calendar year principal repayments are reduced to $138.4 million, the majority of which ($104.4 million) remains due in September 2009.
Background to the Debt Facilities
In December 2006, Equinox signed a $582.7 million senior and subordinated limited recourse project finance facility for the completion of development and construction of the Lumwana Project. The facility is comprised of three tranches, $54.0 million subordinated debt facility, $364.0 million senior debt facility and $164.7 million asset backed facility. In response to the delay in commencement of commercial production caused by the fire incident at the Lumwana Project in July 2008, the Company signed an $80.0 million extension to the above senior debt facility in September 2008.
As a requirement of the Lumwana Project financing facility, the Company also established a $45.0 million cost overrun facility ("COF") for the Lumwana Project that, in certain circumstances, can also be utilized for debt repayment. As at December 31, 2008 and as at the date of this announcement, the COF still remains available.
Result of Repayment Restructure
The restructuring of the Company's senior debt obligations has resulted in a smoother repayment profile over the term of the loan facilities. The previous repayment profile reflected an amalgamation of the principal repayments originally due in March 2009 (which were deferred to September 2009 as a result of the fire incident) together with those originally due in September 2009. Equinox has agreed to pay an additional 50 basis points margin from April 1, 2009 on the outstanding senior debt facilities (excluding the $164.7 million asset backed facility) for the duration of the facilities in order to achieve this restructuring.
The schedule of future repayment dates for all facilities is as follows:
Repayment
Profile
---------------
$000
Within 1 year 138,367
Within 1 to 2 years 136,598
Within 2 to 3 years 127,855
Within 3 to 4 years 113,576
Within 4 to 5 years 75,463
Thereafter 47,872
---------------
639,731
---------------
I have finally joined Twitter. Here is the link to my Twitter: http://twitter.com/LexCorporation
I have increased my position in NDM-Northern Dynasty Minerals. This stock has been getting alot of attention lately. Here is a link to the Financial Post article that came out this week after TD Newcrest increase their 12mth target to $18.75.
I believe by the end of 2009 Northern Dynasty Minerals will be taken out by 1 or 2 of the companies listed below.
In addition to Anglo American's 50% interest in the Pebble Project and the Pebble Partnership, Rio Tinto plc and Mitsubishi Corporation have taken significant share positions in Northern Dynasty Minerals Ltd.
Rio Tinto plc has invested US$200 million to acquire 19.8% of Northern Dynasty shares, and Mitsubishi Corp. has reported they have acquired an 11% share position.
Lately, the stock has been moving up nicely. I believe it's getting ready to test $10.00.
I also took a position in Platmin Limited- PPN. They are getting ready to start production any day now. "Platmin said Monday that following successful commissioning it has commenced treatment of ore in the UG2 section of the milling and flotation plant at Platmin's Pilanesberg Project. Platmin is currently in the ramp-up phase to reach a steady state annualized production rates of 250 000 ounces per annum of 3PGM+Au by the third quarter of 2009."
I also took a position in NCU- Nevada Coppper. They have an excellent project which keeps increasing in resource. I have also notice insiders have been buying. An updated resource should be out in the 2Q of 2009. This deposit is turning out to be a world class discovery.
Pumpkin Hollow is an advanced development stage copper property, which contains Measured and Indicated Resources totaling 4 Billion pounds of Copper plus additional Inferred Resources of 3.9 Billion pounds of Copper (all using a 0.2% copper cutoff grade). This 7.9 Billion pound copper resource and associated 144 million ton iron, 1.3 million ounces of gold and 57 million ounces of silver was estimated effective October, 2007. Contained within the larger resource is a high grade core of 116 million tons grading 1.4 % Copper at a 0.75% cutoff containing 3 Billion pounds of Copper. Ongoing drilling has yet to define the limits of this world class Copper-Iron-Gold-Silver deposit
I am also looking at taking a position in Andina Minerals and Ventana Gold. I will update more on these 2 companies soon. For those who bought GSL-Greystar on my recommendation and are still holding take some profits. You are up more than 100%. I should also have an update on my March Page on Capstone Mining-CS soon. In my April Page I will have an update on Northern Dynasty Minerals-NDM with some links. I will also have something on Nevada Copper and Platmin Ltd on my April Page.
I am currenly disappointed with MDM-Mineral Deposits. They have just started gold production. The company should be producing up to 160'000oz of gold in 2009 and the market isn't paying attention. I have emailed the company and they responded that they are aware the stock has very little trading on the TSX. I am giving them 1-2mths and I will be a seller. Hopefully, a major gold producer takes them out.
ATW Gold-ATW just annouced today that they should be starting their first gold pour tomorrow. The stock had a .05cent jump today.
Enjoy my Twitter and happy trading.
At 7pm today I receive an email stating that MDM-Mineral Deposits is now a Gold Producer and has poured it's first gold bar. Production in 2009 is expected to be 160'000oz. The stock has very little coverage and have very little trading on the TSX. This I believe will change in weeks to come as the market and gold bugs take notice. At .58cent the stock is very cheap. Here is the news release and the link below.
Mineral Deposits Becomes a Gold Producer
MDL is pleased to announce that during the week gold production commenced at the Sabodala plant with the pouring of the first gold dore bars.
The Sabodala plant has commissioned smoothly with no significant issues and is already operating above nameplate capacity. To date, lower grade material has been used during the commissioning phase but, with the satisfactory completion of commissioning now imminent, the plant will begin operating on the normal “run of mine ore” that is currently stockpiled on the ROM pad adjacent to the crusher.
To read today’s full announcement, please click here.
http://www.mineraldeposits.com.au/user/files/Announcements/2009/090027MDL.pdf
Brief Update
I have also taken a position in Citigroup -C. I believe it's very undervalued, plus financial stocks are having some nice rally's lately. This stock is a day traders dream. I took a position 3 days ago and been enjoying the nice run up lately. I believe the stock will test $5.00.
I have also been watching NDM-Northern Dynasty Minerals. The stock has been moving up nicely lately and I am thinking of taking a position again.
We should be expecting some news from Rusoro Mining soon regarding the financing deal. "Stay Tuned" I have increased my position on the warrants.
Great Basin Gold-GBG just annouced financing is complete,..I am expect to see the stock move much higher from current levels.
Intrepid Mines -IAU is undervalued and unhedged. This is one stock to watch in 2009.
I also purchased Capstone Mining a few weeks back and the stock has also been performing very well. I will have an update on Capstone Mining on my March Page. They are low cost copper producer with excellent assets, management and the company is very profitable.
I will be updating my site in the days ahead,...happy trading.
Here is the press release with some pictures. This news release was released around 6:30pm today. http://www.mineraldeposits.com.au/user/files/Announcements/2009/090023MDL.pdf
First Sabodala Gold Pour Imminent
The Sabodala gold plant commissioning is proceeding well with the plant currently operating at the nominal rate of two million tonnes per year.
The first gold pour is imminent and should occur before mid March 2009. The operating company, Sabodala Gold Operations SA (SGO), is on schedule to produce 160,000 ounces of gold in calendar 2009.
I have said it many time that this stock is cheap and under the radar.
Volume should eventually start picking up when the market takes notice.
Today Gold dropped below $900. I believe gold might test $850. Anything under $850 will be very negative for gold stocks. Be selective on your buys,..we might see some bargain hunting soon.
On Feb. 22nd I mentioned I took a position in ATW Gold Corp-ATW. Great news was released on March 4th. - "Production is starting". I believe this stock has alot of upside and can also be on the radar as a possible take over target. I have the news release posted on my March Update Page.
I am expecting to see a Bear Rally very soon. Be cautious these are still uncertain times.
I also thought I would share this link - 60min video "Inside The MeltDown" see what happened behind closed doors. http://www.pbs.org/wgbh/pages/frontline/meltdown/view/
I have updated my Videos Page.
I had a great time at the PDAC Show. I spoke to the folks from Skygold Ventures -SKV and they assured me that the updated resource should be out very soon aprox. in 3 weeks. I also spoke with the folks from Mineral Deposits Ltd. -MDM Mineral Deposits Ltd is starting gold production this month and the person at the booth said they will probably create a another company to develop their Grande Côte Mineral Sands Project. Shareholders should benefit on the spin-out of this new company- "Free Shares". This stock is undervalued and lightly traded. The market will notice it soon as management tries to promote the company. I will have MDM coverage on my March Update Page.
I also re-purchased Great Basin Gold -GBG today. At $1.28 the stock is cheap. After the financing is complete I expect the stock to move much higher as gold appears to be gaining some strenght again. My average was $1.00 and my position was sold close to $2.00 on the last run up. I hightly recommend taking a position in this stock,..but remember do you DD's first before investing.
I also took a very small position in a Coal Exploration stock- SFI -Silver Fields Resources. This is a .03cents stock but if they have some excellent drill results you can see alot off upside. They also have alot of other projects on the go for 2009- http://www.silverfieldsresources.com/ "This is high risk, high return"
Remember to join my Guest Book,..it's a great chat forum -keep it clean.
Ok folks,..today I am off to the PDAC Show and this year my wife will be joining me.
I didn't have alot of time in February to create a February Update Page,..but as most of you can see I update my home page on a regular basis. I promise to have a March Update Page. If you follow my blog on stockhouse.com you will see that I took a position in a bank stock. BMO-Bank of Montreal I believe it's cheap and has a nice dividend that I believe they won't be cutting. It's a great long term buy. Nothing wrong having some exposure to quality banks. I have also increase my position in Rusoro Mining -warrants and increased my position on Intrepid Mines-IAU. IAU volume has been increasing lately,..I believe the market is realizing this gold producer is debt free, has cash, and is now unhedged. I have also repurchased NGX-Northgate Minerals. My average was $1.00 and sold my position during the run up. I repurchased NGX because I believe it's still undervalued plus, I believe the pull back in the stock is just about done.
I also believe it's time to look at beaten down oil/gas stocks.
Stay tuned I will update on my experience at the PDAC Show.
Ok readers. I am going to make this short and brief. For those who follow me on http://www.stockhouse.com/ you know what I am buying. I usually update my blog as soon as a buy is made. I recommend my website readers to visit my blog on stockhouse if you want to see what I have been buying. Some buys I mention on my stockhouse buys can be day trades, short and long term holds. My blog is Lex Corp -aka LexLuthor2.
For those of you who invested in Greystar -GSL, CGA Mining-CGA, and CSI-Colossus Minerals when I recommend them you should be very happy. All have performed very well. I don't hold a positon now in GSL, but I still own CGA which I will be accumulating this week and I own CSI -Colossus Minerals. These stocks especially CGA Mining has alot more upside. See my January updates for coverage on CGA and CSI.
This month I did buy and sell MAI-Minera Andes. Bought at .38cents and sold position between .66-.75cents. Excellent profits thanks to Mr. Robert McEwen. This is still a great company that I am watching daily.
I also bought Pacific Rubiales Energy Corp. -PRE on friday. I believe it's now time to start looking at beaten down oil/gas stocks. PRE just secured a $200mil in debt financing with a Local Colombian Banking group for their pipeline construction. When the pipeline is finally connected in Q3/2009 production will increase significantly. In 2010 we should see a 49% increase in production. By then oil prices should be trading much higher than todays levels. TD Newcredst on Feb.17th 2009 Increased it's price target on PRE to $10.00. The stock is currently trading at $3.72.
I also took a small position in Victoria Gold Corp -VIT. They recently made an all share friendly deal to acquire StrataGold. This excellent deal increases VIT 43-101 compliant gold resources from 1.2mil. oz to 4.3mil. oz. At .44cents the stock is cheap. Kinross Gold currently own 27.4% of VIT. I highly recommend taking a look at VIT- http://www.victoriaresourcecorp.com/
I also took a position in ATW Gold Corp -ATW. A a few more weeks they will be a gold producer. Management has done all the right things. I rate this as a Strong Buy. Here is their corp. presentation http://www.atwgold.com/_resources/ATW-February-10-2009WebVersion-Final.pdf
I have to say CGA Mining-CGA is dirt cheap. Production starting in weeks. They will be producting 206'000 at an operating cash cost of $306. http://www.cgamining.com/projects/project.php?project=1
Tonight I am looking at 3 companies that I might be buying this week. Watch for my blog posts on http://www.stockhouse.com/ I will also try to have my February Update page up soon.
Best of luck and happy trading.
We saw a strong gain in gold stock on Friday. The rally may continue on monday but I believe we may have a small pull back. I have recently started coverage on OceanaGold-OGC. I have provided an update on my 2009 January Updates Page. The stock finished up 48.15% on friday. Some investors might want to take some money off the table. I am currently holding because 2009 looks good for the company and I believe the stock is undervalued.
Greystar Resources -GSL which I also recommend on my 2009 January Updates is currently up 55% - don't be scared to take some profits.
CSI-Colossus Minerals I believe still has alot more upside and will be moving up much higher as drill results start coming in. I wonder if CSI is on Kinross's radar.
CGA Mining -CGA is going into production soon. Investor should of taken a position earlier in the stock this week when the stock was trading at $1.15. Close on friday at $1.33. This is a cheap up and coming gold producer and will trade much higher when production starts and the word gets out.
Skygold Ventures -SKV - waiting for the 43-101update, Spanish Mountain hosts a multi-million oz gold resource and at .27cents the stock is cheap.
I am also updating my blog on stockhouse again. I didn't want to disappoint my readers.
Happy trading and remember do you DD's and check with your investment advisor before taking a position in any stock. Don't be scared to take profits.
Lex
I have updated my 2009 January Update Page. I have started coverage on Skygold Ventures -SKV. I will also be covering Rusoro Mining-RML very soon. Gold took a beating today as the U.S Dollar strengthened. I consider this just another healthy pull back in gold. In 2009 I expect to Gold and Silver to make new highs. Copper I believe will strengthen in Q3 2009. Take advantage of stock that have excellent assets, cash and strong management. Colossus Minerals- CSI had some excellent drill results that helped push the stock up today on a down day. I believe CSI as alot of upside in 2009 and will be the stock to watch this year. CGA Mining-CGA also had a good day. They will be producing 200'000oz per year. Expect production to start Q1 2009.
I have also changed my blog name on http://www.stockhouse.com/ to Lex Corp News Letter.
Best of luck to all in 2009 and happy trading.
I have just updated my 2009 January Page. I have started coverage on Colossus Mineral- CSI, Northern Dynasty Minerals-NDM, Greystar Resources-GSL and Equinox Minerals-EQN.
Ok folks, we are now in 2009 and let's hope we all learned a lesson about 2008. We have all lost money in 2008 and I am hoping that 2009 will be the year of recovery. Many junior mining stocks, including some gold/silver/base metal producers have been beaten down to very low levels. They are now trading at bargain prices. In the last few trading days I have been keeping an eye on some of these juniors and I am noticing some big percentage moves in the stock prices. The tax loss selling is over and I believe we can see a strong month for some juniors. I expect Gold and Silver to do well this year and starting tomorrow I will be on a buying frenzy picking up some undervalued stocks with great assets, management and cash.
2009 January Updates Page has been updated.
I have also updated my Peter Schiff Commentary Page. I also believe it's time to look at shorting U.S Treasuries. Take a look at this ETF -Horizons US 30yr Bond Bear Plus -HTD trading just over $13.00.
Watch this clip: Peter Grandich Top Picks http://watch.bnn.ca/#clip125148
You can also read Peter Grandich Blog here: http://grandich.agoracom.com/
I will be updating my January Page with my new buys in the coming days.
Best of luck to all in 2009 and remember to do you DD's and speak with your financial advisor before investing.
The past few months and weeks have been very busy. Baby Lex is now 3mths old and I am enjoying every minute. Having a baby in your life bring so much joy. It hard work but it's worth it. When the market are down and after a hard days work I know at home there waits for me a little baby who means the world to me with a little smile on his face. If I lost everything in the markets tomorrow I wouldn't care as long as I have my health, my wife and my baby. Money isn't everything! We should all be grateful for everything we have during this time of year and think about others who don't have anything. Think of the kids and families in places like Africa and all over the world who haven't eaten for days. I am also sure these kids and families don't even know that we are having world recession. I ask my readers at this time of year to give something small to a child or family in need. God Bless and Merry Christmas. World Vision - http://www.worldvision.ca/Pages/Home.aspx
December Page Has An Update.
I have featured Coeur d'Alene Mines -CDM.tsx on my December Update Page. Over the next few days I will try to provide more updates. I am currently looking at a few stocks that are trading below .15cents. They have been beaten down but have great assets, management and cash. I also believe in a few years from now when the financial crisis is behind us these stock will be trading much higher. I will mention them when a position has been taken. I will also have a feature on Colossus Minerals- CSI on my December Page.
November was a terrible month for the market. I still believe we are getting very close to a bottom. The TSX I believe will test 7500 and may go as low at 7000. Oil I believe is oversold but might test $35. I have bought the HOU-ETF -Horizons NYMEX Crude Oil Bull Plus ETF. I believe in 1yr from now oil will be at much higher prices and so will this ETF.
I have also purchase GBG-Great Basin Gold -you can read up on this company on my September Updates page. I will also be supplying an update on my December Updates page.
I have also been accumulating shares in Coeur d’Alene Mines Corporation -CDM.tsx and CDE-NYSE. I believe the stock is very attractive at current prices. They have cash and great projects. I will provide coverage on this company on my December Updates Page.
Stock on my radar: Colossus Minerals -CSI -December Updates Page-coverage
I also have Western Goldfields-WGI and Semafo-SMF on my radar. Both are gold producers with excellent projects and are cash generators. I started coverage on both these stocks back in August -see August Updates.
A Brief Update on EQN-Equinox Minerals Even at current copper prices EQN will make alot of money. -Very Undervalued-
December 5th 2008 -News Release Equinox Minerals Limited (TSX and ASX symbol: “EQN”) ("Equinox" or the “Company”) is pleased to announce that the first copper concentrate has been produced from the Lumwana process plant. On December 3, 2008, wet commissioning of the final stage of Lumwana’s process plant filter-press commenced resulting in an initial production of approximately 66 tonnes of copper concentrate at a concentration grade of approximately 41% and moisture content of 9%. As of December 4, 2008 some 1300 tonnes had been produced. Wet commissioning and production ramp-up activities continue to progress smoothly with first commercial concentrate delivery expected to take place later in the month. That's all for now folks,..expect to see a December Page Update this week. Plus I am currently review a E-Book on Mining which I will be mentioning more about this month.
Welcome to November folks. I hope this month is better than October. I will be updating my site this week, so expect to see a November Page Update. I am currently revisiting some past plays that have excellent assets, great management and are trading at a discount. I will mention them in the weeks to come.
One of those plays is Jinshan Gold Mines -JIN. This is a gold producer in China which I believe has alot of upside potential. I will provide more info. on my November Page.
I also took a position today in HEU-Horizons BetaPro S&P/TSX Capped Energy Bull Plus ETF
The fund has some excellent holding. I bought it in my RSP trading account. I will also be providing an update on this fund on my November Update Page.
| 1. EnCana Corp. | 16.69% | 6. Talisman Energy | 5.01% | |
|---|---|---|---|---|
| 2. Suncor Energy | 13.47% | 7. Nexen Inc. | 4.29% | |
| 3. Canadian Natural Resources | 12.93% | 8. Imperial Oil | 4.00% | |
| 4. Canadian Oil Sands Trust | 6.11% | 9. Husky Energy | 3.61% | |
| 5. Petro-Canada | 5.62% | 10. Penn West Energy Trust | 3.17% | |
| TOTAL: | 74.90% | |||
HGU -Horizon BetaPro S&P/TSX Global Gold Bull Plus ETF is my other top pick for November.
I purchased this ETF last month. Excellent Holding in the fund.
| 1. Barrick Gold Corp. | 24.12% | 6. Anglogold Ashanti Ltd. | 5.12% | |
|---|---|---|---|---|
| 2. Goldcorp Inc. | 17.29% | 7. Gold Fields | 4.73% | |
| 3. Newmont Mining | 12.85% | 8. Yamana Gold Inc. | 4.35% | |
| 4. Kinross Gold | 8.11% | 9. Lihir Gold Ltd | 3.45% | |
| 5. Agnico-Eagle Mines | 5.93% | 10. Harmony Gold Mining Co Ltd | 2.48% | |
| TOTAL: | 88.43% | |||
Regarding HRG-High River Gold Mines,..I sold my very small position 5000 shares on friday.
We should see a rally in gold soon. I believe the U.S Dollar spike will burst very soon. Why invest in the U.S Dollar?? Just buy toilet paper at the corner store! The chart looks very similar to the oil chart. Silver should move higher as the price of gold moves higher. Copper supply will be tight as some mines will be on hold. For my regular readers I am still long on EQN-Equinox Minerals. They have enough cash and will be a low cost producer. I hold HGU-Horizon BetaPro S&P/TSX Global Gold Bull Plus ETF - as my gold holding. I still recommend my readers to be selective and cautious in these markets. Don't let these one day rally's get your hopes up, because the next day could be a blood bath. Qualities companies with excellent assets and loads of cash will and should survive these rough times.
Best of luck,
Lex Corp
I just updated my Research Reports -Free- page. The article is written by Jim Willie of the "Hat Trick Letter"
website: Golden Jackass
subscribe: Hat Trick Letter
Here is a link to Peter Grandich articles: http://grandich.agoracom.com
NFI.un - New Flyer Industries had a strong day today. I recommend this as a buy on my October Update Page.
Oilexco- OIL - I will be pressing the buy button on OIL very soon. It's oversold and over reaction in the market has pushed this stock down to incredible cheap levels. The last news release was all bad.
Han Feng Evergreen- HF - popped up on my radar,..the buy button will also be pressed soon. They are buying back stock,..which I like. It's cheap and it's been beaten down.
High River Gold Mines - HRG - I bought this today in my trading acct. a very small position. The company is going to have to work hard to gain investor confidence. The still have excellent assets and gold production is increasing. This company and it's past management messed up big time. Hopefully, the new people on board will guide this company into the right direction. The last news release was positive news. Stay tuned....
I have also updated my Research Report Page- todays feature: Clive Maund "Gold/Silver Market Updates"
I have finally found some time to update my October Update Page. I have mentioned 2 stocks with high yield/dividend pay outs. I also mention my top gold picks and my speculative gold/silver picks. I have also updated Peter Schiff Commentary page. Feel free to ask question on my guest book page. I will try to find time to answer them.
Remember to be cautious and selective on your investments.
Copper is having a good day today touching $3.19. Copper is still in global demand even if the U.S.A has a major slow down. One reason why I am still bullish on EQN-Equinox Minerals. I would like to share a few quotes from Resource World Magazine Vol.6 Issue 8 which is currently on the book shelves. On page 8 there is a really good read-"Junior Mining Outlook" with quotes by Lawerance Roulston and John Kaiser.
Lawerance Roulston take on Copper:
"Global demand is forecast to rise at 4% per year for at least a decade, which means the industry will need to add production capacity of 1.4 billion pounds per year to meed demand. To put this production capacity in perspective, the mining industry would have to put four large copper mines into production every year to keep up with rising demand and this isn't happening."
"Emerging countries such as India, China and Brazil are still on the early steep growth part of the curve and the rise in metal demand is predicted to accelerate as growth infrastructure continues."
"China is building the equivalent of a New York City every six months."
John Kaiser Quotes:
"In this market I am focused on companies that are cash-rich, with ounces in the ground or near to production."
"The economy of China has enough internal momentum to absorb, through domestic spending, any slackening of demand from the U.S."
To read more pick up the magazine at your news stands. I recommend subscribing to the magazine. http://www.resourceworld.com/ , http://www.resourceworldradio.com/
If you are interested in reading more articles by Lawerance Roulston or John Kaiser visit their websites
Lawerance Roulston 
http://www.resourceopportunities.com/s/Home.asp
John Kaiser
http://www.kaiserbottomfish.com/s/Home.asp
I can't believe the wild ride we are seeing in the market. Oil is now trading at $91.00 and Gold was up yesterday $20 but the gold stocks were all down. This concerns me! It shows when you have a mass amount of panic selling even gold producers will be in the red. If these markets do collapse then the best and safest holding will be physical gold. Oil I believe is starting to look oversold. Alot of quality oil producers are getting hit on the chin and this could be a buying opportunity. Ex. Oilexco, Bankers Petroleum. Wait for the smoke to settle and see which way the markets turn. We have rough waters ahead of us and cash is starting to look like the King.
Update: I believe EQN -Equinox Minerals is now more than ever a potential take over target. The stock is trading around $2.78 a very attractive level. They will be the biggest copper producer coming on line and they will also be a Uranium producer in 2010. This will be a cash machine even if Copper prices head down to $2.50.
EQN- Equinox Minerals Corp Presentation -Sept 11th http://www.equinoxminerals.com/docs/Equinox_Sep08.pdf
Lumwana Project "Cash Cow Even At Current Copper Prices"
LOM (37 years) annual production will average 156,000 tonnes (340 million lbs) of copper metal, with over 172,000 tonnes (380 million lbs) being produced per year during the initial 6 year period.
Total life of project Operating Cash Costs under the Development Case are expected to be US$0.82 per pound or US$0.76 per pound of copper produced, inclusive of uranium credits.
At $2.52cents the stock is a steal.
Minera Andes Inc - MAI -even with all this turmoil in the market I am still finding some interesting Buys. I bought MAI recently because this company has been doing all the right thinks. Robert McEwen is now on the board. This is a Gold and Silver producer that is profitable. Plus the market was in panic mode when they came out with their 43-101 on their Los Azules Project- (partnered with Xstrata Copper). The Inferred Resource at Los Azules is 922 million tonnes grading 0.55% copper, containing 11.2 billion pounds of Copper.
| August 15, 2008 | Minera Andes Reports Net Income For Second Quarter Of $0.05 Per Share | |
| August 12, 2008 | Minera Andes Reports San Jose Production Cash Costs At $322/Oz Gold And $6.16/Oz Silver | |
| August 06, 2008 | Minera Andes Adds Rob Mcewen And Other Mining Industry Executives To Its Board Of Directors
| |
Great Basin Gold - GBG - Gold Producer with 2 mines and lots of cash -see Sept Update Page "Coming Soon"
On my Research Reports Page I would like to introduce Peter Schiff aka: Doctor Doom. He has given me the green like to post his articles.
Plus Why Copper Prices Will Stay High - World Economies Still Growing
From the Discovery Channel - The Burj Dubai 
The market is taking a beating. Gold and Oil stocks are getting hit hard. Quality stocks are now getting punished- Ex. EQN- Equinox Minerals, OIL -Oilexco, YRI- Yamana Gold, IMG- Iamgold, K- Kinross Gold etc, etc. Is this a buying opportunity? Wait for the smoke to settle and if you don't have the stomach for this downward spiral then I recommend staying out of the market until we see some upward trending. I still believe gold will move much higher long term and oil prices will move higher as we get into the winter season. I will be covering some other stock which pay some great dividends- none are commodity related and have very high yields. I am staying behind the fence right now until I see this market do a turn around.
In the mean time I will sit back and relax and take care of my new baby son-Luca that came into this world on Sept. 7th 2008
God Bless, and happy trading.
Lex Corp
ps- I would like to wish Mr. Peter Grandich a very fast recovery. http://www.grandich.com/
Gold has recovered from it's August low. I still expect to see one more down movement below $800 before gold makes it's next big move up.
MAA - MagIndustries has moved up nice since my recommendation at $1.55 only 9 days ago. Company has been coming out with alot of good news and at $2.00 the stock is still cheap. I hold this one long term in my retirement portfolio. In 12mths you can see a $5.00 stock.
OIL - Oilexco - I bought the stock at $13.25 in my trading account and I believe even at current levels $14.41 the stock has alot of upside. In 12mths you will see a stock trading north of $20.00++ "New" Just updated August Updates.
AUN- Aurcana - I bought and sold Aurcana and made a profit. I made a 5cent profit -12% gain- on the stock. This was considered a short term investment. I believe it's still a good silver play to own in your portfolio, but remember it's a penny stock. When the price of silver starts to move up again AUN should do well.
Western Gold Fields - WGI "NEW" Today I took a position in this new gold producer. I looked at their 2nd quarter results and they impressed me. The company is now firing on all cylinders. Gold production has increased to an average of 600 ounces per day, and we expect to meet the year-end target of 135,000 to 145,000 ounces of gold at a cost of sales(1) of $470 - $490 per ounce. (see August Update for article)
Here is a video of Peter Schiff- known as Doctor Doom.
which I believe is very negative for gold. I will be a seller and will wait for other opportunities. Watch the video and hopefully it makes you feel better about your gold investments.Gold and metal stocks have been hit hard lately. I believe we are very close to a recovery. I will still like to caution my readers that gold may even break below $800 in the short term which will mean a buying opportunity. I believe the worst is almost over and gold should start to move up as gold starts to enter into the gold season- (Sept.- Dec.). I also believe metal stocks especially copper will do very well after the Olympics and into 2009. I recommend reading this article -"The U.S$ and The Gold Sector" - http://www.321gold.com/editorials/saville/saville081208.html
Company's Making News
Semafo - SMF.to: Highlights (Note: Increased Position Today)
The Company delivered record results during the second quarter ended June 30, 2008, with gold sales of $44,826,000 representing an increase of 147% over the corresponding period in 2007. Gold production reached 54,500 ounces for the quarter, an increase of 80% over the same period last year. Highlights for the second quarter include:
• Gold production of 54,500 ounces
• Gold sales of $44,826,000 at an average selling price of $904 per ounce
• Cash operating cost of $394 per ounce
• Total cash cost of $455 per ounce
• Operating income of $13,822,000
• Net income of $11,681,000
• Cash flow from operating activities of $19,304,000
• Commencement of commercial production at the Mana mine in Burkina Faso
Semafo is committed to increase shareholder value and remains confident that it will meet its 2008 production target of between 165,000 and 185,000 ounces of gold.
Equinox Minerals - EQN.to Results For Quarter Ended June 30, 2008
I find the company is doing a great job updating shareholders. Todays results give investors a clear picture what is going own. Click on the link: http://www.equinoxminerals.com/files/files/627_EQN_Final_Results_Q2_2008_12Aug08.pdf
I am confident that the stock will turn around very soon. The stock got punished due to a fire at their Lumwana Project. This fire delayed production start up and the stock is now trading at very attractive levels -"OVER REACTION". This is why they have Insurance folks! - read quote below: "The Company has in place material damage and delay in start-up insurance which covers daily standing costs and debt service costs. The Company is vigorously pursuing its claims under these policies and to date does not contemplate nor has been informed of any material impediment to receiving a positive and expedient claim determination. Further, the Company has and continues to receive liquidated damages calculated on a daily basis under the terms of its EPC Contract with the engineering contractor ABV." The fundementals are still in place and in 12mths from now I believe the stock will be trading much higher or it will be taken out by a major -"most likely First Quantum Minerals -FM.to" who already own aprox. 17% of the outstanding shares of EQN. Equinox Minerals when in full production will be the largest copper producer in Africa. Equinox Shares Gain as Goldman Says Stock to Rebound By Jesse Riseborough Aug. 14 (Bloomberg) -- Equinox Minerals Ltd., the developer of Africa's largest copper mine, rose the most in more than two years in Sydney trading after Goldman Sachs JBWere Pty said the stock will rebound following a slump in mining stocks. Equinox jumped 16 percent to A$3.65 at the 4:10 p.m. Sydney close on the Australian Stock Exchange, the biggest gain since April 2004. Goldman has a A$7 price target on the stock and kept its `Conviction Buy' rating. The company is building the $760 million Lumwana copper mine in Zambia to start output by year's end. The Lumwana mine will be ``one of the largest additions to global copper supply,'' Credit Suisse Group analysts said last month. ``On a 12-month view, there will be a rebound,'' Goldman analysts led by Melbourne-based Ian Preston said in a report dated yesterday. ``Given the scale, cash costs and life of the Lumwana project, investors will be rewarded in Equinox.'' First Quantum Minerals Ltd., the largest shareholder in Equinox, rose the most in almost two years in Toronto trading yesterday after beating profit estimates. Net income climbed 69 percent to $208 million, or $3.02 a share, in the second quarter from $123.1 million, or $1.79, a year earlier, Vancouver-based First Quantum said in a Aug. 12. (Update1)
Stocks To Watch
Jinshan Gold Mines - JIN.to popped up as a buy today on my radar. I sold the stock last week and made a nice profit. It's almost trading at my original purchase price of $1.25. I am still waiting to see alittle more weakness. At $1.33 it looks very attractive. JIN is one of the biggest gold producers in China and 42% of the stock is owned by "China Gold"- China's biggest state owned gold producing enterprise. Here is the website: http://www.jinshanmines.com/s/Home.asp
Coeur d'Alene Mines - CDM.to also came up on my radar. Like all other gold and silver stock this one has been beaten up. The stock is currently trading at a very attractive level. Here is their website: http://www.coeur.com/
San Gold Corp. - SGR.v - this is a gold producer that was trading much higher $2.25 just a few weeks ago. They have been coming out with some really high grade drill results. At current levels the stock is very attractive again. Here is their website: http://www.sangoldcorp.com/
Wow,..what a crazy day in the commodity markets today. Don't panic yet folks and don't be scared to take profits. This week I will be creating my August Updates page which will have some new stocks that I am following and might be buying during this market weakness. We are still seeing gold and oil correcting. Gold I believe should hit $820-$850 before it's next run up. A gold run up should start mid Sept. Oil will probably touch $105.00 and should build some support between $105-$110 before it trend higher again. Solid oil and gold producers will still be making alot of money with oil over $100 and gold over $800. Take Advantage.
Lately, alot of stocks have been beaten down to their 52wk lows. Some appear to be trading at bargain prices. Gold and Oil stock especially have been getting hit hard lately as oil and gold go into a correction. Fundementals haven't changed,..the U.S Dollar is still in a downward trend, we are now seeing stagflation, and we are seeing U.S banks go under. The world and growing economies are hungry for oil which means we will see high demands and high oil prices. I highly recommend watching this movie - http://www.oilcrashmovie.com/ All these issues should help gold and oil prices move higher in the very near future. Watch for a gold buying opportunity in the coming weeks and I believe oil has come down too fast and should start heading up in the coming days. Buy quality companies with lots of cash, excellent management and assets.
Long term: we will see a much higher oil and gold price.
I currently have a few gold stocks that I am watching very close and will be posting them on my site soon. I am looking at gold stocks that are coming into production within 1-2yrs. These gold stocks on my radar have resources between 5mil.-13mil.oz 43-101 resource. I believe they are all potential take over targets. I will mention them soon on my next update.
Gold Chart
![[Kitco may be down]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
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Oil Chart
"The world has never faced a problem like Peak Oil. Without massive mitigation more than a decade before the fact, the problem will be pervasive and will not be temporary. Previous energy transitions (wood to coal and coal to oil) were gradual and evolutionary; oil peaking will be abrupt and revolutionary."
Today I have updated - July Updates Page You will see that I have mentioned a few new buys. These stock were purchased last week July 11, 2008. They are Uranium One- UUU.tsx, IAMGOLD Corp -IMG.tsx, and Ivanhoe Energy -IE.tsx. I also bought Yamana Gold -YRI.tsx but that was only a day trade. I might of sold it early but a profit is a profit. Long term Yamana Gold will do very well is this gold bull market and I am recommending that as a great buy. The other stock I bought today but didn't mention it on my July Update page is QMNM-Quest Minerals and Mining- this is a high risk coal play that I am buying into again. They had a good news release today and the stock seems to be building some support at current levels. I rate "QMNM" as a very high risk stock 
-possible high returns. Be prepared to lose all or most of your investment on this stock -it's a penny stock.
And finally,..currently my biggest holding -Equinox Minerals -EQN.tsx. I have accumulated some more last week. I believe this stock will be trading much higher from current levels in 12mths from now. See may past article on EQN.tsx. and you can also read some of my posts on http://www.stockhouse.com/ under LexLuthor2 aka: Lex Corp
Remember folks ,..do your due diligence before taking any position an any type of investment and speak to your financial investor before making any investment descisions. -disclaimer-
Today I am updating my July Updates. You can see my monthly updates by clicking on the link on the left. Equinox Minerals - EQN-TSX will be todays feature - Plus I will mention 2 coal plays that interest me.
I would also like to thank all my http://www.stockhouse.com/ blog readers for visiting my website.
Here is a list of stocks that I have sold and bought within the last 2 weeks.
Sold:
NAG- North American Gem is a great buy again. I bought it at .35cents and sold it at .53cents.
I am currently looking at re-purchasing the shares again.
CDB- Cloudbreak Resources is also starting to look attractive again. I bought this originally at .115cents and sold it at .215.
SF- Silver Field Resources -was purchased at .105cents and sold at .13cent - good % gain.
All 3 stocks have corrected nicely and they are starting to look very attractive again. I will eventually take a position in these 3 companies in the coming days.
Buys:
Ivanhoe Energy IVN-TSX and IVAN-Nasdaq- I bought more of this stock on July 4th. This company has great management and great land assets in the oil sands in Alberta. Read their news releases website link - http://www.ivanhoe-energy.com/s/Home.asp
Semafo Inc. SMF-TSX I bought this stock on July 4th. I have owned this one in the past and sold it at higher levels. I believe at current levels this stock is cheap. I am very bullish on gold and I believe gold will finish above $1000 in 2008. Many juniors haven't yet moved up with the price of gold. We have seen the majors move up with the price of gold but, now I believe it's time for the mid-tier producers to start moving. Semafo Inc. should do well and as we get into the gold season. This is one mid-tier gold producer I feel comfortable owning.
In 2007, gold production at the Kiniero mine in Guinea and Samira Hill mine in Niger totaled 106,400 ounces, an increase of 12% over 2006. In order to take into account the Mana mine start-up, total production targets have been increased by 60%, to between 165,000 and 185,000 ounces for 2008. Website link: http://www.semafo.com/home_company_intro.php
High River Gold Mines HRG-TSX This stock was trading at $3.00 in March and is currently trading at $1.50. I believe it's oversold. This stock has been punished for no major reason. They have recently cancelled the spin out of Prognoz Silver Project "World Class Silver Deposit" and they just recently announced that they nearly doubled the silver resource at Prognoz. They have just over 100mil.oz of silver-43-101 and I believe this deposit will keep getting much bigger. I took a position in this stock on July 4th. This is another mid-tier producer I feel comfortable owning.
About High River Gold Mines: http://www.hrg.ca/s/Home.asp
High River is an unhedged gold company with producing mines, mines under development, and advanced exploration projects in Burkina Faso and Russia. High River is bringing two new open-pit gold mines into production. The Taparko-Bouroum Gold Mine in Burkina Faso achieved commercial production in October 2007, and the Berezitovy Gold Mine in Russia is expected to achieve commercial production shortly. At full production, annual gold production is planned at 100,000 ounces at Taparko-Bouroum and is expected to exceed 100,000 ounces at Berezitovy. Combined with gold production from two underground mines in Russia, Zun-Holba and Irokinda, High River's attributable unhedged annual gold production is expected to exceed 300,000 ounces. In addition, the Company has three advanced exploration projects, the Bissa Gold Project in Burkina Faso, the world-class Prognoz Silver Project and the Chaya Nickel Project in Russia. These projects are expected to significantly add to the Company's shareholder value in the future.
Stocks I Am Currently Reviewing: Potential Buys
PTV - Petro Vista Energy is a very interesting - Oil/Gas stock with land assets in Brazil -hear the audio on stockhouse
PZE- Petrobras Energia - one of the top oil producers in the world located in Brazil
TGS- Transportadora Gas - another Brazil play - gas producer trading below book value - CHEAP
DM- Duluth Metals - keeps increase their resource at Nokomis Project - world class deposit,..sooner or later this will be taken out by a major. - Will be a low cost producer with very long mine life - Average annual production of 100,200,000 lbs. of copper; 23,800,000 lbs. of nickel; 430,000 lbs. of cobalt; 75,000 oz of palladium, 33,000 oz of platinum and 13,000 oz of gold. -CHEAP
BIM - Baffinland Iron Mines - lots of Iron -world class deposit - The proposed Mary River project expects to produce 18 million tonnes of direct-shipping iron ore per year and operate for at least 25 years. European steel mills will be the primary destination for the ore. The project and its infrastructure will also provide a foundation for potential future production increases after 2014
http://www.baffinland.com/Theme/Baffinland/files/ASM%20June%202008.pdf
FCO- Formation Capital - Up and Coming Cobalt producer,..it's buy -with some risk as they wait for some more permitting news. - Tuck this one away. So far all the news coming out has been very positive for the company. Great managment on board.
HRG- High River Gold - this stock has been kicked and beaten. I believe it's cheap at current levels.
My biggest holding now is Equinox Minerals - EQN- trading at $4.61 today is cheap. I took advantage of weakness when the stock went below $4.30. It's an undervalued Copper play that is going into production very soon. I am expecting to see a take out. Not if,..but When??
Alway remember do your due diligence before buying any investment.
Lex Corp
Lately, Coal Stocks have been on fire. After the big coal discovery made my GXS-Goldsource Mines, we stock run from .16 cents to todays close $19.09 in just 2 months. Other junior exploration companies are now starting to stack land very close to this discovery. I believe it's late to ride the GXS-Goldsource train,..but you can alway hitch on ride on these other companies hoping to find another big coal discovery in the same area.
Here is a list of the some of the coal plays that I am currently watch and hold.
NAG.V -North American Gem - Strong Buy .58 cents
North American Gem Inc. Receives Additional "Comfort Letters" for Coal Prospecting Permits Bringing the Total to Approximately 900,000 acres of First Priority Applications North of Hudson Bay and East of Prince Albert, Saskatchewan
CDB.V -Cloudbreak Resources - Strong Buy .175cents Coal/Potash
Cloudbreak Resources Ltd: 400% Increase in Coal Property Submissions
Cloudbreak Resources Ltd.: Application Underway for 774,282 Acres of Potash Claims Alberta
CAJ.V -Canasia Industries Corp. - Strong Buy .42cents
Canasia Industries Corporation: Applies for Additional Coal Permits Near Goldsource Mines Inc in Saskatchewan
SF.V -Silver Field - Strong Buy .135cents
Silver Fields Resources Inc. Applies for Additional Saskatchewan Coal Permits
Remember folks,...these stock listed in this article are high risk speculaton plays. I highly recommend doing your due diligence and talking to a financial advisor before taking a position in any investment as I noted in my disclaimer.
Today I sold my position in QMNM -Quest Minerals and Mining. I made a 2000% Profit within 3 trading days. I highly recommend taking profits or selling your position because there are too many red flags. If you are a risk taker, then ride some free shares and wait for the outcome.
I first introduced this company to all my readers on http://www.stockhouse.com/ under my blog LexCorp. It was recommend as a Speculative Buy. On June 19,2008 the stock was trading at .0015, Today the stock hit a high of .075. Currently, I am up over 4000%. I highly recommend taking a look at this small coal company. According to company news releases, they should be in production very soon. I would also like to say that profits have been taken and I am currently riding on free trades. This is a very high risk speculative stock. Stock Price - I first introduced this company to all my readers on http://www.stockhouse.com/ under my blog LexCorp. It was recommend as a Speculative Buy. On June 19,2008 the stock was trading at .0015, Today the stock hit a high of .075. Currently, I am up over 4000%. I highly recommend taking a look at this small coal company. According to company news releases, they should be in production very soon. I would also like to say that profits have been taken and I am currently riding on free trades. This is a very high risk speculative stock. Stock Price - http://finance.yahoo.com/q?s=QMNM.OB
http://www.321gold.com/ , http://www.kitco.com/ , http://www.321energy.com/ , http://www.stockhouse.com/, http://www.google.ca/, http://miningebook.com/ Kitco Radio http://www.kitco.com/ind/kitcoradio/index.html email: lex-corporation@hotmail.com
-Disclaimer- Any information contained on The Lex Corp News Letter represents the editors opinions, and should not be construed as personalized investment advice. Lex Corp News Letter -Editor cannot assess, verify or guarantee the suitability of any particular investment to any particular situation. Lex Corp News Letter readers should seek the advice of a qualified investment professional that provides individualized advice prior to making any investment decisions- this is a none profit website that only supplies the editors opinions. The editor may or may not hold a position in any of the companys mentioned on this website unless noted.
"You Invest At Your Own Risk"
Exeter Resource Corporation (TSX VENTURE: XRC)(NYSE Amex: XRA)(FRANKFURT: EXB) ("Exeter" or the "Company") is pleased to provide an updated National Instrument 43-101 compliant inferred mineral resource estimate for its Caspiche Project of 1,117 Mt (million metric tons) at a grade of 0.55 g/t gold (grams per metric ton) and 3.81 g/t silver including 1,017 Mt at a grade of 0.22% copper. This equates to in-situ inferred resources of 19.6 million ounces of gold, 137 million ounces of silver and 4.84 billion pounds of copper (a total of 33.7 million gold equivalent ounces)(i). The resource estimate uses all data available to the end of the 2008/2009 drilling campaign in May. 
06/23/08 