LEX CORP NEWS LETTER

Galway Resources-GWY is another stock I recommend a few weeks ago.  I believe the stock was tradind around .85cents when I recommended it on my stockhouse.com blog.  Since then the stock had a very nice run up.  I believe the stock did go above $1.40.  I believe the main reason we had a nice move up was due to a rumour that Ventana Gold might be interested in a business combination between Greystar and Galway.  The main reason I took a position in Galway is because they are very close to Ventana Gold's property.  The reason why I originally invested in Ventana Gold was because they were next door to Greystar.  I believe Galway Resources has alot of upside and according to investor relations they should start drilling in December or January 2010.  I highly recommend keeping close watch.

Here is the News Release:

BNN Video Interview Link:

 http://watch.bnn.ca/commodities/october-2009/commodities-october-27-2009/#clip228145

UPDATE 2-INTERVIEW-Ventana-Greystar deal could make sense-CEO

5:42pm ET (Reuters)

* Ventana has not had talks with neighbors on combination * Companies exploring neighboring properties in Colombia * Ventana stock up 27-fold this year on drill results TORONTO, Oct 23 (Reuters) - Ventana Gold's CEO said on Friday that combining its high-grade La Bodega deposit in Colombia with Greystar Resources' neighboring property could eventually make sense for both companies. However, he said Ventana has not had any discussions regarding a combination with Greystar, or with Galway Resources , which also holds exploration rights next to La Bodega. Vancouver, British Columbia-based Ventana has been the hottest ticket on the Toronto Stock Exchange this year, rising 27-fold as the company has released ever-better drilling results from its La Bodega gold property in northern Colombia. Shares of smaller Greystar and Galway have also jumped on the Ventana results. While Galway has yet to drill in the area, Greystar's Angostura gold-silver project connects with Ventana's discovery and is part of the same deposit, Ventana Chief Executive Stephen Orr said in an interview. "It would be certainly be in the best interest of both companies and their respective shareholders to do something on a joint basis, because that would maximize both the returns and the extraction from the deposit," Orr said. Asked if he's had any discussions with Greystar or Galway regarding a potential combination, he said, "No, we haven't." Orr, who became CEO of Ventana at the beginning of September, has nearly doubled the number of active drills working the property to nine, with the goal of releasing a resource estimate at the end of the first quarter of 2010. Analysts have been busy making predictions of their own based on the early drill results, with Canaccord Adams analyst Nicholas Campbell eyeing a combined resource in excess of 10 million ounces of gold equivalent on Ventana's property, he said in a recent note. An eventual combination of the three miners' properties is seen as a logical step, as it would make for a much larger single resource under single management, which would make it easier to obtain financing. "It makes every sense to combine those properties," said an industry banking source regarding a potential combination between Ventana and Galway. "There's no point in having two drill rigs standing side by side," said the source who focuses on the Colombian gold scene and asked to remain anonymous. Ventana's shares, which started the year at 36 Canadian cents, rose 34 Canadian cents to C$9.84 on the Toronto Stock Exchange on Friday. Greystar gained 14 Canadian cents to C$4.54, while Galway climbed 10 Canadian cents to C$1.22 on the TSX Venture Exchange. Ventana announced a C$40 million private placement last week, which it intends to use to fund drilling through the end of next year. Greystar is also based in Vancouver, while Galway's home office is in Elko, Nevada. Here is the Land Position: Here is the Corporate Presentation: http://www.galwayresources.com/i/Presentation_2009-10-22_GWY_CA/slide1.HTM    Live Stock Chart Galway has secured a significant land position in one of the world's most exciting gold trends. Galway has acquired 335.6 hectares (829 acres) of concessions in the California district of northeastern Colombia. The properties are located 1.5 kilometers south-west of Ventana's La Bodega project, and 3.0 kilometers from Greystar's Angostura project, and are along strike. Greystar Resources' Angostura gold deposit contains a National Instrument 43-101 ("NI 43-101") compliant measured and indicated resource of 11.5 million ounces of gold (plus 3.5 million ounces of inferred resources).   Visit Their Website: http://www.galwayresources.com/s/Home.asp

I recommended and took a position last week in EC-Ecometals Limited.  Insider buying and the news release that came out on Sept. 23 is what made me finally take a position in this Ecuadorian gold explorer.  The Rio Zarza Gold Project is a very attractive gold project that could be an extension of the Fruta Del Norte Gold Discovery-Aurelian/Kinross Gold.  A private placement was also done this month.  So cash has been raised to start drilling this project.  They are just waiting for a go ahead from the Ministry of Mines which I believe they will receive in November.  If all goes well they could be drilling this project in December.  I also been looking at the chart. The technicals look excellent.  The stock finally had a strong break out above .50cent and seems to be building some support between .50cents and .60cents.  If you look back to Spring last year this stock was trading around $1.50+.  I believe we can reach these levels in the short term when drilling starts.  Investors should take note that this is a very speculative play. If drilling starts and the drill results are anything similar to Aurelians Fruta Del Norte you will see a stock price 1000% higher from todays price.

Corporate Presentation: http://www.ecometalslimited.com/assets/pdf/ecometals_presentation.pdf 

 

Richfield Ventures-RVC is a stock that has moved up alot during the past few weeks.  In early September this stock was trading under .50cents and is trading today around $1.80.  The interesting thing about this big move up is that the trading volume remains very low. During this big move the volume never reach 500,000.  They also have very little outstanding shares - tight share structure-. What this should tell you is that the market isn't aware of this stock yet and when they find out about this story "BOOOOOM" To The Moon!  What's made the stock move up is the excellent drill results.  They could be sitting on the next biggest gold/silver discovery in British Columbia.  I will also keep an eye on Silver Quest -SQI who also has an interest on the Blackwater Project.  I took a position today in Richfield Ventures-RVC at $1.70 today.

  http://www.richfieldventures.ca/s/Home.asp

News Releases:

I did take a position today as I believe this stock is yet to be discovered. This is a high risk speculation play that is starting to look like the real thing. We will have to wait and see.  Invest at your own risk.

Here is an article from 321Gold that was posted over the weekend.

http://www.321gold.com/

The Next Big Thing

Bob Moriarty
Archives
Oct 3, 2009

I've been busy lately. I was in Peru 10 days ago and Canada a week ago. Today I'm leaving for the Balkan Boondocks. So PLEASE don't send email until 13/14th Oct.

When I was on the visit to Northern BC a week ago, a very sharp broker that I know suggested I watch a company named Richfield Ventures (RVC-V) closely. They are coming out with results right about now. I should have watched closer. RVC closed at $1 a share a week ago and $1.80 a share yesterday.

This is going to be one of the most convoluted pieces I have ever written and a true test of my ability to explain things clearly. It's going to be difficult.

First of all, there have been drill results released in the last two weeks that suggest the discovery of one of the biggest gold/silver discoveries in BC ever.

The overall project is called the Blackwater project and belongs to Richfield Ventures. Within the Blackwater project are two properties owned by different groups; the Davidson project, subject to a 75/25 JV between Richfield and Silver Quest Resources (SQI-V) and the Dave property that Richfield has a 100% option on.

Several years ago I outlined a process I go through to understand the potential of big drill holes. I call it cubing the hole. What I do is first figure out today's value of the rock. I'm going to use as an example the BW 46 hole announced by Richfield on September 21. First, go to the wonderful page set up by Doug Casey.

Feed in the values of 1.06 g/t gold and 5 g/t silver. I show a gross metal value of $36.77 but depending on when you do it, your numbers will be slightly different from mine. Now, you need to understand that that's a theoretical value for the rock. But you can't recover all of the metal so it's a limit on the high side. You will never get that much money out this rock.

Click on "What's The Rock Worth Page" on my site.

Then I cube the hole. Pretend the hole is vertical (which they rarely are) and it's just as wide and just as long. (Which they never are.)

Take the figure of 207.25 meters announced by RVC on September 21; multiply it by 207.25 and again by 207.25. I show the number of cubic meters as 8,901,918 if my calculations are right. But we need to add a factor for rock density. I'll use 2.5. That gives me about 22,254,795 tons of rock. If the value per ton is $36.77, multiply that out. That gives me a theoretical cube value of $818,308,812 for the hole.

That number is relatively meaningless because it's not a hard number at all. Holes are never as wide and as long as they are deep and you can't recover 100% of anything. But you can compare one hole to another. A cubed hole with a value of $818 million is what is called in the industry a "BMF" hole. It's giant.

Here's where we get really interesting. Hole BW46 is on the Blackwater project but not on the Davidson property. So it is of giant value to the RVC holders and only interesting to the SQI shareholders.

But let's go to the press release put out by Silver Quest on October 1. Hole BW48 showed values of 1.26 g/t gold and 5 g/t silver over 148 meters and bottomed in mineralization. That's $43.19 rock. When I cube the hole, I come up with a $350,032,491 hole.

Let's go into the gross metal value of a deposit and what it might be worth in market cap. I'm going to use as a rule of thumb everything from 1% of gross metal value to 10%. Any project that can be mined at a profit is probably worth a minimum of 1%.

Remember there are a lot of uneconomic deposits out there. You may have a billion dollars worth of metal but it's sub economic. If so, it shouldn't be valued very highly. When things are really booming and the market is hot, eager investors might fork over 10% of the gross metal value. That's rare and most of those investors are going to lose their shirts.

But gold in the ground for early exploration companies is probably worth $25 an ounce or 2.5%. So an $800 million dollar hole just added $20 million dollars in market cap to the company who owns it. And a $350 million dollar cubed hole can add $8.75 million in market cap. A billion here and a billion there and sooner or later you end up talking real numbers.

So here's how it works. Richfield Ventures has been drilling some homerun holes on the Blackwater project. Silver Quest will still end up with 25% of the Davidson project and it has some red hot holes on it. This is going to be a giant find, with potentially tens of millions of ounces of gold and silver.

Here is a map of the Blackwater project. The Davidson property is the part north of the east-west dotted blue line. All of the holes are part of the Blackwater project, many of them are part of the Davidson project so if you like BMF projects, you have the choice of investing in either of two companies.

Richfield has only 14.2 million shares outstanding. And better yet, only 5 million are free trading. So that's a tightly held stock and it could explode even from here.

Silver Quest probably has 18-20% of the total deposit so that's worth something. They have a modest 33.3 million shares outstanding with a market cap of only about $9 million. If they end up with 20% of a $8.75 million dollar hole, they are going to explode from here and they don't have to do anything. Richfield is doing the heavy lifting.

Richfield does not yet have an OTCBB symbol so I haven't listed one. I anticipate one shortly. Richfield is an advertiser. We do own shares. We are biased. It's your money, take some responsibility for your own due diligence.

Silver Quest is not an advertiser but they do have an OTCBB symbol so American investors can still invest in the project. If Silver Quest has any sense, they will advertise. And you may safely assume we bought some of them as well. After all, this really is the next big thing.

I would like to thank Bob Moriarty for writing a very good article.

Revett Minerals-RVM is a stock that I found when I was doing some research. Let's call it an accident!  What I found out was this company is a small copper/silver producer and that insiders are loading up on the stock.  Also, found that one of their Projects -Rock Creek has over 229mil.lbs of Silver and just over 2bil.lbs of copper. This is a project that can't be ignored. They still are working on an revised technical and economic feasibility study. If all goes well wih this study, then they will have get financing. Which I believe shouldn't be an issue.  I am sure a major won't mind taking a position in this project.  Their Troy Mine is currently in production and they seem to be improving their production costs.  I believe at .15cents this stock is very cheap.

 http://www.revettminerals.com/

Read August 10th 2009 News Release:

August 10, 2009

Recent Operating Highlights Include:

• During the first half of 2009, the Troy Mine Produced 622,919 ounces of silver and 4.6 million pounds of copper compared to 491,759 ounces silver and 4.5 million pounds of copper for the same period last year; 
• The Troy mine continued to improve mill throughput during the first half of 2009, averaging 3,871 tons per day compared to 3,489 tons per day in the first half of 2008, an 11% improvement;
• Productivity and cost improvements continued during the second quarter of 2009 resulting in a reduction of 29% in direct operating costs per ton compared to the same period last year. 

Fact Sheet On Troy Mine: http://www.revettminerals.com/documents/Revett_Troy_Fact_Sheet_3.26.09.pdf

Fact Sheet On Rock Creek Project:

 http://www.revettminerals.com/documents/Revett_RC%20_FactSheet_3.26.09.pdf 

About The Company 

Revett Minerals Inc. (RVM:TSX), through its subsidiaries, owns and operates the Troy Mine, and the development stage Rock Creek Project, both of which are located in northwestern Montana, USA. The proven reserves and significant resources at the Rock Creek project will form the basis of our plan to become a solid mid-tier base and precious metals producer in the future. The company plans on expanding its production through exploration in and around its current properties, as well as through targeted business combinations of advanced staged projects.

Since acquisition in 1999, Revett had maintained the past producing (1981-1993) Troy Mine on a care and maintenance basis. In late-2003 the company began reviewing the feasibility of reopening Troy and in April 2004 decided to put the mine back into production. At full capacity, the Troy Mine is expected to average 2 million ounces of silver and 17 million pounds of copper production per year.

Revett received a favorable Record of Decision for the development of the Rock Creek Mine from the U.S. Forest Service, and the Montana Department of Environmental Quality in 2003. While this permit has been challenged in the courts, the first phase of development should now commence in 2008 when we will drive an evaluation audit into the ore body, with the objective of producing a revised technical and economic feasibility study. This phase is expected to take 2-3 years.

Presuming a positive feasibility study, and the successful financing of the capital costs, Revett intends to develop Rock Creek as an approximate 10,000 ton per day, underground mine / conventional mineral flotation processing operation, with estimated annual production of 6 million ounces of silver, and 52 million pounds of copper over the life of the mine.

Last week I took a position in Carpathian Gold-CPN.  I believe the stock is cheap.  Their RDM Project in Brazil should be in production by late 2010 or early 2011.  This project will produce an annual production of 102,050oz of gold at a cash cost of  US$428/oz.  This project also has a 7.11yrs mine life with a 2.9 year payback.  Now, let's not forget that their Romanian Exploration and Development Project has a global resource of 10,750,00oz Au eq.

 http://www.carpathiangold.com/site06/

The market isn't giving Carpathian Gold any value for their Romanian Project which hoist a world class deposit.  The reasons?? Hopefully, this link will explain it all: http://www.carpathiangold.com/site06/Portals/0/Romanian_risk_turns_a_corner.pdf

Corp. Presentation Sept. 2009

http://www.designdevi.com/CPN/CPN_September09.pdf

RDM Preliminary Economic Assessment

While they keep exploring and increasing their resource at their Romanian Project, their Brazil Project- RDM is going full steam ahead.  They will have to raise some money to get this project up and running, but I believe they shouldn't have a problem doing so. You also have to remember thee is existing infrastructure, including buildings, roads, power, and water access and ownership of surface rights. This is alot of money they have already saved on this project.  I would also like to mention that the CEO -Dino Titaro is a director of Yamana Gold and the COO was previously with Agnico Eagle Mines and Yamana Gold. 

Here is a video of Dino Titaro talking about CPN's Projects: http://www.blinkx.com/video/capathian-gold-on-board-talk/HUDo8OPBGxTFKlFsMlpIyw