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Summer Update and Commentary By : Ken Reser Consultant |
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As we’ve witnessed over
the last 3-4 months the markets have not been kind to most of the Jr. Mining shares, with the hardest correction yet in
this metals super-cycle now seemingly near the end of this not so unexpected
downturn. Yes we all know about
the perpetual market “Summer Doldrums” as they occur every year
w/o fail. Herein lies the reason for my absence from the keyboard since my
last writing of Apr 09/06. (noted by many emails I’ve rec’d) Well, all I can say in my defense is why research and write editorials if few are
reading them. Many lights are
still on, but there are few at home to read or respond to even the most
widely read newsletter or editorial scribes (a group of which I’m not
among) during this period of the season. So onward with this update &
precursor to my future writings resuming again in mid Sept. First on the list is Adanac Moly Corp: TSX; AUA-V / Frfurt; A9N. Adanac
Ruby Creek PowerPoint Presentation: http://www.adanacmoly.com/adanac_powerpoint.php The markets have been hard on Adanac
shareholders over the last while, ($2.90 high to $1.45 current) which is hard
for some to understand even tho Adanac
now has their Section 11, coupled w/ the Bankable Final Feasibility completed
and Federal Mine permit applications in the works (expected in late Jan. /07
when the 180 day review process ends) and also when you consider that Adanac is
still well in the lead for the permitting of the next ‘World Class’ 20,000 t/p/d “Primary” Molybdenum
mine in NA. Yes, I know a couple of other Jr’s
have test/bulk sample or small scale mine permits for small scale production,
and a couple are “claiming” to be into small scale production in
/07, but one of these doesn’t even yet have a Final Feasibility study,
a Section 11, nor the Fed permits under application. (Adanac has all 3) Another Moly play S of 49 is making mine construction and
production cost claims mostly from internal studies, neglecting the fact any
U.S. BLM mine permits can take years to obtain, not to mention the tree
huggers hamstringing so many mine projects in the US. Now to the more current aspects
of AUA’s Ruby Creek project. As I write this, the BC Dept of Highways
contractor is nearing completion of a $900,000.00
bridge and road upgrade on the Pine Creek haul road to the Ruby Creek
mine. A cement/steel span of Next up is the fact Adanac is now completing a – 45 degree, 8,000 to Photo’s of the
current drill core being pulled: http://www.adanacmoly.com/album_detail.php?album_id=1 This, in a NI 43-101 revision would
amount to the average grade of Ruby Creek becoming in the vicinity of + 0.1%
Mo as opposed to the previous .084% Mo in the 1st 5 year portion of the pit. (not MoS2 which is
higher yet) Adanac
will also twin one deep hole drilled by Climax in 1974 that returned .10% Mo
over One VERY pertinent aspect of Adanac’s share value decline at this stage (this also applies to Goldrea
Resources Chinese Daye Mine project) is very well summarized in the revealing Apr. /05
editorial by Albert J. Matter entitled “The Second Best Time to
Buy Mining Stocks” (Link) http://www.kitcocasey.com/displayArticle.php?id=63 Here Albert describes the
various stages a stock encounters thru the process from discovery until
production. My own sense is when
you insert Adanac @ the yr high of $2.90 in stage #
3 & Adanac is now languishing in stage # 5
prior to the stage # 6 Development & Construction phase, his theory works
well. To my thinking this is, as
Mr. Matter describes the 2nd
best time to buy a mining stock. I’ll leave the numbers
crunching for others as to where this stock value is headed & what
dividends would be paid with 12 – Model of
Classic Mining Company Share Price Cycle
Courtesy of www.kitcocasey.com Another VERY relevant editorial
published on Gold-Eagle.com & 321Gold.com is by Dr Richard Appel and is in my opinion a “Must Read” (I guess because I totally agree with his
take on the markets) It can be found here. “Resource Stocks
Prepare to Rise” (Link) http://www.gold-eagle.com/editorials_05/appel082506.html Richard has an extremely
good grasp of the overall Market picture in my opinion and one should
definitely read this editorial also.
I’ve now written far more than initially intended on Adanac, so let the skeptics
beware, their DD is flawed if they think Adanac’s
Ruby Creek won’t come into production for “whatever”
unfounded reasons they can dream up next. Goldrea Resources: TSX: GOR-V, Frfurt; GOJ, Pink Shts: GORAF Subsequent to my last editorial
dealing solely with Goldrea titled“Gold Coup in
Picture of one
Part of the Daye Mine; Courtesy of 321Gold.com The current drilling on Goldrea & China Rushan Jv’d claim blocks is still
underway by the 3rd Brigade and they are now out about Here is a brief excerpt from the July 6/06 news release regarding the Daye Exploration…. Daye
Joint Venture
Surface mapping and shallow drilling has indicated
seven of these gold and sulphide bearing bodies of undetermined size along
the http://www.goldrea.com/releases/06_0706.html
On another Goldrea
front, GOR and it’s sister company, Molycor Gold Corp,
(MOR-V) I believe now have drill permits for their 50%-50% Tadpole Lake
(Dobbin #1 claim-block) Platinum/Palladium project in central BC. This project alone could catapult both
MOR and GOR if the size of the orebody becomes what
the Geologists expect thru step out drilling in Sept. This is the first of 3-4 drill
programs for MOR between the BC Joint venture w/ Goldrea
and their own Nevada Silver/Copper/Gold projects. ( I mentioned in a previous
editorial awhile back (Miners Tri-Fecta) that there
would be a fourth horse in the Larry Reaugh stable
of mining companies and will soon be writing about it and their exciting
project in a subsequent September editorial also. As always thanks for reading and
responding w/ your phone calls and emails. The numbers of those whom have asked
to be kept on my email list is getting very extensive and I will keep you all
posted as events unfold & time permits. Please reply by email if you wish to receive further
periodic editorials and are not yet on this list. Best Regards; Ken Reser August 26, 2006 Ph: 403-844-2914 Email: ykgold@telus.net ** Disclaimer: As a paid
Consultant for Research, Development and Public Relations to all three of the
aforementioned companies, I may at times own shares or hold Options in these
companies. As I am not an accredited financial advisor, this editorial cannot
be construed as advice to buy or sell shares in these or any other public
companies. I strongly advise any and all prospective
shareholders to do their own extensive due diligence and research as I have
personally done before I came to work for these companies. (KR) ______________________________________________________________________________ Information
contained herein is obtained from sources believed to be reliable, but its
accuracy cannot be guaranteed. It is not intended to constitute individual
investment advice and is not designed to meet your personal financial
situation. The opinions expressed herein are those of the author and are
subject to change without notice. The information herein may become outdated
and there is no obligation to update any such information. The author,
24hGold,entities in which they have an interest,
family and associates may from time to time have positions in the securities
or commodities discussed. No part of this publication can be reproduced
without the written consent of the author. |
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