₪ David Pescod's Late Edition December 20, 2006
AQUILA RESOURCES (V-AQA) $2.61 +0.16
FORSYS METALS (T-FSY) $4.40 +0.45
“Yes Virginia, There is a Santa Claus…” It looks like Santa Claus is helping us out on a couple of stocks today - mainly Aquila Resources and Forsys Metals. Aquila had gone kind of quiet for a while there, as they did a financing that raised $25 million which means they should have no lack of funds to find out exactly what they got on their Back Forty project (it is in the upper peninsula of Michigan). This is an area that is not usually thought of as a “hot bed” of mining exploration, but they’ve been coming up with drilling results that are somewhere between exceptional and Wowie.
Today, now that the financing is closed, they can go back to announcing results from their last program and the numbers continue to be tasty – 23 meters of 1.98% copper which is pretty good numbers for copper, but it also has 2.8% zinc. They also came up with 34 meters of 2.2 g/t gold and 1.5% copper and 46 meters of 2 g/t gold and 0.72% copper. Those results were from their Pinwheel zone, but on their main zone how about this for base metal lovers…21 meters of 7% zinc and 32 meters of 10.1% zinc and 43 meters of 7.4% zinc.
Andrew Kaip was the analyst that had got us into this story and as he mentions, “the results continue to be good the big question remains though, what kind of tonnage reserves are we going to see announced by the company down the road?”
Forsys Metals is another story we’ve been featuring and today the company announces that they are awarded another Exclusive Prospecting License (EPL 3638) in west-central Namibia, or at least Dunefield Mining Company a private company, which is owned 70% by Forsys, receives this permit.
The license is not too far from other company projects and was drilled back in the 1970’s – the last time uranium was interesting and by the way right now uranium is more than interesting and we’ve wondered if more then a few uranium stocks aren’t grossly overpriced, but uranium is up to $72.00 a pound making it probably the “commodity of the year” for the past year!
It is yet another promising area to explore, Forsys today hits yet new record highs! For a look at Forsys Metals, email Sandra at sandra_wicks@canaccord.com and she will send you off a report.
Meanwhile, thank you very much Andrew and Toni and may there be more than chestnuts under your Christmas tree!
LEADER ENERGY (V-LEE) $1.56 -0.02
WAVEFRONT ENERGY (V-WEE) $1.36 +0.01
NATURAL GAS $6.75 -0.33
“Yes Virginia, There is a Grinch…” We’ve written probably too often over the last few months about our concerns for natural gas prices and many natural gassy stocks that have already been clobbered 40% to 60% as concerns mount about the disappearance of winter.
A client tells us about working down in Pittsburg and working in t-shirts the whole time. Flying back to Minnesota, he tells us there is no snow and once again, people are wearing t-shirts.
If this continues and we have no winter in January, which is usually the coldest month of the winter and gas inventory remains near record highs, we could easily see gas prices stumble to $4.00 an mcf this spring. If that happens, you are going to see blood on the streets in Calgary. There are lots of gassy stocks these days that have big debt and if gas prices get even worse, gassy stocks could get scary.
One sector that’s also being clobbered is the service sector. Hard to believe a year ago gas prices were $12.00 to $15.00 an mcf and any drilling rig or service company out there that had any equipment, was as busy as they could be and desperate for equipment and experienced men.
Now it’s the reverse. Once again, in the middle of winter and service companies are not busy.
Jim Letourneau of the “Big Picture Speculator” had featured these two stocks in his newsletter, but suggests Leader Energy is one of the oil service companies that might have lost their focus and a stock that might have been on its way to double-digits a while ago, in the current concern about the weather, he suggests “the company has lost its focus and is a sell.”
As far as Wavefront Energy though, while the stock has gone the same way, he believes that their technology is being developed to help improve recovery of oil, and still has to prove to the oil sector that their new technology really works. He figures at this price, it’s time to be looking at this story.
The one thing the chart tells you is that you are looking at it at a much lower price.
If you would like to receive the Late Edition, email Debbie at debbie_lewis@canaccord.com |
