Hello Rick
That is a difficult question for several reasons. I am not sure how you define succesful and in what time frame.
If you are talking long term appreciation with the greatest potential for overall up side based on known assets, implied assets, management diversification, and takeover potential, I would have to answer Southernera. Aber and Diamet must also be considered as both have greater strengths in some areas than Southernera but greater weaknesses in others.
If your talking within this summers trading season that is a much more difficult challenge. There are so many short term variables such as timing of announcements, field results, the influence of Bre-x on the market and the promotional ability of company hucksters.
I try to base my investment decisions as much as possible on, actual data, odds of success, management, and the geological potential of not only finding "real" assets but also developing a mine. In other words less flash and more substance.
Flash tends to produce greater short term results but also greater potential for watching your capital depreciate, sometimes quickly but just as often so imperceptibly slowly, that you can have a significant loser and not realize its happening until you are well out of the money.
The four juniors that I personally believe have the greatest potential for short term gains based on known data and odds are New Indigo, Kalahari, Cypango and Southernera again.
Short term success is achieved either through exploration success, promotion and/or through a takeover.
Kalahari will probably be the most heavily promoted and currently has the greatest leaverage. As a company it is nothing, but it has 30% of Southernera's McKay Lake/Back Lake play. Southernera has more than ten pipes here all with diamondiferous chemistry.
Because of its share float, Cypango will be a close second. I have not yet formed an opinion on the quality of the company but its property and prospects are outstanding, and its exploration manager is one of the most successful in the NWT (Canamera). It is dead in the middle of the economic diamond centre of the Slave Craton sandwiched between Diamet/BHP and Lytton who both have highly diamondiferous and economic multiple kimberlite pipes. Cypango has six diamondiferous pipes established to date, one currently still in appraisal for grade, size, etc. Better still, it has more than ten other drill targets with diamondiferous geochemistry trains and significant ground mag. lows.
If you read my earlier post, you already know about all of the potential for Southernera. Its only weakness is that it does not heavily promote itself. On the other hand, it is starting to be quite closely followed by the big houses and institutional investors now and therefore receives a great deal of quality exposure through their outlets and the media.
New Indigo will be amalgamated with Lytton later this summer. NI has about a 12,000,000 share float +/- and trades with very low volumes in Alberta right now. (Except over the past week). It owns 50% of the three highly diamondiferous Jericho pipes, the Nazerath pipe and most of the huge land position around them. Lytton (110,000,000 shares) and New Indigo have the largest land position in the play and have optioned part of it to Monopros, Kennecott and Ashton who have each since found additional kimberlite pipes.
Lytton and New Indigo are expected to announce additional pipes this summer and also have discovered several very highly prospective and large gold and base metal ore bodies.
Because of their small share float, the news and their amalgamation, I expect that shareholders of record should see their share numbers multiplied five fold and values increased or maintained by the additional assets announced. Lytton is highly liquid and could be in production within two years if it uses the Lupin mine site to process the Jericho ore. This is less of a pure speculation than the first two.
Aber is also expected to announce additional pipes this summer and on that basis you could consider it a high quality speculative stock. You can not go wrong owning Aber at its current price, but without additional pipes or a takover, I do not expect it to appreciate this summer.
Those are what I believe to be the better odds, but I am not a millionaire investor so my opinion is perhaps only as good as the next guys.
Good luck
Regards |
