Well Joe we do have a few points to ponder in these uncertain days. First off why should this be so disappointing? Every other junior stock seems to be taking a beating in light of all the scams out there.
Last year was an excellent year for some of us Canuc shareholders; but this is hard times because of the scams cited above. I find the Placer/Northfields potential to be the key to this whole "puzzle". Again combining the Northfields information with the Canuc info puts this play into a below average risk. I say this this because there was mining on this property before and 50% of the ore (@0.5 OPT cut-off )was recovered. In Northfields reports they suggest that this figure is 2.25 mills since 1982. This proof positive that there is ore left to be mined, so I would question the $50/oz (in the ground) that you used. I would hazard that this number should be at least twice that. The fact that Placer made a deal with Canuc (and possibly soon to be Northfields) suggests that a small mine in the scarn Cu-Au zone could provide the cash flow required vs the equity issue for the 7-9 mills indicated.
What's the deal? I would guess that Canuc's 69 hectares is too small for an open pit operation. ANd the Scarn Zone extends into the NFM property. This is why (and where) Northfields comes in ($3.3 mills in the bank), and of course Placer has the reputation to bankroll any size operation that is required.
But if you notice the chart on Canuc ~$1.00 is the recent base (hit $1.10, and settled at $1.20 on Friday 20). Northfields has 50 million shares outstanding ; but is close to bottom fishers specials. The secret to Northfields is that most of the shared are held by European insiders, so the public float is small (IR guy says ~2 mills; but sounds kinda low).
So in summary, Canuc, in recent years have always had some positive announcements to make at the annual meetings, and I don't believe that this year should be any different. The real people behind Canuc, the Murtons, one died a few years ago, and the next is getting on in years are looking for a return on their long hard years with this company. I've played this stock for 15 years and you have to take what it gives you. And before the annual meeting this is an excellent buying opportunity. Don't forget that there are some samples to be announced, what better time than at a shareholders meeting. And if the share price takes a big spike, it would be an opportune time to sell some treasury shares to pay for some development/production expenses.
Cheers Winzer |
