₪ David Pescod's Late Edition March 29, 2006
NOVA URANIUM (V-NUC) $4.45 +0.10
Your loyal servant reports that it’s 89 degrees and
sunny here in Puerto Vallarta and it will be 89 degrees and
sunny for the next three days. Is that spring break or what!
We are scouting out what to do for readers when they
get down here (after they cash in some Connacher, Falcon
Oil and Gas or Nova Uranium). Para-sailing is big down
here. They hook up with what looks like a parachute behind
a boat that looks too fast and off you go. The cord is
up to 1500 feet long and means you go to heights as much
as 400 feet. It gives you amazing views of Banderas Bay
and its wildlife. There is a good chance you will see from
lofty heights the many schools of dolphins in the Bay and
you are soaring above the many flights of pelicans in the
area.
But let’s put this in perspective. At 400 it’s like sitting in
a 40-story building on a small piece of wood with a flapping
parachute. Even the rebellious teenage pelicans don’t
fly this high. You might note on a quiet moment up there,
that there is not a single knot holding the sheet to the boat.
Where is the compliance department….are there no safety
inspectors around here? If it slips...well, let’s not go there.
It is also amazing that when they let you down on the
sand patch where you left on ever so gently, you were for a
few moments right over some hotels and tales of some
para-sailors that crashed on balconies in Cancun come to
mind…but what a hoot!
There is a suggestion box out here where we put that an
extra knot or twenty might be a good idea for company
policy and for some, 40 feet instead of 400 feet might be a
good idea. But what a sight!
Speaking of sights, how about Nova Uranium. We’ve
written about Nova Uranium several times over the last few
months because the Coffin Brothers of the Hard Rock Analyst
have such high hopes for it. But real news like assay
results are probably still close to 20 days away. There has
been a nice move in the stock lately because suddenly
there are a lot of juniors jumping into the area around the
Laurier play and of course these juniors are all yapping
about what one might find in the area down the road.
It’s creating interest in an area play and of course the
big dog in the area play is Nova Uranium.
CORRIDOR RESOURCES (V-CDH) $4.95 -0.06
Yesterday, Corridor Resources announced its long term plans for
the development of the McCully Field in New Brunswick and it
has certainly attracted interest in the last two days. Production
is currently quite small, it is selling just a small tad of natural
gas to a nearby potash plant, but now we can see their future
plans as they announce drilling of 20 or more production wells
over the next two and a half years. Ten wells have currently
been drilled and cased, six of them fraced and tested. Hopefully
their new plans should see 14 wells in total fracing completed by
the fall when the pipeline to the Maine and New England pipes
should be completed. They hope for a roughly 25 million cubic
feet per day production at this time. For ourselves, we have
greed. Sometime later this year they drill the deeper zone under
the McCully—the Dawson Settlement. Analyst Andy Gustajtis
gives us about a one in four chance of success there, but it’s the
size of the Dawson Settlement that will attract attention. How
about a potential target of three to five TCF! Now even in this
age of mega discoveries, this is a play that will attract attention
down the road.
CRYSTALLEX INTL. (T-KRY) $4.52 +0.10
Imagine that you’ve got a chunk of change and all your skills
were to be invested into a partnership? You would want a
warm, fuzzy feeling about who your partner was, right?
Well, if your partner was going to be Hugo Chavez of Venezuela,
would you be worried? I wouldn’t go near it and I
have shorted Crystallex from time to time, but this story still
seems to create a lot of interest given the high gold prices.
Yesterday, Crystallex announced that the Ministry of Basic
Industry and Mining, also known as MIBAM, has notified
them of approval of their technical, economic and financial
feasibility study for the Las Cristinas gold project. Las Cristinas
has been owned by others that gave up on it, despite
its apparent holdings of over 15 million ounces of gold. The
question remains, whether Las Cristinas is developed,
whether Crystallex will benefit from it...or does Chavez
change the rules at the right time for him? Meanwhile in
Bolivia, the newly elected Nationalist President and former
leader of the cocoa growers union there, has grabbed all the
oil and gas assets in Bolivia. I have a feeling country risk is
going to be something we are going to be hearing a lot more
about.
Disclosure: Canaccord has recently participated in a financing for Corridor Resources.
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