₪ David Pescod's Late Edition May 12, 2006
INTL FRONTIER RESOURCES (V-IFR) $2.34 +0.03
Maybe we are getting closer to the time when we will find out
what it was that little International Frontier and partners Husky,
North Rock, EOG and others drilled this past winter up in the
Canadian Arctic. Results of the latest land sale for over
500,000 hectares is now public and it looks like the consortium
got the one block they were after which is adjacent to
EL-397 which involves a $10 million plus work commitment
for 85,000 hectares. What President Pat Bowsell found of
interest was the increasing interest in the Arctic, as Devon
and Talisman got together and bid for 4 of the 6 parcels. Also
one of the remanding parcels went to Paramount. As far as
news on what they have found, he suggests that it involves
drafting news releases and of course having American partners,
delays things just a tad also. As to what’s happening
on a handful of North Sea ventures, he would only say that
they are working on it. Needless to say, what happens next
on the North Sea, particularly the Quad 14 project, will be
increasingly important to International Frontier.
S&P/TSX Venture Composite Index
GOLDCORP (T-G) $41.74 -1.82
GOLD $714.80 -1.80
S&P/TSX VENTURE INDEX $12046.42 -119.01
To the left we have some charts - the six month gold chart
shows you the incredible move we’ve seen in the last
month and a half, as gold as surged from $550 to more
than $700.
All that without any correction at all—it’s been unbelievable.
Are we due for a correction? Well, the market today
is having at least a burp or maybe more…..
When we ask a typical mining guy like Don Moore,
though, he still doesn’t appear too worried. He is firmly
convinced that while some of the big gold stocks definitely
have had a run, many of the juniors didn’t participate that
much.
“We still haven't seen the buying frenzy you might
worry about near a top”, he suggests. Well, we don’t know
but we remember the old saying, “Sell in May and go away”
and that certainly has been a long move up in gold without
a correction, but then today has definitely been an “oowie.
LEADER ENERGY (V-LEE) $4.75 n/c
Leader Energy was one of the success stories through much of last
year in the oil and gas service business as experienced management
took over a new start up firm. However, delays in receiving equipment
meant that a recent quarterly financial was not up to some analyst’s
expectations and we saw back on March/April quite a correction.
Now all of a sudden, we are seeing things going the right way
and we go to the guy that does the IR for Leader – Jason Krueger to
give us a quick explanation. Jason suggests that “management is
now on an IR tour to places like Houston, New York, Toronto and the
like to tell their story again and hence the new market awareness.” Of
more fundamental importance is their move into the cementing business
is going almost ahead of schedule compared to previous problems
receiving equipment. They expect to have four units out and
operational by the end of June and eight more by the end of the third
quarter. They hope to have a total of 18 by year end. “All of their operators
have ten years experience and given the current boom in the
oil and gas business” he suggests. This should bode well for this
junior service company. Yes, we own a bunch!
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