₪ David Pescod's Late Edition November 15, 2006
AQUILA RESOURCES (V-AQA) $1.89 +0.17
One has to wonder about geologists—whether they need
agents or something. When most people take a business trip, it’s
to a convention in Vancouver, a business meeting in Las Vegas...
you get the drift. But to a geologist, a business trip usually
means a visit to some mosquito-plagued slough in the Arctic or
working on hills so high in the Andes, you get height sickness. Or
you are fighting malaria in deepest Africa. And they seem to think
this is great stuff!
Canaccord mining analyst Wendell Zerb is just back from a
“business” trip to the Dominican Republic—yes, that Caribbean
Island with beaches, cafes and five-star hotels. Maybe he’s finally
figured it out! No. He’s up in the mountains looking at several
mining projects—as the DR is now home to Barrick Gold (ABX),
Globestar Mining (GMI), Everton Resources (EVR) and several
other miners with many interesting and developing projects.
Oh, yes...after visits to the DR, he was off the jungles of Columbia.
Better him than us!
Still getting caught up on his stories, we still ask him “of all the
metals out there, which would he be most bullish on?” Zinc is his
answer, but he also suggests many metals could have good prices
for years to come and suggests copper (even at $2.00 a pound) is
historically a great price.
As far as zinc, he suggests demand grows, but he worries
about supply, suggesting over the coming years, supplies from
Australia could decline…
Which gets us to a Aquila Resources. We’ve mentioned their developing
exploration story and the relative safety of Michigan and
that so far they have received very little respect...the “Rodney
Dangerfield” of zinc explorers. No analysts officially follow it and
they don’t even get much chit-chat on the “bullboards”. Well that
is certainly changing. Now it’s one of the most active trading stories
(and it’s also a big trader on Frankfurt).
If you are talking zinc, how about some of today’s drilling results
like 31 meters of 9.6% zinc. Great widths and great grades.
You want copper? How about 20 meters of 6.7% copper. Again,
great widths, great grades. Some pretty decent silver numbers as
well. One drill continues to work on site and the company expects
to announce more ongoing drilling results, four from the east zone
and 20 from the Pinwheel.
The number folks should be keying on, near Christmas when
according to Robin Dunbar, the company should have a better
handle on reserves/resources, which will be very important numbers
indeed!
Dunbar says “stay tuned as this Pinwheel zone is looking more
interesting all the time.” Thanks Andrew and Fiona.
CORRIDOR RESOURCES (T-CDH) $6.85 +0.35
NATURAL GAS $8.12 +0.21
It’s a mess out there in the oil patch and one
might wonder what could go wrong next. The
Trusts have been hammered as well as many oil and
gas companies that thought they would be selling
themselves at lofty valuations to the trusts. That,
plus the decision by companies such as CNQ to cut
drilling programs by $1 1/2 billion, has also clobbered
the service sector. All in all, you’d think oil
has sunk to $30.00, not $59.00.
But here and there are a few success stories and
hitting new highs today is Corridor Resources, one of
the favorite and ongoing picks of Dominick and
Dominick oil and gas analyst Andy Gustajtis. “It’s
just the start baby, just the start” he says in reference
to Corridor, which should spud a very important
well next week.
Gustajtis now believes Corridor probably has
close to 1 Trillion cubic feet of gas in their McCully
prospect and the well spudding next week goes
deeper to the Dawson Settlement, a target that if the
goods are there, has enormous implications for this
stock.
Meanwhile, Gustajtis points out that the Corridor
story in New Brunswick still hasn’t attracted the interest
in Calgary that it should have…“people there
just don’t believe that there is gas in New Brunswick”
he says.
So who will be watching this play and create the
interest, we ask? Andy suggests “the Americans”.
He points to a recent issue of the Wall Street Journal
that dealt with “Company Specific Energy Plays”
such as Delta Petroleum (DPTR). The article suggests
that the Yanks are looking for this type of potential
play.
Tomorrow Gustajtis publishes a report on Corridor
that I’m sure all followers of Corridor are going
to be avidly waiting to see...
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