₪ David Pescod's Late Edition November 29, 2006
STRATECO RESOURCES (V-RSC) $2.36 +0.13
HATHOR EXPLORATION (V-HAT) $1.32 -0.03
GLOBESTAR MINING (V-GMI) $1.25 +0.14
As we’ve pointed out from time to time, David and Eric Coffin
are the brothers that put out the Hard Rock Analyst, a newsletter
that we figure is mandatory reading for anyone who follows geology,
rocks and mineral exploration anywhere in the world.
They make the ideal team. Eric, based in Vancouver and the
family guy, who has to cover all the rumors, gossip, book work
and the like, while single-guy Dave is off chipping rocks or visiting
sites at any given time, anywhere in the world.
Interestingly, today David Coffin is in Ecuador. He’s down
there looking to get caught up on the Coastport Capital (CPP) and
Aurelian Resources (ARU) stories, but also seeing if he can’t
check into one of those “Quick, Learn How to Speak Spanish”
schools, and I suspect, ask more than a few people their thoughts
on what the election results in Ecuador might mean for everyone.
We quiz Eric today because of the last stock he picked and
suggested a couple of times, Strateco Resources, the uranium play
that has had quite a run along with many of the other uranium
stories of late. “It has traded 90 million shares over the last
month and a half” Eric suggests, and “a lot of that is because of
institutional interest, particularly from the big cities south of the
border”. He wonders as well when a person should be taking
some of the money off the table and he does admit that valuations
on many of the uranium stocks are getting crazier and crazier.
He points out that many people are convinced that uranium is
going through $100 a pound and many of the utilities are simply
going to need uranium, no matter what the price.
As far as Strateco, he points out that company President, Guy
Hebert, is an experienced mining man who has taken other mines
into production in the past.
After the big move on Strateco over the last while, we ask,
“what next?” If he could only pick one today, he suggests that
Hathor Exploration is another uranium play that maybe deserves
more interest.
He figures the stock is probably being hurt by recent 40 cent
placements that might be overhanging the story, but with drills
starting to turn in about a month, he figures it’s going to attract
attention and probably a higher price.
As far as a second pick, he points to today’s drilling results
out of Globestar Mining, the nickel explorer in the Dominican Republic
and is intrigued by the numbers on this laterite project. He
suggests more extensive drilling down the road is going to have
to be watched.
As far as the results in Ecuador and what to worry about
there next, he suggests that Correa’s acceptance speech the
other day was fairly conciliatory, and he wonders if some of
the corrections in stocks such as Corriente, Aurelian and the
like, may have been overdone.
On the other hand, he suggests he is a bit of an unknown
quantity and the last thing you need, is some huge mistake to
be made six or 12 months down the road that makes one
worry that maybe this is another Hugo Chavez.
Here at Canaccord, the concern continues for what next in
the political future in Ecuador, a typical Latin American country
in that there’s widespread poverty, but also lots of mineral
and oil wealth. Analyst Wendell Zerb has written up Corriente,
whose Mirador project is currently being developed and
Zerb has a $9.00 for Corriente.
Graeme Currie has followed Aurelian since way back at
under $3.00 a share and he continues to suggest that this
could be the “mining success story of the year, decade and
possibly the generation”, but then there’s the concern about
politics raising its ugly head.
In the meantime, if you’d like to see the reports on Corriente
and/or Aurelian, just e-mail Sandra at Sandra_
wicks@canaccord.com.
DELTA PETROLEUM (US:DPTR) $30.04 +0.98
I guess we shouldn’t dwell on this stock this much, but
then again, why not? When you have someone like Eric
Sprott suggesting that if he could only buy one stock, this
would probably be it. The chart over the last three months
tells you that this thing has gone almost straight up and of
course the key is speculation.
Delta Petroleum is involved in three high risk/high reward
areas in the United States, but one of them stands out above
them all and that’s the Columbia River Basin in Washington
State. Incredibly, a well drilled that has taken almost two
years to drill is now being tested, and results are expected by
Christmas.
In the meantime, if this Washington-area play is found to
be gas-charged in the numbers that some people seem to be
tossing around so easily, this could well develop to be one of
the plays of the year and Eric Sprott’s faith in this stock could
be well rewarded.
Once again, some of the target numbers that are being
bounced around these days are becoming astronomical and
you can tell by the volume of stock trading that people are
definitely paying attention.
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