₪ David Pescod's Late Edition March 13, 2007
TRITON ENERGY (V-TEZ) $1.71 -0.09
There is a world of difference in what you can read about the
same company when a brokerage house says something about it
and when a newsletter takes a look. Brokerage Houses because
of ongoing legal concerns have to be awful careful of whatever
they say and whatever they do say it is usually followed by
pages of disclaimers. It is the age we live in. It’s the age of too
many lawyers would be our guess.
On the other hand you have those newsletters out there that
are about as blunt as you can get and people subscribe to them
because they are looking for bluntness. For instance, take a
look at what happened to little Triton Energy last Friday and see
the nice pop in their stock. And we would credit much of that
bounce to what was written in the “Penny Oil Speculator” on
Friday, March 9th.
They wrote, and we will quote them: “Tiny Triton Energy follows
oil giant Shell to virgin area of Canada. Locks up rights to a property next
door. Shell discovers $1.6 billion of natural gas on its property, and cuts a
deal to explore Triton’s property too. Drilling already started. Results due
in three to four weeks. A modest discovery could easily double or triple
Tritons Energy’s shares. A larger discovery, like the one next door, could
blast the share price up 5-fold or more.”
That is about as blunt as you can be and it certainly appeals to
the speculators greed. Not discussed much is the chance of
success for high risk wells.
We wrote up Triton Energy back on November 3, 2006, because
Jim Welykochy loved their exploration potential for this
particular Ram River/Ricinus-Tay River play that we had featured.
At the time it was significantly less, but now this story is becoming
timely and courteous of the Penny Oil Speculator, it’s
definitely got a wider audience.
AURELIAN RESOURCES (T-ARU) $24.80 -0.46
Today Aurelian Resources announces that Dr. Richard Sillitoe,
an independent international consultant and a leading
expert on epithermal deposits, has given the company a geological
report entitled: “Further Comments on Geology and
Potential of the Fruta Del Norte Epithermal Gold Deposit, Ecuador.”
For those with a geological background, it’s probably
must-reading and just go to www.aurelian.ca to take a look at
it. It talks about potential for drilling north, south and west
and also additional zones that are targets.
All that is well and good, but if you look at the stock chart,
what you really need is a crystal ball. Many followers of this
stock suggest there is anywhere between seven and 14 million
ounces of gold on this play, but the question is the politics
in Ecuador. Many mining companies based in Ecuador
have charts that look like this or frankly much worse and the
big question is what President Correa does next.
Previously people had thought that the legislature could
keep his nationalistic views out of the way of business, but so
far, it looks like Correa who is working on a constitutional
review and national votes to be held in April, could very much
change the way mining and other business are transacted in
Ecuador. One looks at the chart on many Ecuadorian mining
stock and wonder if this is an opportunity...or not.
URANIUM $90.00/pound +5.00
CROSSHAIR EXPLOR. (V-CXX) $3.10 -0.30
TOURNIGAN GOLD (V-TVC) $2.80 -0.18
AURORA ENERGY (T-AXU) $13.90 -0.98
If this looks like a neat, northern lake to do a little fishing or
swimming in, you better give your head a shake. It doesn’t
sound to us as an appetizing place to dip your toe in at all, because
what it is, is a producing uranium mine. It is the Ranger
Uranium Pit 3 in Australia and the lake recently appeared due to
a cyclone flooding the pit!
The investigative reporters and their crew at Stock Interview.
com (take a look at their website for some very interesting
pictures and story) have uncovered what could be yet another
disaster for the uranium business and has helped move uranium
prices up yet again today significantly. What now looks
like a lake is a former producing pit and the suggestion is that
they may produce 4 million pounds less of uranium this year
from what it was formerly the number three producer in the
world. Again, this has affected uranium prices today around
the world.
Also taking another look at uranium today is some of the
Canaccord analysts and their favorite stock suggestions as
they now expect uranium prices to peak at over $100 some time
in 2008.
As far as particular stories, Toni Wallis has upped her target
on Crosshair Exploration to $4.60 based on ongoing resources at
Moran Lake and a significant drilling program.
Also on Tournigan Gold, she raised her target to $3.75 for
their uranium/gold plays mainly in eastern Slovakia, where they
have four uranium projects and 7000 metres of drilling work
was completed in 2006. The suggestion is that they may have
18 million pounds of uranium now at Jahodna and Novoveska
Huta, could change those numbers significantly.
Meanwhile, Graeme Currie takes a look at Aurora Energy and
has moved his target up to $21.00, based on reserve estimates
of 85 million pounds at Michelin and new numbers out of
Jacques Lake that could be as much as 10 million pounds.
Meanwhile for ourselves, we continue to believe that the
correction in mining stocks that we talked about a lot over the
last few weeks has started and one never knows what starts it,
it just happens every spring and we continue to raise funds to
get into the beaten up, dirt cheap, natural gas sector in the next
two to three months.
If you would like to receive the Late Edition, email Debbie at debbie_lewis@canaccord.com |
