₪ David Pescod's Late Edition June 7, 2007
IMA EXPLORATION (V-IMR) $ 0.44 -0.56
AQUILINE RESOURCES (T-AQI) $10.30 -0.05
The chart shows that over the last couple days, there were those that just couldn’t resist taking a bit of a gamble on who might win the large and rich silver Navidad project in Southern Argentina. While much of the work was done by IMA Exploration discovering and developing the project, it looks like the courts have decided that it’s Aquiline Resources that actually owns it.
An appeal on a previous decision had a decision coming down early today and basically Aquiline wins it all as the Navidad appeal by IMA Exploration was dismissed.
For those hoping that IMA might squeak out something of it and took a gamble in the last few days, that was money that could obviously (in hindsight) have been better spent.
IMA is again, appealing...to the Supreme Court of Canada.
CANDAX ENERGY (T-CAX) $0.74 -0.01
Finally some good news from Candax Energy as the company announces some results that are surprisingly good for a change. Canaccord analyst Terry Peters writes, “Current production from the field is in the range of gross 3,000 b/d, ahead of expectations and prior to the two-well infill program scheduled for H2/07. As a result, we are raising our production forecasts for both 2007 and 2008.”
Peters writes, “Production momentum has returned. Assuming a successful re-development at El Bibane, we anticipate Q4/07E production could reach 3,320 bopd (excluding gas from El Bibane), compared to a Q2/07E average of 820 bopd.”
One of the key people in management with Candax is John Clarke, who used to be for two years running, one of the top oil and gas analysts, who then decided instead of critiquing other people’s work, try and do it himself and it has been two very onerous years with many more downs that ups.
We do an interview with John Clarke and an update on Candax Energy next Monday.
For those who would like a copy of Terry Peter’s report on Candax, just e-mail Debbie at debbie_lewis@canaccord.com.
REDHAWK RESOURCES (V-RDK) $0.60 +0.02
They remind me of the “Rodney Dangerfield” of the junior exploration business...they get no respect...or following, or analyst coverage or anything it seems.
Today Redhawk Resources announces even more drilling results such as 212 feet of 3.09% copper; 264 feet of 1.8% copper and 81 feet of 3.2% copper. This is coming in the nice, safe place like Arizona, in a mining area, with smelters nearby and they’ve also got some tonnage.
According to an NI 43-101 compliant resource study done by Independent Mining Consultants in 2006, estimated 6.4 million tons grading 1.75% copper equivalent in measured and indicated resources with additional inferred resources of 3.6 million tons grading 1.76% copper equivalent.
According to the news release today, these resources are contained in only three of more than 300 known breccias and the porphyry-like mineralization below the Mammoth Breccia.
We can understand no one caring for news like this on a day when the markets are getting slammed, but with ongoing not bad results, why aren’t more people following it, such as analysts?
GOLDCREST RESOURCES (V-GCL) $0.85 +0.03
We are starting to sound more than a little repetitive and boring with this idea that every spring for the last five years, we’ve had a retreat in the junior mining sector and it will happen...the only question is when.
For us, it feels like it is definitely on now as volumes have been shrinking and the Junior Index has been weakening as well. Think of it another way—that you’ve probably raised cash by now and you are going to have a shopping spree here in a couple of months. The only question is, are things going to be 10% off at our version of Safeway or will it be 20%? We’ve drawn two lines that look like they could be support levels and frankly they are not that far away and it wouldn’t be that painful.
Having said all this, there are certain stocks one wants to be following even in a bad market. If you saw those assay results out from Goldcrest Resources the other day, with 106 metres of .66% copper and .49 g/t gold, on its Gaoua Copper-Gold project in Burkina Faso, there are more than a few suggesting these are the kinds of numbers we got from Serengeti, aren’t they?
Goldcrest has several holes in the lab and results could be out any day and there’s more than a few sources suggesting that this is one play to be watching, particularly with the partner they have that is paying for everything to production...Phelps Dodge!
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