₪ David Pescod's Late Edition January 18, 2008
LATIN AMERICAN MINERALS (V-LAT) $0.79 +0.06
We had mentioned that there are two junior companies that we are waiting for assay results that we thought would be important/could be important and both of them would be at the Cambridge House mining show this weekend in Vancouver.
Latin American Minerals didn’t disappoint as it announced drilling results last night and one could only wonder what LAT’s stocks would have done in a normal market and not the depressing one we are currently experiencing.
I’m sure there are lots of analysts comments about to come out, but the Hard Rock Analyst boys, David and Eric Coffin were amongst the first.
They write on a HRA—Special Delivery, “They confirm the company has made a significant high-grade discovery. The best result was 6.5 metres of 26.6 g/t gold (22 feet of 0.77 oz/ton gold)...plus a re-assay of the previously reported hole 6 increased its grade from 6.0 metres of 11 g/t to 15.3 g/t…”
They continue, “There is little by way of mining history in this area to go on (it’s in Paraguay) but Waldo Perez who is in charge of the program suggests the deposit was created as part of the Atlantic Ocean spreading centre and that the deposits are in keeping with the 8 million oz Cripple Creek system in Colorado. We would add the setting and geochemistry, though somewhat different in detail, would indicate some affinity to the system discovered by Argentex in Southern Argentina….
While it is certainly too early to suggest that southern Paraguay has potential similar to that being in exhibited in the still expanding Patagonian gold district, the blue sky aspect of Patagonia a decade plus into serious efforts to explore its gold potential certainly does apply.”
“The large share turnover since the first word of this discovery was put out by LAT in mid December is evidence of that interest and with news confirming that potential we expect the interest to build ... We are shifting our outlook for LAT up to strong speculative buy…” Condor Resources should have results out during the next few weeks.
DOW JONES IND. AVERAGE $12,099.30 -59.91
S&P/TSX COMPOSITE INDEX $12,735.19 -60.44
It’s getting fearsome out there, this market correction courtesy of the boys on Wall Street that packaged all that bad paper that somehow got them bonuses and the rest of the market is paying for it...big time.
Despite still high, if not record commodity prices, we are seeing one enormous sell off and we thought we would put in a few charts to show what it’s been like over the last while, just in case you weren’t feeling the pain.
As far as looking for support levels on the Dow Jones and the S&P/TSX Composite Index, we put in a couple of lines that are our thinking and of course, if these support lines don’t hold, oh, oh!
Meanwhile, with the sell-off, there’s all sorts of companies that have seen their shares brutalized and one wonders if it wasn’t time to start doing a little bargain hunting.
While admittedly with the 20% drop in some markets, it means that officially we are now in a bear market (a 20% drop magically means that yes, you are in a bear market) but we find some of the more intriguing companies out there have been hard hit and we wonder if they deserve it.
For those looking for solar and wind alternatives to oil and gas, look at what’s happened to Timminco and Arise Technologies. We don’t think oil is going to go much lower than $85 anytime soon, which means the big beneficiary is probably alternative energy, or at least down the road it will be.
Meanwhile, natural gas had been doing better than expected, but that hasn’t protected natural gas companies from being clobbered such as Andy Gustajtis’ favorite, Corridor Resources (he tells us he bought some the other day at $7.50 thinking it was a steal and yet look at it today). We have an interview with him running next week.
Some other stocks going on sale also include names like Oilexco and for those who have followed the astonishingly good performance of Peter Hodson, Points International.
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