Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Crazy Fools LightHouse -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (1235)	7/11/2006 10:34:45 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition July 6, 2006 ATNA RESOURCES (T-ATN) $1.40 +0.10 GOLD-ORE RESOURCES (V-GOZ) $0.63 n/c MIRASOL RESOURCES (V-MRZ) $0.66 n/c There have been a couple of decent days in a row now for gold, courtesy of crackpots in North Korea, but if you are talking about gold bugs you definitely have to add David Watkins name to that list. The President of Atna Resources is suggesting that we’ll see $900 gold by the fourth quarter of this year. Now that’s aggressive! We get to Watkins because the Coffin Brothers of the Hard Rock Analyst fame suggest that Atna is in their top picks at this stage because they now have the Pinson project in the bag, although they only own 30% of it with Barrick backing in, but they now have three different projects about to be looked at and all three have high levels of credibility—although we all know exploration can break a persons heart. The chart of Atna shows the good news/bad news story that Atna has experienced with the ongoing great news out of Pinson as that project gets ever better and then the bad news is that Barrick Gold, the corporate biggie decides to back in forcing Atna down to only a 30% interest in the play. As the Coffin Brothers suggest, that 30% interest in something significant, and back stops the share price and with the three significant projects, that’s where the new upside should be. Watkins tells us that they have two projects currently being farmed out—the Clover project is farmed out to Meridian and is just across the valley from their Pinson project. Meanwhile their Beowawe project has been farmed out to Apolo Gold and drilling on it should start next week. Meanwhile, a lot of punters will be focused on Jarbidge. Jarbidge has found it hard to attain some permits to have a look/see on, Watkins suggests because part of the property is on land controlled by the U.S. Forest Service which has more hoops to go through to obtain the drilling permits. This project, which had historical production before 1933 of a half million ounces of gold and over 1 million ounces of silver, but interestingly hasn’t been looked at since. “No modern exploration at all,” Watkins tells us and it is a bonanzavein system that obviously they have high hopes for. As to the market, we ask Watkins if he could come up with a stock pick for us that could double or better. We have to remember that this guy is strong on gold. He actually comes up with two. First, Gold-Ore Resources, the Glen Dickson run company with all facilities on site on their Bjorkdal project in Sweden currently being looked at and Watkins suggests with all the infrastructure on site, and in the good mining environment of Sweden, has a good shot for a double. As a second pick he goes with Mirasol Resources, which he suggests is a little more off-the-wall type of story run by Mary Little in Argentina. It’s a grass roots play, he suggests, but the early stage results have been nothing less than great. NATURAL GAS VS CRUDE OIL: ACCRETE ENERGY (T-GZ) $6.45 -0.10 One look at this chart to the right shows you that oil and gas prices over the last six months have separated from each other dramatically. While oil flirts with new high prices yesterday, natural gas prices are flirting with new lows. How can that happen? For sure it is affecting an awful lot of the gassy stocks, many of which are not enjoying the oil prices at all. Natural gas inventory remains very high and some even worry that there may not be enough storage space available. One of the main culprits of course is weather. Natural gas production is very much keyed to additional demand for power for production of heat in the winter and air conditioning in the summer. The problem is that this past winter saw unusually warm times and so far this summer, well, we’ve been sweltering in Edmonton for the last couple of days with 32, 33 degree centigrade, but in places that matter, such as Toronto, Chicago and New York, there have been no signs of summer or summer heat anywhere. For the bulls looking for anything to hang their hat on for gas, an article in yesterday’s Wall Street Journal is of interest. It points to something very essential for finding gas and 25% of gas in the U.S. comes from the Gulf of Mexico and right now there are not as many rigs down there looking. Some of that to do with many of the major discoveries in the shallower waters already having been made, but the article points out that in 2001, there were 148 rigs in the Gulf and now there are only 90 remaining. Meanwhile, other prospects in such areas of the world as off the Coast of Africa, the Middle East and China, rigs are being offered huge day rates to go elsewhere. For instance, the article mentions Houston’s GlobalSantaFe Corp., agreed late last month to send four jack-up rigs (the kind that stand on stilts and are used in shallow water) to the Persian Gulf, where Aramco, the Saudi national oil company, will pay more than $160,000 a day to drill for oil and gas for four years. Ensco International is sending jack-ups to Tunisia for day rates of $200,000 for two years work! If there are fewer rigs drilling in the Gulf of Mexico, one would assume that sooner or later that means less production and hope for the natural gas bulls, who have so far, been beaten up badly.