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To: ms.smartest.person who wrote (1255)	7/17/2006 7:18:13 PM
From: ms.smartest.person	Respond to of 3198

&#8362 David Pescod's Late Edition July 17, 2006 IMA EXPLORATION (V-IMR) $0.70 -2.70 AQUILINE RESOURCES (T-AQI) $5.11 +2.58 One thing about investing in big blue chip stocks is that any little event or delay can’t affect you too much….but then there is the junior resource stocks—many of which have one primary story and in many cases only have one and if that goes array... Today, after more than two years a judge makes a decision on the on-going Aquiline / IMA battle over ownership of the Navidad silver project in Argentina. Jim Mustard of Haywood Securities is one of the few analysts publishing on this company and today in a report writes, IMA loses court battle and the judge rules that the Navidad project be transferred within 60 days on behalf of Aquiline. Mustard writes, “The judge ruled that the defendants (IMA) unlawfully used confidential geological information obtained during IMA’s due diligence in respect of the Calcatreu bidding process, to discover and stake the Navidad project, the Honorable Madam Justice Koenigsberg of the Supreme Court of British Columbia made the following declarations...” In summary, Jim Mustard also writes, “We are dropping IMA Exploration Inc. due to loss of the company’s only asset and recommend shareholders sell their positions.” While many, including Mustard, expects IMA to appeal the judgment, there is not too many who think that they will be able to win it whether their stock bounces or not! When we talk to Mustard today and ask if there are a couple of buys left in this beaten up mining market with gold down $16? He says, “Aquiline might be something to look at, but if you are looking for one story he sticks with Chariot Resources, which is one of the plays in Ecuador that could attract some attention. He does note, though, how interesting it is that the closeosity plays around Aurelian Resources are starting to attract some attention... And yes, he’ll have a suggestion for our “Double’s” issue! www.imaexploration.com Aquiline Resources www.aquiline.com Party Time? Ouch!! PLUTONIC POWER CP (V-PCC) $1.73 -0.08 One of the flavors of the day for speculators/investors has been “Green-Power” given both high oil prices and coal prices which are driving energy prices ever higher—alternatives particularly of a green nature can be quite appealing. One sector getting some attention these days is the Run-of-River power particularly in areas like British Columbia that have lots of potential in rivers that could be adaptable to this. Dundee Securities analyst John Mcilveen has come up with a report on Plutonic Power and gives us a pretty good look at what this business is and its potential. He writes in a recent report of June 7, “Run-of-river hydro power differs from large hydro power in that dams or other water storage controls that would alter the flow of the river are not used. In this way the local environment is not altered and hence it is classified as green power. A run-of-river hydro facility diverts water from a river into an underground pipe that runs parallel to the river. Only gravity is employed in sending the water through the pipe and eventually into the turbine blades to create power. Once the water has passed through the turbine, it flows naturally back into the river.” As the report mentions, the power generation is definitely cost effective and much better than the potential for tidal or wave power. The report also mentions that there are many advantages to this type of “green-power”, such as it uses a non-depleting energy source, it uses no fuel, so there are no fuel costs. It may also earn green credits down the road and without dams it has lower capital and operating costs. This energy should generate predictable revenue and predictable costs. Plutonic Power has a development portfolio of 19 environmentally friendly projects in British Columbia, but for those of us (like ourselves) who have taken a speculation in this….there’s one day coming up shortly that is very important. While the stock has done well, so far this company is more theory than practice—there is no production, there are no projects on the go, there is simply just a lot of hope. On August 4th we’ll find out whether some of this faith becomes real or not, because that’s the day that the Rainy River, Emroy Creek, East Toba River and the Montrose Creek sites will be awarded to Plutonic... or not. Potential revenue and ebitda of these bid projects is $61 million and $45 million respectively according to the Dundee report, so needless to say these initial four projects on B.C. hydro's call for tender are very important the development of Plutonic forth and we suspect market activity just before and after August 4th could be significant. www.plutonic.ca Disclosures: IMA Exploration: Canaccord Capital covers this stock and has a Hold rating on it. (Hold: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months.) Canaccord has recently led a financing IMA Exploration. If you would like to receive the Late Edition, just e-mail Debbie at debbie_lewis@canaccord.com This newsletter is solely the work of the author for the private information of clients. Although the author is a registered investment advisor at Canaccord Capital Corporation (“Canaccord Capital”), this is not an official publication of Canaccord Capital and the author is not a Canaccord Capital analyst. The views (including any recommendations) expressed in this newsletter are those of the author alone, and are not necessarily those of Canaccord Capital. The information contained in this newsletter is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in providing it do the author or Canaccord Capital assume any liability. This information is given as of the date appearing on this newsletter, and neither the author nor Canaccord Capital assume any obligation to update the information or advise on further developments relating to the information provided herein. This newsletter is intended for distribution in those jurisdictions where both the author and Canaccord Capital are registered to do business in securities. Any distribution or dissemination of this newsletter in any other jurisdiction is strictly prohibited. The holdings of the author, Canaccord Capital, its affiliated companies and holdings of their respective directors, officers and employees and companies with which they are associated may, from time to time, include the securities mentioned in this newsletter.