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To: ms.smartest.person who wrote (1315)	8/30/2006 4:06:12 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition August 24, 2006 AQUILA RESOURCES INC. (V-AQA) $0.95 +0.14 We check in with Andrew Kaip, the Haywood mining analyst who has had quite a last 12 months. He’s even suffered through the ugly correction we’ve seen in the mining sector fairly well. Some of his big and favorite picks such as Viceroy Exploration (VYE) have ended up exactly the way he predicted —a takeover! When we check with him today though, he wouldn’t be surprised if Yamana is going to have to make a higher offer to get the takeover completed. He suggests with the takeovers we’ve seen in the mining business so far, it’s generated a lot of cash and he wouldn’t be surprised to see some more takeovers take affect. Another of his favorite picks that has done so well over time is Bear Creek Mining (BCM) which came out with some new reserve numbers the other day, but he points out that they’ve already completed another 54 holes since that reserve report was done. He just wonders how much more, that will add to the company’s reserves and in the short term, after a little bit of a correction, that would be one of the stocks he would be looking at. As far as a stock pick though that appeals to our sense of greed, he has come up with a new story that also appeals to our sense of risk. Andrew is fond of finding plays in far-off countries that make one more than a little nervous about where they are. Plays like Anatolia (Turkey), Moto (Democratic Republic of the Congo)….well, you get the drift. His new play, Aquila Resources has just come up today with some more significant results on their base metal play. Kaip’s favorite metal right now is zinc, which seemingly, just keeps on going higher as reserves of the metal sink ever lower. That’s what Aquila is, in that rather less risky place you might have heard of—the good ole U.S. of A. Kaip has had an amazing year despite the ugliness of the last few months, so with this new pick, of course we get on board! MESSINA MINERALS (V-MMI) $1.60 +0.12 Speaking of base metals and zinc in particular, one Canadian base metal story that seems to be putting out news only irregularly, is Messina Resources, working on the Tulks South property in Newfoundland and is one of the base metal stories that seems to come out with bits of news from time to time. Today, company President Peter Tallman tells us that they should have an update with some new resource numbers come Monday. Also, they are starting another 40,000 plus meter drilling program on their target and there are a few that wonder if some of the resources they’ve come up with, couldn’t be developed by some bigger players in the area, i.e. Richmont Mines. The market seems to be up today, hoping for some good news. S&P VENTURE EXCHANGE VOLUME: This rather erratic chart to the side shows you the volume of shares traded on a certain day on the Venture Exchange. It shows you the huge increase to record levels on the junior exchange we enjoyed back in March and April when the resource sector was grabbing everyone’s attention and record volumes were being set seemingly almost every day. While we had expected after a 12-18 month run, a correction and had mentioned it several times, what we got was a lot more than that. Somewhere between a big owie and a crash resulted. The resulting lack of volume showed you that people were bruised and beaten up and then the markets went into the summer doldrums. For things to get more exciting again, we are going to have to see a perk up in volume and it looks like that just might be happening. Some of us assume that as everyone gets back from vacation and back to work, there will be more of an effort to see if they can’t make a buck on the junior markets. Something that would help everybody, would be higher volumes traded and it seems to be (ever so slightly) heading that way. INTL. FRONTIER RES. (V-IFR) $1.08 -0.02 In a few days we hope to publish our issue featuring “The Big Plays” - those oil and gas plays out there that have such big targets should they hit, it could change some stock prices very significantly. Most are nominated by some of the more consistent stock pickers we have such as Andy Gustajtis and Clive Stockdale and the Laurel Valley play is definitely one of the big ones. We interview Pat Boswell of International Frontier Resources who actually started the company to take advantage of some of the huge land positions in Canada’s Arctic that was opening up for exploration and IFR and partners Husky, EOG Resources and Northrock have each winter drilled some significant holes up there and while it might be a while before there is some cash flow, they’ve obviously got something significant up North. In the short term, the stock has been hurt because it looks like this year they may have to pass drilling in the North Country because of delays in gathering data for the two holes they had hoped to drill this winter. But in the meantime, IFR as the originator of the Laurel Valley play has a 12.5% carried interest in this play in the North Sea and with a target that some people suggest over three zones, that could total 500 million barrels, we suspect it’s going to attract a big amount of attention when drilling commences sometime close to Christmas. We have an interview with Pat Boswell and anyone interested in a good background of the company, just email Debbie at debbie_lewis@canaccord.com. If you would like to receive the Late Edition, just e-mail Debbie at debbie_lewis@canaccord.com