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To: ms.smartest.person who wrote (1774)	11/20/2006 5:20:44 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition November 20, 2006 PHELPS DODGE (NYSE:PD) $120.47 +25.45 One knew this would be an interesting day for mining stocks as Freeport McMoran (NYSE:FCX) announces a megabid... one of the biggest mining takeovers we’ve seen as they are trying to buy out one of the world’s biggest copper producers, Phelps Dodge. It makes those that are believers that it’s getting tougher and tougher to find big copper (or for that matter any big mineral deposits) out there. While the world may have lots of copper deposits, the time it takes to get them environmentally okayed, developed and on stream, is close to a decade these days and of course, one wonders if one had to wait ten years, whether you’d miss the boom or not. Then we hear that one of Canada’s biggest brokerage houses has come out with a report suggesting that uranium will hit $100 a pound next year. That has uranium stocks going crazy. When we phoned one analyst and asked for his favorite uranium play these days (and could it please be one that could double) the response is; “Do you know how rich some of these uranium players are these days?” Which does bring up a point. There are almost 350 publicly-traded uranium players these days, many of them trading at lofty valuations and we all know once the drill-bit actually tests these projects, there are going to be more than a few disappointments. Many more than a few, probably. Then there is the one point that we keep remembering that the Coffin Brothers point out and that’s the suggestion that in the United States there are so many uranium exploration projects around that when they did a very rough survey, the suggestion was coming back that it might take three years just to get an environmental permit to look at some of the potential uranium leaching operations. “Three Years”. CORRIENTE RESOURCES (T-CTQ) $5.50 +0.15 Is Corriente getting enough respect? We note that they recently announced that their Mirador Norte just added significant numbers to their reserves at their Mirador property as 68 diamond drill holes have added indicated resources of 170 million tons of .51% copper and .09 g/t gold, which in English means 1.9 billion pounds of copper and 490 ounces of gold. This is turning out to be quite a sizeable project in Ecuador, but of developing interest should be the company’s spinout of its gold assets. After all, their gold concessions in Ecuador total about 6600 hectares with some fairly encouraging gold targets and their Tundayme prospect is only 15 km from a gold discovery you might have heard of...Aurelian Resources. GENTRY RESOURCES (T-GNY) $4.90 +0.68 If you’re perceived as being a gassy stock, you wouldn’t be surprised to be looking through charts and noticing that last year had been very generous to you. No wonder, because gas prices had a great last year and then started going the wrong way—big time this year. From a high last Christmas of $12.00 to $15.00, gas has been as low as $4.40 until the last few weeks. For Gentry Resources being perceived as a bit of a gassy stock, has followed that trend. Today though, they benefit from a big bounce...as there is just nothing like a potentially significant oil discovery to change a company’s fortunes. Today they announce some drilling results on their first commitment well on its huge 203 section Princess Exploration Farm-in Block. From a net pay interval of 12 meters (according to the news release) completed in the Pekisko Formation and within a gross pay column of 40 meters, the well flowed 925 barrels of oil per day. Today, the company also announced two more exploratory earning wells that are expected to be drilled in December, approximately 15 miles south of the discovery well, to test another possible oil fairway. AQUILA RESOURCES (V-AQA) $1.83 -0.07 “Ho Hum”…more of the same. Four meters of 8.5 g/ t gold, plus some pretty decent, 200 g/t silver and underneath that is 19 meters of 7.7% copper and 200 grams silver in massive sulfides, or how about 4.8 meters of 4 g/t gold and 48 g/t silver in gossan underlain by 12.9 meters of 1.28% copper and 63 grams silver and massive sulfides… Aquila’s drilling continues to come up with some pretty flashy numbers, but today the stock doesn’t hit new highs, as it has done over the last while, as drilling results continue to stream out on their Black Forty Project in Michigan. So does the market smell a financing or has it just gone so far without a correction it is due? Disclosure: Freeport McMoran and Phelps Dodge: Canaccord Capital covers these stocks and has a Buy rating on them. (Buy: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months.) Corriente Resources: Canaccord Capital covers this stock and has a Speculative Buy rating on it. (Speculative buy: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in the stock may result in material loss.) Canaccord has recently participated in a financing for Corriente Resources. If you would like to receive the Late Edition, email Debbie at debbie_lewis@canaccord.com