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To: ms.smartest.person who wrote (2711)	7/7/2007 11:39:04 AM
From: kidl	Respond to of 3198

Pescod July 6, 2007 Merry: Not as "pretty as your posts but here it is ... S&P/TSX COMPOSITE INDEX: 14,119.65 +40.24 There’s an awful lot of analysts and word meisters out there with a lot to say, but we figure that there's two that are absolutely must-reading. One is Don Coxe author of “Basic Points” and has been in the forefront predicting the commodity boom market. He was one of the first expecting this cycle. Another character who is absolutely must-reading and courageous as well is Jeffrey Rubin who is the chief economist and strategist at CIBC. He earned our respect almost two decades ago when he suggested that interests rates were going up and because of that so will mortgage rates, and that house prices in Toronto will drop by 25%. Needless to say, that’s not the kind of thing people want to hear and he was pillared in the press. He was also right. Anyone who says that kind of stuff earns your respect. So it’s interesting to see him being featured in the Globe and Mail on July 5th, suggesting the stock market rally will resume in earnest in the second half of this year, fueled by continued strength in the global energy and commodity sectors. Interesting to know that according to the article, Ruben has boosted his 2007 target on the S&P/TSX Composite in next year to 15,000 points from 14,250 and they are keeping the energy sector at a rate of 31.4% higher than the benchmark index. One interesting comment he makes is, regarding the high prices of oil “this is going to be a catalyst for mergers and acquisition activity in Canada’s energy patch particularly amongst those company’s with extensive oil sands exposure” Mr. Rubin said. GOLDQUEST MINING (V-GQC) $1.19 -0.07 So far, Eric Coffin of the Hard Rock Analyst has been right...at least so far. We are talking about the usual correction we have in the Venture Exchange this time of year, that so far, has only been an itty-bit of a correction. Sure, volumes has almost disappeared, but the index hasn’t done too badly at all and Coffin suggests that one of the reasons is because there has been so much money thrown at the exploration game that you’re afraid to leave your screen in case somebody out there, finds something exciting tomorrow. There’s been a lot of that in the last couple of weeks. As far as stories he feels has to be watched...high on his list is Goldquest Mining, the junior that the Hard Rock had featured back at $0.28. The problem there is that their 140 metre intercept is probably not a true width, but Coffin suggests if they could get 20 or 30 metres of the stuff, that still could be a very significant discovery. Also on his much-watch list is Serengeti Resources (SIR), which is facing some of the same problems of other explorers these days, waiting for results from labs. “They should have results on three or four holes next week” he suggests and points to an analyst tour next week that will obviously want to be looking at some of the core. Goldcrest Resources (GCL), with their recent discovery in Burkina Faso with more results expected, should be watched. As far as stocks a person might be looking to nibble at, Selkirk Metals (SLK) and their ongoing development work at Ruddock Creek would be on the list as would Everton Resources (EVR) which he notes has been beaten up because of bad results on one of their lesser projects in Quebec. Everton is also working in the Dominican Republic on what could be an interesting project. And also in the Dominican Republic is Globestar Mining (GMI), currently building a copper mine and he suggests when Globestar comes up with some reserve numbers on its nickel project, it could give that story a boost as well. Also on the watch list he suggests is MBMI Resources (MBR), another nickel story that has retreated with the drop in nickel prices, but to still, incredibly healthy levels. BLUE NOTE MINING (V-BN) $0.61 +0.08 First the bad news...fully diluted, “Blue Note Mining currently has about 325 million shares outstanding”, Vice President Lorne Woods tells us and he suggests that “sometime next week the company will have news out about their current state of production. For many market watchers though, the important date is probably coming in mid-September when they hope to be up to 3000 tons a day production and we’ll know then just what kind of a recovery rate they are getting and how their metallurgy is running. While this company may have a lot of stock outstanding, they also have something that most explorers only dream of way in the future...they are in the state of going into production. The question remains, how much of that ore they are going to recover? A former producer for a division of Breakwater called Canzinco, they were a producer back in 1998 Woods tells us, when base metal prices were a fraction of today’s. While they were only able to recover roughly 60% for much of their production history at that time, he suggests nearing the close down, they got it up to the 70% and near 80% recovery. With Blue Note, they’ve added three ISO mills that should/could increase that recovery rate significantly and of course, that would be very important. As far as what the analysts think, well there’s only one, Rick Visagie of Octagon Capital currently covering Blue Note and he has a $1.00 target. Woods tells us that he has four analysts visiting Bathurst and seeing the base metal project firsthand around July 16th, so then he expects/ hopes to have more analysts with an opinion and given what lead/zinc prices have been doing lately…(heading to the heavens) if the metallurgy is anywhere near hoped for, there are expectations for Blue Note’s stock. Disclosure: Globestar Mining and Serengeti Resources: Canaccord Capital covers these stocks and has a Speculative Buy rating on them. (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 Globestar Mining. DEB’S DITTY: I’m grateful that I’m not as judgmental as all those self-righteous people around me. If you would like to receive the Late Edition, email Debbie at debbie_lewis@canaccord.com