For the tale of the tape, the TSX Exchange gained 0.68%, while the TSX Gold Index rallied 1% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, fell 0.19% with the declining issuers inching past the advancers by a 554 to 520 margin on robust volume of nearly 291 million shares traded.

Shares of Solex Resources got a boost after the company announced that its Princesa project in Peru hosts an inferred resource of 4.6 million tonnes running 90.88 grams silver per tonne, plus 1.66% lead and 1.69% zinc. Solex ended the day up C$0.05 at C$0.315.

Crystallex International got word from the Director General in the Administrative Office of Permits at the Ministry of the Environment and Natural Resources of Venezuela that their legal rebuttal has been denied. The news was already priced into the stock however as Crystallex ended the day up C$0.04 at C$0.84.

Antares Minerals rallied following news that the company cut 0.6% copper and 0.57 gram gold per tonne over 146 metres at the Rio Grande copper-gold project in northwestern Argentina. Antares ended the session up C$0.13 at C$3.88.

News that Stealth Ventures closed a C$22 million financing to fund work on its shale gas project helped propel its stock C$0.15 higher to close at C$0.98.

Brett Resources closed its deal with Kinross to earn 100% of the Hammond Reef gold project in Ontario. Brett issued 14 million shares and Kinross gets to keep a 2% net smelter royalty. Brett closed up C$0.06 at C$0.95, while Kinross added C$0.30 to close at C$20.12.

It was a lackluster start to June for the more speculative stocks but with the price of bullion once again showing signs of life it is only a matter of time before there is a feed down effect. We will see what Tuesday trading has in store.

Source: Resource Stock Roundup Tuesday, June 3, 2008

For the tale of the tape, the TSX Exchange gained 0.94%, while the TSX Gold Index rallied 2.9% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 1.08% with the advancing issuers outpacing the decliners by a 620 to 451 margin on good volume of over 237 million shares traded.

Golden Predator Mines and Fury Explorations are looking to merge in a deal that would see Fury shareholders get 1/3 of a Golden Predator share plus a warrant priced at C$3.35. The move would consolidate Golden Predator’s land position in Nevada. Fury ended the day up C$0.03 at C$0.63, while Golden Predator added C$0.01 at close at C$1.86.

It was a good day for shareholders of Whistler Gold. The company inked a letter of intent to acquire a 90% interest in the Beregovo and Kvasovo gold-lead-zinc licences in southwest Ukraine. The price tag is C$6-million and 2.5 million shares. Whistler ended the day up C$0.24 at C$0.64.

Sherwood Copper generated $16.9 million in cash flow from its Minto copper-gold mine in the Yukon during the first three months of 2008. The company sold 7.1 million pounds of copper, 3,950 ounces of gold and 25,016 ounces of silver in the quarter. Sherwood ended the day down C$0.08 at C$5.40.

Strategic Metals posted its sixth consecutive positive quarter by reporting income of C$227,274 for the quarter ended March 31, 2008. The project generator, which earned C$6.7 million in 2007, now has working capital north of C$20 million. Strategic ended the session up C$0.03 at C$0.61.

The volatility appears to back on the Canadian markets with stock selection holding the key to success or failure. We will see what Monday trading has in store.

Current Market Indices:

Source: Resource Stock Roundup Saturday, May 31, 2008

For the tale of the tape, the TSX Exchange fell 1.6%, while the TSX Gold Index dropped 2.9% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, plunged 2.51% with the declining issuers swamping the advancers by a 622 to 386 margin on volume of 191 million shares traded.

Western Prospector came out and stated that the takeover proposal by Khan Resources is “inadequate and falls significantly short of Western’s true value.” Under the proposal, each Western Prospector share would get 0.685 of a Khan share. Western has $25 million in cash and the deal has a total value of C$35 million. Western ended the day down C$0.02 at C$0.69, while Khan added C$0.02 at C$1.03.

Stepping in where few players are venturing these days, Goldcorp has agreed to guarantee a C$40 million credit facility to Terrane Metals to meet capital equipment procurement for its 100%-owned Mt. Milligan copper-gold project in central British Columbia. The non-revolving credit facility will allow Terrane to purchase the equipment it needs to build a 60,000 tonne per day open-pit mine and process plant. Terrane ended the day down C$0.05 at C$0.55.

Sanu Resources Ltd. has intersected a new volcanic-hosted massive sulphide zone on its Aderat prospect 4.5 kilometres north of its Hambok copper-zinc deposit in Eritrea. Assay results are pending. Sanu ended the day down C$0.02 at C$0.78.

For those looking for a high profile speculative punt, Troon Ventures appointed Michael Kenyon, Catherine McLeod-Seltzer and Jonathan Rubenstein to its board of directors that already holds Bruce McLeod, Stephen Quin, Colin K. Benner, John Robins and Zara Boldt. This brings together the founders and key players of success stories like Canico, Sherwood Copper, Arequipa and Eurozinc. Troon ended the day up C$0.24 at C$0.94.

The correction on in the Canadian markets is most welcome after the stellar run the board has made over the past month or so. We will see what Wednesday trading has in store.

Source: Resource Stock Roundup: Wednesday, May 28th, 2008

To complicate matters it is an area of extraordinary natural beauty. And needless to say there are a fair few people who are none too happy about the arrival of a bunch of miners.

Of course, the miners see a glittering opportunity to deliver huge value to shareholders! And if you believe what it says on paper, this could be significant.

Anglo Maerican estimates that for every 3.9bn tonnes grading of 0.99% copper equivalent, there could be 45m oz of gold. And that is before mentioning the copper and molybdenum there.

But… there are the environmental issues!

Anglo bags a big catch

Before going any further, a bit of history.

Back in 1988, Pebble West was discovered by Cominco, now Teck Cominco. After exploring the property until 1997, defining a significant resource, Cominco sold out to Northern Dynasty (”Northern”).

That was in 2001, when the industry was experiencing a bit of a downturn. Northern’s timing was good!

By 2005, Northern controlled 100 % of the Pebble project and had already carried out several exploration programmes. By 2004 it had upgraded 75% of its Pebble West resources to the “measured and indicated” categories.

Things got better in 2005. Northern struck a “world class” deposit at what is now known as Pebble East.

Drilling, environmental and socio-economic studies got underway and are still ongoing. By 2007, Northern had stirred the interest of some of the world’s biggest miners.

First Rio Tinto took a 19.8% stake in the project. Then in July last year Anglo decided it was time to get in on the act.

Behind closed doors, Northern was convinced that a partnership with a mining heavyweight would be the fastest way to production. Not surprising, given that Anglo ranks Pebble’s resources as “among the world’s most important accumulations of copper, gold and molybdenum.”

Anglo has made a significant commitment to the project, which is known as the Pebble Partnership. But to keep hold of its 50% interest, it must make staged cash investments to the tune of $US1.425 bn over the next few years.

2008 — Pebble partners take the plunge

This year it would appear that the Pebble Partnership board is taking the plunge. It will spend US$140m this year to really stir things up.

First of all, US$61.6m will be spent on drilling to upgrade some of the inferred mineral resource at Pebble East to so-called “indicated” category. That implies greater economic certainty, and means the pre-feasibility study can be completed. Drilling will also test the full extent of the deposit.

Then US$30.2m will go to an engineering programme to back up the final pre-feasibility study. And, of course, there is money allocated for an environmental study programme (US$24.9m). Funds have also been put aside for a community engagement and public affairs project (US$14.8m).

The plan is to complete the pre-feasibility study by December 2008, the feasibility study by 2011 and to start production by 2015. That will bring the total invested in Pebble to US$220m since 2002. US$87m of that will have gone to environmental and socio economic studies.

Dirty money for dirty gold?

Obviously it is still early days. Comprehensive studies are underway to collect the data necessary to complete pre-feasibility and feasibility studies. And, as yet, management hasn’t even applied for an environmental impact statement (EIS).

There are two key hurdles to overcome. First, these are nothing more than inferred resources. Pebble partners give a clear warning to investors that there is no guarantee that these are even minable.

Second, environmental campaigners are vehemently opposed to the project. They say the mine risks the Bristol Bay watershed, home to the world’s biggest commercial wild salmon fishery and the planet’s greatest fly fishing wilderness. That is already worth between $20m and $100m to the area. So who needs gold?

Big name jewellery companies, like Tiffany’s are believed to have said they aren’t interested in gold from here. Bob Gillam, an uber-rich Alaskan who owns a holiday home on Bristol Bay, has been a major supporter of the anti-Pebble lobby.

But there has been an interesting turn in events recently, as revealed by the “Truth about Pebble”, which brings us good news about the project. It so happens that Mr Gilliam manages a fund (McKinley Capital Management) which has made huge investments in Anglo American.

According to an SEC filing in the first quarter of this year, McKinley held over 138,000 shares in Anglo stock, worth about US$4 m. And, according to some reports, McKinley’s investment for state retirement funds includes 119,315 Anglo shares, worth $7.7 m.

So, does Mr Gillam have his finger in both pies? In the age of internet information and misinformation it is anybody’s guess. One thing is certain: Mr Gillam can always buy a holiday home elsewhere, says Erin. Of course we want the mines to take care of the environment, and keep disruptions to a minimum. But if all goes well the mine will bring jobs and prosperity to this region.

And it might just prove a worthy investment too.

Keep mining,

Erin and Isabel

Source: The Pebble Mineral Project, Leaving No Stone Unturned

Sad too is probably how early stage explorers are feeling in these uncertain times. Raising capital for new projects has become increasingly difficult. Funding from traditional investment sources has all but dried up.

Take London’s Alternative Investment Market (AIM). It is increasingly reluctant to list companies in the early stages of exploration. Miners coming to AIM today tend to be producing, or at the very least close to producing.

That is the golden rule we tend to apply too! But we also recognise that exploration is important. After all, minerals are in short supply and in spite of US slowdown, the commodities bulls reckon demand from Asian economies will rise and rise!

So while producers, or near-producers, are certainly preferable, we’d be crazy to write off all explorers. They might be risky but there is always a chance that they will deliver. Even if share prices have taken a hammering!

African Eagle… soaring to production

In spite of a disappointing slump in the share price since August (it is not alone here!), London and now Johannesburg-quoted African Eagle Resources might be one of those.

African Eagle is a copper, gold and now uranium explorer with interests in Zambia, Tanzania and Mozambique – all countries with relatively stable political and economic regimes and good infrastructure.

Better still, a successful secondary listing on Johannesburg’s Alternative Exchange (AltX) last year means African Eagle’s exploration projects are fully funded for 2008 and 2009. And the plan is to fast track the two most advanced of those to production sooner rather than later.

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Other projects in a relatively advanced state are the Ndola and Mokambo Copper projects in Zambia. Also in Zambia is the Sasara Eagle Eye copper-gold project… It holds a large iron-oxide-copper-gold system as well as uranium rich mineralised targets.

But for the moment, Mkushi and Miyabi look most promising. Production is expected within three to five years. And from our precious metals vantage point, there is plenty of shine on Miyabi!

Randgold takes a shine to African Eagle

Here is why. First of all Miyabi is located in Tanzania in East Africa, where mining is considered to be a key foreign exchange earner and growth sector. Over the past ten years there have been substantial economic and structural reforms here. The result is that Tanzania is now the third biggest gold producer in Africa, with more than 50m ounces of gold reserves and resources. Fair play to them!

Miyabi, a gold bearing corridor of 7km by 2km, is African Eagle’s most advanced gold project. Drilling in this area has to date defined a JORC-compliant resource of 520,000oz of gold. (For the record, JORC is a professional code that is now widely accepted for reporting resources and reserves.)

More reassurance comes from the fact that London and Nasdaq-listed Randgold Resources, one of our favourite junior gold companies, has been involved in the drilling process.

Randgold and African Eagle have entered a joint venture whereby Randgold not only funds but also carries out the pre-feasibility study. So Randgold obviously wants to get it right. Because getting it right means that it could earn a 50% interest in the project.

African Eagle then has the option to co-fund a full feasibility study or dilute its interest to 35% if Randgold funds the full study. So there is everything to play for.

Clearly Randgold brings its drilling expertise to the project. It recently completed 4068m diamond drill programme across the Miyabi Structural Corridor. Why? To better understand the geology and mineralisation of the area.

After all, African Eagle has pointed out that the area, covering just over 500 km², has only been part drilled. And it seems pretty confident that it can expand that resource to 1m oz.

…and TWP Finance gets in on the act too

Now African Eagle’s strategy is clearly one of finding partners with skills and experience, financial support or local knowledge.

But more recently it sold a 4.48% stake to TWP Finance, a subsidiary of consultant engineers TWP Holdings.

TWP has made it quite clear that it intends to up that to a “strategic stake” in African Eagle. Now, TWP Finance positions itself as company that trades mining skills and intellectual property for sweat equity or mineral rights. A company that is committed to “becoming increasingly involved in early stage exploration projects around the globe,” says TWP Finance’s chief exec Dean Cunningham.

It is a risky strategy but one TWP reckons is worth taking. Explorers are finding it increasingly difficult to find capital. But the world says Mr Cunningham needs “these new projects to supply the current commodity and resources boom”.

So TWP brings its small team of financial and mining experts to a project in return for shares. Then it brings its skills base to the party and helps to fast-track key projects.

Risky but potentially rewarding? African Eagle may just be a takeover target for bigger players. At last look the share price was trading at around 8p a share.

Management can’t say loudly enough that it is undervalued.

Neither can Mr Cunningham, who reckons “African Eagle shares are an attractive prospect at present, as they are relatively undervalued despite the high metals prices in the extended commodity cycle”.

Spin if ever I heard it, says Erin. But even she has a twinkle in her eye.

Keep mining,

Erin and Isabel

PS Make sure you don’t miss out on getting all the latest industry news in one daily hit with a brand new free eletter from Fleet Street Publications.

I’ve made the trip several times now on my way to Singapore and other destinations in Asia, Europe, and Africa.

Out the plane window, it looks like a lot of nothing… But all that space you fly over between Melbourne and the northwest coast… now that’s what today’s investor needs to know about.

In America, some people jokingly call it “flyover country,” as if everything between New York and Los Angeles was just an afterthought.

America’s so-called “flyover country” is home to rich corn and wheat fields, the massive coal deposits in Wyoming, the remnants of the Mesabi iron range in Minnesota, and of course, what’s left of the producing oil and gas fields in Texas and Oklahoma.

Australia’s “flyover country” today is on the verge of the same kind of boom that took hold in America 100 years ago. You see, Australia is home to nearly all the valuable mineral and metal deposits needed for the industrialization of China and India.

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Australia ranks No. 1 globally in Economically Demonstrated Resources (EDR) of zinc, nickel, lead, thorium, tantalum, and mineral sands (rutile and zircon). It ranks in the top six EDR for bauxite, black coal, brown coal, copper, gold, iron ore, manganese ore, niobium, silver, and uranium. The Olympic Dam Mine (in South Australia) is home to nearly 476,000 tons of uranium – 18% of the world’s known reserves.

Let me be clear, though. It’s not just what Australia is capable of producing that excites me so much. It’s what the country is already producing. Amid rising commodity prices, resource producers in Australia are benefiting right now from the scorching supply/demand dynamic.

Export earnings from Australian commodities should rise by 30% in 2008, thanks to demand for iron ore, coking coals, gold, and crude oil. And Australia is the world’s single largest shipper of coal, iron ore, and wool.

As an investor, you must pay attention to two factors at work here. First, many small and unknown (at least in the U.S.) Aussie companies are sitting on assets that are rising in value. That alone is extremely bullish.

The second factor is that the companies that own the assets and can produce them will almost surely report massive earnings growth in the last three quarters of 2008. The stocks of these producers – based on our analysis – don’t fully reflect that earnings growth.

It’s clear that the bull market in resources is alive and well. I see three main factors driving this bull market. The first, as you probably know, is that commodities are coming off a low base. The bear market in commodities lasted 20 years. The second reason is supply has still not caught up with demand. A decade of low commodity prices resulted in chronic under-investment in new productive capacity. The third factor is what makes this resource cycle different from the rest – it’s the strength of new demand from China.

How can you participate in this opportunity in Australia’s resource stocks?

Of course, you can buy the big institutional favorites, like BHP Billiton (BHP). But I think the really huge money will be made here by owning junior miners and mining infrastructure stocks.

The iron ore juniors and coal companies aren’t hated, like my friend Steve Sjuggerud likes to see… but they are even better… unknown! Throw in cheap and at the beginning of an uptrend, then you get two out of Steve’s three factors.

The nice thing about the resource sector here is that there are far more stocks than analysts. With all the underlying resource prices in an uptrend… it’s just a question of who’s willing to do more homework to find small companies with economic resource assets.

I think the opportunity in small Australian resource shares is so exciting, I actually moved here to learn as much as I can and find the best investments. While I don’t expect you to do the same, I can encourage anyone interested in making money in resource stocks to become familiar with the place immediately.

Good investing,

Dan Denning

P.S. I’ve just completed a full report on the best opportunities in Australian mining stocks. I guarantee you won’t find in-depth research on these companies in the U.S., which makes them an outstanding, undiscovered way to make money in the resource bull market. Click here to read more about this report.