Junior Resource Stocks Holding: 12 Silver and Oil Explorers & Producers (4/3/2011)

Some company highlights to start with so you can do your own due diligence. This game is for the patience. Junior resource stocks can scare you out with rapid price declines, and wear you out with extended periods of grinding action, usually to the downside. What you wait and hope for are the hyperbolic upside rushes that reward the patience. Junior explorers are important to senior producers for accessing new reserves. I use loss triggers to sell any individual stock if it loses 25% on any week (this worked out real well during the Japan nuclear crisis selling-off my uranium stocks).

Overall, these companies passed the basic criteria. Many companies can’t even do that e.g. keeping shares from being overly diluted. May I remind you that it’s not in the number of stocks you hold but in having cash on the sideline to add to stronger positions on dips and runs.

Westernzagros Res Ltd (speculative/oil):

  • Drilling began 3/29/2011 at Sarquala-1 (recently doubled up because drilling finally began)
  • George Soros believes in the company, with over $800,000 net insider buying on open market in 2010
  • Kurdistan is one of the last remaining mega oil well country

Silvermex Resources: (silver) ***2nd Largest Position***

  • Part of the Bullion Bull Basket @ Bullion Bulls Canada
  • Proven management that has driven aggressive growth both organically and through M&A opportunities
  • Over $26m cash-on-hand to fund projects in 2011 and beyond
  • NOT a proven producer but incredible production and exploration potential
  • Silvermex starts 2011 in a very strong financial position with current working capital of over $26 million. This capital will fund the advancement of the Company’s wholly-owned, producing La Guitarra silver-gold mine and the Company’s other projects in 2011 and beyond.
  • 4/1/2011: $SLX has not been in a hurry to keep up with prices the white metal, thus, if we have a winner the hyperbolic upside once the market is 100% confident that the mines will be operational
  • A lot of supporters

Avino Silver and Gold Mines:

  • 30-years of prior mining operations and infrastructure already in place
  • Very good EPS down the road due to low share cap

Canadian Zinz: (silver)

  • Solid financial results for 2010
  • Awaiting permits (progress shown)
  • Great deal of infrastructure already built

Trade Winds Ventures (silver)-

  • Part of the Bullion Bull Basket @ Bullion Bulls Canada
  • Significant (but undervalued) chunk of 15-million ounce Detour Lake; major drilling lined up for 2011
  • Possible 5-10 times increase
  • $DGC, which is 80% own by institutions (more than Barrick Gold), has a JV partnership with $TWD

Primary Petroleum (highly speculative/oil)

  • (3/31/2011) Advancing exploration program with $14m CAPEX at Alberta Basin Bakken prospect
  • 3/3/2011- increased land holdings to over 242,000 net acres in southern Alberta Basin Bakken  (Montana)
  • Audited cash on hand- $1m, $3m-unaudited
  • Production- 10 boe/d (100% gas); ‘behind pipe’ – 50 boe/d (100% gas)
  • Great districts in Canada and USA
  • 4/2/2011- I recently added because it did a double bottom.

Excellon Resources Inc: (silver)

  • Part of Dundee’s list of juniors
  • Excellon Insider Tim Ryan just spent $415,000 of his own money to exercise 500,000 options @  .83 and did not sell any
  • 4/2/2011- There are resources in this company the market does not account for…the mill from Silver Eagle, plenty of property with plenty of potential.
  • Institutional ownership is around 77 million shares, or about 30%

Great Panther Silver (Mexico/silver): ***Largest Holding***

  • Part of the Bullion Bull Basket @ Bullion Bulls Canada
  • High-grade narrow silver veins
  • Proven winner exploded by 333% over a 6-month period
  • The richest silver veins in Mexico
  • 4/2/2011- With Cash on hand of $68M plus the $21M there is ample cash for a nice acquisition / expansion. Growth will be accelerated to the next level with ample resources.
  • Phase II drilling approved
  • A lot of supporters

Kimber Resources (Mexico/silver):

  • Enjoys positive publicity
  • 89.75M shares fully diluted
  • Further exploration 6-12 months

Silver Quest:

  • 80 new claims to expand the Boulevard property, Yukon (3/25/2011)
  • basket of properties, flagship-Capoose
  • Undervalued compared to peers

Argentex Mining Corp (silver)

  • Scratching high-grade silver on the top few veins, could follow in the way of $GPL
  • (3/28/2011) The results of hole PR23-11 are good, but the results from PR21-11 have gone much deeper and found significant mineralization. This is an indication of a larger deposit.
  • Fully diluted: 78.9M
  • Positive “economic assessment”
  • These high-grade narrow veins can be mined down to 50M in open pits quite profitably. Anglo has been doing it at Cerro Vanguardia which is

Silver Wheaton: (90% silver)

  • Top producer in the industry
  • The most profitable company in the world
  • Leverage higher shares prices than the price of silver

Good luck and happy hunting!!!

Advertisements
This entry was posted in Recommendations. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s