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A quintet of explorers with significant value

We have looked at countless junior mining companies since the New Year. Below are some of the companies we have provided coverage on since Jan.1, 2007 and a summary explanation of why we believe these companies are unique.



Goldex Resources Corp. (GDX.v) - Weekly-update


The company explores for gold in Guatemala and Mexico. Goldex (TSX: V.GDX, BullBoards) has acquired through its Guatemalan subsidiary, Compañía Mineria el Cóndor, S.A., the 65 square kilometer El Pato Exploration License and the 61 square kilometer Cerro Las Minas Exploration License.


Guatemala has become an attractive destination for mineral exploration companies. The country emerged from a 36-year civil war in December 1996 with the signing of a peace accord that covered a broad range of topics, including human rights, socio-economic issues, and constitutional reform.


We believe GDX is significantly undervalued based on its market capitalization in comparison to other exploration companies in the surrounding areas of Guatemala. Due to the potential of its properties, significant upside in the company's value exists. Goldex is well funded and has major institutional support, including the Sprott Asset Management, RAG Special Situations (Master) Fund Ltd. and the CIBC Securities-Precious Metals fund on board from its last round of financing.


Lakota Resources, Inc. (TSX: V.LAK, BullBoards) - Weekly-update : daily


The strategy of the company is to operate and develop gold and base metal resources in East Africa where the officers and management of the company have a detailed and intimate knowledge of the business environment and operating conditions. Presently the company has five active projects in Tanzania, one under option and one joint-ventured to other parties who are funding exploration. The Tembo Project (100% owned and funded by Lakota), is the principal project in the portfolio lying immediately adjacent to the Bulyanhulu Mine of Barrick Gold. Tembo is the site of an ongoing RC drilling program by the company. Lakota is off to an aggressive start with 5,000 meters drilled during Q1-2007 in this program. In order to sustain its growth, the company must continue to acquire properties and projects of merit to explore and develop within the scope of its mandate to become a major East African mining enterprise.


We consider LAK to be significantly undervalued based on its market capitalization in comparison to other exploration companies in the surrounding areas of Tanzania. Due to the potential of its properties, significant upside in the company's value exists. The 5,000 meter drill program currently under way at the Tembo Project should get the ball rolling.


Megastar Development Corp.(TSX: V.MDV, BullBoards) - Weekly-update


The company hosts a portfolio of well-situated exploration projects in Quebec and British Columbia. The company currently focuses on gold and Volcanogenic Massive Sulphide (VMS) deposits. Megastar has projects in development from grassroots to advanced stage with a pre-NI 43-101 resource estimate and historic production. Currently, the company has a portfolio of three strategically located exploration projects within some of the high potential exploration areas of Quebec and has recently acquired a well located project in a recently active area in British Columbia.


We believe MDV is significantly undervalued based on its market capitalization in comparison to other exploration companies in the surrounding areas of BC and Quebec. Due to the potential of its properties, significant upside in the company's value exists. Megastar is well funded for 2007 and has institutional interest, as MineralFields Group (a division of Pathway Asset Management) participated in a round of financing, investing nearly $1 million in October 2006.


Roca Mines, Inc. (TSX: V.ROK, BullBoards) - Weekly-update


With the Foremore VMS Gold Project and SeaGold Property in northern British Columbia, as well as the MAX Molybdenum Project, the company's focus in the near future will be the exploration of the two gold/base metal properties in the Liard Mining Division of British Columbia, where it is conducting soil sampling and drilling. Roca Mines' MAX project in the Revelstoke Mining Division is on the verge of going into production of Molybdenum (Moly), and will be the company's first major source of revenues and profits in 2007. Roca plans to be the first new primary molybdenum producer in Canada, with production to commence in late 2006.


Demand for molybdenum is unlikely to fade as long as oil and gas companies advance their projects, and this bodes well for the energy sector supporting Moly demand going forward. Roca controls a high-grade Moly deposit situated near substantial infrastructure and it will be in production in a matter of months, as part of a strategy that offers a rapid payback of start-up capital. We forecast the mine will have a lifespan of approximately ten years, and believe Roca Mines has the right geological setting and will become a vehicle for investors to play the molybdenum side of this energy bull market.


Romios Gold Resources, Inc. (TSX: V.RG, BullBoards) - weekly-update


The company's Galore Area Project is the most noteworthy property and has the potential to be a significant part of what is already a "World Class" asset for NovaGold Inc, (AMEX: NG, BullBoards) (TSX: T.NG, BullBoards). These properties are located in northwestern British Columbia, which hosts two of the world's largest gold and copper deposits: Barrick Gold's (TSX: T.ABX, BullBoards) Eskay Creek Mine & NovaGold Resources' massive copper-gold-silver Galore Creek Project, considered to be NovaGold's crown jewel.


Since late in 2004, Romios Gold Resources Inc. has systematically been acquiring an extensive land position between the NovaGold and the Barrick properties. A recent geological map published by the BC Ministry of Energy and Mines suggests the underlying rocks may be the same age as those hosting the porphyry copper-gold deposits at Galore Creek and management believes the project has exceptional exploration potential.


The Scossa Gold Property in Pershing County, Nevada, is living up to management's expectations, and could have a major impact on the value of the company all of its own. We believe that further exploration on the Scossa property will lead to the discovery of potentially high-class deposits as surrounding geology and the company's drilling efforts suggests.


To date, three limited phases of drilling have been completed at Scossa. We are encouraged that the gold grades are consistently anomalous and often variable, which is normal for an epithermal vein system. Many important targets remain to be tested at Scossa and there is plenty of room for an undiscovered bonanza gold zone within the known vein systems on the property. Management has stated that the next drill program will be planned with this precept in mind.



@: http://www.stockhouse.com/shfn/editorial.asp?edtID=19776

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Lakota / LAK.v - here's more:


Lakota Announces 3.26 g/t Gold Over 3m in RC Drilling on TEMBO



TORONTO, ONTARIO, May 10, 2007 (MARKET WIRE via COMTEX News Network) --

Lakota Resources Inc. (the "Company") (TSX VENTURE: LAK) is pleased to announce gold assay results from the last 14 Reverse Circulation (RC) drill holes on the Company's 100% owned TEMBO project in Tanzania. A total of 4,505 metres of reverse circulation drilling in 66 holes (RC030 to RC095) has been completed since November 2006. Gold intersections, greater than 0.15 g/t obtained in holes RC082 to RC095 are summarized in Table 1 and illustrated on Figure 1 or 2.



Table 1. Summary of gold intersections in RC drill holes on TEMBO project.

(see link)


All of the holes listed in Table 1 were collared in the southern portion of the TEMBO project within the interpreted stratigraphic equivalence of the footwall zone of the northwest trending, northeast dipping, Barrick Gold Corporation's Bulyanhulu gold mine situated approximately 6 kilometres to the east. The true thickness of the gold bearing intersections listed in Table 1 is unknown. The strike direction of the intersected gold bearing zones is interpreted to be normal to the orientation of the linear gold geochemical anomalies drilled, and illustrated on Figures 1, 2 and 3 however this has not been confirmed. Also, the dip directions and angles, for each of the intersected gold bearing zones, have not been established.


To view a map (Figure 1) illustrating drill collar locations and new gold intersections click here:



To view a map (Figure 2) illustrating the RC drill collars new gold intersections, and interpreted linear geochemical gold anomalies, click here:



@: http://www.stockhouse.com/news/news.asp?ne...10&tick=LAK


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SUBJECT: can anyone see us? Posted By: Vanalyst

Post Time: 5/3/2007 21:07


This has been a rough year for Lakota's shareholders. We’ve seen the price drop from over $.80 to $.24. We’ve seen management problems that resulted in a power struggle. We’ve seen our president flood the market with shares every time the stock seems to be on the verge of growth. Lastly we’ve seen a property that sits adjacent to a 13 million + ounce gold deposit do nothing for the past 5 years, and worst yet when it is finally drilled (with very promising results I might add) the share price stays constant. Ladies and gentlemen the problem here is no one is watching us (except for Barrick). We are literally sitting on a gold mine potentially worth hundreds of millions of dollars but were at a pathetic market cap of 10.5 million.

Enough with the bad news....I do see reason for turn around. I have been informed that the management struggle is now under control Stanly Robinson is at the helm he was a major factor in the adjacent discovery now controlled by Barrick. Rumors are that he is no longer going to be dumping shares and instead will slowly start to re-acquire them. So this solves two problems: now have an amazing property with limited supply and focused strategic direction.....Now we need a confirmed resource....Lakota has released a presentation available on there website stating that a 2.5 million dollar financing will take place closing by mid June; 2 million of this is being spent to confirm the resource value by drilling to depths of 100m (the same depth our neighbors hit there best results).....now we have stable management limited supply and a soon to be (massive) confirmed resource....Only one thing left...EXPOSURE...no one is watching us. Management could put out a report saying we hit King Tut’s tomb and no one will know....We have an amazing team of geologist and an amazing property that is now being aggressively explored, but what they don’t have a clue about is promotion...with some 1200 jr resource companies on the TSX.V how is a 10 million market cap like us to get noticed...we need promotion and we need it now when this amazing story is in its early stages....Management please get the word out there you owe it to your shareholders.....Patience will pay off here (however it could pay off much sooner if anyone could here us)



SUBJECT: Dead Posted By: Snegamook

Post Time: 5/8/2007 15:11


You're dead right. LAK does not speak, neither does it seem to know how to tie the knot to connect with MDN. The Tembo property is a dead duck - been drilled twice before and the geology from Bully does not run onto the property anyway. The former ceo has lost interest (and control from all appearances). Whoever is mumbling orders to Stan prefers not to be named. All should be made clear at the AGM on June 24. We might even learn how much cash is left. The formerly listed pile of properties all seem to have been dropped without any work ever being reported. What a waste of cash. All we have now is a shell with a bit of cash and dead hands on the wheel. There's an opportunity here for someone with ambition and drive to pick up the company, scrape away the mould and do something with it.



Three different mining companies held Bully before Barrick came along. None of the four showed any interest in a NW extension of their zone because the zone dies out on the property. Look at the map in the Ph.D. thesis. If this property was a poker hand, I'd have folded long ago.



SUBJECT: Far from dead Posted By: Vanalyst

Post Time: 5/10/2007 22:33


Let’s get this strait. First-Lakota has a wide variety of highly prospective properties, not just Tembo. Some of these properties are JV's with Northern who has faired quite well lately. Second-This PHD thesis looked only at the Buly mine (Sutton's old property). There is no way to confidently say there is no gold on Tembo until it is drilled. There is a very high likelihood for open pit potential here, the drill results at only 30 meters depth show phenomenal results for such shallow depth. All we can do is wait for the next stage drill results to tell the tale of Tembo.

I’m very bullish here. Worst case scenario, the stock floats between .20 and .35 for two years if nothing is found on Tembo. LAK will sit here only to double when drilling starts on another property. Best case scenario, We hit gold at 100m just as Sutton, (say 3million oz conservative) and we get bought out for 200mil (assuming 10% of value)...this results in a share price of over $5 per share....simply put LAK has almost no risk of downside with huge upside potential.

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I like to see companies closing 1 to 3 M deals, as a vote of confidence. Anytime you see a 300 K financing you really have to wonder. 300 K doesn't go very far these days, keep that in mind...

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i reckon they want to raise nig money at a higher price

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PAUL VAN EEDEN gives his picks on a radio broadcast...


Paul Van Eeden, managing partner, Cranberry Capital:


12:00 PM ET /Lunch Money

GDP Numbers Drive CDN Dollar to New High; CIBC Reports Earnings; Wachovia Bank Buys AG Edwards

12:30 PM ET /Market Call

Junior Mining Companie

1:25 PM ET

Market Call / Paul Van Eeden's Top Picks


@: http://www.bnn.ca/shows/past_archive.tv?day=thur


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Van Eeden Likes:


1. Altius

2. Rimfire

3. Wild Rose Resources

- -

4. Miranda, at $1.00-1.20

5. Lara (as a long term investment)

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