drbubb Posted August 18, 2006 Report Share Posted August 18, 2006 "We continue to see clear evidence of base-building in the junior mining sector which bodes well for a new bull phase late in Q3/06. This said, volumes still remain light and an improvement is required to confirm this potential." We have been suggesting that the sharp Q2 sell-off in the junior mining sector had reached a level where base-building was commonplace. In other words, the selling pressure has abated and selective buying now has to begin to consider chasing the offers in order to build a position. Volumes on the TSX Venture have based in the 85-100 million share per day range. Our gold in situ weekly value is basing. Individual charts, more and more, are demonstrating this action and appear poised for a late Q3/06 attempt at a rally into a new bull phase for the sector. Last week we demonstrated this action with the charts of Atna Resources, Corriente Resources, Nevsun Resources, and Western Keltic Mines. This week we will add a few more charts for visual confirmation of this emerging pattern. We include the following below: Committee Bay Resources, Grayd Resources, Linear Gold, Orezone Inc., Sunridge Gold, and Wolfden Resources. Some worth a closer look, basis charts or comments: Committee Bay (v.CBR) : comment, chart at c$0.50 ... update Grayd Resources (v.GYD) : chart, at c$0.50-0.60? ... update Linear Gold (t.LRR) : chart, at c$4.60? ... update Orezone Resources (t.OZN) : chart at c$1.40 ... update Wolfden Resources (t.WLF) : chart, at c$2.50 ... update American Bonanza Gold Corp. BZA : TSX 85.8 Copperstone gold project, Arizona ... update New Phase 1 drill program commenced with 35 holes on 10 targets for 45,000 feet drilling. Gold Canyon Res. GCU : TSX-V 35.3 Cordero gallium project, Humboldt Cty, NV ... update 25,000 feet RC drilling commenced on to expand resources at Cordero, largest known primary gallium resource in North America. Sutter Gold Mining Inc. v.SGM : TSX-V 52.0 Sutter Gold Project, Sutter Creek, Cal. ... update /1907058 Phase 2 surface diamond drill program commencing for approx. 9,000 feet. SOME COMPARISONS== Sh o/s Price C$ Mkt. Cap Sum Oz Mkt Cap/oz Mkt Cap/oz Company Sym M 10-Aug-06 $M Project Name Country per co. M/oz C$ M/oz US$ American Bonanza BZA : T 85.80 0.42 36.04 Copperstone US 2.074 17.37 14.77 (+Fenelon Canada, +Gold Bar US, +Northway Canada, +Taurus Canada) Aquiline Resources Inc. AQI:T 42.25 4.55 192.24 Calcatreu Argentina 5.499 34.96 29.71 (+Navidad Argentina) Committee Bay Resources CBR:V 54.87 0.58 31.82 Three Bluffs Canada 1.302 24.45 20.78 (+RJV Australia) Kimber Resources KBR:T 47.10 2.49 117.28 Carmen Mexico 1.659 70.70 60.09 (+Carotare Mexico) Nevsun Resources NSU:T 102.60 3.50 359.10 Bisha Eritrea 5.287 67.92 57.73 (+Tabakoto Mali, +Segala Mali) Wolfden Resources WLF:T 74.60 2.73 203.66 High Lake Canada 2.086 97.63 82.99 (+East Bay Canada, +Ulu Canada, +Izok Lake Canada, +Lupin Canada) Committee Bay (v.CBR) Last week CBR announced the results from the first six drill holes at the West Plains area. Hole 6WP06 intersected 13.14 g/t Au over 8.0 metres and was drilled parallel to and below Hole 5WP04 that was drilled in 2005 and had intersected 36.8 metres grading 6.04 g/t Au including 8.73 metres grading 14.76 g/t Au. Hole 6WP10 was collared at 50 metres northeast of Hole 6WP06 and intersected 8.44 g/t Au over 7.0 metres, including 2.0 metres grading 19.65 g/t Au. These intersections have extended the high-grade mineralized zone to over 200 metres in strike length and to 80 metres vertical depth, with the latest drilling having high grade intersections flanked by lower grade zones within a mixed assemblage of mafic and ultramafic volcanics, and sedimentary rocks, with interbedded silicate iron formation. The gold mineralization is associated with the strongly sheared and sulphidized iron formation rich sediments adjacent to the mafic volcanic layer. Drilling is continuing at West Plains on the sub-parallel structures defined by the Mag-EM surveys that have defined the structures for over five kilometres. The addition of a second drill is currently being considered for the remainder of the field season. CBR’s other main focus is in Western Australia on the Redemption Joint Venture (RJV) which is a 50/50 partnership with Focus Minerals Ltd. (FML : ASX), and has the mineral rights to more than 210 kilometres of greenstone tenements, located just west of the Kalgoorlie gold belt, one of the world’s most significant gold mining regions. The tenements contain Indicated resources of 315,720 ounces gold (5.32 million tonnes at 1.8g/t Au) and Inferred resources of 1,080,825 ounces gold (13.7 million tonnes at 2.5g/t Au). The RJV also has a 100% interest in the fully permitted, 1.2mtpa, Three Mile Hill Mill processing plant. A scoping study has been initiated to determine the viability of reactivating the Three Mile Hill Mill in the near term. Committee Bay Resources currently has 69.2 million shares issued and outstanding (86.7 million shares fully diluted) with a market capitalization of $40.1 million. On July 31, 2006 CBR completed a brokered private placement for C$8.0 million in which Canaccord Adams acted as an agent. Working capital is $7.8 million. Canaccord Adams has the shares of the company rated a SPECULATIVE BUY with a $1.20/share target price. To derive target we employ our in situ valuation method which is applied to both the assets in Australia and in Nunavut. Link to comment Share on other sites More sharing options...
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