Thursday, December 29, 2011

December 29, 2011 Edition of the Stateside Report


Saturday, December 24, 2011

Merry Christmas

Tuesday, December 20, 2011

December 20, 2011 Edition of the Stateside Report


Wednesday, December 14, 2011

December 14, 2011 Edition of the Stateside Report


Dennis Gartman says the gold bull market is over.

Dennis Gartman says the gold bull market is over today. . Bull markets end when supply begins to exceeds demand and everybody owns "it". . By early 2000, every Tom, Dick and Harry small internet company had gone public and the supply of internet company stock began to swamp demand. Everyone and their brother were day trading and owned internet stocks. That was a bubble. . By 2006/2007, homebuilders were building bigger and bigger homes and selling them to unemployed people as no one cared about the ability to pay. Hundreds of TV shws and infomercials were on showing how to buy and flip homes. Eventually the supply began to swamp demand. That was a bubble. . By the end of 2011, gold production had held relatively stable over the past 10 years even though governments around the world printed endless supplies of money. Very few high grade gold deposits have been found and supply still can't keep up with demand. Even though you are not thrown in the looney bin when you say you own gold, you still are given a dirty look and quickly dismissed. Less than 10% of investors own any gold stocks. Gold is no where near a bubble. Dennis Gartman is usual.

Monday, December 12, 2011

December 12, 2011 Edition of the Stateside Report


Nevsun most likely suitor for Chalice ...........

We should know by Christmas whether we get a present :).

Just bought another 10,000 shares of Chalice

I can't see them selling out for less than $.50/share. Even if the deal doesn't happen, I've mentioned them several times over the last few months and how they should be trading much higher based on comparables so if nothing else I will sit and wait for the share price to rise over the next year.

Consider Chalice Gold Mines today

Looks like they have an LOI for an offer. Trading at $.33 - Should be valued much higher based on Nevsun comparables. I picked up 15,000 shares this morning. Some may want to do some homework here. CXN on the TSX - CGMLF in the states.

Wednesday, November 30, 2011

News Update - November 30, 2011

Currently away from the office again today at several meetings. Saw the news on OCP/CEM - not what I was looking for and the market sold off OCP - CEM finished even on the day. They maybe onto something there but looks like we will have to wait until 2012. Haven't had a chance to study all the press releases but will be back in the office tomorrow. See you then.

Jr's went up 300-400% from depression levels in early 2009

The printing presses were just turned on around the world. Hopefully a few of you have done your homework and have been buying the juniors like me as everyone else has been throwing them away. The rewards are about to come. It pays to be early. Now it's time to sit tight as we are right! The juniors went up 300-400% in 3-4 months back in 2009 from the levels where everyone had been throwing them away. We are at the same bottom levels now. stateside

Tuesday, November 29, 2011

Friday, November 25, 2011

Excalibur receives permit to go into production!

Excalibur unit Minera Catanava receives plant licences 2011-11-25 06:29 ET - News Release Mr. Tim Gallagher reports EXCALIBUR RESOURCES LTD.: MINERA CATANAVA PROJECT RECEIVES SEMARNAT PERMIT APPROVAL Excalibur Resources Ltd.'s 49-per-cent subsidiary, Minera Catanava SA de CV, has received all the necessary permits required to build the plant and to go into production. The EIS application to the Semarnat in Zacatecas was submitted in June, was reviewed in July, followed by a site inspection in August, which lead to a request for a number of items, including a soil analysis report on the tailings area and the completion of the water permit from the National Water Commission (CNA). Tim Gallagher, chairman of Excalibur, commented: "We are extremely pleased to have achieved this major milestone. Receiving the Semarnat approval is the official Mexican government green light that allows Minera Catanava to proceed to the start-up stage of development. This has been a tremendous amount of work and we congratulate the team in Mexico. We also expect the explosive permit shortly, but given the amount of material already on surface in the San Gil area, it is not required to start production." Recent work at the site has been focused on the completion of the foundation in order to install the ball mill, crushers, conveyors and the recently delivered concentrators which have been sourced from the Actionmining website. Minera Catanava The Catanava project is in the historic Pinos gold district, in the state of Zacetecas, Mexico, which was discovered by the Spanish in 1546 and mined until the revolution in 1810, by Cornish miners from 1870 to 1911, and most recently by an individual miner from 1935 to 1941. Recent exploration work was undertaken through a Penoles/Bethlehem Steel joint venture from 1975 to 1983, All-North Resources from 1993 to 1994, Hecla Mining Company from 1995 to 1997, and by Romarco Minerals from 2006 to 2007. Minera Catanava SA de CV is 51 per cent held by Minera Apolo SA de CV which owns and is providing the land, mineral and mining rights and management of the project, and 49 per cent is held by Excalibur which is providing the financing.

Sunday, November 20, 2011

In this video I mention a report from Haywood on Mira Resources (MRP.V). I couldn't locate it but a Jennings report can be accessed here where they have a $1.25 price target.

Sunday, November 13, 2011

30 minute video from 2 of the senior statesmen in precious metals

No one in the US will watch this (and if they do they will quickly ignore it) but for those of you outside the U.S., consider that these two men have 80% of their assets in precious metals and have been spot on in this sector for the last 10 years. It's not too late for those who care to listen. .

Monday, November 7, 2011

November 7, 2011 Edition of the Stateside Report tube having issues again and the last 4 minutes were cut-out. Hopefully they can improve their service (although it's free so I can't complain much). .

You Tube Continues to have problems

I put together the show for tonight but you-tube is having upload issues. If they persist for the next few hours, I'll need to do a combined show tomorrow. Here are the companies to be featured: Northern Tiger Resources Inc Symbol C : NTR Shares Issued 98,906,363 Close 2011-11-04 C$ 0.225 Northern Tiger drills 234 m of 0.45 g/t Au at Sonora ... Mineral Mountain Resources Ltd Symbol C : MMV Shares Issued 68,210,877 Close 2011-11-04 C$ 0.50 Mineral Mountain drills 0.64 m of nine g/t Au .. Canstar Resources Inc Symbol C : ROX Shares Issued 68,826,713 Close 2011-11-04 C$ 0.12 Canstar beats Vinland on Mary March .. Chalice Gold Mines Ltd Symbol C : CXN Shares Issued 250,030,886 Close 2011-11-04 C$ 0.345 Chalice Gold Mines drills five m of 86.2 g/t Au at Zara .. Colt Resources Inc Symbol C : GTP Shares Issued 94,812,604 Close 2011-11-04 C$ 0.55 Colt's Tabuaco at 760,000 t of 0.58% WO3 indicated ..

Sunday, November 6, 2011

November 4, 2011 Edition of the Stateside Report

Hi, Since there was only 2 press releases of note, I'm just going to give the headlines here instead of doing a video webcast. Both press releases come from companies I have mentioned before. One other item to note - I expect Ocean Park Ventures (OCP) and Constantine Metals (CEM) to FINALLY release results this week. Let's hope for the best. See you again on Monday. . stateside . Decade Resources Ltd Symbol C : DEC Shares Issued 56,909,761 Close 2011-11-03 C$ 0.14 . Decade samples 33.6 g/t Au at new Flin Flon showing . 2011-11-04 12:09 ET - News Release . Mr. Ed Kruchkowski reports . DECADE RESOURCES LTD.: 33.6 G/T GOLD OBTAINED IN EXPLORATION ON PROPERTIES IN THE FLIN FLON AREA OF MANITOBA . Decade Resources Ltd. is continuing exploration work on its 100-per-cent-owned gold properties near Flin Flon, Man. The company is conducting a program of prospecting, trench sampling, soil sampling and geological mapping to identify drill targets for future drilling. . To date, the company has located all the historical gold showings and has located several new mineral showings. One of the new showings is a copper-bearing zone traced over 250 metres that has yielded assays up to 33.6 grams per tonne gold with 1.4 per cent copper. In addition, a zone over five metres wide of chalcopyrite, pyrrhotite and pyrite was located in sheared gabbro within the property area. ._____________________________________________________________________________________________________________________________________________ . Galway Resources Ltd Symbol C : GWY Shares Issued 122,530,946 Close 2011-11-03 C$ 1.47 . Galway drills 11.4 m of 15.3 g/t Au at Vetas . 2011-11-04 06:38 ET - News Release . Mr. Robert Hinchcliffe reports . GALWAY INTERSECTS 15.3 G/T GOLD OVER 11.4M AND 12.8 G/T GOLD OVER 7.2M IN HOLE 12 AT VETAS; SURFACE DRILLING TO COMMENCE ON THE EXTENSION OF CB GOLD'S STOCKWORK ZONE DISCOVERY . Galway Resources Ltd. has released partial assay results from an additional two diamond drill holes at its Vetas gold-silver project, host of the El Volcan gold-silver mine that has been in operation over 400 years and is the largest mine in the California-Vetas-Surata gold region. Galway also is pleased to announce that it will begin to drill its first surface target at Vetas in the second half of November. This target was initially discovered through extensive sampling and geophysical exploration programs carried out by Galway. The initial target is along strike and adjacent to CB Gold's new discovery of 7.57 grams per tonne gold (g/t Au) over 114.98 metres in what appears to be the same stockwork zone on Galway's side of the common border. The CB Gold intersection includes 17.17 g/t Au over 40.89 metres (which includes 316.67 g/t Au over 2.09 metres) and 5.36 g/t Au over 30.35 metres. The focus of Galway's exploration efforts at Vetas is to test for a continuation of mineralization below the El Volcan mine, strike and lateral extensions to the mine and other anomalies within the company's Vetas concessions. Results confirm that mineralization extends at least 200 metres below current workings.

Sunday, October 30, 2011

October 28, 2011 Edition of the Stateside Report

For some reason, the last half of the show was cut-off but I'm posting this anyways because the most important news is at the start of the broadcast. .

Wednesday, October 19, 2011

Great news from Pennant Energy (PEN) and Blackbird Energy (BBI)

In June, I issued a report on the deep Montney play in the Alberta Basin highlighting Pennant (PEN) and Blackbird (BBI). See the report here. The operator, Donnybrook, released test results tonight that exceeded expectations. The share price of PEN and BBI have gone up 100% and 75% respectively over the past week as the news obviously leaked. I would expect additional share price increases barring a collapse in the overall market.

Pennant, Donnybrook's 22W5 well flows at 1,011 boepd

2011-10-19 16:52 ET - News Release

Also News Release (C-DEI) Donnybrook Energy Inc

Mr. Thomas Yingling of Pennant reports


Pennant Energy Inc., pursuant to its Sept. 28 press release, has been informed by the operator, Donnybrook Energy Inc. of Calgary, that the Bigstone, Montney formation horizontal well, Donnybrook HZ Bigstone 14-29-60-22W5, has been successfully completed and flow tested. On Oct. 12, a 240-ton, 12-stage continuous fracture treatment along the 1,254-metre lateral leg of the well (horizontal portion) was carried out over a six-hour period. Immediately after, the well was flowed for cleanup and subsequently flow tested for approximately four days and is currently shut-in for built up. The well, after cleanup, produced gas and condensate over the last 24 hours of the test at approximately 4.3 million cubic feet per day and 295 barrels per day of condensate (1,011 barrels of oil equivalent per day).

The 14-29-60-22W5 well has tested at comparable or better rates with a well located approximately five miles to the south which was drilled and completed in a similar manner (1,200-metre lateral with 12-stage frac) and tested rates of (3.5 million cubic feet per day and 225 bpd of condensates, 808 boepd). The operator of that well has offset the initial test with two longer horizontal wells with 2,000- and 2,538-metre laterals at locations about four miles south of (one mile closer to) the Bigstone 14-29 well. The 2,000-metre lateral section tested at rates of 13.1 million cubic feet per day and 655 bpd of condensate (2,840 boepd). The 2,538-metre lateral section tested at 15 million cubic feet per day and 600 to 900 barrels of condensates (3,100 to 3,400 boepd).

The Donnybrook HZ Bigstone 14-29-60-22W5 well confirms the Montney formation at Bigstone is at least comparable or possibly better in reservoir quality with the Montney that has been drilled at Fir four miles to the south. Accordingly, longer 2,000- to 2,600-metre lateral sections at Bigstone should produce a similar increase in results with test rates anticipated to be three to four times higher than the 14-29-60-22W5 well has achieved.

Thomas Yingling, president of Pennant Energy, stated: "The Bigstone well has clearly exceeded our expectations. The Bigstone/Fir Montney area resource development potential has attracted a significant amount of attention in recent months, not only reflected in the current and planned drilling activity in the area, but also in the high land prices paid ($2,500 per hectare) at recent Crown sales. Pennant's 25-per-cent working interest in 1,792 hectares of contiguous lands at Bigstone represents a potential drilling inventory of 13 to 27 development locations depending on the length of the horizontal leg of each well. We are looking forward to developing this exciting project with our partners."

Based on the reported production performance of longer lateral wells to the south at Fir and the quality of the Montney reservoir section encountered at Bigstone, Donnybrook has informed Pennant that it is planning to drill a longer 2,000-metre to 2,200-metre lateral as the next well in the project.

October 19, 2011 Edition of the Stateside Report


Tuesday, October 4, 2011

You tube down for maintenance

Currently you tube is down for maintenance. If they don't get back up soon, we'll need to record the show on Wednesday evening.

Sunday, October 2, 2011

September 30, 2011 Edition of the Stateside Report


Note - according to the company, the potential prospective CEX acreage is 1,000 acres, not 100 as I mentioned in the video.

Monday, September 19, 2011

September 19, 2011 Edition of the Stateside Report

Sorry...I got cut-off from the last minute of tonight's video as I exceeded my 15 minute limit. Need to set the 2 minute warning next time.


Sunday, August 21, 2011

New 5-10 minute video segment on the Canadian Juniors each day

Time permitting, I plan to uplaod a 5-10 minute video each evening highlighting significant news releases from the Canadian junior resource sector. My goal is to weed through all of the releases and highlight those that deserve your further research. My initial video is posted below:


Saturday, August 20, 2011

Jim Sinclair and James Turk on the significance of $1,764 gold.......

Sinclair and Turk....2 Gentlemen who have been spot on the gold market for many, many years. 2011 - 2015 will be the most turbulent but possibly the most financially rewarding for those who can exploit the perverse disconnect between gold and the gold shares.


Tuesday, August 16, 2011

Montney Deep Basin well at Bigstone ready to be drilled

Pennant announced today the imminent drilling of their Bigstone well. Click here. This is the well I've been waiting to see drilled since I issued my June "Under the Rocks". Neither Pennant nor Blackbird have moved higher in anticipation of the drilling so the share price offers an attracgtive entry point.

Monday, August 15, 2011

August 2011 Stateside Report "Under the Rocks" Now Available

The August 2011 Under the Rocks is now available by clicking the following link (right-click to open in a new window). For those who want this report two weeks before it is publicly available, send me an email and I'll add you to the free contact list.


Monday, August 8, 2011

In honor of gold hitting $1,700 tonight, it's time to bring out this video

Less than 2 years old but still applicable today. This short video shows what 99% of US citizens feel about gold.

You tube video - note - you must right click to open in a new window

Sunday, August 7, 2011

Get the popcorn ready....tonight should be a fun show starting at 6:00 PM

Now we get to see the start of the great bull run in gold and the Canadian junior explorers. It may begin with a wimper, but starting over the next few weeks, the internet stock bubble will look like child's play over the next 18-24 months. For those of us who have been frustrated being in gold/silver stocks over the last few years, we will finally be rewarded.

Friday, August 5, 2011

S&P Downgrades US Credit Rating to AA-Plus

Thanks Bush, Obama and the House and Senate. You can proudly say you all contributed to the downgrade of USA debt from AAA for the first time since 1917.

The bloody details.


Saturday, July 30, 2011

New Eastern Ohio Utica Shale oil Bakken ?- Who benefits?

Chesapeake finally announced what the market has been speculating for a few months. The Utica Shale play in Middle/Eastern Ohio may be better than the Eagleford Shale play in Texas. Audrey is estimating that acreage will eventually be valued at $10,000-$15,000/acre. Here is a summary of what Chesapeake has done to date: (note - there may be one Canadian junior exposed to this play)

see drill permitting in the ohio counties here

The Utica shale sits deeper than the Marcellus shale that has been getting attention in the past year or so in the region. According to Chesapeake's presentation for shareholders, the Utica features an area of dry gas along the Ohio River through Columbiana and Jefferson counties, a more profitable wet gas area running in a strip from roughly Trumbull to Meigs counties, as far west as parts of Harrison and Carroll counties, then continuing west into central Ohio, from Lake Erie to the state's southern tip with oil producing potential.

McClendon said he could not disclose findings yet, for competitive reasons, but there have been nine vertical wells drilled in the region, with six horizontal wells. The wells are spread across several counties, and their output increases confidence in the findings the company stated about the Utica shale.

Chesapeake has analyzed more than a half mile of core borings and examined more than 2,000 well logs in making its determination of the potential of the Utica find. The company also factored in its experience in other unconventional energy fields.

McClendon said the only public company competing so far in the play is Enervest of Houston, whom he described as a highly regarded firm that is a joint holder on some Utica acreage.

So the question is....are there any Canadian juniors that will benefit? I own shares in a company whose sole focus is Ohio and is currently drilling a light oil horizontal play in northern Ohio. Their market cap is in the $10 million range and they have an extremely tight share structure. Volume has picked up the last month both on anticipation of drill results and the potential for their Utica acreage. I have a call into management for more information and they will be part of my "Under the Rocks" report for early August.

Monday, July 18, 2011

$1,600 gold and the bear market in gold juniors

The higher the gold price rises, the more Canadian and stateside investors throw away their Canadian junior gold explorers. When you are broke and trying to put food on the table, you sell what you have without thinking. I often thought $1,000 gold would lead to an explosion in the junior gold sector. I was wrong. It will take the Chinese and Middle Eastern institutional entities to start the next bull market in gold juniors. They are the only ones with the excess funds to drive this market higher. The only question is when?

Monday, July 11, 2011

Failed talks on the debt ceiling lead to a sell-off in the Canadian Juniors

Risk-off was the play of the day as a break down in the debt ceiling talks caused the average resource investor to sell today - as expected.

Thursday, July 7, 2011

The Junior Resource Sector Lit Up Today

Many of the junior resource stocks I follow were up 10% or more today. The reason.....President Obama hinting that a debt deal is getting closer. Even though any deal will only kick the can down the road for another 6 months or so, the majority of investors are terrified of August 2nd coming without a deal. 2008 is still fresh in the Canadian resource sector and most retail investors spook easily. As long as a deal seems likely and with gold nearing all time highs, the juniors will scream higher into the Fall season.

Tuesday, July 5, 2011

49 North Resources up over 30% vs (10%) for the TSX-V since January

Just a quick update on 49 North Resources (FNR) which I labeled the one stock to own in 2011 if you could only own one stock. FNR is up over 30% since I first issued this report in January compared to a loss of over 10% for the TSX-V index. As production numbers from their heavy oil project get released later this Summer, I would expect this out performance to intensify.


Monday, June 6, 2011

Two buyers of Kingsman (KSM) - The COO and I - Good Company

Kingsman Resources Inc. (KSM) As of June 5th, 2011

Filing Date Transaction Date Insider Name Ownership Type Securities Nature of transaction # or value acquired or disposed of Unit Price

Jun 03/11 Jun 03/11 Drummond, Edward Jack Direct Ownership Common Shares 10 - Acquisition in the public market 5,000 $0.055

Jun 03/11 Jun 02/11 Drummond, Edward Jack Direct Ownership Common Shares 10 - Acquisition in the public market 91,000 $0.060

And many, many others here

Thursday, May 19, 2011

IEA asks for hike in oil production

Sorry...this is what it is like when you've reached peak oil. Learn to live with it and buy the Canadian junior oils that are in bear market territory.

May 19, 2011

By OGJ editors

HOUSTON, May 19 -- The International Energy Agency’s governing board issued a statement during its regular quarterly meeting on May 19 appealing to suppliers to provide more oil to the market. IEA said it is prepared to use all tools at its disposal, which include releasing strategic oil reserves.

While the Paris-based agency did not name any particular oil suppliers in the statement, the world’s spare oil production capacity lies within the Organization of Petroleum Exporting Countries.

IEA, considering oil market developments and their impact on the global economy, noted that oil prices stand at elevated levels driven by market fundamentals, geopolitical uncertainty, and future expectations and cited growing signs that the rise in oil prices since September 2010 is affecting economic recovery by widening global imbalances, reducing household and business income, and placing upward pressure on inflation and interest rates.

As global oil demand increases seasonally from May-August, there is a clear, urgent need for additional supplies on a more competitive basis to be made available to refiners to prevent a further tightening of the market, the statement said.

The agency warned that additional increases in prices at this stage of the economic cycle risk derailing the global economic recovery and are in the interest of neither producing nor consuming countries. Especially vulnerable are oil-importing, developing countries.

“The governing board urges action from producers that will help avoid the negative global economic consequences which a further sharp market tightening could cause, and welcomes commitments to increase supply. We stand ready to work with producers as well as nonmember consumers; in this constructive spirit, we are prepared to consider using all tools that are at the disposal of IEA member countries,” IEA said.

Tuesday, May 17, 2011

The bear market in Canadian juniors

The Canadian junior market is acting like gold is at $400 and oil at $35. Investors are selling shares to put food on the table. Here is an example of no interest in the gold juniors:

Riverstone withdraws $15-million public offering

2011-05-17 16:51 ET - News Release

Mr. Michael McInnis reports


Riverstone Resources Inc. will not be proceeding with the proposed public offering of common shares in the capital of the company, the terms of which were outlined in its news release of May 9, 2011.

Riverstone will continue to advance exploration on its Karma project in Burkina Faso with available funds.

We seek Safe Harbor

Saturday, April 23, 2011

My investment style summed up perfectly

Here is a post from someone on the SLX Bogapet. This sums up my feelings exactly when it comes to my investment style...........

"It's an interesting statement on human nature that when a stock is very undervalued, most people's reaction to that fact is based on one thing: whether or not they own it.

If one does all the work, and figures out that some company is extremely undervalued, and they don't own it, they lick their chops and take advantage of the buying opportunity.

Once they own it, if it continues to be undervalued, eventually they stop seeing it as a buying opportunity, and begin to see it as a complaining opportunity. For some, it only takes a few weeks to go from chop-licking to whining. Others are more patient.

The reason a stock is undervalued is that the market is irrational. Unfortunately, it can stay irrational for a long long time. Just because I noticed that it was being irrational and bought doesn't mean it's going to become rational immediately and reward me for my insight. I have to be ready to wait. Usually a lot longer than I'd like to."


Sunday, April 10, 2011

Hello World

This man knows more than all of the world's leaders put together. Here is Martin Armstrong's first article since his release from prison:

Hello World


Monday, April 4, 2011

Scotia Capital on the Alberta Bakken Play

I highlighted this play in June of last year and we were able to get a 10 bagger out of Mountainview Energy. Nine months later, Scotia comes on the scene with their report for the first time. Where have you guys been?

See the report here: Scotia Report

Monday, February 21, 2011

It's not a problem until it's a problem....well it's now a problem

For those hedge funds and other institutions who sell short the resource complex and their shares (oil, gold, silver) because it's not a problem until it's a problem....they are about to experience a religious moment because Houston....we have a problem. There is no such thing as research and forward looking opportunities in the resource sector anymore. The hedge funds and institutions, until now, have ignored peak oil, mid-east violence possibilities, declining gold/silver availability on the exchanges and all of the other signs that have pointed to the situation we have today with silver, oil (now gold) all sky rocketing. The hedge funds and institutions are heavily short the shares of resource companies and are about to receive a "come to Jesus" moment. Hopefully you are positioned all in at this point. The next few months should be fun. The juniors will provide the most leverage and my favorites at this moment are 49 North Resources (FNR), Provident Resources (PV) and Transamerican Energy (TAE). As always, do your own research.

Sunday, February 6, 2011

Format for the new webcast


I've been experimenting with a few different formats to provide my commentary and updates on the Canadian junior companies I follow and have decided to go the You Tube route. Over the next few weeks, I will start posting updates via You Tube which will be able to be accessed from this blog and my website. Please give me your feedback at


Sunday, January 2, 2011

Happy Holidays to All Fellow Investors

Here's to a healthy and prosperous new year! My focus during the first few months of 2011 will be identifying undervalued juniors in the oil and gas sector. This group has lagged most other commodities and I've already identified several opportunities I will share with you in the January issue of "Under the Rocks".

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