Name(XXX) XXX-XXXXemail @canaccord

Transcription

Name(XXX) XXX-XXXXemail @canaccord

The waiting game
•
The last week of trading was a tumultuous battle of attrition. The bulls
waited for a break to the upside. The bears waited for a break to the
downside. All the while, bulls, bears and investors sitting on the sidelines
waited for the US presidential inauguration and for details on Presidentelect Obama’s proposed stimulus package. Some details of the plan were
released near the end of the week. Obama’s inauguration will take place on
Tuesday, January 20. It remains to be seen how effective the stimulus
package will be. For the time being, we are playing the waiting game.
•
Exploration updates:
Eric Zaunscherb
[email protected]
1.604.699.0829
Augusta Resource Corporation
B2Gold Corp.
Exeter Resource Corporation
Globestar Mining Corporation
Luna Gold Corp.
Northern Freegold Resources Ltd.
Oromin Explorations Ltd.
Adam Melnyk (Research Associate)
[email protected]
1.604.643.1655
Iris Varga (Research Assistant)
[email protected]
1.604.643.7412
Current value: US$29.20/oz ↓
1000.0
120
900.0
100
800.0
600.0
60
500.0
40
400.0
20
300.0
Average Value US$/oz in situ
9-Jan-09
4-Dec-08
18-Dec-08
6-Nov-08
20-Nov-08
9-Oct-08
23-Oct-08
25-Sep-08
28-Aug-08
11-Sep-08
14-Aug-08
3-Jul-08
31-Jul-08
17-Jul-08
5-Jun-08
19-Jun-08
8-May-08
22-May-08
24-Apr-08
10-Apr-08
28-Feb-08
27-Mar-08
13-Mar-08
14-Feb-08
3-Jan-08
31-Jan-08
17-Jan-08
6-Dec-07
20-Dec-07
8-Nov-07
25-Oct-07
22-Nov-07
11-Oct-07
200.0
30-Aug-07
0
Gold Price
C$:US$ 0.84
Ag:Au ratio 76:1
Source: Thomson ONE, Canaccord Adams
Canaccord Adams is the global capital markets group of Canaccord Capital Inc. (CCI : TSX|AIM)
The recommendations and opinions expressed in this Investment Research accurately reflect the Investment Analyst’s personal,
independent and objective views about any and all the Designated Investments and Relevant Issuers discussed herein. For important
information, please see the Important Disclosures section in the appendix of this document or visit or visit
http://www.canaccordadams.com/research/Disclosure.htm.
Gold Price (US$)
700.0
80
27-Sep-07
6
7
8
10
11
12
13
14
15
17
18
19
21
22
140
13-Sep-07
2
3
4
5
5-Jul-07
Market/Commodities Snapshot
Foreword
Other News
Upcoming Events
Exploration Updates
Augusta Resource Corp.
B2Gold Corp.
Globestar Mining Corp.
Luna Gold Corp.
Northern Freegold Res. Ltd.
Oromin Explorations Ltd.
Drill Bitz
Uranium In Situ
Gold In Situ
Research Universe
Ink Spots
Index
Disclosures
(AZC : TSX : C$0.64 | Not rated)
(BTO : TSX : C$0.46 | SPECULATIVE BUY)
(XRC : TSX-V : C$2.45 | SPECULATIVE BUY)
(GMI : TSX : C$0.49 | SPECULATIVE BUY)
(LGC : TSX-V : C$0.15 | Not rated)
(NFR : TSX-V : C$0.27 | Not rated)
(OLE : TSX : C$0.74 | Not rated)
Figure 1: Gold price versus average value US$/oz in situ
Average Value US$/oz in situ
In this issue:
16-Aug-07
Nicholas Campbell
[email protected]
1.604.643.7027
2-Aug-07
Wendell Zerb
[email protected]
1.604.643.7485
19-Jul-07
20 January 2009
Junior Mining Weekly | 2
20 January 2009
Figure 2: Junior market/commodities snapshot
% Change
YTD
WoW
-8.8%
-5.7%
6.8%
-4.9%
5.2%
-14.4%
YTD
WoW
7.8%
-0.9%
7.0%
-3.2%
1.1%
-3.9%
-2.3%
-22.7%
Index
S&P/TSX Venture Composite Index
S&P/TSX Composite Index
S&P/TSX Global Gold Index
S&P/TSX Diversified Metals & Mining
(SPDR) Streettracks Gold Trust
IShares Comex Gold Trust
AMEX Gold Bugs
Value
Jan 16/09
866
8,920
291
263
75
80
260
% Change
YTD
WoW
8.6%
-4.8%
-0.7%
-1.8%
-6.9%
5.5%
9.5%
-10.5%
0.0%
0.0%
-7.2%
-4.3%
-13.9%
-8.4%
CA commodity price and currency forecasts
Aluminum US$/lb
Copper US$/lb
Nickel US$/lb
Zinc US$/lb
Lead US$/lb
Uranium US$/lb
Molybdenum US$/lb
Cobalt US$/lb
Gold US$/oz
Silver US$/oz
Platinum US$/oz
Palladium US$/oz
C$/US$
A$/US$
US$/Euro
Rand/US$
Av Day Val
C$ 000
2,600
1,500
Volume
107,942,831
118,793,125
154,685,617
106,391,890
125,032,007
Total
Average. Daily Volume
612,845,470
122,569,094
S&P/TSX Venture Composite Index Volume and Value
Jan/07-Jan 16/09
370
3,200
2,800
295
2,400
2,000
220
1,600
1,200
145
800
TSX-Venture Daily Trading Volume
Jan-09
Oct-08
Nov-08
Jul-08
Se p-08
Jun-08
Mar-08
May-08
Jan-08
Fe b-08
Oct-07
Nov-07
Jul-07
Aug-07
Jun-07
Mar-07
70
May-07
1,140
Jan-07
400
Fe b-07
S&P/TSX Venture Composite Index
Selected companies
Price
Highly active by value (Jan 12-16/09)
Symbol Jan 16/09
San Gold Corp.
SGR
$1.24
General market interest. Annual report filed.
Noront Resources Ltd.
NOT
$1.12
Reported assays results from the Blackbird deposit/McFaulds Lake,
northern Ontario. Also closing the last part of a private placement
announced in Nov/08.
Hathor Exploration Ltd.
HAT
$3.45
Positive comments from mining elated media.
Gold Weaton Gold Corp.
GLW
$0.29
No significant news.
TSX Venture Daily Volume for the week
of Jan 12-16/09
Date
Monday
12-Jan-09
Tuesday
13-Jan-09
Wednesday
14-Jan-09
Thursday
15-Jan-09
Friday
16-Jan-09
TSX Venture Vo lume (M )
CA COPPER In Situ (cents Cdn/lb)
CA NICKEL In Situ (cents Cdn/lb)
CA ZINC In Situ (cents Cdn/lb)
CA MOLY In Situ (cents Cdn/lb)
Value
Jan 16/09
29.20
0.78
2.02
Jan 16/09
1.10
5.81
0.67
4.66
S&P/TSX Ve nture Index
In Situ
EV/attrib. lb eq. or Mkt. cap/oz or lb eq.
CA GOLD In Situ (US$/oz)
CA SILVER In Situ (US$/oz)
CA URANIUM In Situ (US$/lb)
S&P/TSX Venture Index
500
2008A
1.17
3.16
9.59
0.86
0.95
63.6
30.3
38.8
867.00
14.94
1,578
352
2009E
0.70
1.50
5.00
0.63
0.50
60.0
13.5
15.0
875.00
12.50
1,050
250
2010E
0.80
2.00
6.00
0.70
0.50
65.0
15.0
15.0
825.00
13.50
1,200
300
Long Term
1.00
2.00
7.75
0.80
0.50
70.0
12.5
12.5
750.00
14.00
1,200
300
Value
Jan 16/09
0.65
1.51
4.89
0.56
0.53
51.00
9.75
17.50
833.75
11.22
949.00
185.50
0.94
0.85
1.47
8.27
0.85
0.70
1.40
9.50
0.90
0.75
1.34
9.00
0.90
0.80
1.30
8.00
0.80
0.67
1.33
9.88
WoW (week over week)
The CA commodity price (base metals) and currency forecasts – updated values published Jan 12, 2009.
In Situs: The basket of companies might vary quarterly. Silver In Situ first published on Sep 22/08.
CA - Canaccord Adams.
Source: Thomson One, Bloomberg, TSX Venture Exchange, Canaccord Adams.
% Change
YTD
-4.4%
9.4%
-7.0%
3.7%
15.2%
-3.8%
-21.2%
0.0%
-3.2%
-0.7%
1.6%
-0.8%
-1.6%
-3.6%
-5.3%
5.9%
WoW
-7.1%
-1.3%
-10.8%
-3.4%
-3.6%
-3.8%
-21.2%
0.0%
-1.6%
-0.9%
-4.5%
-3.8%
-4.7%
-4.2%
-1.5%
0.9%
20 January 2009
WAITING ON THE SIDELINES
The first week of trading in the market started well and ended poorly. Last week started
poorly and ended well. The movements in the market over the past week were generally
unconvincing. Investors enjoyed a holiday season with family and friends and then
returned to their portfolios. 2008, a year of reckoning, was over. Finally, 2009 had
begun. 2009, a year of…a year of…hmmm. So far, 2009 has started out as a year of
uncertainty. There is a lack of conviction in the market. The first two weeks of trading
have demonstrated a certain hesitancy. Investors are unsure of what is to come. Will we
retest the market lows in 2009 or are the lows behind us? Will a stimulus package stem
the flow of red ink in the US economy or will it simply add to the blood loss from
government coffers? Was the spike in jobless claims at the end of 2008 a signal that the
end of the recession is close or are we headed for even more pain? Recession or
depression? Deflation or inflation? These questions are bogging down the mental capital
of investors and rightly so. These are troubling times and prudence is of necessity. The
result has thus far been a wait-and-see approach to investment. There may be hope, but
there appears to be no conviction in today’s market. Investors are waiting, watching and
listening to see what will happen next and how everyone else will respond.
While we are waiting, let’s look at a summary of the key points of the proposed
American Recovery and Reinvestment Act of 2009:
•
Clean, Efficient, American Energy – US$54 billion: Aimed at upgrading transmission,
distribution and production with a focus on renewable energy. Includes US$16 billon
to repair public housing and weatherize modest-income homes.
•
Transforming our Economy with Science and Technology – US$16 billion: Includes
US$10 billion towards research and facilities and US$6 billion towards upgrading
broadband internet access in rural areas.
•
Modernizing Roads, Bridges, Transit and Waterways – US$90 billion: Focused on
highway construction, modernization of public buildings, clean water, flood control
and environmental restoration projects and mass transit initiatives.
•
Education for the 21st Century – US$141 billion: Funds local school districts, state relief
programs to prevent cutbacks in response to drop in tax revenues, public safety
initiatives, increased education grants and modernization higher education institutions.
•
Tax Cuts to Make Work Pay and Create Jobs – No specifics. Provide tax relief to 95%
of American workers. To be determined by the Ways and Means Committee.
•
Lowering Healthcare Costs – US$24 billion: Improved health information technology
and preventative care.
•
Helping Workers Hurt by the Economy – US$102 billion: Increased unemployment
benefits and training, health care support for employees who have lost their jobs and
benefits and an increase in the food stamp benefit.
•
Saving Public Sector Jobs and Protect Vital Services – US$91 billion: Financing a
temporary increase in the Medicaid matching rate and an increase in state and local
law enforcement funding.
20 January 2009
What does all of this mean for junior mining? At the moment, not a lot. Some of these
initiatives may help to support demand for steel, copper and other materials; however,
the stimulus package itself is not likely to create sufficient demand to offset the
magnitude of decline in demand from the private sector, particularly on a global basis.
The efficacy of the stimulus package will more likely depend on whether it can instill a
degree of certainty and stability in a critical mass of Americans. If a large enough
number of Americans feel that the stimulus package is helping to protect themselves and
their families from the deleterious impacts of the current recession, we could begin to see
a gradual increase in consumption and spending. And as consumer confidence returns,
businesses will likely have greater confidence to make the investments to grow and
modernize their operations. However, if the stimulus package is viewed similarly to the
Bush Administration’s stimulus package and tax rebate or the current TARP program,
the potential for the stimulus package to restore faith in the American economy will
likely be limited. We can only be patient. We can only wait and see whether sentiment
shifts and if, when it does, it is for the better or the worse.
OTHER NEWS
Ecuador’s temporary legislature has approved a new mining law. The new law calls for a
minimum 5% royalty on mining, limits mining concessions to 5,000 hectares each, and
caps mining contracts at 25 years. Companies will have up to eight years to explore for
minerals and another two years to evaluate a deposit’s economic viability. President
Rafael Correa, who must now ratify the approved law, has stated publicly that he
supports new mining law. Although Correa’s support is no surprise, it is positive for
mining sector given recent anti-mining protests in Ecuador. Although we are encouraged
by Ecuador’s approving a mining law and see a legislative framework as vital to
Ecuador’s mining industry, some uncertainties remain. For example, although the
minimum royalty is set at 5%, it is our understanding that royalty negotiations will be on
a project-by-project basis. Also, no mention is made in the law of a windfall tax on
mining profits. Currently Ecuador’s oil and gas industry is subject to a windfall-revenue
tax on profits and the implementation of a similar tax on the mining industry could have
negative implications for development. Overall, however, the approval of this law is a
major milestone for Ecuador’s mining sector. Companies with exposure to Ecuador
include: Kinross (K : TSX : C$22.45 | HOLD), Iamgold Corp. (IMG : TSX : C$7.64 |
RESTRICTED), Corriente Resources (CTQ : TSX : C$4.08 | SPECULATIVE BUY), Dynasty
Metals (DMM : TSX : C$3.75 | SPECULATIVE BUY).
20 January 2009
UPCOMING EVENTS
Figure 3: Mining conferences – January to March, 2009
Date
January 25-26, 2009
Event
2009 Vancouver Resource Investment Conference
January 26-29, 2009
Mineral Exploration Roundup 2009
February 5-7, 2009
Africa Mining Congress, 2009
February 9-12, 2009
Resource Investor Conference – Mining Indaba
February 21-22, 2009
2009 Phoenix Resource Investment Conference
March 1-4, 2009
PDAC 2009 –
International Convention, Trade Show & Investors
Exchange, Mining Investment Show
Source: Canaccord Adams
Location
Vancouver Convention & Exhibition Centre
200 - 999 Canada Place Vancouver, BC
The Westin Bayshore
Vancouver, BC
Livingstone, Zambia at Victoria Falls
Africa
Mining Indaba 2009
Cape Town, South Africa
Renaissance Glendale Hotel and Spa
Phoenix, AZ, US
Metro Toronto Convention Centre – South Building
Toronto, Ontario
20 January 2009
EXPLORATION UPDATE
AUGUSTA RESOURCE CORPORATION (AZC : TSX : C$0.64 | NOT RATED)
Figure 4: AZC : TSX
Shares o/s (M):
Shares fd (M):
Working Cap. (M):
Market Cap. (M):
Co. Website:
Figure 5: AZC : TSX
88.7
97.5
US$12.2
$56.8
www.augustaresource.com
Source: Company reports, StockCharts.com
Past 12-months – purchased:
Past 12-months – sold:
$477,079
$858,466
Since Nov. 6, 2008 - acquisitions:
Since Nov. 6, 2008 - dispositions:
NIL
NIL
Source: INK Research
Augusta is a mineral exploration and development company, focused on advancing the Rosemont copper-moly project
(100%), located near Tucson, Arizona. Augusta is under the stewardship of Gil Clausen, President and CEO.
•
Last week, Augusta updated the Rosemont feasibility study. Using long-term metal pricing of $1.85/lb of copper, $15/lb of
molybdenum, and $12/oz of silver, the project NPV (5%) is US$1.2 billion and the IRR is 17.8%. Initial capex is estimated
at US$897.2 million. Cash costs are estimated at $0.62/lb of copper, net of by-product credits. Augusta envisions a 75,000
ton per day operation, with a 21-year mine life, producing an average of 221 million pounds of copper, 4.7 million pounds
of molybdenum, 2.4 million ounces of silver and 15,000 ounces of gold annually. The company indicates that production
could commence as early as Q4/11. Rosemont currently hosts a NI 43-101 compliant mineral reserve of 546.3 million tons
grading 0.45% Cu, 0.015% Mo and 0.12 oz/t Ag in sulphide and 70.0 million tons grading 0.17% Cu in oxide. This
resource equates to about 9.5 billion Cu eq. lbs. The company is currently trading at an EV of C$0.95 cents per Cu eq. lb.
•
Also last week, Augusta announced that it has reached an agreement with ASARCO LLC that fully and finally resolves the
lawsuit ASARCO filed against Augusta and other defendants on August 8, 2007. The ASARCO Chapter 11 bankruptcy
proceeding currently pending sought the return of the Rosemont property, which Augusta acquired in 2006 from a realestate development company that had purchased the property from ASARCO in 2004. Under the terms of the settlement,
Augusta will immediately pay ASARCO US$250,000 in cash. Also, should commercial mine operations commence at the
Rosemont property, Augusta will pay ASARCO certain specified annual production payments over the course of eight
years. Augusta has the right of a pre-production, pre-payment option for these annual payments at the net present value
(18%) of the aggregate annual payments any time up to and during mine production; should Augusta elect this option
during the calendar year 2009, the company will pay ASARCO US$2.6 million.
An analyst has not visited the properties held by Augusta Resource Corporation.
Investment risks
The commercialization risks associated with mineral exploration and development are high, thus investment in the shares
of Augusta Resource Corporation is for risk accounts only.
20 January 2009
B2GOLD CORP. (BTO : TSX : C$0.46 | SPECULATIVE BUY)
Figure 6: BTO : TSX
Shares o/s (M):
Shares fd (M):
Working Cap. (M):
Market Cap. (M):
Co. Website:
Figure 7: BTO : TSX
162.8
196.6
$57
$74.9
www.B2Gold.com
$596,972
$1,800,960
Since Dec. 10, 2008 - acquisitions:
Since Dec. 10, 2008 - dispositions:
Price range:
NIL
4,090,000 shares
$0.40
Director: Mr. Robert Cross (dispositions):
4,065,000 shares
B2Gold is a Vancouver-based junior mineral exploration company led by the former management team of Bema Gold,
including President and CEO Clive Johnson. B2 completed a $100 million IPO in December 2007. B2 is currently well
funded with cash of about $57 million. B2’s key assets in Columbia include: Gramalote/Trinidad (51% B2Gold, JV with
AngloGold Ashanti); Quebradona (B2Gold has earned 51%, Anglo can go to 65% by funding feasibility); Mocoa (100%
B2Gold); and Miraflores (100% B2Gold). B2 also holds a 37.5% interest in the Kupol East and West licences, which
surround Kinross’s Kupol gold and silver mine (reserves of 4 million oz AuEq at 18.2 g/t AuEq) in eastern Russia.
•
B2Gold has recently completed 30,189 metres of a planned drilling program at Gramalote. Significant results continue
to be received from the main Gramalote Ridge area and in selective peripheral zones. The best result includes: 165
metres grading 1.60 g/t Au in hole 60. Mineralization in the main zone appears to be consistent, returning on average,
drill intercepts of over 50 m grading over 1 g/t gold. An NI 43-101 resource estimate on Gramalote is now expected
before the end of January 2009. A scoping study is expected on Gramalote Ridge by year-end. The Trinidad zone (5
kilometres west of Gramalote) has now been tested with 20 holes, which have outlined mineralization over a 1,100 by
500 metre area. Mineralization, in general, is less consistent and lower grade than that at Gramalote Ridge. Several
new zones adjacent to Trinidad require follow-up work.
•
In 2008, B2Gold completed 8,318.8 metres of a planned 10,000 metre drilling program at Quebradora. Significant
results from the La Mama and La Isla zones on the project included: 380 metres grading 1.1 g/t Au in hole 24. Three
other zones tested in the project area are not expected to merit additional work. An NI 43-101 compliant resource is
expected in early 2009 on the La Mama zone. AngloGold will have the option to increase its current interest in the
project to up to 65%. We believe, however, that despite very good results from La Mama and La Isla, weak results from
other areas could prompt Anglo to remain at a 49% project interest.
An analyst has visited the properties held by B2Gold Corp. Partial payment or reimbursement was received from the issuer
for the related travel costs.
Investment risks
of B2Gold Corp. is for risk accounts only
20 January 2009
EXETER RESOURCE CORPORATION (XRC : TSX-V : C$2.45 | SPECULATIVE BUY)
Figure 8: XRC : TSX-V
Shares o/s (M):
Shares fd (M):
Working Cap. (M):
Market Cap. (M):
Co. Website:
Figure 9: XRC : TSX-V
50.1
57.9
$22.0
$122.7
www.exeterresource.com
$70,875
$51,350
Since Sep. 30, 2008 - acquisitions:
Since Sep. 30, 2008 - dispositions:
NIL
NIL
Exeter Resource is a Vancouver-based gold-silver exploration company under the management of Yale Simpson, Chairman,
and Bryce Roxburgh, President and CEO. Exeter is advancing the Caspiche copper-gold porphyry project (earning 100%) in
northern Chile and the Cerro Moro high-grade gold-silver vein project (95%) in Santa Cruz province in southern Argentina.
•
Last week, Exeter released more impressive drill intersections from the Caspiche project. Step-out hole CSD-028
returned 862.1 metres of primary gold-copper sulphide mineralization grading 0.54 g/t gold and 0.29% copper and
included a zone of 372.0 m grading 0.85 g/t gold and 0.47% copper. Hole CSD-029 intersected 72.0 metres of oxide
grading 0.52 g/t gold, followed by 581.1 metres of sulphide mineralization grading 0.50 g/t gold and 0.19% Cu. Drill
holes 28 and 29 are 200 metre step-outs to the southwest and northeast (respectively) from CSD-016 (see Figure 10 on
next page), which is associated with one of the strongest areas of mineralization outlined thus far (626.8 metres of
1.08 g/t gold and 0.43% copper in sulphide).
•
In early December, Hole CSD-023 intersected 705 metres of gold-copper mineralization with the upper 102 metres in
the oxide zone grading 0.65 g/t Au, followed by 603.3 metres in the primary gold-copper sulphide zone grading 0.89
g/t Au and 0.32% Cu. This hole is a step-out hole collared 145 metres to the southwest of Hole CSD-014 (148 metres of
oxide at 0.57 g/t gold and 592.7 metres of sulphide at 0.44 g/t gold and 0.25% copper).
•
An initial NI 43-101 inferred resource estimate at Caspiche is expected in Q2/09. On a comparative basis, its Au-Cu
grade, geology and infrastructure are all similar to Barrick/Kinross’s Cerro Casale deposit. In October 2007, Barrick
acquired a 51% interest in Cerro Casale for US$805 million. Based on our conceptual preliminary estimates, we
believe Exeter is on track to outline an NI 43-101 resource at Caspiche (down to 400 metres vertical) in the order of 67 million ounces gold equivalent. Recent drilling has opened up the target area to the south, and we believe that the
overall global resource could significantly expand in this direction, as well as to depth.
•
In mid-December, Exeter released eight drill holes from Cerro Moro. The holes, designed to build confidence laterally and
to depth on known mineralization, included: 3.36 metres grading 72.76 g/t gold and 6,471 g/t silver and 2.55 metres
grading 95.55 g/t gold and 8,466 g/t silver. At Cerro Moro to date, four high-grade mineralized zones have been defined
along the Escondida structure (2 kilometres) at the Escondida Far West, West, Central, and East zones.
An analyst has visited the properties held by Exeter Resource Corp. Partial payment or reimbursement was received from
the issuer for the related travel costs.
Investment risks
of Exeter Resource Corp. is for risk accounts only.
20 January 2009
Figure 10: Caspiche drill plan
Source: Exeter Resource Corp.
20 January 2009
GLOBESTAR MINING CORPORATION (GMI : TSX : C$0.49 | SPECULATIVE BUY)
Figure 11: GMI : TSX
Shares o/s (M):
Shares fd (M):
Cash. (M):
Debt (M):
Market Cap. (M):
Co. Website:
Figure 12: GMI : TSX
105.3
111.7
US$12.7
US$43.3
$51.6
www.globestarmining.com
$1,033,520
$1,876,912
NIL
NIL
GlobeStar is a small cap copper, gold and silver producer and mineral exploration company, focused in the Dominican
Republic. GlobeStar’s principal assets include the Cerro de Maimon Cu-Au-Ag mine and exploration concessions (100%), its
Falcondo Belt Nickel Laterite concessions (100%), and its Bayaguana Cu porphyry and Au concessions (100%).
•
Last week, GlobeStar announced commercial production at Cerro de Maimon commenced January 1, 2009. Q4/08
production from sulphide was 5.1 million pounds of copper; 1,500 ounces of gold and 120,000 ounces of silver. We
were expecting 7.9 million pounds of copper, 1,800 ounces of gold, and 98,000 ounces of silver. Copper recoveries in
the sulphide mill were 75% during the quarter versus our expectation of 85%, but averaged over 80% in December
2008 as operations were optimized. GlobeStar indicates that the oxide plant began operating in mid-December and is
currently running at 75% of design capacity due to higher than expected clay content in the oxide ore. GlobeStar
expects to have the oxide plant in full production by the end of Q1/09.
•
For 2009, guidance from the company is for production from sulphide mineralization totalling 29 million pounds of
copper, 7,300 ounces of gold and 368,000 ounces of silver. We are expecting 27.7 million pounds of copper, 6,200
ounces of gold and 313,000 ounces of silver. 2009 guidance for oxide production is 14,000 ounces of gold and 280,000
ounces of silver as dore. We are expecting 15,400 ounces of gold and 327,000 ounces of silver.
•
In general, although the production start-up was moderately weaker than our forecast, we are encouraged that
GlobeStar has been able to bring Cerro de Maimon into commercial production largely on budget and schedule. We
have a SPECULATIVE BUY recommendation on GlobeStar. Our 12-month target price of C$1.10 is based on a 0.45x
risk multiple to our NPV (8%) for Cerro de Maimon. We apply an in situ value of 30 cents Canadian per lb for Ni
resources on GlobeStar’s Falcondo Ni property, which we believe could be defined within 12 kilometres of Xstrata’s
Falcondo Smelter and 10 cents per lb for those greater than 12 kilometres away. Given current nickel prices, we expect
the market could apply a harsh short-term discount for GlobeStar’s Falcondo Ni assets. Our total undiscounted NAV
(8%) for GMI is US$168.3 million.
An analyst has visited the properties held by GlobeStar Mining Corp. Partial payment or reimbursement was received from
the issuer for the related travel costs.
Investment risks
of GlobeStar Mining Corp. is for risk accounts only.
20 January 2009
LUNA GOLD CORP. (LGC : TSX-V : C$0.15 | NOT RATED)
Figure 13: LGC : TSX-V
Shares o/s* (M):
Shares fd* (M):
Working Cap*. (US$ M):
Market Cap. (C$ M):
Co. Website:
Figure 14: LGC : TSX-V
86.9
113.7
$1.0
$13.0
www.lunagold.com
*Factors in the 24.6 M share private placement completed on Nov.17/08
$126,535
$28,000
NIL
NIL
Luna Gold is a junior gold company under the stewardship of Jim Bahan, BSc., FIMMM, CEO and COO. Luna is focused on the
development of its advanced-stage Aurizona gold project and the exploration and development of its Cachoeira gold project,
both in Brazil. Last week, Luna released an updated NI 43-101 compliant resource estimate for the Aurizona project.
•
Measured and indicated (M&I) resources estimated for the Aurizona project have increased by 21% to 909,000 ounces
of gold. The resource expansion was entirely the result of inferred resource conversion within the Piaba deposit. The
Piaba deposit now contains roughly 18 million tonnes grading 1.33 g/t gold (containing 771,000 ounces of gold) in the
M&I category with an additional 9.1 million tonnes grading 1.19 g/t gold (containing 347,000 ounces of gold) in the
inferred category.
•
A feasibility study was completed on the Aurizona project in July 2008 by SRK Consulting. The study outlined a
500,000-ounce reserve base with potential to produce roughly 60,000 ounces of gold per year at a total cash cost of
US$422 per ounce. Initial capex was estimated at US$47.5 million.
•
A new mine design and production plan is to be developed from the new measured and indicated resource.
•
Luna Gold completed a 24.6 million unit private placement on November 17, 2008, which boosted the company’s
working capital to roughly US$1.0 million. Like many juniors, Luna’s progress at the Aurizona project has been
hampered by the global credit crunch and the resultant outflow of capital from the smaller cap/higher risk junior
exploration companies. While the financing environment remains incredibly difficult, should project financing be made
available to the company, Luna is uniquely positioned to bring the Aurizona project to production within a 12-month
period. With the resource expansion, the design throughput of the Aurizona project has the potential to expand, with a
corresponding increase in annual gold production. Given the significant depreciation of the Brazilian real and decline
in the price of oil, both capex and opex at the project have the potential to drop in the current environment.
An analyst has visited the properties held by Luna Gold Corp. Partial payment or reimbursement was received from the
issuer for the related travel costs.
Investment risks
of Luna Gold Corp. is for risk accounts only.
20 January 2009
NORTHERN FREEGOLD RESOURCES LTD. (NFR : TSX-V : C$0.27 | NOT RATED)
Figure 15: NFR : TSX-V
Shares o/s (M):
Shares fd (M):
Working Cap. (M):
Market Cap. (M):
Co. Website:
Figure 16: NFR : TSX-V
52.7
71.0
$0.5
$14.2
www.northernfreegold.com
$33,330
$66,000
Since Oct. 24, 2008 - acquisitions or dispositions:
NIL
Northern Freegold is a mineral exploration company concentrating largely on its project portfolio in the Freegold Mountain
area of south-central Yukon, Canada. The company’s project area is within a four-hour drive (177 kilometres) from
Whitehorse within the Dawson Range portion of the Tintina Gold Belt. The Tintina belt is an arcuate belt extending from
Donlin Creek in Alaska, through the Fairbanks District, the Pogo Deposit and across the Yukon border where it
incorporates the past producing Brewery Creek Mine and the Dublin Gulch deposit.
•
The Freegold Mountain project is associated with a 35-kilometre-long northwest–southeast trending package of Au
mineralization, hosted within a series of zones that together total about 700,000 ounces of gold in NI 43-101 inferred
resources. The project area was first discovered in 1931 and a series of operators, starting in 1966, periodically
conducted modern exploration including trenching, geochemistry, geophysics and diamond drilling.
•
The property is underlain by granodiorite to quartz diorite intrusives and metasediments of Jurassic age. Later dacitic
and porphyry dykes intrude the Jurassic units. A combination of mineral deposit types occur on the property including
porphyry style mineralization, epithermal Au mineralization (associated with northwest-trending structures) and AuCu skarn.
•
The company’s main focus in its last year of drilling included testing a series of zones at Freegold Mountain, with the
bulk of its drilling (53 holes) within the high-grade Nucleus zone. Last week, the company reported another high-grade
drill intersection (GRD08-099) from the Nucleus zone, which included 1.27 metres grading 410.0 g/t gold within 9.36
metres of 70.19 g/t gold. Previously reported holes from the Nucleus zone returned 3.25 metres of 100.69 g/t gold
within 37.80 metres of 10.41 g/t gold and 2.34 metres of 92.74 g/t gold within 46.96 metres of 9.60 g/t gold (press
releases on June 9, 2008 and July 29, 2008 respectively). The company has been working on identifying the
geological/structural controls associated with the mineralization at Nucleus. Based on recent work it suggests Nucleus
could be related to skarn mineralization and possibly east–west dilatational zones. The company is tracking a folded,
limey metasedimentary unit in contact with a microdiorite that appears to be associated with mineralization.
•
Results from 30 holes from the 2008 program on the Nucleus zone remain outstanding.
An analyst has not visited the properties held by Northern Freegold Resources Ltd.
Investment risks
of Northern Freegold Resources is for risk accounts only.
20 January 2009
OROMIN EXPLORATIONS LTD. (OLE : TSX : C$0.74 | NOT RATED)
Figure 17: OLE : TSX
Shares o/s (M):
Shares fd (M):
Working Cap. (M):
Market Cap. (M):
Co. Website:
Figure 18: OLE : TSX
65.2
77.3
$13.6
$48.2
www.oromin.com
$757,844
$433,304
Price range:
75,000 shares
$0.25
NIL
Director: Mr. Derek Bartlett (acquisition):
75,000 shares
Oromin Explorations is a Vancouver-based resource company under the stewardship of Chet Idziszek, President. Oromin is
focused on the exploration and development of the Sabodala joint venture gold project (43.5%-owned) in Senegal and the Santa
Rosa Dome oil prospect in Argentina. The Sabodala gold project land package surrounds Mineral Deposits Limited’s (MDM : TSX
| Not rated) Sabodala gold project, which is expected to begin commercial production in Q1/09. Last week, the company released
drill results from Sabodala, outlining three new discoveries: the Kerekounda, Niakafiri and Maki Medina prospects.
•
The Kerekounda prospect: By far the highest-grade intercepts have been reported from Kerekounda. Of the 18 drill
holes reported to date, eight of the holes returned 7-53 g/t gold grades over 4–10 metre intercepts, with the highest
grade reported in hole DH-360 (9 metres @ 52.6 g/t Au). The nugget effect is very evident with bonanza-grade hits over
>1 metre intervals heavily influencing the overall grade of the mineralized intercepts.
•
The Niakafiri prospect: 15 drill holes reported last week returned 3-55-metre intercepts with average grades of 1.1–6.1
g/t Au. The Niakafiri prospect appears to be a direct southern extension of Mineral Deposits’ Niakafiri deposit (which
hosts 540,000 ounces of gold). The best hole was RC-473 (37 metres @ 2.28 g/t gold).
•
The Maki Medina prospect: 10 drill holes reported last week returned 3-13-metre intercepts with average grades of
1.2–6.5 g/t Au. The Maki Medina prospect is located 2.0 kilometres south of the Niakafiri prospect and may represent a
southern extension of the same regional structural control that hosts Oromin’s Niakafiri and Masato prospects.
•
An initial NI 43-101 compliant resource estimate for Sabodala was completed in July 2008, with inferred resources
estimated at 25.2 million tonnes grading 1.73 g/t gold, containing 1.4 million ounces of gold. This initial resource was
hosted within the Masato, Golouma West and Golouma South deposits. An updated resource estimate is expected to be
completed by February 2009. The updated resource is to include updates from the Masato, Golouma West and
Golouma South deposits as well as initial resource estimates for the Kerekounda, Kiakafiri and Maki Medina prospects.
A pre-feasibility study has commenced on the Sabodala project and is expected to be completed by mid-2009. The joint venture
has budgeted US$16 million for the Sabodala project in 2009, of which roughly US$9 million represents Oromin’s share.
An analyst has not visited the properties held by Oromin Explorations Ltd.
Investment risks
of Oromin Explorations Ltd. is for risk accounts only.
20 January 2009
DRILL BITZ
Source: www.Forsur-tools.com
The Drill Bitz section is designed to provide the reader with a very quick overview of
juniors that have announced drill programs in the past week. The intent of this data is to
identify those juniors that may provide news in the near future and also to allow us to
track turn-around time from the initiation of drilling to first results. The old adage that
good news travels fast will be under the microscope. The layout of Drill Bitz will remain
constant. We will provide a short one to two line description of the program planned as
well as the company ticker, shares issued, market capitalization and the name and
location of the project.
Figure 19: Drill Bitz for January 12 to 19, 2009
Co name
Detour Gold Corp.
Ticker
DGC
Exch.
TSX
Sh o/s
M
44.9
Price
$
$7.00
Mkt. Cap.
$M
$314.3
DOT Resources Ltd.
DOT
TSX-V
41.5
$0.01
$0.2
Fission Energy Corp.
FIS
TSX-V
42.1
$0.44
$18.5
Project
Detour Lake Project/Northern
Ontario,CA.
DOT porphyry copper
Property/Highland Valley
Mining District, central BC, CA.
Waterbury Lake Uranium
Project/eastern Athabasca
Basin, Sask, CA.
Description
Ongoing infill drilling. two drill rigs for an
additional 20,000 metres.
The co. intends to continue diamond
drilling in 2009.
2009 winter exploration program
scheduled. 6,500 metres of drilling
planned.
Source: Company reports, Thomson ONE, Canaccord Adams
MC/lb
Spot
Jan/15/09
Dec/04/08
Oct/23/08
Sep/11/08
Jul/31/08
Jun/19/08
May/08/08
Mar/27/08
Feb/14/08
Jan/03/08
Nov/22/07
Oct/11/07
Aug/30/07
Jul/19/07
Jun/07/07
Apr/26/07
Mar/15/07
Feb/01/07
Dec/21/06
Nov/09/06
Sep/28/06
Aug/17/06
Jul/06/06
Average In Situ Value US$/lb
$18
$16
$14
$12
$110
$10
$8
$90
$6
$70
$4
$2
$50
$0
$30
Uranium Spot Price (UxC)
20 January 2009
URANIUM IN SITU CHART
Figure 20: Canaccord Adams uranium in situ chart
$150
$130
20 January 2009
URANIUM IN SITU SPREADSHEET
Figure 21: Canaccord Adams uranium in situ valuation spreadsheet
Company
Aurora Energy
Bannerman
Ticker
TSX:AXU
ASX:BMN
Price
(1)
$1.82
$0.75
Continental Precious
TSX:CZQ
Cue
TSXV:CUE
$0.16
TSX:EFR
$0.26
TSX:FSY
$5.94
Crosshair Exploration
Deep Yellow
Energy Fuels
TSXV:CXX
ASX:DYL
Extract
ASX:EXT
Hathor
TSXV:HAT
Forsys
Khan
$0.46
$0.16
Shares
(Basic) MC
(M)
73.3
$1.40
212.7
$297.8
$3.29
82.0
$269.9
77.2
Strateco
TSX:RSC
Tournigan
TSXV:TVC
Powertech
Strathmore
Triex
U3O8
UEX
Uracan
Uranerz Energy
TSX:PWE
TSXV:STM
TSXV:TXM
TSXV:UWE
-$1.3
$168.2
52.6
TSXV:PXP
TSXV:GEM
$6.0
1,121.2
$1.09
Pele Mountain
$27.0
$0.15
TSX:MGA
Pitchstone
$21.7
$15.2
54.0
TSX:LAM
$105.1
94.9
38.8
(C$M)
$133.4
$113.5
47.7
$0.37
Mega
(C$M)
151.3
TSX:KRI
Laramide
(2) WC (3)
EV (4)
(C$M)
$28.3
$7.3
$106.2
$5.1
$10.1
$57.6
$110.5
$31.5
$266.4
$28.5
$241.5
$13.7
$10.6
$458.4
$36.3
-$5.3
$422.1
$2.12
$1.33
442.8
$3.78
85.3
10.6
$3.56
62.1
0.0
$960.67
$11.07
$7.2
$1.8
Nunavut
$0.67
119.3
$79.9
$16.9
$63.0
Quebec
16.8
$21.42
$0.27
122.7
$33.1
$30.6
Slovakia
36.7
$5.04
$0.39
$0.39
$0.29
$0.30
$10.0
55.4
$21.6
72.5
$28.3
20.0
23.1
$5.7
$6.9
$3.8
$6.2
$2.5
$20.2
$8.4
$19.8
$9.0
$13.4
$2.5
-$3.3
-$6.4
$165.3
$26.5
$138.8
TSX:URZ
$0.90
55.5
$49.9
$24.5
$25.4
$0.22
$0.47
90.7
$19.9
$40.8
$13.5
$27.7
Western Prospector
TSXV:WNP
$0.40
54.3
$21.4
$13.2
$8.2
$CADUSD
$1.26
$0.72
93.2
$9.3
$67.1
$11.3
$17.4
55.9
98.2
$21.8
$2.6
$0.73
$0.10
46.4
$10.7
$65.0
$10.5
-$1.3
$2.1
Mongolia
32.1
$0.62
Queensland, Western Australia
34.4
$25.84
Ontario
Colorado, South Dakota
New Mexico, South Dakota
Nunavut
Guyana
57.9
42.5
4.1
17.3
61.2
4.1
0.0
Saskatchewan
32.0
Wyoming
10.5
Quebec
Texas
Wyoming
New Mexico, Texas
Wyoming
Mongolia
$2.36
$0.40
$9.0
90.9
$1.01
$1.43
$1.37
33.4
$0.11
-$0.01
$1.98
$1.72
25.1
New Mexico, Queensland
-$0.93
9.9
$0.27
$112.5
$0.05
$1.44
$158.8
$9.4
$0.34
$0.82
Namibia
20.0
7.0
7.8
99.8
24.9
20.1
1.
Priced in local currency
2.
Market Capitalization
3.
Working Capital
4.
Enterprise Value = MC + LT Debt - WC
5.
Global resource includes 43-101 compliant Measured, Indicated and Inferred resources
6.
Implied resource is a conceptual resource indicated by the company’s EV at the mean peer EV/lb multiple
7.
The percentage difference between the implied resource and the global resource
Source: Capital IQ, company news releases, Canaccord Adams
$5.34
$1.56
$0.74
$5.62
$6.83
$3.98
$3.05
$1.20
$53.35
$42.28
Global
$1.00
$1.18
$45.3
$122.0
EV/lb
M+I
7.3
$204.2
62.5
URRE
Mean (US$)
Global
$1.59
38.8
Saskatchewan
M+I
133.7
Namibia
Namibia
MC/lb
187.3
$1.95
-$6.4
(5) (Mlb)
$26.4
Uranium Resources
Mean (C$)
Labrador
Global
Resource
$20.0
183.7
TSX:URE
Sweden
Utah, Queensland
UEC
Ur-Energy
Namibia
$3.2
$0.90
TSXV:UPC
Labrador
Paraguay
Uranium Energy
Uranium Power
Location(s)
$7.3
TSX:UEX
TSXV:URC
Project
$4.33
$11.86
$7.38
$859.20
$10.20
$0.21
$1.25
$0.95
$20.10
$4.62
$1.25
$0.96
$4.76
$16.90
$0.90
$0.38
$0.46
$1.39
$5.17
$1.00
$4.74
$3.13
$1.20
$0.41
$2.70
$0.52
$4.72
$3.48
$1.92
$0.10
$1.07
$0.46
$2.55
$46.46
$2.02
$36.82
-3.2
-101%
4.4
-40%
1.9
-81%
63.5
6.0
159.2
$6.80
$5.94
$0.24
-87%
$10.61
-$0.20
$2.20
16.9
66.1
$0.32
-$0.20
$4.92
Market
(Mlb)
$2.85
$0.62
$2.11
Implied (6)
$1.94
$0.15
$0.45
252.3
144.4
)
-26%
-43%
70%
534%
306%
n/a
-3.8
-112%
94.9
176%
1.1
-73%
67.3
3.7
16%
-91%
$1.16
12.1
$0.32
11.9
-$0.80
-2.0
-148%
$4.34
83.0
159%
$3.75
$0.07
37.7
1.5
-3.8
$0.87
10.4
$1.50
6.3
$2.42
-$0.17
15.2
-0.8
$0.28
16.6
$0.41
4.9
$0.09
$1.67
$1.33
1.3
-30%
124%
-81%
-96%
n/a
-48%
44%
-10%
-110%
-83%
-95%
-76%
20 January 2009
GOLD IN SITU SPREADSHEET
Figure 22: Canaccord Adams gold in situ valuation spreadsheet
Company
Alexis Minerals Corp
American Bonanza Gold Corp
Anatolia Minerals Dev Ltd
Andina Minerals Inc
Aquiline Res
Atna Resources Ltd
Axmin Inc
Canarc Resource Corp
Comaplex Minerals Corp
Committee Bay Res Ltd
Detour Gold Corp
Etruscan Resources Inc
Gabriel Resources Ltd
Golden Queen Mng
Gold Reserve Inc
Great Basin Gold Ltd
Greystar Res Ltd
Guyana Goldfields Inc
Halo Resources Ltd
Intrepid Mines Limited
Jaguar Mining Inc
Kirkland Lake Gold Inc
Klondex Mines Ltd
Kimber Resources Inc
Lake Shore Gold Corp
Metallic Ventures Gold Inc
Minefinders Corp Ltd
Minera Andes Inc
Mundoro Capital Inc
Nevsun Resources Ltd
Novagold Res
Orezone Inc (Res)
Osisko Mining Corporation
Pacific Rim Mining Corp
Premier Gold Mines Ltd
Rainy River Resources Ltd
Seabridge Gold Inc
Tyhee Development Corp
Vista Gold Corp
Sym
AMC
BZA
ANO
ADM
AQI
ATN
AXM
CCM
CMF
CBR
DGC
EET
GBU
GQM
GRZ
GBG
GSL
GUY
HLO
IAU
JAG
KGI
KDX
KBR
LSG
MVG
MFL
MAI
MUN
NSU
NG
OZN
OSK
PMU
PG
RR
SEA
TDC
VGZ
Exch
TSX
TSX
TSX
TSX-V
TSX
TSX
TSX-V
TSX
TSX
TSX-V
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX-V
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX-V
TSX
TSX-V
TSX
Sh o/s
Price C$ Mkt. Cap Sum Oz
M 1/16/2009
$M Au /co
117.7
0.46
54.2
0.65
115.7
0.06
6.4
1.04
83.1
1.80
149.6
6.30
79.4
1.48
117.5
9.29
62.3
2.36
147.0
1.33
83.3
0.56
46.6
2.32
245.6
0.10
23.3
3.62
71.7
0.09
6.1
1.15
52.7
3.20
168.7
2.65
96.1
0.05
4.8
0.69
44.8
7.86
352.4 13.10
132.3
0.40
52.9
3.14
255.5
2.18
556.9 13.44
85.6
0.27
23.1
2.44
56.9
1.37
78.0 13.99
215.2
1.37
294.8 15.11
46.1
1.94
89.4 14.85
52.1
2.01
104.8
4.61
65.2
0.03
2.0
0.35
427.9
0.16
68.5
1.22
64.0
6.05
387.1
4.73
55.7
4.17
232.3
3.15
25.1
0.80
20.1
1.02
62.1
0.62
38.5
1.04
175.4
1.35
236.7
1.60
52.0
0.52
27.0
6.81
49.8
5.93
295.4
3.75
189.6
0.39
73.0
0.32
38.5
0.38
14.4
7.23
128.2
1.04
133.3
4.23
105.2
2.29
240.9 27.89
357.8
0.63
225.4
R
165.6
3.25
538.3
8.44
116.9
0.19
22.2
1.54
69.4
1.67
115.8
0.43
57.1
1.40
80.0
3.60
37.3
15.77
589.0 49.69
169.0
0.14
23.7
1.76
34.5
1.85
63.8 18.26
Arithmetic Average
Weighted Average
US$/C$ : 0.84
Au:Ag = 76:1
Source: Company reports, Thomson ONE, Canaccord Adams
Sum Oz Sum Oz Mkt Cap/oz Mkt Cap/oz
EV/oz
EV/oz
Ag /co AuEq /co
AuEq C$ AuEq US$ AuEq C$ AuEq US$
0.00
0.65
83.05
66.62
78.61
63.05
0.00
1.04
6.13
4.92
1.55
1.25
15.28
6.50
23.02
18.46
20.63
16.55
0.00
9.29
12.64
10.14
10.45
8.39
609.99
9.49
15.50
12.43
15.59
12.50
0.00
2.32
20.09
16.12
10.59
8.49
0.00
3.62
6.44
5.16
6.10
4.89
0.00
1.15
5.28
4.23
4.98
3.99
0.00
2.65
63.54
50.97
51.11
41.00
0.00
0.69
6.92
5.55 -15.13
-12.14
0.00
13.10
26.91
21.59
22.52
18.06
0.00
3.14
16.86
13.52
29.13
23.37
58.26
14.22
39.15
31.41
35.62
28.57
44.65
3.04
7.61
6.11
6.26
5.02
0.00
13.99
5.57
4.47
6.26
5.02
8.77
15.23
19.35
15.52
19.91
15.97
80.96
15.93
5.61
4.50
3.61
2.89
0.00
4.61
22.74
18.24
17.12
13.73
0.91
0.37
5.34
4.29
6.44
5.16
41.49
1.78
38.49
30.87
31.67
25.40
0.00
4.73
81.83
65.64
89.75
71.99
0.00
3.15
73.75
59.16
68.13
54.65
0.00
1.02
19.57
15.70
19.18
15.39
48.82
1.69
22.73
18.23
18.41
14.77
0.00
1.60
148.05
118.75
88.29
70.82
17.14
7.04
3.84
3.08
2.10
1.68
175.33
6.10
48.45
38.86
66.64
53.45
20.17
0.59
123.50
99.06 148.99
119.51
0.00
7.23
2.00
1.60
-0.34
-0.27
37.11
4.73
28.18
22.60
17.46
14.00
149.00
29.88
8.06
6.47
9.61
7.71
R
R
R
R
R
R
0.00
8.44
63.76
51.14
51.57
41.37
11.33
1.69
13.12
10.52
10.78
8.65
0.00
0.43
272.03
218.20 252.51
202.54
7.94
3.71
21.58
17.31
13.17
10.57
0.00
49.69
11.85
9.51
11.64
9.34
0.00
1.76
13.47
10.80
11.12
8.92
0.00
18.26
3.49
2.80
3.25
2.61
36.41
20.22
29.20
16.22
32.77
18.89
26.29
15.15
20 January 2009
RESEARCH UNIVERSE
WENDELL ZERB, ERIC ZAUNSCHERB AND NICHOLAS CAMPBELL
Figure 23: Research universe
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Company
Alamos Gold Inc.
Aurora Energy Res. Inc.
AXMIN Inc.
B2Gold Corp.
Bear Creek Mining Corp.
Canplats Resources Corp.
Chariot Resources Ltd.
Colossus Minerals Inc.
Copper Mountain Mining Corp.
Corriente Resources Inc.
Crosshair Explor. & Mining Corp.
Cue Resources Ltd.
Dynasty Metals & Mining Inc.
Forsys Metals Corp.
Fronteer Development Group Inc.
Gammon Gold Inc.
GlobeStar Mining Corp.
Harry Winston Diamond Corp.
Kimber Resources Inc.
Lake Shore Gold Corp.
MAG Silver Corporation
Minefinders Corp. Ltd.
Minera Andes Inc.
Northern Dynasty Minerals Ltd.
Orezone Resources Inc.
Rainy River Resources Ltd.
Silverstone Resources Corp.
Tournigan Energy Ltd.
U3O8 Corp.
UR-Energy Inc.*
Symb
AGI
AXU
AXM
BTO
BCM
CPQ
CHD
CSI
CUM
CTQ
CXX
CUE
DMM
XRC
FSY
FRG
GAM
GMI
HW
HAT
KBR
LSG
MAG
MFL
MAI
NDM
OZN
RR
SST
TVC
UWE
URE
Ex
T
T
T
T-V
T-V
T-V
T
T
T
T
T
T-V
T
T-V
T
T
T
T
T
T-V
T
T
T
T
T
T
T
T-V
T-V
T-V
T
T
Analyst
WZ
EZ
NC
WZ
EZ
NC
WZ
NC
WZ
WZ
EZ
EZ
WZ
WZ
EZ
WZ
WZ
WZ
EZ
EZ
WZ
WZ
EZ
WZ
WZ
EZ
NC
WZ
NC
EZ
EZ
EZ
Rating
HOLD
TENDER
HOLD
SPEC BUY
UNDER REVIEW
SPEC BUY
SPEC BUY
SPEC BUY
SPEC BUY
SPEC BUY
SELL
UNDER REVIEW
SPEC BUY
SPEC BUY
SPEC BUY
SPEC BUY
SPEC BUY
SPEC BUY
UNDER REVIEW
SPEC BUY
HOLD
SPEC BUY
SPEC BUY
SPEC BUY
SPEC BUY
SPEC BUY
Restricted
SPEC BUY
SPEC BUY
SPEC BUY
SPEC BUY
SPEC BUY
$
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
P ($)
$8.42
$1.81
$0.10
$0.46
$1.42
$1.71
$0.17
$1.40
$0.53
$4.12
$0.19
$0.15
$3.98
$2.64
$6.10
$2.26
$6.28
$0.45
$5.37
$3.44
$0.56
$1.36
$6.50
$5.74
$0.38
$4.50
$0.63
$1.39
$0.75
$0.27
$0.31
$0.82
12-mo Target
P ($)
Rtn (%)
$7.50 (10.93%)
$1.60 (11.60%)
$0.25 163.16%
$1.00 117.39%
UR
N/A
$3.60 110.53%
$0.45 164.71%
$2.00 42.86%
$1.95 267.92%
$7.30 77.18%
$0.15 (21.05%)
UR
N/A
$5.60 40.70%
$2.30 (12.88%)
$7.00 14.75%
$3.20 41.59%
$6.95 10.67%
$1.10 144.44%
UR
N/A
$4.25 23.55%
$1.20 114.29%
$2.05 50.74%
$7.50 15.38%
$8.95 55.92%
$1.15 202.63%
$4.50
0.00%
R
R
$2.50 79.86%
$2.00 166.67%
$0.70 159.26%
$0.70 129.51%
$1.20 46.34%
52-wk
Sh. o/s Market
Hi ($) Lo ($)
M Cap ($M) FYE
$9.14 $3.50
95.8 $806.6 31-Dec
$10.36 $0.83
73.3 $132.7 31-Dec
$0.85 $0.03 245.6
$23.3 31-Dec
$0.55 $0.30 162.8
$74.9 31-Dec
$9.37 $0.57
55.5
$78.8 31-Dec
$5.43 $1.03
56.7
$97.0 31-Jul
$1.09 $0.06 328.7
$55.9 30-Apr
$4.00 $0.43
42.4
$59.4 31-Jul
$2.66 $0.31
31.6
$16.7 31-Dec
$5.84 $2.50
75.0 $309.0 31-Dec
$1.75 $0.09
94.9
$18.0 30-Apr
$1.61 $0.08
36.7
$5.3 30-Apr
$8.65 $1.05
32.8 $130.5 31-Dec
$5.11 $1.05
50.1 $132.3 31-Dec
$6.24 $2.00
77.1 $470.2 31-Jan
$9.60 $1.55 118.2 $267.1 31-Dec
$11.20 $2.68 120.0 $753.6 31-Dec
$2.13 $0.29 105.3
$47.4 31-Dec
$32.15 $3.90
61.4 $329.7 31-Jan
$4.40 $0.46
82.7 $284.5 31-Mar
$1.98 $0.53
57.9
$32.4 30-Jan
$2.09 $0.60 175.3 $238.4 31-Dec
$15.42 $3.52
49.2 $319.8 31-Dec
$13.50 $3.33
49.8 $285.9 31-Dec
$1.92 $0.37 189.6
$72.0 31-Dec
$12.42 $1.92
92.5 $416.3 31-Dec
$1.85 $0.14 356.5 $224.6 31-Dec
$5.95 $0.62
57.6
$80.1 30-Sep
$3.60 $0.35 125.1
$93.8 31-Dec
$1.44 $0.14 122.7
$33.1 31-Aug
$1.20 $0.17
23.1
$7.0 31-Dec
$2.72 $0.34
93.2
$76.5 31-Dec
* Best Idea
Prices as of January 19, 2009.
UR – Under Review.
WZ – Wendell Zerb; EZ – Eric Zaunscherb; NC – Nicholas Campbell.
Further information on the methodologies used to derive our target prices, and the risks that could impede achievement of these targets, is available
upon request. Disclosure information for all Canaccord Adams research coverage can be found at
http://www.canaccordadams.com/research/Disclosure.htm.
Source: Canaccord Adams, Thomson ONE
20 January 2009
INK SPOTS
Source: www.squidinkbooks.com
Canaccord employs INK Research. This system reports, among other information, daily
changes on insider trading. Security regulators require corporate insiders to report their
trades within ten days of each transaction. We highlight recent changes below; noting
the acquisition or disposition of a position. Our intention is not to evaluate or analyze any
purchases or sales, but to note them for the interest of all investors. We include charts
generated by INK Research that note purchase and disposition points relative to share
price performance.
Figure 24: Alix Resources Corp. (AIX : TSX-V)
$251,143
$254,938
Price range:
Price range:
33,000 shares
$0.04-0.05
120,000 shares
$0.08-0.09
Officer: Mr. Michael England (dispositions):
120,000 shares
$134,355
$32,825
Price range:
Since Dec. 10, 2008 – dispositions:
Price range:
186,000 shares
$0.03-0.05
123,000 shares
$0.04-0.07
Director: Mr. Barry Brown (acquisitions):
148,000 shares
Figure 25: Everett Resources Ltd. (EAR : TSX-V)
20 January 2009
Figure 26: Red Back Mining Inc. (RBI : TSX)
$687,303
$3,245,608
Price range:
Price range:
3,100 shares
$7.23
10,716 shares
$7.80-8.40
Officer: Mr. Hugh Stuart (dispositions)
7,500 shares
Figure 27: SNS Silver Corp. (SNS : TSX-V)
$45,079
$99,400
Price range:
50,000 shares
$0.08-0.13
NIL
CEO: Mr. David Greenway (acquisitions)
50,000 shares
$176,928
$34,125
Price range:
Price range:
170,000 shares
$0.08-0.10
166,000 shares
$0.18-0.25
Officer: Mr. Rahoul Sharan (acquisitions)
170,000 shares
Figure 28: Uranium Power Corp. (UPC : TSX-V)
20 January 2009
JUNIOR MINING WEEKLY INDEX PREVIOUS 12 MONTHS
Figure 29: Junior Mining Weekly Index
Company/Commodity
Adriana Resources Inc.
Alamos Gold Inc.
Alexco Resource Corp.
Alexis Minerals Corp.
Amarillo Gold Corp.
Amera Resources Corp.
Anatolia Minerals Dev. Ltd.
Sym
ADI
AGI
AXR
AMC
AGC
AMS
ANO
Ex
TSX-V
TSX
TSX
TSX
TSX-V
TSX-V
TSX
Andean Resources Ltd.
Andina Minerals Inc.
AND
ADM
TSX
TSX-V
Aquiline Resources Inc.
AQI
TSX
Arctic Star Diamond Corp.
Atna Resources Ltd.
Aurcana Corporation
Aurelian Resources Inc.
B2Gold Corp.
ADD
ATN
AUN
ARU
BTO
TSX-V
TSX
TSX-V
TSX
TSX
Bannerman Resources Ltd.
BAN
TSX
Banro Corp.
BAA
TSX
Bard Ventures Ltd.
CBS
TSX-V
Bear Creek Mining Corp.
Bitterroot Resources Inc.
Blackstone Ventures Inc.
Bravo Venture Group Inc.
Brett Resources Inc.
BCM
BTT
BLV
BVG
BBR
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
Brilliant Mining Corp.
BMC
TSX-V
Canadian Gold Hunter Corp.
Canadian Royalties Inc.
CGH
CZZ
TSX
TSX
Canplats Resources Corp.
CPQ
TSX-V
Capstone Mining Corp.
CS
TSX
Cardero Resource Corp.
CGA Mining Ltd.
Chesapeake Gold Corp.
Cogitore Resources Inc.
Colossus Minerals Inc.
CDU
CGA
CKG
WOO
CSI
TSX
TSX
TSX-V
TSX-V
TSX
Columbia Goldfields Ltd.
Comaplex Minerals Corp.
Commander Resources
GOL
CMF
CMD
TSX
TSX
TSX-V
Committee Bay Res. Ltd.
CBR
TSX-V
Condor Resources Corp.
CN
TSX-V
Condor Resources Inc.
Copper In Situ
Copper In Situ Update
CN
TSX-V
Copper Mesa Mining Corp.
Copper Mountain Mng. Corp.
Cornerstone Capital Resources Inc.
Corriente Resources Inc.
Creston Moly Corp.
Detour Gold Corp.
CUX
CUM
CPG
CTQ
CMS
DGC
TSX
TSX-V
TSX-V
TSX
TSX-V
TSX
Diamondex Resources Ltd.
Diamonds North Res. Ltd.
DSP
DDN
TSX-V
TSX-V
Donner Metals Ltd.
Duran Ventures Inc.
Endeavour Silver Corp.
DON
DRV
EDR
TSX-V
TSX-V
TSX
Energy Fuels Inc.
Esperanza Silver Corporation
Etruscan Resources Inc.
EFR
EPZ
EET
TSX
TSX-V
TSX
Evolving Gold Corp.
Exeter Resource Corp.
EVG
XRC
TSX-V
TSX-V
Date
26-Aug-08
15-Sep-08
22-Sep-08
22-Oct-08
22-Jul-08
29-Jul-08
13-Jan-09
11-Nov-08
12-Feb-08
11-Nov-08
12-Feb-08
14-Oct-08
12-Aug-08
10-Jun-08
8-Apr-08
6-Aug-08
12-Feb-08
27-Oct-08
8-Sep-08
12-Aug-08
3-Jun-08
11-Mar-08
19-Nov-08
30-Sep-08
20-Feb-08
18-Dec-08
26-Nov-08
22-Sep-08
15-Jul-08
3-Jun-08
11-Nov-08
30-Jun-08
29-Jul-08
7-Oct-08
22-Oct-08
22-Jul-08
18-Dec-08
22-Oct-08
29-Apr-08
22-Oct-08
7-Oct-08
11-Nov-08
15-Apr-08
11-Mar-08
26-Feb-08
12-Feb-08
15-Sep-08
26-May-08
22-Oct-08
11-Nov-08
12-Feb-08
9-Dec-08
2-Dec-08
11-Nov-08
27-Oct-08
7-Oct-08
26-Aug-08
29-Jul-08
17-Jun-08
12-May-08
12-Feb-08
29-Jul-08
9-Dec-08
18-Mar-08
12-Feb-08
19-Aug-08
29-Jul-08
18-Dec-08
22-Oct-08
15-Jul-08
8-Apr-08
22-Sep-08
18-Mar-08
2-Dec-08
11-Nov-08
4-Nov-08
11-Nov-08
12-Feb-08
24-Jun-08
18-Dec-08
3-Jun-08
18-Mar-08
3-Jun-08
9-Dec-08
30-Sep-08
12-Aug-08
24-Jun-08
17-Jun-08
26-May-08
7-Oct-08
3-Sep-08
8-Jul-08
26-Mar-08
15-Sep-08
2-Dec-08
27-Oct-08
6-Aug-08
30-Jun-08
6-May-08
1-Apr-08
Company/Commodity
Exeter Resource Corp.
Extract Resources Ltd.
Sym
XRC
EXT
Ex
TSX-V
TSX
Fancamp Exploration Ltd.
Farallon Resources Ltd.
FNC
FAN
TSX-V
TSX
First Point Minerals Corp.
First Uranium Corp.
Fortress Minerals Corp.
FPX
FIU
FST
TSX-V
TSX
TSX-V
Fronteer Dev. Group Inc.
FRG
TSX
Full Metal Minerals Ltd.
Global Copper Corp.
Gold In Situ
Gold In Situ Update
FMM
GLQ
TSX-V
TSX
Gold Star Resources Corp.
Golden Arrow Resources Corporation
Golden Predator Mines Inc.
Golden Share Mining Corp.
Goldsource Mines Inc.
GXX
GRG
GP
GSH
GXS
TSX-V
TSX-V
TSX
TSX-V
TSX-V
Grayd Resource Corp.
GYD
TSX-V
Great Panther Res. Ltd.
Greencastle Resources Ltd.
Greystar Resources Ltd.
Guyana Goldfields Inc.
GPR
VGN
GSL
GUY
TSX
TSX-V
TSX
TSX
HAT
TSX
Helio Resource Corp.
Imperial Metals Corp.
International Royalty Corporation
Intl. Tower Hill Mines Ltd.
HRC
III
IRC
ITH
TSX-V
TSX
TSX
TSX-V
Kaminak Gold Corp.
Keegan Resources Inc.
Kimber Resources Corp.
Kivalliq Energy Corp.
KAM
KGN
KBR
KIV
TSX-V
TSX-V
TSX
TSX-V
Klondex Mines Ltd.
Kodiak Exploration Ltd.
KDX
KXL
TSX
TSX-V
Lake Shore Gold Corp.
LSG
TSX
Laramide Resources Ltd.
LAM
TSX
Lumina Copper Corp.
Luna Gold Corp.
LCC
LGC
TSX-V
TSX-V
MAG Silver Corp.
MAG
TSX
Marathon PGM Corp.
Mega Uranium Ltd.
Merrex Gold Inc.
MAR
MGA
MXI
TSX
TSX
TSX-V
Metalex Ventures Ltd.
Metallic Ventures Gold Inc.
Minco Silver Corp.
Minera Andes Inc.
MTX
MVG
MSV
MAI
TSX-V
TSX
TSX
TSX
Molybdenum In Situ Update
Nickel In Situ Update
Noront Resources Ltd.
NOT
TSX-V
North American Gem Inc.
Northern Dynasty Minerals Ltd.
Northern Shield Res.
Orezone Resources Inc.
NAG
NDM
NRN
OZN
TSX-V
TSX
TSX-V
TSX
Orko Silver Corp.
OK
TSX-V
Date
12-Feb-08
18-Dec-08
26-Nov-08
19-Nov-08
7-Oct-08
20-Feb-08
15-Sep-08
1-Apr-08
21-May-08
26-Nov-08
30-Sep-08
18-Dec-08
12-Feb-08
27-Oct-08
12-Feb-08
19-Aug-08
18-Mar-08
in all editions
14-Oct-08
19-Aug-08
29-Apr-08
30-Jun-08
18-Dec-08
6-Aug-08
2-Dec-08
30-Jun-08
6-May-08
11-Nov-08
8-Jul-08
12-Feb-08
17-Jun-08
30-Jun-08
12-Feb-08
18-Dec-08
19-Aug-08
12-Feb-08
11-Nov-08
27-Oct-08
7-Oct-08
30-Sep-08
3-Sep-08
29-Jul-08
15-Jul-08
26-May-08
11-Mar-08
18-Dec-08
30-Sep-08
18-Dec-08
18-Dec-08
4-Nov-08
12-Aug-08
8-Jul-08
26-Feb-08
20-Feb-08
18-Dec-08
15-Apr-08
18-Dec-08
15-Jul-08
12-Feb-08
3-Sep-08
12-Feb-08
28-Oct-08
27-Oct-08
19-Aug-08
6-Aug-08
20-Feb-08
18-Dec-08
24-Jun-08
26-Feb-08
12-Feb-08
11-Nov-08
27-Oct-08
22-Sep-08
24-Jun-08
14-Oct-08
28-Oct-08
26-Aug-08
1-Apr-08
4-Mar-08
12-Feb-08
10-Jun-08
12-Feb-08
6-May-08
27-Oct-08
15-Sep-08
19-Nov-08
19-Aug-08
6-May-08
26-Nov-08
26-Aug-08
21-May-08
8-Jul-08
26-Mar-08
4-Mar-08
30-Jun-08
27-Oct-08
24-Jun-08
11-Nov-08
11-Mar-08
8-Jul-08
Company/Commodity
Osisko Exploration Ltd.
Pacific Rim Mining Corp.
Panoro Minerals Ltd.
PC Gold Inc.
Pediment Exploration Ltd.
Pele Mountain Resources Inc.
Peregrine Diamonds Ltd.
Sym
OSK
PMU
PML
PKL
PEZ
GEM
PGD
Ex
TSX
TSX
TSX-V
TSX
TSX-V
TSX-V
TSX
Premier Gold Mines Ltd.
Quest Uranium Corp.
Rainy River Resources Ltd.
PG
QUC
RR
TSX
TSX-V
TSX-V
Remstar Resources Ltd.
Riverstone Resources Inc.
REM
RVS
TSX-V
TSX-V
Rockwell Diamonds Inc.
RDI
TSX
Rubicon Minerals Corp.
RMX
TSX
Rye Patch Gold Corp.
Saturn Minerals Inc.
Seabridge Gold Inc.
RPM
SMI
SEA
TSX-V
TSX-V
TSX
Serengeti Resources Inc.
SIR
TSX-V
Sherwood Copper Corp.
Shore Gold Inc.
SWC
SGF
TSX-V
TSX
Silver Standard Resources Inc.
Silverstone Resources Corp.
Sinchao Metals Corp.
Skygold Ventures Ltd.
SSO
SST
SMZ
SKV
TSX
TSX-V
TSX-V
TSX-V
Stornoway Diamond Corp.
SWY
TSX
Strateco Resources Inc.
Strathmore Minerals Corp.
Swift Resources Inc.
Target Explor. & Mining Corp.
Tenajon Resources Corp.
Terrane Metals Corp.
Thundermin Resources Inc.
Tournigan Energy Ltd.
RSC
STM
SWR
TEM
TJS
TRX
THR
TVC
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX-V
Triex Minerals Corp.
TTM Resources Inc.
TXM
TTQ
TSX-V
TSX-V
Ucore Uranium Inc.
UEX Corp.
UCU
UEX
TSX-V
TSX
Underworld Resources Inc.
Uracan Resources Ltd.
UW
URC
TSX-V
TSX-V
Uranium Energy Corp.
UEC
AMEX
Uranium In Situ
Uranium Participation Corp.
Uranium Power Corp.
Uranium Update
U
UPC
TSX
TSX-V
Ur-Energy Inc.
URE
TSX
Vista Gold Corp.
VMS Ventures Inc.
VGZ
VMS
TSX
TSX-V
Wealth Minerals Ltd.
West Timmins Mining Inc.
Westar Resources Corp.
WSR Gold Inc.
Xemplar Energy Corp.
WML
WTM
WER
WSR
XE
TSX-V
TSX
TSX-V
TSX-V
TSX-V
Silver In Situ
Zinc In Situ Update
Date
12-Feb-08
12-May-08
19-Aug-08
4-Nov-08
26-Feb-08
13-Jan-09
18-Dec-08
3-Sep-08
12-Feb-08
30-Sep-08
27-Oct-08
15-Sep-08
4-Mar-08
12-Feb-08
30-Jun-08
12-Feb-08
4-Mar-08
14-Oct-08
15-Sep-08
18-Dec-08
3-Sep-08
15-Jul-08
26-May-08
23-Apr-08
2-Dec-08
30-Jun-08
9-Dec-08
12-Feb-08
18-Dec-08
1-Apr-08
15-Sep-08
13-Jan-09
28-Oct-08
22-Oct-08
22-Sep-08
9-Dec-08
27-Oct-08
4-Nov-08
1-Apr-08
12-Feb-08
4-Nov-08
14-Oct-08
8-Sep-08
20-Feb-08
20-Feb-08
30-Jun-08
20-Feb-08
21-May-08
22-Sep-08
2-Dec-08
11-Nov-08
30-Sep-08
1-Apr-08
20-Feb-08
8-Sep-08
22-Jul-08
10-Jun-08
20-Feb-08
13-Jan-09
7-Oct-08
20-Feb-08
18-Dec-08
18-Dec-08
2-Dec-08
15-Jul-08
4-Mar-08
20-Feb-08
26-May-08
4-Mar-08
20-Feb-08
in all editions
23-Apr-08
20-Feb-08
4-Nov-08
12-Aug-08
15-Jul-08
23-Apr-08
11-Nov-08
27-Oct-08
30-Sep-08
15-Sep-08
12-Feb-08
11-Nov-08
7-Oct-08
8-Sep-08
29-Apr-08
20-Feb-08
18-Dec-08
30-Jun-08
10-Jun-08
13-Jan-09
19-Nov-08
30-Jun-08
20-Feb-08
26-Aug-08
28-Oct-08
6-Aug-08
29-Jul-08
29-Apr-08
20 January 2009
APPENDIX: IMPORTANT DISCLOSURES
Each authoring analyst of Canaccord Adams whose name appears on the front page of this investment
Analyst Certification:
research hereby certifies that (i) the recommendations and opinions expressed in this investment research
accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the
designated investments or relevant issuers discussed herein that are within such authoring analyst’s
coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or
indirectly, related to the specific recommendations or views expressed by the authoring analyst in the
investment research.
Price Chart:*
In order to obtain these (6 or more) stock price charts or additional applicable disclosures and
information concerning Canaccord Capital’s recommendations of companies under coverage
mentioned in this report, please contact Canaccord Capital at 1-800-382-9280 or visit
www.canaccord.com.
* Price charts assume event 1 indicates initiation of coverage or the beginning of the measurement period.
Distribution of Ratings:
Global Stock Ratings
(as of 5 January 2009)
Canaccord Adams
Ratings System:
Rating
Buy
Speculative Buy
Hold
Sell
Coverage Universe
#
%
338
60%
71
13%
133
24%
19
3%
561
100%
IB Clients
%
31%
51%
28%
16%
BUY: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months.
HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months.
SELL: The stock is expected to generate negative risk-adjusted returns during the next 12 months.
NOT RATED: Canaccord Adams does not provide research coverage of the relevant issuer.
“Risk-adjusted return” refers to the expected return in relation to the amount of risk associated with the
designated investment or the relevant issuer.
Risk Qualifier:
SPECULATIVE: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental
criteria. Investments in the stock may result in material loss.
Canaccord Adams is the business name used by certain subsidiaries of Canaccord Capital Inc., including
Canaccord Adams Inc., Canaccord Adams Limited, and Canaccord Adams, a division of Canaccord Capital
Corporation. Clients of Canaccord Adams, in the past 12 months, may have been clients of Canaccord
Capital Corporation, Canaccord Capital (Europe) Limited, Canaccord Capital Corporation USA Inc., and/or
Adams Harkness Financial Group Ltd.
The authoring analysts who are responsible for the preparation of this investment research are employed
by Canaccord Adams, a securities broker-dealer with principal offices located in Vancouver, Calgary,
Toronto, Montreal (all Canada), Boston, New York, San Francisco (all US) and London (UK).
In the event that this is compendium investment research (covering six or more relevant issuers), Canaccord
Adams and its affiliated companies may choose to provide specific disclosures of the subject companies by
reference, as well as its policies and procedures regarding the dissemination of investment research. To
access this material or for more information, please send a request to Canaccord Adams Research, Attn:
Disclosures, P.O. Box 10337 Pacific Centre, 2200-609 Granville Street, Vancouver, BC, Canada V7Y 1H2 or
[email protected].
The authoring analysts who are responsible for the preparation of this investment research have received
(or will receive) compensation based upon (among other factors) the Corporate Finance/Investment Banking
revenues and general profits of Canaccord Adams. However, such authoring analysts have not received, and
will not receive, compensation that is directly based upon or linked to one or more specific Corporate
Finance/Investment Banking activities, or to recommendations contained in the investment research.
Canaccord Adams and its affiliated companies may have a Corporate Finance/Investment Banking or other
relationship with the company that is the subject of this investment research and may trade in any of the
designated investments mentioned herein either for their own account or the accounts of their customers, in
good faith or in the normal course of market making. Accordingly, Canaccord Adams or their affiliated
companies, principals or employees (other than the authoring analyst(s) who prepared this investment
research) may at any time have a long or short position in any such designated investments, Related
designated investments or in options, futures or other derivative instruments based thereon.
Some regulators require that a firm must establish, implement and make available a policy for managing
conflicts of interest arising as a result of publication or distribution of investment research. This investment
research has been prepared in accordance with Canaccord Adams’ policy on managing conflicts of interest,
20 January 2009
and information barriers or firewalls have been used where appropriate. Canaccord Adams’ policy is
available upon request.
The information contained in this investment research has been compiled by Canaccord Adams from
sources believed to be reliable, but (with the exception of the information about Canaccord Adams) no
representation or warranty, express or implied, is made by Canaccord Adams, its affiliated companies or
any other person as to its fairness, accuracy, completeness or correctness. Canaccord Adams has not
independently verified the facts, assumptions, and estimates contained herein. All estimates, opinions and
other information contained in this investment research constitute Canaccord Adams’ judgement as of the
date of this investment research, are subject to change without notice and are provided in good faith but
without legal responsibility or liability.
Canaccord Adams salespeople, traders, and other professionals may provide oral or written market
commentary or trading strategies to our clients and our proprietary trading desk that reflect opinions that
are contrary to the opinions expressed in this investment research. Canaccord Adams’ affiliates, proprietary
trading desk, and investing businesses may make investment decisions that are inconsistent with the
recommendations or views expressed in this investment research.
This investment research is provided for information purposes only and does not constitute an offer or
solicitation to buy or sell any designated investments discussed herein in any jurisdiction where such offer
or solicitation would be prohibited. As a result, the designated investments discussed in this investment
research may not be eligible for sale in some jurisdictions. This investment research is not, and under no
circumstances should be construed as, a solicitation to act as a securities broker or dealer in any
jurisdiction by any person or company that is not legally permitted to carry on the business of a securities
broker or dealer in that jurisdiction. This material is prepared for general circulation to clients and does not
have regard to the investment objectives, financial situation or particular needs of any particular person.
Investors should obtain advice based on their own individual circumstances before making an investment
decision. To the fullest extent permitted by law, none of Canaccord Adams, its affiliated companies or any
other person accepts any liability whatsoever for any direct or consequential loss arising from or relating to
any use of the information contained in this investment research.
For Canadian Residents:
For United Kingdom
Residents:
For United States
Residents:
For European Residents:
This investment research has been approved by Canaccord Adams, a division of Canaccord Capital
Corporation, which accepts responsibility for this investment research and its dissemination in Canada.
Canadian clients wishing to effect transactions in any Designated Investment discussed should do so
through a qualified salesperson of Canaccord Adams, a division of Canaccord Capital Corporation in their
particular jurisdiction.
This investment research complies with the Financial Services Authority’s Handbook chapter on Conduct of
Business and is approved by Canaccord Adams Limited, which is authorized and regulated by the Financial
Services Authority, in connection with its distribution in the United Kingdom. This material is not for
distribution in the United Kingdom to retail clients, as defined under the rules of the Financial Services
Authority. Canaccord Adams Limited accepts responsibility for this investment research and its
dissemination in the United Kingdom. The information contained in this investment research is only
intended for distribution in the UK to persons who qualify as professional clients or eligible counterparties,
as defined under the rules of the Financial Services Authority.
Canaccord Adams Inc., a US registered broker-dealer, accepts responsibility for this Investment Research
and its dissemination in the United States. This Investment Research is intended for distribution in the
United States only to certain US institutional investors. US clients wishing to effect transactions in any
Designated Investment discussed should do so through a qualified salesperson of Canaccord Adams Inc.
If this investment research is intended for disclosure in any jurisdiction other than the United Kingdom, the
US or Canada, then the relevant rules and regulatory requirements of that jurisdiction will apply.
Additional information is available on request.
Copyright © Canaccord Adams, a division of Canaccord Capital Corporation 2009. – Member IIROC/CIPF
Copyright © Canaccord Adams Limited 2009. – Member LSE, authorized and regulated by the Financial
Services Authority.
Copyright © Canaccord Adams Inc. 2009. – Member FINRA/SIPC
All rights reserved. All material presented in this document, unless specifically indicated otherwise, is under
copyright to Canaccord Adams, a division of Canaccord Capital Corporation, Canaccord Adams Limited, and
Canaccord Adams Inc. None of the material, nor its content, nor any copy of it, may be altered in any way,
or transmitted to or distributed to any other party, without the prior express written permission of the
entities listed above.

Name(XXX) XXX-XXXXemail @canaccord

Transcription

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