Name(XXX) XXX-XXXXemail @canaccord

Transcription

Name(XXX) XXX-XXXXemail @canaccord

Sovereign risk: changing the rules
2 June 2009
Wendell Zerb
[email protected]
1.604.643.7485
There many uncertainties associated with maintaining or advancing mineral
projects, and the mining and mineral exploration industry is by its nature
subject to numerous risks. This week we review some recent examples of
sovereign risk associated with foreign companies working in Kazakhstan,
Mongolia and Venezuela.
Eric Zaunscherb
[email protected]
1.604.699.0829
•
Extract Resources Ltd.
Hudson Resources Inc.
La Mancha Resources Inc.
Creston Moly Corp.
Tenajon Resources Corp.
Vantex Resources Ltd.
Zazu Metals Corp.
Nicholas Campbell
[email protected]
1.604.643.7027
Adam Melnyk (Research Associate)
[email protected]
1.604.643.1655
•
Iris Varga (Research Assistant)
[email protected]
1.604.643.7412
Figure 1: Gold price versus average value US$/oz in situ
120
750.0
50
700.0
40
650.0
30
Average Value US$/oz in situ
29-May-09
9-Apr-09
20-Feb-09
31-Dec-08
6-Nov-08
18-Sep-08
31-Jul-08
12-Jun-08
600.0
24-Apr-08
20
Gold Price
C$:US$ 0.90
Ag:Au ratio 63:1
Source: Capital IQ, 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$)
800.0
60
6-Mar-08
27
28
29
31
33
34
36
850.0
70
17-Jan-08
Drill Bitz
Gold In Situ
Silver In Situ
Uranium In Situ
Research Universe
Ink Spots
Index
900.0
80
29-Nov-07
22
950.0
90
11-Oct-07
Molybdenum In Situ Update
1000.0
100
23-Aug-07
6
9
10
13
13
18
20
Current value: US$47.21/oz ↑
110
2
3
5
Exploration Updates
Hudson Resources Inc.
La Mancha Resources Inc.
Creston Moly Corp.
Vantex Resources Ltd.
Zazu Metals Corp.
1050.0
5-Jul-07
Market and Commodities Snapshot
Foreword
Other News
(EXT : ASX : A$5.50 | Not rated)
(HUD: TSX-V : C$0.19 | Not rated)
(LMA : TSX : C$1.00 | Not rated)
(CMS : TSX-V : C$0.15 | Not rated) &
(TJS : TSX-V : C$0.14 | Not rated)
(VTX : TSX-V : C$0.07 | Not rated)
(ZAZ : TSX : C$0.36 | Not rated)
Molybdenum market update and moly in situ database quarterly update.
Average Value US$/oz in situ
In this issue:
Exploration updates:
Junior Mining Weekly | 2
2 June 2009
Figure 2: Junior market and commodities snapshot
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
29 May 09
47.21
0.42
3.17
29 May 09
1.96
14.05
1.53
15.50
% Change
YTD
WoW
47.5%
6.2%
90.9%
-4.5%
86.5%
9.7%
YTD
WoW
92.2%
-10.1%
158.7%
9.4%
129.7%
0.7%
224.9%
51.1%
TSX Venture Daily Volume for the week
of 25-29 May 09
Date
Monday
22-May-09
Tuesday
23-May-09
Wednesday
24-May-09
Thursday
25-May-09
Friday
26-May-09
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
29 May 09
1,124
10,370
341
562
96.20
96.28
386
% Change
YTD
41.0%
15.4%
9.1%
133.7%
11.2%
11.1%
27.5%
S&P/TSX Venture Composite Index Volume and Value
Jan 07-28 May 09
75%
68%
Acquisition offer by Geoinformatics (GXL-V).
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
370
3,200
2,800
295
2,400
2,000
220
1,600
1,200
TS X V e n tu re V o l u m e (M )
%∆
88%
893,369,377
178,673,875
145
800
400
70
Ja n - 0 7
Ja n - 0 7
F e b-07
M a r- 0 7
A p r- 0 7
M a y-07
Ju n - 0 7
Ju l- 0 7
A u g- 0 7
Se p-07
O c t- 0 7
O c t- 0 7
N o v- 0 7
D e c- 0 7
Ja n - 0 8
F e b-08
M a r- 0 8
A p r- 0 8
M a y-08
Ju n - 0 8
Ju l- 0 8
Ju l- 0 8
A u g- 0 8
Se p-08
O c t- 0 8
N o v- 0 8
D e c- 0 8
Ja n - 0 9
F e b-09
M a r- 0 9
A p r- 0 9
M a y-09
S&P/TSX Venture Composite Index
Selected companies
Price
Highly active by % ∆ (May 25-29/09)
Symbol
29 May 09
Great Western Minerals Group, Ltd.
GWG
$0.15
Application for new mining licence submitted, Steenkampskraal mine,
South Africa.
TNR Gold Corp.
TNR
$0.21
Acquired Mariana lithium-boron project, Argentina.
Rimfire Minerals Corp.
KAM
$0.37
WoW
2.5%
3.8%
1.8%
4.0%
2.2%
2.3%
3.2%
Volume
142,010,386
170,745,687
182,196,135
172,192,282
226,224,887
Total
Average. Daily Volume
S & P / TS X V e n tu re I n d e x
In Situ
EV/attrib. lb eq. or Mkt. cap/oz or lb eq.
CA GOLD In Situ (US$/oz)
CA SILVER In Situ (US$/oz)
CA URANIUM In Situ (US$/lb)
TSX-Venture Daily Trading Volume
2009E
0.63
1.60
4.76
0.58
0.54
46.4
11.2
14.8
975.00
13.50
1119.00
219
2010E
0.70
2.00
5.00
0.68
0.55
57.5
13.0
15.0
900.00
13.75
1200.00
250
2011E
0.75
2.50
5.50
0.85
0.55
65.0
15.0
15.0
800.00
14.00
1200.00
250
Long Term
0.85
1.75
7.00
0.75
0.50
70.00
12.50
12.50
750.00
14.00
1200.00
250.00
Value
May 29/09
0.64
2.18
6.29
0.70
0.71
49.00
9.25
14.50
975.50
15.61
1193.00
236.25
0.82
0.69
1.34
0.84
0.75
1.35
0.89
0.80
1.35
0.90
0.80
1.30
0.92
0.80
1.42
WoW (week over week)
The CA commodity price (base metals) and currency forecasts – updated values published April 6, 2009.
In Situs: The basket of companies might vary quarterly. Silver In Situ first published on September 22/08.
CA - Canaccord Adams.
Past performance is not indicative of future results.
Source: Thomson ONE, Bloomberg, TSX Venture Exchange, Canaccord Adams
S&P/TSX Venture Index
% Change
YTD
-5.9%
58.0%
19.6%
29.6%
54.3%
-7.5%
-25.3%
-17.1%
13.3%
38.2%
27.7%
26.3%
WoW
0.0%
4.3%
9.0%
2.9%
9.2%
-3.9%
0.0%
-3.3%
2.4%
6.2%
3.2%
1.1%
12.3%
14.7%
1.1%
3.4%
2.4%
1.3%
2 June 2009
WHEN THE RULES OF THE GAME CHANGE
Investors who play the mining industry’s game of risk and reward can be rewarded with
spectacular returns. However, the risks inherent in this industry are high. This week, we
highlight one risk specific to investment in mining stocks that investors were
uncomfortably reminded of last week: sovereign risk. In areas with a high degree of
political instability, sovereign risk is par for the course. We take this opportunity to
remind investors that sometimes, just when the game appears to be won, the rules of
play can be changed abruptly.
Kazakhstan
As investors of Uranium One (UUU : TSX : C$2.41 | UNDER REVIEW) are no doubt aware,
sovereign risk in Kazakhstan flared up last week and the market was not impressed. Last
week, reports surfaced that Kazakhstan’s National Security Committee (KNB) is
investigating the circumstances surrounding the acquisition of a 30% stake in the
Kyzylkum joint venture by Uranium One’s predecessor UrAsia Energy. Mukhtar
Dzhakishev, head of Kazak state uranium company Kazatomprom, along with seven other
Kazatomprom senior executives, was arrested on the grounds that he made illegal sales of
the country’s uranium assets. The Kyzylkum JV, specifically mentioned in the report, is
owned 30% by Uranium One, 30% by Kazatomprom and 40% by a Japanese consortium,
and controls the Khorasan uranium mine, which is currently ramping up production.
Uranium One acquired its interest in 2007 when it acquired UrAsia Energy, which had
purchased the 30% stake from a group of private investors in 2005 for US$75 million.
What is interesting in this case, and likely to be the focus of the investigation, is that,
according to the KNB, these private investors appear to have acquired this 30% stake in
Kyzylkum from Kazatomprom for just US$103,700. In Kazakhstan, Uranium One also
owns, through the Betpak-Dala joint venture (70% Uranium One, 30% Kazatomprom), a
controlling interest in the Akdala and South Inkai uranium mines. This joint venture, for
which UrAsia paid US$350 million for its 70% stake, has not been specifically mentioned
as being under investigation. Uranium One has noted that both of the above-mentioned
transactions were originally approved by the Kazakh government. Cameco (CCO : TSX :
C$30.02 | BUY) also has interests in Kazakhstan, through a 60% interest in the Inkai joint
venture (40% Kazatomprom), which is expected to commence commercial production
this year. The Inkai joint venture has not, at this time, been linked to any reports of
investigations. Also active in Kazakhstan are France’s AREVA and several Japanese,
Chinese and Russian firms. Industry estimates are that the former Soviet republic hosts
up to 20% of global uranium resources and could become the world’s top producer this
year. This controversy has the potential to dampen the ardour foreign investors have had
for expanding Kazakhstani production, while also sending utilities scurrying away to
seek diversification of supply.
Mongolia
On Monday last week, opposition Democratic Party candidate Tsakhiagiin Elbegdorj won
Mongolia’s national presidential election, defeating incumbent Nambariin Enkhbayar of
the ruling Mongolian People’s Revolutionary Party (MPRP). The win by Elbegdorj could
complicate policymaking on mining, given his anti-foreign mining track record and
populist inclinations. Part of his election platform was a commitment to obtain a greater
2 June 2009
share of Mongolia’s mineral wealth for individuals. Elbegdorj’s populist leanings could
lead to a tougher stance in dealings with foreign investors in the mining sector. Most
notably at risk is a draft investment agreement currently before parliament for Ivanhoe
Mines’ (IVN : TSX : C$5.99 | Not rated) $3 billion Oyu Tolgoi project, a partnership
between Ivanhoe and Rio Tinto (RTP : NYSE : US$176.70 | BUY). Rio Tinto currently
owns a 10% stake in Ivanhoe and can go to a 42.2% equity interest via a series of
financing arrangements contingent on Mongolian government approval of Oyu Tolgoi.
Earlier this year, assurance was given to Ivanhoe that completion of an investment
agreement for the development of Oyu Tolgoi was to be a priority for Mongolia’s
parliament. Despite the election of the Democratic Party candidate as president, the
MPRP still holds a majority in parliament via a controversial June 2008 parliamentary
election, with 46 out of a total of 76 seats (the Democratic Party has 27 seats). Parliament
can veto presidential initiatives with a two-thirds majority (51 votes out of 76). Other
mining companies active in Mongolia include: Centerra Gold (CG : TSX : C$7.10 | BUY),
Entrée Gold (ETG : TSX : C$1.29 | Not rated), East Asia Minerals Corp. (EAS : TSX-V :
C$0.46 | Not rated), France’s AREVA, and BHP Billiton (BLT : LSE : £14.31 | HOLD).
Venezuela
Also last week, Venezuela denied extensions to two concessions controlled by Gold
Reserve (GRZ : TSX : C$0.63 | Not rated) at its Brisas project, one of which is the Brisas
alluvial gold concession, granted for a 20-year term in 1988, containing approximately
3% of the proven and probable gold reserves of the project. At this time it is unclear what
the implications are for the Brisas hardrock concession, granted in 1998 for a 20-year
term, which contains the bulk of Brisas’ gold and copper reserves and directly underlies
the now terminated alluvial concession. The company believes the hardrock concession
continues to be held in good standing. The other concession terminated, which contained
no mineralization, was not owned by Gold Reserve, but was indirectly controlled by the
company and was to be used for infrastructure purposes. Gold Reserve indicates that the
Venezuelan Ministry of Mines recently requested all of the technical information related
to the Brisas project, which the company has refused to transfer to the ministry. The
Brisas project is located adjacent to Crystallex’s (KRY : TSX : C$0.28 | Not rated) Las
Cristinas project. Crystallex has been unable to get the necessary permits from Hugo
Chavez’s government to bring Las Cristinas into production.
Also in Venezuela, Rusoro Mining (RML : TSX-V : C$0.47 | UNDER REVIEW) controls the
Choco 10 and Increible 6 gold deposits. Rusoro recently failed in a controversial takeover
bid for Gold Reserve. Based on comments by Chavez made earlier this year, it appears
that Russian-controlled Rusoro is his partner of choice to develop Venezuela’s substantial
gold reserves. Last week’s news comes on the heels of the Venezuelan government’s
announcement earlier in May of its intention to seize the assets of 60 local and foreign
oil-services companies. In 2007, Venezuela took over four heavy-crude joint ventures
and increased royalties on oil.
2 June 2009
Fraser Institute policy potential index
Each year, the Fraser Institute conducts a survey of metal mining and exploration
companies to assess how mineral endowments and public policy factors such as taxation
and regulation affect exploration investment. The survey, most recently released in
February 2009, includes 71 jurisdictions, from all continents except Antarctica.
According to the Fraser Institute, “the policy potential index (PPI) serves as a report card
to governments on how attractive their policies are from the point of view of an
exploration manager.” We table the top 20 and bottom 20 countries on the basis of PPI
ranking in Figure 3.
Figure 3: 2008/2009 Fraser Institute Survey – PPI
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
…
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
Jurisdiction
Quebec
Wyoming
Nevada
Alberta
Nfld. & Labrador
New Brunswick
Manitoba
Chile
Saskatchewan
Ontario
Utah
Nova Scotia
Sweden
Finland
Yukon
South Australia
Alaska
Botswana
Norway
N. Territory (Aus)
…
Montana
Russia
California
Mongolia
Kazakhstan
Argentina
New Mexico
Philippines
Wisconsin
Papua New Guinea
Indonesia
DRC (Congo)
Kyrgyzstan
Zimbabwe
Bolivia
India
Honduras
Guatemala
Ecuador
Venezuela
Source: Fraser Institute
2 June 2009
OTHER NEWS
•
Franco-Nevada Corp. (FNV : TSX : C$30.35 | Not rated) announced a C$322 million
bought deal (C$370 million with over-allotment). The proceeds are likely to be used
to acquire new royalty and/or gold streams, which could be a boon for junior mining
companies with higher-quality assets that are looking for financing. It is also worthy
of note that each unit of the financing included one-half of one warrant with an
eight-year expiry date and a C$75 strike price. We have seen several juniors
complete financings that included five year warrants. Now we are beginning to see
some larger cap companies do the same to ensure the deal is successful.
•
Winnipeg – the Slurpee capital of the world. Slurpees are offered in many but not all
the countries where our covered companies have operations. Canadians purchase an
average of 30 million drinks per year. Despite its status as the coldest city in the
world and with a population of just over 600,000, Winnipeg, Manitoba, was crowned
Slurpee Capital of the World for the ninth time in a row in 2008. 7-Eleven stores
across the province sell an average of 8,330 Slurpee drinks per month. The rest of
Canada sells an average of 5,990, which makes Manitoba the world leader in
Slurpee sales. Mining is the second-largest primary resource industry in Manitoba.
In 2008, the combined value of mineral production for metals, industrial minerals
and petroleum totalled $2.5 billion. The province’s eight operating mines employ
about 5,200 workers directly with another 18,000 in spin-off jobs. Manitoba also
ranks among the top 10 jurisdictions in the world in which to conduct mineral
exploration, according to the Fraser Institute’s annual survey. Hence, if you are
planning to visit any of the mining companies active in Manitoba, there should be a
Slurpee close by for the upcoming hot sunny days!
2 June 2009
EXPLORATION UPDATES
EXTRACT RESOURCES LTD.
(EXT : ASX : A$5.50 | NOT RATED)
Figure 4: EXT : ASX
Eric Zaunscherb
1.604.699.0829
Figure 5: EXT : ASX
NA
Shares O/S (M):
Shares FD (M):
Working Cap. (M):
Market Cap. (M):
Co. Website:
228.4
231.7
C$16.0
C$890.2
www.extractresources.com
Source: Company reports, StockCharts.com
Source: INK Research
Extract Resources is a Perth-based uranium exploration company primarily focused on advancing its wholly owned Husab
uranium project in Namibia. In our site visit note on Extract published in the 4 March 2009 Junior Mining Weekly we
commented that “board room shenanigans are detracting from what is truly a world class discovery.” This situation has
become even more unseemly, as summarized below:
•
Figure 6 sketches out the ownership structure surrounding Extract. The Uramin management team that successfully
identified, advanced and sold the Klein Trekkopje uranium deposit in Namibia to AREVA in June 2007 for almost US$19 per
pound, moved on with the stub subsidiary, Niger Uranium (URU : LSE : £0.22 | Not rated). Niger Uranium has an important
ownership position in Kalahari Minerals (KAH : LSE : £1.27 | Not rated). Kalahari has a 34% equity position in Extract
alongside Rio Tinto (RIO : LSE : £28.00 | BUY) holding 16% and Polo Resources (PRL : LSE : £0.04 | Not rated) holding 9.9%.
•
The Extract board bun fight has now exploded with Polo Resources demanding that its Chairman, Stephen Dattels (ex of Uramin
and Klein Trekkopje), have a seat on Extract’s board and Kalahari demanding that its Chairman, Mark Hohnen, replace Peter
McIntyre as Chairman of Extract; Rio Tinto is also believed to be asking for a board seat. In our opinion Peter McIntyre has done a
superb job managing the discovery and advancement of Extract’s extraordinary Rössing South discovery at Husab. He is being
advised by Rothschild Australia Limited as to corporate strategy. In the interim, the indecorous board plays are distracting
management, definitely starving the project of the resources needed to advance the project optimally and, consequently, harming
the interests of minority shareholders. Any takeover should be executed via the market rather than at the board level, in our view.
•
Things on the operational level are progressing on a much more positive level. Last week Extract also announced that
ongoing drilling continues to expand Rössing South zones 1 and 2. The Rössing South zone 1 resource will be updated
within the next three months and the Rössing South zone 2 initial resource remains on track for August 2009. Wildcat
drilling 2.4 kilometres south of zone 2 (Figure 7) has turned up uraniferous alaskite with assays pending. We agree
with management’s assessment that Rössing South is part of one of the largest uranium mineral systems in the world.
An analyst has visited the Husab property held by Extract Resources Ltd. Partial payment or reimbursement was received
from the issuer for the related travel costs.
Investment risks
The commercialization risks associated with mineral exploration and development are high; thus investment in the shares
of Extract Resources Ltd. is for risk accounts only
2 June 2009
Figure 6: Extract Resources and surrounding ownership
Rio Tinto
(RIO-LN)
NWT Uranium
(NWT-V)
33.8%
(2)
Niger Uranium
(URU-LN)
14.4%
Former UraMin
Management+
14.1%
Kalahari Minerals
(KAH-LN)
16.3%
Areva SA
(1)
33.9%
Extract Resources
(EXT-T)
100%
9.6%
100%
Husab Uranium
Project
Notes:
Polo Resources
(PRL-LN)
UraMin Inc.
100%
Klein Trekkopje Uranium
Project
1. In August 2007, a subsidiary of AREVA, the senior French nuclear industry company,
acquired UraMin in an all-cash transaction paying US$7.75 per share or US$2.2 billion.
This equated to US$18.83/lb, assuming 118Mlb U3O8 at a 100ppm cut off grade.
2. In July 2007, Niger Uranium was created with uranium exploration properties in Niger
contributed by UraMin and NWT Uranium. Members of the former management team of
UraMin have considerable influence in the management of Niger Uranium.
Source: Bloomberg, company news releases, Canaccord Adams
2 June 2009
Figure 7: Rössing South drill hole locations with exploration highlights
Source: Extract Resources Ltd. news release 28 May 2009
2 June 2009
HUDSON RESOURCES INC.
(HUD : TSX-V : C$0.19 | NOT RATED)
Figure 8: HUD : TSX-V
Shares O/S (M):
Shares FD (M):
Working Cap. (M):
Market Cap. (M):
Co. Website:
Eric Zaunscherb
1.604.699.0829
Figure 9: HUD : TSX-V
41.1
46.5
C$0.8
C$7.8
www.hudsonresources.ca
Past 12 months – purchased:
Past 12 months – sold:
$30,000
Nil
Since Feb 3/09 – acquisitions or dispositions:
Nil
Hudson Resources is focused on the exploration of diamond, uranium and rare earth element (REE) projects in Greenland.
The company is guided by President and CEO, James Tuer, and VP Corporate Development, James Cambon, who was
intimately involved with the Snap Lake diamond mine in the Northwest Territories, now developed and operated by De
Beers Canada. Management was recently awarded the inaugural Prospector and Developer of the Year award by the
Government of Greenland. Hudson has announced exploration plans for 2009 as follows:
•
The primary exploration focus for Hudson in 2009 is the wholly owned Sarfartoq carbonatite project in west-central
Greenland. The property covers one of the largest carbonatite intrusive complexes globally, estimated at 13 by 8
kilometres. In 1986 the government generated an historical resource for one mineralized pod in the carbonatite of
100,000 tonnes grading 0.5% U3O8, 15% Nb2O5 and 0.5% REE (lanthanum-neodymium); tantalum mineralization is
also present. The use of uranium is well-known, but it is little known that niobium (Nb) and tantalum (Ta) are used in
specialty steels and that REE usage is dramatically increasing in high technology applications including hybrid
automobiles. REE production is dominated by China, and end-users are scrambling to diversify supply.
•
Previous exploration and advanced (prefeasibility level) studies focused on niobium mineralization and did not follow
up uranium and REE potential. In 2008 Hudson conducted a reconnaissance sampling program and outlined a number
of priority targets for follow-up exploration, particularly with regard to REE. This summer’s program will generate
specific drill targets for follow-up. The intriguing Sarfartoq project is well-situated with tidewater and a proposed
hydroelectric plant within 20 kilometres. Access is by helicopter from a modern international airport with daily flights.
•
Hudson has been actively advancing the nearby 1,800 square kilometre Garnet Lake diamond project since 2003.
Hudson’s Garnet Lake kimberlite dyke is similar in configuration to the dyke being mined by De Beers at Snap Lake.
Approximately 500 tonnes of material were recovered from Garnet Lake in 2008 and processed through an on-site
dense media separation plant. In 2009 Hudson will conduct reconnaissance seeking additional diamondiferous bodies
and study the application of high-pressure grinding rolls to aid diamond recovery.
An analyst has not visited the properties held by Hudson Resources Inc.
Investment risks
of Hudson Resources Inc. is for risk accounts only.
2 June 2009
LA MANCHA RESOURCES INC.
(LMA : TSX : C$1.00 | NOT RATED)
Figure 10: LMA : TSX
Shares O/S (M):
Shares FD (M):
Working Cap. (M):
Long-Term Debt (M):
Market Cap. (M):
Co. Website:
Nicholas Campbell
1.604.643.7027
Figure 11: LMA : TSX
142.0
143.1
C$45.8
C$14.9
C$142.0
www.lamancharesources.com
$8,800
Nil
Since Nov. 28/08 – acquisitions or dispositions:
Nil
La Mancha Resources is a junior gold producer with interests in three operating gold mines: the Frog’s Leg mine (51%,
Australia), the Ity mine (45.9%, Cote d’Ivoire) and the Hassaï mine (40%, Sudan). The company is under the stewardship of
Michel Cuilhe, President, CEO and Chairman. Last week, La Mancha released a set of drill results testing a VMS target at its
Hassai mine, in Sudan.
•
La Mancha was testing for mineralization beneath the current Hadal Awatib pits of the Hassaï mine. The best results
include: 26 metres grading 1.2 g/t gold, 5.7% copper and 1.2% zinc (100 metres down the drill stem), 11 metres
grading 19.2 g/t gold and 51.6 g/t sold (5 metres down the drill stem), 40 metres grading 0.70 g/t gold and 3.2%
copper (10 metres down the drill stem), 11 metres grading 9.1 g/t gold and 99.3 g/t silver and 7 metres grading 21.5
g/t gold and 45.6 g/t silver.
•
The company has begun testing two of six VMS targets at Hassaï. In April 2009, the company released a conceptual
potential resource (not NI 43-101 compliant) for the VMS targets at Hassai. The company believes that results to date
are supportive of delineating a 60 million tonne resource grading 1.15-1.35 g/t gold, 0.90-1.3% copper, 3-5 g/t silver
and 0.30-0.70% zinc.
•
The results last week suggest the presence of an enriched supergene zone at the top of the previously identified VMS
lens under the Hadal Awatib pits, while confirming the presence of a feeder zone adjacent to the massive sulphide lens
at depth. The company plants to complete an initial NI 43-101 compliant resource estimate for the zones, complete
metallurgical testing and deliver a scoping study by the end of 2009.
•
In 2008, La Mancha recorded attributable gold production of 71,550 ounce of gold at an average cash cost of US$512
per ounce of gold produced. In Q1/09, the company’s attributable production was 18,515 ounces of gold at an average
cash cost of US$451 per ounce. Q1 cash flow from operations was C$7.8 million.
An analyst has not visited the properties held by La Mancha Resources.
Investment risks
of La Mancha Resources is for risk accounts only
2 June 2009
Figure 12: VMS deposits in the Arabo-nubian shield
Source: La Mancha Resources
2 June 2009
CRESTON MOLY CORP.
(CMS : TSX-V : C$0.15 | NOT RATED)
TENAJON RESOURCES CORP.
(TJS : TSX-V : C$0.14 | NOT RATED)
Figure 13: CMS : TSX-V
Shares O/S (M):
Shares FD (M):
Working Cap. (M):
Market Cap. (M):
Co. Website:
Wendell Zerb, P. Geol
Adam Melnyk
1.604.643.7485
1.604.643.1655
Figure 14: TJS : TSX-V
121.8
171.0
C$(2.8)
C$18.27
www.crestonmoly.com
Shares O/S (M):
Shares FD (M):
Working Cap. (M):
Market Cap. (M):
Co. Website:
63.4
71.6
C$3.1
C$8.9
www.tenajon.com
Creston Moly is a Vancouver-based mineral exploration and development company, whose primary asset is the 100%owned Creston molybdenum project, located in Sonora State, Mexico, about 135 kilometres northeast of the city of
Hermosillo. Creston is led by Colin Benner, Chairman and Jonathan George, President and CEO. Tenajon Resources is a
Canadian mineral exploration company under the stewardship of Bruce McLeod, President and CEO. Tenajon is focused on
advancing its Canadian molybdenum exploration projects: Ajax in BC and Moly Brook in Newfoundland. Last week, Creston
and Tenajon announced a proposed business combination. Details are as follows:
•
Under the proposed transaction, Creston will acquire all of the issued and outstanding shares of Tenajon on the basis
of 0.84 shares of Creston for each share of Tenajon. At the time of the announcement, this represented less than a 1%
premium for TJS shareholders. Bruce McLeod will be President and CEO of the new company, to retain the Creston
name, and Colin Benner will serve as Chairman. The transaction must be approved by not less than two-thirds of TJS
shareholders. The combined company will have approximately 175 million shares outstanding.
•
A prefeasibility study for the Creston moly project (100% CMS), released in February 2008, detailed a 40,000 tpd
operation producing an average of approximately 20 million lbs of Mo and 12 million lbs of Cu annually over an
estimated 11-year mine life. The estimated after-tax NPV (8%) using US$15.00/lb Mo and US$1.75/lb Cu is US$306.0
million (owner mining) and the IRR is 20.2%. Total cash costs are estimated at US$7.57/lb MoEq and initial capital is
estimated at US$576.2 million (owner mining). Proven and probable reserves are 146.7 million tonnes grading 0.077%
Mo and 0.049% Cu.
•
At Ajax (100% TJS), located in northwestern BC, an updated NI 43-101 resource estimate released in May 2008
detailed an indicated resource of 69 million tonnes, grading 0.065% Mo (98.9 million pounds of Mo) and an inferred
resource of 483.1 million tonnes at 0.061% Mo (649.8 million pounds Mo), using a 0.040% Mo cut-off. Project
infrastructure is considered good, with both tidewater access and hydro electric power situated at Kitsault, 16
kilometres to the south. Initial metallurgical testing suggests moly recoveries of up to 86.5%.
•
The Moly Brook property (100% TJS) is located on the southern coast of Newfoundland, less than 4 kilometres from a
deep-water, ice-free navigable fjord. Three-phase power is within 70 kilometres of the site. A 2009 NI 43-101
compliant resource estimate includes an indicated resource of 86.8 million tonnes grading 0.065% Mo (124.6 million
pounds Mo) and an inferred resource of 31.2 million tonnes grading 0.056% Mo (38.6 million pounds Mo) at a 0.04%
Mo cut-off.
2 June 2009
An analyst has visited the properties held by Creston Moly Corp. Partial payment or reimbursement was received from the
issuer for the related travel costs.
An analyst has not visited the properties held by Tenajon Resources Corp.
Investment risks
of Creston Moly Corp. and Tenajon Resources Corp. is for risk accounts only.
2 June 2009
VANTEX RESOURCES LTD.
(VTX : TSX-V : C$0.07 | NOT RATED)
Figure 15: VTX : TSX-V
Shares O/S (M):
Shares FD (M):
Working Cap. (M):
Market Cap. (M):
Co. Website:
Adam Melnyk
1.604.643.7485
1.604.643.1655
Figure 16: VTX : TSX-V
79.2
98.5
C$0.5
C$5.5
www.vantexresources.com
$105
$7,275
Since Dec. 11/08 – acquisitions or dispositions:
Nil
Vantex is a Canadian mineral exploration company focused on gold exploration in western Quebec. Vantex is led by Guy
Morissette, President. Vantex’s primary asset is its 90%-owned Galloway project, located 30 kilometres west of RouynNoranda, which the company acquired in March 2009.
•
Last week, Vantex released assay results from Galloway, which included 0.631 g/t Au over 254 metres, including 72.25
metres at 1.07 g/t Au in hole VHD09-13 and 0.571 g/t Au over 168 metres, including 1.154 g/t Au on 33.0 metres in
hole VHD09-12, with both intercepts starting from surface. Diamond drilling is ongoing with one diamond drill rig in
an attempt to confirm historical results at Galloway. Historical drilling on the property (1980s and 1990s) includes
395.8 metres grading 0.75 g/t Au, including 1.06 g/t Au over 137.8 metres. According to Vantex, historical work has
traced mineralization over almost 1,200 metres laterally, and down to almost 1,000 metres vertically, over widths of
up to 396 metres down hole. Assays from two more holes are outstanding, with results expected within two weeks.
•
Surface and channel sampling is planned over the northeastern extension of the Galloway-Pitchvein zone. Later in
2009, pending financing, a 20,000 metre drill program is planned. Vantex indicates that the zone is open both along
strike and to depth.
•
Found within a syenite porphyry, the Galloway-Pitchvein showing is located along ENE striking faults originating from the
Cadillac-Larder Lake deformation zone. Anomalous gold values are returned from lithologies such as acid and basic tuffs,
feldspath porphyries, basic dykes and andesites. Pyrite, chalcopyrite and molybdenite mineralization is observed.
An analyst has not visited the properties held by Vantex Resources Ltd.
Investment risks
of Vantex Resources Ltd. is for risk accounts only.
2 June 2009
Figure 17: Galloway project area
Source: Vantex Resources, Canaccord Adams
2 June 2009
ZAZU METALS CORP.
(ZAZ : TSX : C$0.36 | NOT RATED)
Figure 18: ZAZ : TSX
Shares o/s (M):
Shares fd (M):
Cash (M):
Market Cap. (M):
Co. Website:
Adam Melnyk
1.604.643.7485
1.604.643.1655
Figure 19: ZAZ : TSX
30.7
35.1
US$3.2
$11.1
www.zazumetals.com
$212,334
Nil
Since Mar. 31/09 – acquisitions or dispositions:
Nil
Zazu Metals is a Canadian-based exploration company targeting strataform zinc-lead-silver mineralization in Alaska. Its principal
project, the Lik deposit, is located about 22 kilometres northwest of Teck Cominco’s Red Dog mine. Red Dog is currently one of the
lowest-cost and largest zinc producers in the world with 2008 production of about 528,400 tonnes of zinc-in-concentrate.
•
Last week, Zazu announced a new NI-43-101 mineral resource on the Lik North and South deposits in Alaska. Between
the North and South deposits the total zinc resource (indicated and inferred) is in excess of 4.6 billion lbs plus over 1.5
billion pounds of lead and 41 million ounces of silver (Figure 22). The Lik deposit ranks as one of the largest primary zinc
deposits in the world. The resource estimate was based on the results of 204 diamond drill holes, totalling 34,460 metres.
Drilling is on 60 metre sections in the Lik South area, with holes mainly spaced at 30 metres along section lines.
•
The Lik deposit was originally discovered in 1977 with follow-up drilling on early geological and geochemical data.
About 26,236 metres of drilling by various operators tested the deposit from 1977 to 1992. Mineralization occurs in
two deposits (South and North). The South deposit is relatively shallow compared with the North deposit zone and is
believed to be potentially amenable to open-pit extraction. Several historical (not NI 43-101 compliant) mineral
resource estimations were completed, the most recent by Noranda in 1985 estimated the following: South: 10.85
million tonnes grading 10.51% Zn, 3.42% Pb; North: 4.73 million tonnes grading 10.59% Zn, 3.50% Pb, 53 g/t Ag.
•
The Lik deposit is a stratiform zinc-lead-silver deposit. According to company data, the immediate host rocks are
carbonaceous and siliceous black shale, with subordinate black chert and fine-grained limestone. The company describes the
Lik South deposit as being about 1,100 metres long and about 600 metres wide. It has been tested down dip to a depth of
about 150-200 metres. The Lik North deposit is about 700 metres long and about 350 metres wide, and has been tested
down dip to a depth of about 300 metres. Overall mineralization strikes broadly northerly and dips westerly at about 25º to 40º.
•
The company currently holds a 50% interest in the Lik property with the right to earn a further 30% (from Teck, the
other 50% interest holder) by spending an additional US$40 million (inflation-adjusted) before 27 January 2018. The
company has currently spent about US$11 million. Upon earning an 80% interest and completing a feasibility study,
Teck will have a one time option (expenditure schedule) to maintain its 20% interest or it would revert to a 2% NSR.
An analyst has not visited the properties held by Zazu Metals Corp.
Investment risks
The commercialization risks associated with mineral exploration and development are high, thus investment in the shares
of Zazu Metals Corp. is for risk accounts only.
2 June 2009
Figure 20: LIK property location
Source: Zazu Metals Corp.
Figure 21: Minerals resources for LIK South and North – historical
Estimated by
Year
LIK South Deposit
GCO
1984
Noranda
1985
Cut-off
Grade
Tonnes
M
Zn
%
Pb
%
Ag
g/t
Density
T/m3
5% Pb+Zn
7% Pb+Zn
22.04
10.85
8.88
10.51
3.08
3.42
49
NA
3.21
3.77
LIK North Deposit
Noranda
1985
7% Pb+Zn
4.73
10.51
3.5
53
3.21
Figure 22: Minerals resources for LIK South and North – as of May 2009
Indicated Resources
Estimated by
LIK South Deposit
LIK North Deposit
TOTAL
Cut off
%Pb+Zn
3%
5%
7%
7%
9%
S5%N7%
Short Tons
M
21.13
20.66
18.89
20.66
Zn
%
7.98
8.08
8.37
8.08
Pb
%
2.58
2.62
2.75
2.62
Ag
oz/s.t.
1.53
1.54
1.59
1.54
Inferred Resources
Short Tons
M
1.39
1.36
1.12
Zn
%
6.73
6.80
7.18
Pb
%
2.09
2.12
2.28
Ag
oz/s.t.
1.02
1.02
1.06
5.71
5.25
7.07
9.65
9.96
9.10
3.25
3.36
3.03
1.48
1.53
1.39
2 June 2009
MOLYBDENUM MARKET UPDATE AND MOLY
IN SITU DATABASE QUARTERLY UPDATE
Molybdenum spot
The molybdenum spot price sharply declined from over US$33.50/lb in early November
2008, reaching recent lows of US$8.55/lb in April 2009. Currently, the moly spot as of 14
May 2009 was US$9.25/lb.
Moly is an essential secondary component of several steel applications that importantly
has no realistic substitutes. There is some evidence that consumers have been destocking
inventories of moly. The outlook for stainless and speciality steel demand remains in
question, however with a rebound in demand and low moly stocks, moly prices could
firm over the next 12 months. Comments from Molymet, Chile, president John Graell
included views that western world moly consumption could decrease about 30% in 2009
and in China could decrease by 20%.
Figure 23: Molybdenum spot price – 10 years (US$/lb)
40.00
35.00
Moly Spot US$/lb
30.00
25.00
20.00
15.00
10.00
5.00
Jan-98
May-98
Sep-98
Jan-99
May-99
Sep-99
Jan-00
May-00
Sep-00
Jan-01
May-01
Sep-01
Jan-02
May-02
Sep-02
Jan-03
May-03
Sep-03
Jan-04
May-04
Sep-04
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
0.00
Source: Bloomberg, Canaccord Adams
2 June 2009
Figure 24: Moly spot (January 2008–present)
36
31
Moly Spot US$/lb
26
21
16
11
May-09
Mar-09
Jan-09
Nov-08
Sep-08
Jul-08
May-08
Mar-08
Jan-08
6
Canaccord Adams’ 2009 molybdenum price forecast is US$11.20/lb, down from
US$12.00/lb. Our long-term forecast is unchanged at US$12.50/lb.
Moly in situ database
At present, our molybdenum database consists of a cross-section of 17 companies with
exposure to the metal. Our goal is to track where the market is currently valuing in situ
molybdenum resources. This database is not intended to be all-inclusive. We have
included all categories of mineral resources made available by the respective companies.
For Lions Gate Metals Inc. (formerly Fortress Base Metals Corp.) we have included assets
with a historical resource estimation that is not NI 43-101 compliant.
In our database, the average EV value is currently 15.50 Canadian cents per Mo
equivalent pound. This is up considerably from our previous quarterly update, which
was 4.07 Canadian cents per Mo equivalent pound.
We have created a number of comparable tables and graphs to highlight the assets and
how the market is valuing the companies based on a moly equivalent basis. For our
calculations, we have used metal prices as follows: Mo US$12.50/lb, Cu US$1.75/lb, Zn
US$0.75/lb, Pb US$0.50/lb, Au US$750/oz, Ag US$14.00 as per Canaccord Adams’
updated metals prices forecast from April 2009.
2 June 2009
Database changes and news for current quarter:
•
No additions or deletions of companies were made since November 2008. For
Quadra Mining (QUA : TSX) we have added three additional projects due to its
acquisition of Centenario Copper Corp.
•
On 27 May 2009, Creston Moly Corp. (CMS : TSX-V) and Tenajon Resources Corp.
(TJS : TSX-V) announced their business combination. Under the terms of the
transaction, Creston will acquire all of the issued and outstanding shares of Tenajon
on the basis of 0.84 shares of Creston for each share of Tenajon.
35
30
30
25
25
20
20
15
15
10
10
5
5
0
0
Mo Spot Price (US$/lb)
35
Jan 15/08*
May 6/08*
Aug 19/08*
Sept 11/08
Sept 18/08
Sept 26/08
Oct 2/08
Oct 10/08
Oct 17/08
Oct 24/08
Oct 31/08
Nov 7/08
Nov 14/08
Nov 21/08
Nov 28/08
Dec 5/08
Dec 12/08
Jan 9/09
Jan 16/09
Jan 23/09
Feb 3/09
Feb 6/09
Feb 13/09
Feb 20/09
Feb 27/09
Mar 6/09
Mar 13/09
Mar 20/09
Mar 27/09
Apr 3/09
Apr 9/09
Apr 17/09
Apr 24/09
May 1/09
May 8/09
May 15/09
May 26/09
May 28/09
Moly In Situ Value (EV cents Cdn/Attrib. Mo Eq. lbs)
Figure 25: Moly in situ value vs. moly spot (January 2008–28 May 2009)
Moly In Situ (EV cents Cdn/Attrib Mo Eq lbs)
Mo Spot Price (US$/lb)
*Jan – Sept. 11/08 – quarterly data. Sept. 11/08 to present – weekly data
2 June 2009
Figure 26: Mo database: enterprise value and related data
Company
Inca Pacific Resources Inc.
Copper Fox Metals Inc.
Mosquito Cons. Gold
Virgin Metals Inc.
Lions Gate Metals Inc.
TTM Resources Inc.
Nanika Resources Inc.
Creston Moly Corp.
Hi Ho Silver Resources Inc.
Adanac Molybdenum Corp.
Moly Mines Ltd.
Taseko Mines Ltd.
Quadra Mining Ltd.
Roca Mines Inc.
Avanti Mining Inc.
Thompson Creek Metals Inc.
Arithmetic Average
Sym
Exch
IPR-V
CUU-V
TJS-V
MSQ-V
VGM-T
LGM-V
TTQ-V
NKA-V
CMS-V
HHS-V
AUA-T
MOL-T
TKO-T
QUA-T
ROK-V
AVT-V
TCM-T
Price (C$)
28 May/08
$0.29
$0.06
$0.13
$0.50
$0.05
$0.78
$0.29
$0.05
$0.14
$0.05
$0.08
$0.36
$1.93
$7.74
$0.35
$0.15
$10.08
O/S Shares
M
56.62
112.50
63.45
38.12
87.88
10.50
48.14
73.03
121.77
24.41
114.58
93.69
173.21
99.00
90.50
111.76
122.26
Mkt Cap.
Basic C$M
16.4
6.8
8.2
19.1
4.4
8.2
14.0
3.7
17.0
1.2
9.2
33.7
334.3
766.3
31.7
16.8
1232.4
EV.
C$M
$1.7
$9.5
$5.2
$22.9
$4.6
$6.4
$12.3
$3.2
$18.2
$1.5
$39.7
$154.2
$367.1
$484.1
$30.8
$31.7
$1,086.0
$134.1
Attri Mo
M lbs
240
460
841
2,579
404
63
522
105
295
26
460
1,071
153
831
119
40
1,114
548
Attri Mo eq
M lbs
663
1,693
853
3,599
499
467
569
105
323
26
460
1,364
2,498
3,031
119
46
1,114
1,025
EV cents Cdn/
Attri Mo eq lbs
0.26
0.56
0.60
0.64
0.93
1.37
2.16
3.01
5.64
6.00
8.63
11.30
14.70
15.97
25.87
68.31
97.50
15.50
Avg. Mo
eq Grade %
0.120%
0.069%
0.064%
0.062%
0.029%
0.090%
0.065%
0.063%
0.076%
0.057%
0.066%
0.059%
0.060%
0.071%
0.126%
0.081%
0.070%
0.072%
Source: Canaccord Adams
For the following two figures we have compiled a database relating attributable in situ
molybdenum equivalent pounds based on all resource categories, to a company’s enterprise
value (EV : market capitalization minus working capital plus long-term debt). We use EV
versus market capitalization to better compare the value of the underlying assets. Figure 27 is
sorted showing the companies with the highest EV in Canadian cents per attributable Mo
equivalent pound to the right of the chart. In Figure 28, we have charted the total resource
size versus the Mo equivalent grade of a company’s combined assets.
2 June 2009
Figure 27: Total attributable Mo eq. lbs and EV cents Canadian/M lbs of attributable Mo eq.
Total Attributable Mo and EV/Mil lbs of Attributable Mo
4,000
118.0
3,500
98.0
EV cents Cdn/Attrib. Mo eq. M lbs
Attributable Mo (mil lbs)
3,000
78.0
2,500
58.0
2,000
1,500
38.0
1,000
18.0
500
-2.0
Attri Mo eq M lbs
TCM-T
AVT-V
ROK-V
QUA-T
TKO-T
MOL-T
AUA-T
HHS-V
CMS-V
NKA-V
TTQ-V
LGM-V
VGM-T
MSQ-V
TJS-V
CUU-V
IPR-V
0
EV cents cdn/Attrib. Mo eq.
Figure 28: Total mineral resources (mil t) and mo eq. grade (%)
Total Mineral Resources (Mil T) and Mo eq. Grade (%)
0.14%
0.120%
2,500
Mo eq Grade %
0.090%
0.081%
0. 071%
0.070%
0.069%
0.066%
0.065%
0. 064%
0.063%
0.062%
0.060%
0.10%
0.06%
0.04%
0.02%
Mo eq. Grade (%)
ROK-V
IPR-V
AVT-V
LGM-V
Total Min Res (Mil T)
CMS-V
QUA-T
TCM-T
CUU-V
AUA-T
TTQ-V
TJS-V
NKA-V
MSQ-V
TKO-T
MOL-T
0.00%
HHS-V
VGM-T
0
0.12%
0.08%
0. 029%
500
0. 057%
1,000
0.059%
1,500
0.076%
Total Min. Res. MT
2,000
0. 126%
3,000
2 June 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 29: Drill Bitz for 25 May 09–1 June 09
Co name
Coro Mining Corp.
Freeport McMoRan Expl.*
Ticker
COP
FCX
Exch.
TSX
NYSE
Sh o/s
M
79.5
411.7
Price $
28 May/09
0.28
52.20
Mkt. Cap.
$M
21.9
21,490.7
Gold-Ore Resources Ltd.
GOZ
TSX-V
82.3
0.61
50.2
Klondike Gold Corp.
Sedex Mining Corp.
KG
SDN
TSX-V
TSX-V
166.2
105.7
0.04
0.03
6.6
3.2
Klondike Silver Corp.
Kodiak Exploration Limited
KS
KXL
TSX-V
TSX-V
94.7
89.0
0.08
0.57
7.1
50.7
Peregrine Diamonds Ltd.
PGD
TSX
81.3
0.60
48.8
Western Lithium Canada Corp.
WLC
TSX-V
51.2
0.66
33.8
* Price & market cap. in US$
Source: Marketwire, Thomson ONE, Canaccord Adams
Project
Llancahue Cu-Mo-Ag
Prospect/central Chile
Ronnberget Au
Property/Sweden
Irishman Property/SW
BC
Silver Ridge, Nelson BC
Hercules
Project/BeardmoreGeraldton Au district,
Western Ontario
Chidliak
Property/Baffin Island,
Nunavut
Kings Valley lithium
Description
Ongoing drilling. Completed to
date seven holes in 1,300
metres.
Initial diamond drilling
commenced.
Ongoing drilling. Follow-up drilling
planned for later in the year as
well.
Commenced diamond drilling.
Phase 1 of drilling planned 15,000 metres.
Commenced 2009 diamond
exploration program, inclusive of
drilling. Total 2009 exploration
program set at C$9.2M.
2009 drilling program: 30 holes;
2 June 2009
GOLD IN SITU SPREADSHEET
Figure 30: Canaccord Adams gold in situ valuation spreadsheet
Company
Alexis Minerals Corp
American Bonanza Gold Corp
Anatolia Minerals Dev Ltd
Andean Resources Limited
Andina Minerals Inc
Atna Resources Ltd
Axmin Inc
Brett Resources Inc
Canarc Resource Corp
Canplats Resources Corp
Comaplex Minerals Corp
Cbr Gold Corporation
Detour Gold Corp
Etruscan Resources Inc
Gabriel Resources Ltd
Golden Queen Mng
Gold Reserve Inc
Grayd Resource Corporation
Great Basin Gold Ltd
Greystar Res Ltd
Guyana Goldfields Inc
Intl Tower Hill Mine Ltd
Intrepid Mines Limited
Keegan Resources Inc
Kirkland Lake Gold Inc
Klondex Mines Ltd
Kimber Resources Inc
Lake Shore Gold Corp
Luna Gold Corp
Metallic Ventures Gold Inc
Nevsun Resources Ltd
Novagold Res
Osisko Mining Corporation
Pacific Rim Mining Corp
Premier Gold Mines Ltd
Rainy River Resources Ltd
Seabridge Gold Inc
Tyhee Development Corp
Us Gold Corp
Vista Gold Corp
Sym
AMC
BZA
ANO
AND
ADM
ATN
AXM
BBR
CCM
CPQ
CMF
CBG
DGC
EET
GBU
GQM
GRZ
GYD
GBG
GSL
GUY
ITH
IAU
KGN
KGI
KDX
KBR
LSG
LGC
MVG
NSU
NG
OSK
PMU
PG
RR
SEA
TDC
UXG
VGZ
Exch
TSX
TSX
TSX
TSX
TSX-V
TSX
TSX-V
TSX-V
TSX
TSX-V
TSX
TSX-V
TSX
TSX
TSX
TSX
TSX
TSX-V
TSX
TSX
TSX
TSX-V
TSX
TSX
TSX
TSX
TSX
TSX
TSX-V
TSX
TSX
TSX
TSX
TSX
TSX
TSX-V
TSX
TSX-V
TSX
TSX
Sh o/s Price C$ Mkt. Cap
Sum Oz
Sum Oz
Sum Oz Mkt Cap/oz Mkt Cap/oz
EV/oz
EV/oz
M 5/29/09
$M Au /co (M) Ag /co (M) AuEq /co (M)
AuEq C$
AuEq US$ AuEq C$ AuEq US$
128.1
121.2
146.1
443.0
79.4
83.3
298.9
67.2
72.7
56.8
52.7
29.2
45.4
173.3
255.5
85.6
58.2
64.7
448.0
64.7
58.9
48.5
427.9
28.4
58.5
26.7
62.1
212.6
345.1
52.0
128.3
181.8
256.0
116.9
78.1
56.4
37.4
173.6
96.7
34.5
Arithmetic Average
Weighted Average
US$/C$ : 0.90
Au:Ag = 63:1
Source: Company reports, Capital IQ, Canaccord Adams
0.56
71.7
0.08
9.7
3.26 476.3
1.87 828.4
1.70 134.9
0.88
73.3
0.10
29.9
0.70
47.0
0.09
6.5
2.06 117.0
4.59 241.9
0.29
8.5
13.57 616.3
0.33
57.2
2.26 577.3
0.60
51.4
0.63
36.6
0.49
31.7
1.71 766.1
3.68 238.0
4.35 256.2
3.62 175.7
0.30 128.4
3.05
86.7
9.51 556.8
1.15
30.7
0.71
44.1
2.39 508.1
0.35 120.8
0.88
45.8
1.55 198.8
5.65 1027.1
7.11 1820.2
0.40
46.8
2.67 208.6
2.46 138.7
31.74 1187.1
0.14
24.3
2.43 234.9
2.75
94.8
0.60
1.20
6.03
2.29
9.90
1.71
3.73
5.30
1.27
4.03
2.85
1.01
15.43
3.60
13.80
2.68
14.13
1.72
15.27
15.07
5.45
7.17
2.23
3.14
3.16
1.05
1.22
2.20
1.31
5.62
1.30
27.24
10.44
1.55
0.64
4.03
61.44
2.12
3.21
16.51
0.14
0.00
16.20
23.72
0.00
0.00
0.00
0.00
0.00
68.34
0.00
3.69
0.00
0.00
59.38
48.88
0.00
30.70
9.17
81.35
0.00
0.34
82.86
0.00
0.00
0.00
54.11
0.00
0.00
17.14
37.11
105.46
0.00
11.40
0.00
7.93
0.00
0.00
11.82
0.00
0.60
1.20
6.29
2.67
9.90
1.71
3.73
5.30
1.27
5.11
2.85
1.07
15.43
3.60
14.74
3.45
14.13
2.21
15.42
16.36
5.45
7.18
3.54
3.14
3.16
1.05
2.08
2.20
1.31
5.89
1.89
28.91
10.44
1.73
0.64
4.15
61.44
2.12
3.40
16.51
119.82
8.10
75.73
310.80
13.63
42.86
8.02
8.88
5.17
22.88
84.87
7.93
39.93
15.90
39.16
14.88
2.59
14.37
49.69
14.55
47.00
24.47
36.22
27.60
176.15
29.38
21.22
230.83
91.95
7.77
105.26
35.52
174.33
27.01
327.86
33.38
19.32
11.48
69.12
5.74
94.23
6.37
59.55
244.41
10.71
33.71
6.31
6.98
4.07
18.00
66.74
6.23
31.40
12.50
30.80
11.70
2.04
11.30
39.08
11.44
36.96
19.24
28.48
21.70
138.53
23.10
16.68
181.53
72.31
6.11
82.78
27.94
137.09
21.24
257.83
26.25
15.19
9.03
54.35
4.52
112.73
2.19
66.69
304.37
11.70
38.27
7.00
7.68
5.08
21.99
78.42
6.26
38.05
31.05
38.66
14.05
3.85
11.97
34.54
11.71
43.45
22.55
26.01
26.12
168.58
29.45
19.07
180.86
73.52
4.62
101.08
38.12
133.71
24.82
307.04
27.77
18.85
10.04
66.85
6.10
88.65
1.72
52.45
239.35
9.20
30.10
5.50
6.04
3.99
17.29
61.67
4.92
29.92
24.42
30.40
11.05
3.03
9.41
27.16
9.21
34.17
17.73
20.45
20.54
132.57
23.16
15.00
142.23
57.82
3.63
79.49
29.98
105.15
19.52
241.46
21.84
14.83
7.90
52.57
4.80
60.03
38.72
47.21
30.45
54.37
35.02
42.76
27.54
2 June 2009
SILVER IN SITU CHART
Figure 31: Canaccord Adams silver in situ valuation spreadsheet
$0.90
$25
$0.80
$20
$0.70
London Silver Fix (US$/oz)
Average In Situ EV US$/lb AgEq
$0.60
$15
$0.50
$0.40
$10
$0.30
$0.20
$5
$0.10
EV (US$/oz)
Price (US$/oz)
May/29/09
May/01/09
Apr/03/09
Mar/12/09
Mar/02/09
Feb/02/09
Jan/05/09
Dec/08/08
Nov/10/08
Oct/13/08
Sep/15/08
Aug/18/08
Jul/21/08
Jun/23/08
May/26/08
Apr/28/08
Mar/31/08
Mar/03/08
$0
Feb/04/08
Jan/07/08
$0.00
2 June 2009
SILVER IN SITU SPREADSHEET
Figure 32: Canaccord Adams silver in situ valuation spreadsheet
Company
Alexco
Aquiline
Arian
Bear Creek
ECU
Esperanza
Kimber
MAG Silver
Minco Silver
Oremex
Orko
Sabina
Silvercrest
Silvermex
SNS Silver
South American
Trevali
Zazu
Ticker
AXR : TSX
AQI : TSX
AGQ : AIM
BCM : V
ECU : TSX
EPZ : V
KBR : TSX
MAG : TSX
MSV : TSX
ORM : V
OK : V
SBB : V
SVL : V
SMR : V
SNS : V
SAC : TSX
TREV.F : OTCPK
ZAZ : TSX
Mean (C$)
Mean (US$)
Mean (Less outliers, C$)
Mean (Less outliers, US$)
Price
(1)
$2.25
$2.32
$0.04
$2.36
$0.80
$0.84
$0.73
$5.92
$1.89
$0.10
$0.85
$0.93
$0.63
$0.16
$0.14
$0.33
$0.97
$0.40
Shares
(Basic)
(M)
43.1
68.1
258.1
56.5
285.8
47.5
62.1
49.2
31.3
50.4
106.9
73.4
45.5
45.0
40.7
51.5
34.6
30.7
$CADUSD
MC (2)
(C$M)
$96.9
$158.0
$9.0
$133.3
$228.6
$39.9
$45.3
$291.6
$59.1
$5.0
$90.9
$68.3
$28.7
$7.2
$5.5
$17.0
$33.6
$12.1
WC
(3)
(C$M)
$12.4
-$0.7
$1.4
$9.8
-$9.2
$9.4
$4.4
$43.3
$2.0
$0.0
$1.7
$36.3
$3.6
$0.8
$4.7
$8.1
$1.6
$4.9
EV (4)
(C$M)
$84.5
$158.7
$7.7
$162.8
$249.4
$30.6
$40.9
$248.2
$57.1
$5.0
$89.1
$32.0
$28.0
$6.4
$0.8
$8.9
$31.9
$7.2
Project
Location(s)
Yukon
Argentina
Mexico
Peru
Mexico
Peru, Mexico
Mexico
Mexico
China
Mexico
Mexico
Nunavut
Mex., El Salvador
Mexico
Idaho
Bolivia
Peru
Alaska
Global Resource (5)
(Moz)
Ag
Ag Eq (6)
18
31
762
1,004
43
189
482
867
152
281
8
77
54
130
83
123
141
173
49
51
135
147
265
665
62
107
27
33
10
10
322
363
8
39
33
240
$1.11
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.
Silver equivalent on a gross basis (no recovery factors) using current spot metal prices.
7.
Implied resource is a conceptual resource indicated by the company’s EV at the mean peer EV/oz Ag Eq multiple.
8.
The percentage difference between the implied resource and the global resource.
e
Silver
Purity
(%)
57%
76%
23%
56%
54%
11%
41%
68%
82%
96%
92%
40%
58%
81%
100%
89%
20%
14%
MC/oz
Ag Ag Eq
$5.52 $3.15
$0.21 $0.16
$0.21 $0.05
$0.28 $0.15
$1.51 $0.81
$4.77 $0.52
$0.84 $0.35
$3.50 $2.37
$0.42 $0.34
$0.10 $0.10
$0.67 $0.62
$0.26 $0.10
$0.47 $0.27
$0.27 $0.22
$0.54 $0.54
$0.05 $0.05
$4.32 $0.86
$0.36 $0.05
EV/oz
Ag Ag Eq
$4.81 $2.75
$0.21 $0.16
$0.18 $0.04
$0.34 $0.19
$1.65 $0.89
$3.65 $0.40
$0.76 $0.31
$2.98 $2.02
$0.40 $0.33
$0.10 $0.10
$0.66 $0.61
$0.12 $0.05
$0.45 $0.26
$0.24 $0.19
$0.07 $0.07
$0.03 $0.02
$4.11 $0.82
$0.22 $0.03
$1.35
$1.21
$1.17
$1.05
$1.17
$1.05
$1.01
$0.91
$0.59
$0.53
$0.47
$0.42
$0.51
$0.46
$0.40
$0.36
Implied
AgEq
(7)
(Moz)
209
393
19
403
617
76
101
614
141
12
221
79
69
16
2
22
79
18
Mkt.
∆ (8)
581%
-61%
-90%
-54%
120%
-1%
-22%
399%
-18%
-76%
50%
-88%
-35%
-52%
-82%
-94%
102%
-93%
MC/lb
Spot
May/22/09
Apr/09/09
Feb/27/09
Jan/15/09
Dec/04/08
Oct/23/08
Sep/11/08
Jul/31/08
Jun/19/08
May/08/08
Mar/27/08
Feb/14/08
Jan/03/08
Nov/22/07
Oct/11/07
Aug/30/07
Jul/19/07
Jun/07/07
Apr/26/07
Mar/15/07
Feb/01/07
Dec/21/06
Nov/09/06
Sep/28/06
Aug/17/06
Jul/06/06
Average In Situ Value US$/lb
$18
$16
$14
$12
$110
$10
$8
$90
$6
$70
$4
$2
$50
$0
$30
Uranium Spot Price (UxC)
2 June 2009
URANIUM IN SITU CHART
Figure 33: Canaccord Adams uranium in situ chart
$150
$130
2 June 2009
URANIUM IN SITU SPREADSHEET
Figure 34: Canaccord Adams uranium in situ valuation spreadsheet
Price
Company
Ticker
(1)
Azimut Exploration Inc.
AZM : T-V $0.65
Bannerman Resources Ltd.
BMN : ASX $1.20
Continental Precious Mineral
CZQ : T
$0.71
Crosshair Exploration & Mining CXX : T-V
$0.26
Cue Resources Ltd.
CUE : T-V
$0.14
Deep Yellow Ltd.
DYL : ASX $0.38
Energy Fuels Inc.
EFR : T
$0.41
Extract Resources Limited
EXT : ASX $5.50
Forsys Metals Corp.
FSY : T
$5.54
Hathor Exploration Limited
HAT : T-V
$2.20
Khan Resources Inc.
KRI : T
$0.43
Laramide Resources Ltd.
LAM : T
$1.92
Mantra Resources Limited
MRU : ASX $3.23
Mega Uranium Ltd.
MGA : T
$2.07
Pele Mountain Resources Inc.
GEM : T-V $0.11
Pitchstone Exploration Ltd.
PXP : T-V
$0.35
Powertech Uranium Corp.
PWE : T
$0.56
Rockgate Capital Corp.
RGT : T-V
$0.50
Santoy Resources Ltd.
SAN : T-V
$0.12
Strateco Resources Inc.
RSC : T
$0.91
Strathmore Minerals Corp.
STM : T-V $0.53
Terra Ventures Inc.
TAS : T-V
$0.46
Toro Energy Ltd.
TOE : ASX $0.24
Tournigan Energy Ltd.
TVC : T-V
$0.45
Triex Minerals Corp.
TXM : T-V $0.30
U3O8 Corp.
UWE : T-V $0.61
UEX Corporation
UEX : T
$1.40
Uracan Resources Ltd.
URC : T-V $0.24
Uranerz Energy Corporation
URZ : T
$1.60
Uranium Energy Corp.
UEC : N
$2.35
Uranium North Resources Corp. UNR : T-V $0.11
Uranium Power Corp.
OPC : T-V
$0.28
Uranium Resources
URRE : Q
$1.24
Ur-Energy Inc.
URE : T
$1.21
Western Prospector Group
WNP : T-V $0.35
Mean (C$)
Mean (US$)
Mean (C$, less outliers)
Mean (US$, less outliers)
$CADUSD
Shares
WC
(Basic)
MC (2)
(3)
EV (4)
(M)
(C$M) (C$M)
(C$M)
17.3
$10.6 $1.6
$10.3
157.0
$164.6 $4.5
$166.9
51.4
$35.0 $24.6
$10.3
112.2
$24.7 $4.2
$20.5
38.8
$5.4 -$1.7
$7.2
1,121.2
$372.3 $43.8
$328.5
52.8
$19.8 $8.0
$11.9
228.4 $1,097.8 $17.5 $1,080.4
78.9
$420.7 $34.5
$386.3
86.0
$184.8 $35.0
$149.8
54.0
$22.7 $20.8
$1.8
67.6
$131.0 $9.9
$121.2
85.1
$240.2 $21.0
$219.2
187.1
$340.5 $34.8
$305.7
91.2
$10.9 $3.3
$7.6
33.4
$13.0 $6.2
$6.9
55.4
$32.7 $2.3
$34.2
41.0
$20.9 $5.1
$15.8
245.2
$29.4 $5.2
$24.2
119.3
$110.9 $15.6
$95.3
72.5
$39.9 $7.4
$32.5
53.2
$23.9 $8.4
$15.5
555.8
$116.6 $10.4
$106.2
122.7
$49.7 $8.8
$40.9
20.0
$6.4 $7.9
-$1.5
23.1
$14.5 $11.2
$3.4
192.4
$269.4 $13.8
$255.6
91.3
$21.9 $5.3
$16.6
55.5
$88.7 $25.3
$63.4
46.4
$93.5 $8.9
$84.6
43.0
$5.6 $1.4
$4.2
98.2
$24.6 $9.1
$15.4
56.3
$72.6 $10.1
$63.1
93.9
$108.0 $58.0
$50.0
54.3
$19.0 $7.7
$11.3
Project
Location(s)
Quebec
Namibia
Sweden
Wyoming, Labrador
Paraguay
Namibia
Utah, Colorado, Queensland
Namibia
Namibia
Saskatchewan
Mongolia
New Mexico, Queensland
Tanzania
Queensland, Western Australia
Ontario
Nunavut
Colorado, South Dakota
Mali
Virginia
Quebec
New Mexico, South Dakota
Saskatchewan, Quebec
Western Australia
Slovakia
Nunavut
Guyana
Saskatchewan
Quebec
Wyoming
Texas
Nunavut
Wyoming
New Mexico, Texas
Wyoming
Mongolia
$1.10
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
Global
Resource
(5) (Mlb)
0.0
101.3
442.8
13.5
9.5
38.8
11.4
133.4
81.7
0.0
32.1
57.9
35.9
26.1
42.5
4.1
17.3
23.4
23.9
16.8
47.9
0.0
23.9
32.6
4.1
7.2
32.0
40.7
10.5
8.3
0.0
7.8
99.8
24.9
20.1
MC/lb
M+I
$2.31
$6.09
$4.07
$0.65
$2.28
$3,541.39
$6.90
$0.71
$5.73
$43.10
$1.71
$20.36
$1.23
$29.74
$1.28
$11.64
$3.39
Global
$1.63
$0.08
$1.83
$0.57
$9.60
$1.74
$8.23
$5.15
$0.71
$2.26
$6.69
$13.04
$0.26
$3.18
$1.89
$0.89
$1.23
$6.60
$0.83
$12.14
$17.07
$4.88
$1.53
$1.56
$2.03
$8.42
$0.54
$8.43
$11.28
$4.91
$1.06
$162.15
$147.41
$8.92
$8.11
$2.50
$9.15
EV/lb
M+I Global
$2.34
$1.80
$3.38
$0.86
$1.38
$3,485.00
$6.33
$0.06
$5.30
$38.69
$1.19
$15.38
$1.01
$25.55
$1.04
$10.60
$2.79
$1.65
$0.02
$1.52
$0.75
$8.47
$1.05
$8.10
$4.73
$0.06
$2.09
$6.11
$11.71
$0.18
$1.68
$1.97
$0.67
$1.01
$5.67
$0.68
$8.68
$15.45
$4.45
$1.26
-$0.38
$0.47
$7.99
$0.41
$6.03
$10.21
$3.15
$0.73
$4.34
$0.94
$2.27
$0.63
$1.98
$0.63
$2.01
$0.56
$3.68
$3.35
$3.49
$3.17
$158.22
$143.83
$7.33
$6.66
$3.02
$2.75
$2.84
$2.58
$0.58
$8.69
Implied
(6) Market
(Mlb)
∆ (7)
3.6
n/a
58.7
-42%
3.6
-99%
7.2
-46%
2.5
-74%
115.6 198%
4.2
-63%
380.2 185%
135.9
66%
52.7
n/a
0.6
-98%
42.6
-26%
77.1 115%
107.6 312%
2.7
-94%
2.4
-41%
12.0
-31%
5.6
-76%
8.5
-64%
33.5 100%
11.4
-76%
5.5
n/a
37.4
57%
14.4
-56%
-0.5 -113%
1.2
-83%
90.0 181%
5.9
-86%
22.3 112%
29.8 259%
1.5
n/a
5.4
-30%
22.2
-78%
17.6
-29%
4.0
-80%
2 June 2009
RESEARCH UNIVERSE
WENDELL ZERB, ERIC ZAUNSCHERB AND NICHOLAS CAMPBELL
Figure 35: 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
33
Company
Alamos Gold 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.
Exeter Resource Corporation
Forsys Metals Corp.
Fronteer Development Group Inc.
Gammon Gold Inc.
GlobeStar Mining Corp.
Harry Winston Diamond Corp.
Hathor Exploration Ltd.
International Tower Hill Mines Ltd.
Keegan Resources Inc.
Kimber Resources Inc.
Lake Shore Gold Corp.
MAG Silver Corporation
Minefinders Corp. Ltd.
Minera Andes Inc.
Northern Dynasty Minerals Ltd.
Orezone Gold Corporation
Rainy River Resources Ltd.
Red Back Mining Inc.
U3O8 Corp.
Ur-Energy Inc.
Symb Ex Analyst Rating
AGI
AXM
BTO
BCM
CPQ
CHD
CSI
CUM
CTQ
CXX
CUE
DMM
XRC
FSY
FRG
GAM
GMI
HW
HAT
ITH
KGN
KBR
LSG
MAG
MFL
MAI
NDM
ORG
RR
RBI
TVC
UWE
URE
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-V
T
T
T
T
T
T
T
T
T-V
T
T-V
T
T
WZ
NC
WZ
EZ
NC
WZ
NC
WZ
WZ
EZ
EZ
WZ
WZ
EZ
WZ
WZ
WZ
EZ
EZ
WZ
NC
WZ
WZ
EZ
WZ
WZ
EZ
NC
WZ
NC
EZ
EZ
EZ
HOLD
HOLD
SPECULATIVE BUY
SPECULATIVE BUY
SPECULATIVE BUY
HOLD
SPECULATIVE BUY
HOLD
SPECULATIVE BUY
HOLD
RESTRICTED
SPECULATIVE BUY
SPECULATIVE BUY
SPECULATIVE BUY
SPECULATIVE BUY
SPECULATIVE BUY
SPECULATIVE BUY
UNDER REVIEW
RESTRICTED
SPECULATIVE BUY
SPECULATIVE BUY
HOLD
SPECULATIVE BUY
SPECULATIVE BUY
SPECULATIVE BUY
SPECULATIVE BUY
SELL
SPECULATIVE BUY
SPECULATIVE BUY
BUY
SPECULATIVE BUY
SPECULATIVE BUY
SPECULATIVE 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
C
P ($)
$9.75
$0.10
$0.84
$2.40
$2.06
$0.23
$3.20
$0.60
$7.92
$0.26
$0.14
$4.43
$3.74
$5.54
$4.09
$8.92
$0.86
$7.21
$2.20
$3.62
$3.05
$0.71
$2.39
$6.21
$9.94
$0.87
$8.88
$0.58
$2.46
$10.45
$0.45
$0.61
$1.21
12-mo Target
P ($) Rtn (%)
$9.60
$0.25
$0.95
$2.50
$3.60
$0.35
$5.00
$0.75
$7.70
$0.20
R
$7.30
$7.00
$6.25
$3.60
$9.60
$0.95
UR
R
$4.65
$5.00
$0.55
$2.55
$6.00
$11.10
$1.35
$7.00
$0.60
$3.25
$13.00
$0.80
$1.00
$1.50
(1.54%)
150.00%
13.10%
4.17%
74.76%
52.17%
56.25%
25.00%
(2.78%)
(23.08%)
N/A
64.79%
87.17%
12.82%
(11.98%)
7.62%
10.47%
N/A
N/a
28.45%
63.93%
(22.54%)
6.69%
(3.38%)
11.67%
55.17%
(21.17%)
3.45%
32.11%
24.40%
77.78%
63.93%
23.97%
52-wk
Sh. o/s
Market
Hi ($) Lo ($)
M Cap ($M) FYE
$10.25
$0.53
$0.89
$6.80
$5.25
$1.09
$4.00
$2.24
$8.29
$0.89
$0.60
$5.71
$4.65
$6.60
$5.68
$11.20
$1.83
$31.70
$4.40
$3.74
$3.93
$1.74
$2.49
$11.85
$12.15
$1.58
$9.85
$0.63
$4.75
$11.19
$0.96
$0.92
$2.42
$3.50
$0.03
$0.30
$0.57
$1.03
$0.06
$0.43
$0.31
$2.56
$0.09
$0.08
$1.05
$1.05
$2.00
$1.55
$2.68
$0.29
$2.19
$1.03
$1.07
$0.49
$0.53
$0.60
$3.52
$3.33
$0.32
$1.92
$0.26
$0.62
$3.28
$0.14
$0.17
$0.34
107.3
245.6
245.0
56.5
56.7
328.7
54.5
31.6
75.0
109.5
36.7
35.3
62.4
78.9
118.2
122.6
105.3
61.4
86.0
48.5
36.4
62.1
212.6
49.2
59.0
230.3
92.6
53.9
56.4
228.1
122.7
23.1
93.9
$1,046.2
$24.6
$205.8
$135.6
$116.8
$75.6
$174.4
$19.0
$594.0
$28.5
$5.0
$156.4
$233.4
$437.1
$483.4
$1,093.6
$90.6
$442.7
$189.2
$175.6
$111.0
$44.1
$508.1
$305.5
$586.5
$200.4
$822.3
$31.3
$138.7
$2,383.6
$55.2
$14.1
$113.6
31-Dec
31-Dec
31-Dec
31-Dec
31-Jul
30-Apr
31-Jul
31-Dec
31-Dec
30-Apr
30-Apr
31-Dec
31-Dec
31-Jan
31-Dec
31-Dec
31-Dec
31-Jan
31-Mar
31-May
31-Mar
30-Jan
31-Dec
31-Dec
31-Dec
31-Dec
31-Dec
31-Dec
30-Sep
31-Dec
31-Aug
31-Dec
31-Dec
Prices as of 28 May 2009.
UR – Under Review.
WZ – Wendell Zerb; EZ – Eric Zaunscherb; NC – Nicholas Campbell.
Past performance is not indicative of future results.
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
2 June 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 36: Aurizon Mines Ltd. (ARZ : TSX)
$1,151,060
$2,525,043
Since May 20/09 - acquisitions:
Since May 20/09 - dispositions:
Price range:
Since May 20/09 – exercise of options:
10,000 shares @ C$2.38
30,000 shares
C$4.84-5.15
120,000 options
Insider: Mrs. Marie Diane Francis –
exercise of options:
100,000 options
Figure 37: Crosshair Exploration & Mining Corp. (CXX : TSX)
$118,680
$147,633
Nil
60,000 shares
@C$0.29
Insider: Mr. Mark Morabito – dispositions:
60,000 shares
2 June 2009
Figure 38: MAG Silver Corp. (MAG : TSX)
$222,618
$1,916,809
Since May 1/09- dispositions:
Price range:
Nil
180,900 shares
C$5.10-6.30
Insider: Mr. Peter Megaw – dispositions:
96,000 shares
$989,539
$828,180
Price range:
Nil
74,300 shares
C$8.79-9.17
Insider: Mr. Russell Hallbauer – dispositions:
54,300 shares
$3,322,005
$7,737,972
Price range:
Price range:
41,800
C$6.25-6.45
341,800 shares
C$9.90-11.01
Insider: Mr. Richard Clark – dispositions:
Insider: Mr. Lawrence Jackson – dispositions:
220,000 shares
50,000 shares
Figure 39: Northern Dynasty Minerals Ltd. (NDM : TSX)
Figure 40: Red Back Mining Inc. (RBI : TSX)
2 June 2009
JUNIOR MINING WEEKLY INDEX PREVIOUS 12 MONTHS
Figure 41: Junior Mining Weekly Index
Company/Commodity
Adriana Resources Inc.
Alamos Gold Inc.
Alexco Resource Corp.
Alexis Minerals Corp.
Amarillo Gold Corp.
Amera Resources Corp.
American Bonanza Gold Corp.
Anatolia Minerals Dev. Ltd.
Anatolia Minerals Dev. Ltd.
Andean Resources Ltd.
Andina Minerals Inc.
Anfield Ventures Inc.
Aquiline Resources Inc.
Arctic Star Diamond Corp.
Atna Resources Ltd.
ATW Gold Corp.
AuEx Ventures, Inc.
Augusta Resource Corp.
Aurcana Corporation
Avion Resources Corp.
B2Gold Corp.
B2Gold Corp.
B2Gold Corp.
B2Gold Corp.
B2Gold Corp.
Banro Corporation
Banro Corporation
Banro Corporation
Banro Corporation
Bard Ventures Ltd.
Bard Ventures Ltd.
Bear Creek Mining Corp.
Bitterroot Resources Inc.
Blackstone Ventures Inc.
Bravo Venture Group Inc.
Brett Resources Inc.
Brett Resources Inc.
Brilliant Mining Corp.
Caledonia Mining Corp.
Canadian Gold Hunter Corp.
Canadian Royalties Inc.
Canadian Royalties Inc.
Capella Resources Ltd.
Capstone Mining Corp.
Cardero Resource Corp.
Carpathian Gold Inc.
Castle Gold Corp.
CGA Mining Ltd.
Chesapeake Gold Corp.
Claude Resources Inc.
Cogitore Resources Inc.
Columbia Goldfields Ltd.
Sym
ADI
AGI
AXR
AXR
AXR
AXR
AMC
AGC
AMS
BZA
ANO
ANO
AND
ADM
ANF
AQI
AQI
AQI
ADD
ATN
ATW
XAU
AZC
AUN
AVR
AVR
AVR
BTO
BTO
BTO
BTO
BTO
BAN
BAN
BAN
BAA
BAA
BAA
BAA
CBS
CBS
BCM
BTT
BLV
BVG
BBR
BBR
BMC
BMC
BMC
CAL
CGH
CZZ
CZZ
CPQ
CPQ
KPS
CS
CS
CS
CDU
CPN
CPN
CPN
CSG
CGA
CKG
CRJ
WOO
CSI
CSI
CSI
CSI
CSI
CSI
CSI
GOL
Ex
TSX-V
TSX
TSX
TSX
TSX
TSX
TSX
TSX-V
TSX-V
TSX
TSX
TSX
TSX
TSX-V
TSX-V
TSX
TSX
TSX
TSX-V
TSX
TSX-V
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX-V
TSX
TSX
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX-V
TSX
TSX-V
TSX
TSX-V
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX
Date
Aug/26/08
Sep/15/08
May/26/09
May/19/09
Apr/28/09
Sep/22/08
Oct/22/08
Jul/22/08
Jul/29/08
Mar/10/09
Jan/13/09
Nov/11/08
May/26/09
Nov/11/08
May/26/09
Apr/21/09
Oct/14/08
Aug/12/08
Jun/10/08
Apr/08/08
Jan/27/09
Jan/27/09
Jan/20/09
Aug/06/08
May/26/09
Apr/28/09
Mar/24/09
Jan/20/09
Oct/27/08
Sep/08/08
Aug/12/08
Jun/03/08
May/26/09
Nov/19/08
Sep/30/08
Mar/17/09
Dec/18/08
Nov/26/08
Sep/22/08
Jul/15/08
Jun/03/08
Nov/11/08
Jun/30/08
Jul/29/08
Oct/07/08
Oct/22/08
Jul/22/08
Mar/04/09
Dec/18/08
Oct/22/08
Apr/15/09
Apr/29/08
Oct/22/08
Oct/07/08
Nov/11/08
Apr/15/08
Apr/08/09
Feb/23/09
Sep/15/08
May/26/08
Oct/22/08
May/26/09
May/12/09
Apr/01/09
Apr/08/09
Nov/11/08
May/12/09
Apr/28/09
Dec/09/08
Dec/02/08
Nov/11/08
Oct/27/08
Oct/07/08
Aug/26/08
Jul/29/08
Jun/17/08
May/12/08
Company/Commodity
Commander Resources Ltd.
Commander Resources Ltd.
Condor Resources Inc.
Continental Minerals Corp.
Copper In Situ Update
Copper Mesa Mining Corp.
Cornerstone Capital Res. Inc.
Corriente Resources Inc.
Creston Moly Corp.
Cypress Development Corp.
Detour Gold Corp.
Diamondex Resources Ltd.
Diamondex Resources Ltd.
Diamonds North Res. Ltd.
Donner Metals Ltd.
Donner Metals Ltd.
Dorato Resources Inc.
Duran Ventures Inc.
Endeavour Silver Corp.
Energy Fuels Inc.
Esperanza Silver Corporation
Etruscan Resources Inc.
Etruscan Resources Inc.
Eurasian Minerals Inc.
Evolving Gold Corp.
Evolving Gold Corp.
Exeter Resource Corp.
Fancamp Exploration Ltd.
Farallon Resources Ltd.
Farallon Resources Ltd.
First Point Minerals Corp.
First Uranium Corp.
Fortress Minerals Corp.
Fortuna Silver Mines Inc.
Fronteer Dev. Group Inc.
Fronteer Development Gp. Inc.
Fronteer Development Gp. Inc.
Full Metal Minerals Ltd.
Gammon Gold Inc.
Globestar Mining Corp.
Gold In Situ
Gold In-Situ Update
Gold In Situ Update
Gold In Situ Update
Gold In Situ Update
Gold Star Resources Corp.
Golden Arrow Resources Corp.
Golden Predator Mines Inc.
Sym
CMD
CMD
CN
CN
CN
CN
KMK
Ex
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
CUX
CPG
CTQ
CMS
CYP
DGC
DSP
DSP
DDN
DDN
DDN
DON
DON
DRI
DRV
EDR
EDR
EDR
EDR
EFR
EPZ
EET
EET
EMX
EVG
EVG
XRC
XRC
XRC
XRC
XRC
XRC
XRC
XRC
XRC
XRC
XRC
EXT
EXT
EXT
EXT
EXT
EXT
EXT
FNC
FAN
FAN
FPX
FIU
FST
FVI
FRG
FRG
FRG
FMM
GAM
GMI
TSX
TSX-V
TSX
TSX-V
TSX-V
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX
TSX
TSX
TSX-V
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX-V
TSX
TSX
TSX-V
TSX
TSX-V
TSX-V
TSX
TSX
TSX
TSX-V
TSX
TSX
GXX
GRG
GP
TSX-V
TSX-V
TSX
Date
Dec/09/08
Jul/29/08
Feb/23/09
Dec/18/08
Aug/19/08
Jul/29/08
May/26/09
May/05/09
Jan/27/09
Oct/22/08
Jul/15/08
Apr/08/08
Sep/22/08
Dec/02/08
Nov/11/08
Nov/04/08
May/05/09
Nov/11/08
May/05/09
Jun/24/08
Mar/04/09
Dec/18/08
Jun/03/08
Jan/27/09
Jun/03/08
Feb/17/09
Dec/09/08
Sep/30/08
Aug/12/08
Jun/24/08
Jun/17/08
May/26/08
Oct/07/08
Sep/03/08
Jul/08/08
May/05/09
Apr/21/09
Sep/15/08
Apr/08/09
Apr/01/09
Mar/04/09
Feb/04/09
Jan/20/09
Dec/02/08
Oct/27/08
Aug/06/08
Jun/30/08
May/06/08
Apr/01/08
Mar/17/09
Mar/04/09
Feb/04/09
Dec/18/08
Nov/26/08
Nov/19/08
Oct/07/08
Sep/15/08
Apr/01/08
May/21/08
Nov/26/08
Sep/30/08
Dec/18/08
Mar/17/09
Oct/27/08
May/12/09
Mar/17/09
Aug/19/08
Mar/17/09
Jan/20/09
in all editions
Mar/24/09
Oct/14/08
Aug/19/08
Apr/29/08
Jun/30/08
Dec/18/08
Aug/06/08
Company/Commodity
Golden Share Mining Corp.
Goldsource Mines Inc.
Goldsource Mines Inc.
Grayd Resource Corp.
Grayd Resource Corp.
Greystar Resources Ltd.
Great Panther Res. Ltd.
Greencastle Resources Ltd.
Guyana Goldfields Inc.
Guyana Goldfields Inc.
Helio Resource Corp.
Helio Resource Corp.
Imperial Metals Corp.
International Royalty Corp.
International Royalty Corp.
Intl. Tower Hill Mines Ltd.
Kimber Resources Corp.
Kirkland Lake Gold Inc.
Kivalliq Energy Corp.
Kodiak Exploration Ltd.
Lumina Copper Corp.
Luna Gold Corp.
Luna Gold Corp.
Lydian International Limited
MAG Silver Corp.
MAG Silver Corp.
MAG Silver Corp.
MAG Silver Corp.
Magma Metals Ltd.
Magma Metals Ltd.
Marathon PGM Corp.
Mega Uranium Ltd.
Mega Uranium Ltd.
Merrex Gold Inc.
Merrex Gold Inc.
Merrex Gold Inc.
Metalex Ventures Ltd.
Minco Silver Corp.
Minera Andes Inc.
Minera Andes Inc.
Nickel In Situ Update
Nickel In Situ Update
Noront Resources Ltd.
North American Gem Inc.
Northern Dynasty Minerals Ltd.
Sym
GSH
GXS
GXS
GYD
GYD
GSL
GPR
VGN
GUY
GUY
HAT
HAT
HAT
HAT
HAT
HAT
HAT
HAT
HAT
HAT
HRC
HRC
III
IRC
IRC
ITH
ITH
ITH
ITH
ITH
ITH
ITH
ITH
KGN
KGN
KGN
KBR
KGI
KGI
KGI
KIV
KIV
KIV
KXL
LSG
LSG
LAM
LAM
LCC
LGC
LGC
LYD
MAG
MAG
MAG
MAG
MMB
MMB
MRU
MRU
MAR
MGA
MGA
MXI
MXI
MXI
MTX
MSV
MAI
MAI
Ex
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX-V
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX-V
TSX
TSX-V
TSX-V
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX
TSX
TSX
ASX
ASX
ASX
ASX
TSX
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX
NOT
NAG
NDM
TSX-V
TSX-V
TSX
Date
Dec/02/08
Jun/30/08
May/06/08
Nov/11/08
Jul/08/08
Apr/01/09
Jun/17/08
Jun/30/08
Dec/18/08
Aug/19/08
Apr/15/09
Mar/10/09
Nov/11/08
Oct/27/08
Oct/07/08
Sep/30/08
Sep/03/08
Jul/29/08
Jul/15/08
May/26/08
May/26/09
Dec/18/08
Sep/30/08
May/12/09
Dec/18/08
Apr/21/09
Apr/08/09
Mar/10/09
Feb/04/09
Dec/18/08
Nov/04/08
Aug/12/08
Jul/08/08
Mar/10/09
Feb/23/09
Dec/18/08
Apr/15/08
May/05/09
Mar/24/09
Jan/27/09
Apr/15/08
Dec/18/08
Jul/15/08
Sep/03/08
Apr/08/09
Oct/28/08
Aug/19/08
Aug/06/08
Dec/18/08
Jan/20/09
Jun/24/08
Mar/24/09
Nov/11/08
Oct/27/08
Sep/22/08
Jun/24/08
May/19/09
Apr/28/09
May/19/09
Apr/15/09
Oct/14/08
Mar/04/09
Oct/28/08
Feb/17/09
Aug/26/08
Apr/01/08
Jun/10/08
May/06/08
Oct/27/08
Sep/15/08
Nov/19/08
Aug/19/08
Nov/26/08
Aug/26/08
Jul/08/08
Jun/30/08
Oct/27/08
2 June 2009
Figure 41: Junior Mining Weekly Index (cont’d)
Company/Commodity
Northern Freegold Res. Ltd.
Northern Shield Res.
NovaGold Resources Ltd.
Orex Minerals Inc.
Orezone Resources Inc.
Orko Silver Corp.
Orko Silver Corp.
Orko Silver Corp.
Orko Silver Corp.
Oro Gold Resources Ltd.
Oromin Explorations Ltd.
Pacific Rim Mining Corp.
Panoro Minerals Ltd.
PC Gold Inc.
PC Gold Inc.
Quest Uranium Corp.
Remstar Resources Ltd.
Rockwell Diamonds Inc.
Romarco Minerals Inc.
Rubicon Minerals Corp.
Rye Patch Gold Corp.
Salazar Resources Limited
San Gold Corp.
Sandstorm Resources Ltd.
Saturn Minerals Inc.
Seabridge Gold Inc.
Serengeti Resources Inc.
Sherwood Copper Corp.
Shore Gold Inc.
Shore Gold Inc.
Silver In Situ
Silver In Situ
Silver Standard Resources Inc.
Silverstone Resources Corp.
Sinchao Metals Corp.
Skyharbour Resources Ltd.
Northern Freegold Res. Ltd.
Northern Shield Res.
NovaGold Resources Ltd.
Orex Minerals Inc.
Orezone Resources Inc.
Orko Silver Corp.
Orko Silver Corp.
Orko Silver Corp.
Orko Silver Corp.
Oro Gold Resources Ltd.
Pacific Rim Mining Corp.
Panoro Minerals Ltd.
PC Gold Inc.
PC Gold Inc.
Quest Uranium Corp.
Remstar Resources Ltd.
Sym
NFR
NRN
NG
REX
OZN
Ok
Ok
OK
OK
OGR
OLE
OLE
PMU
PML
PKL
PKL
GEM
PGD
PGD
QUC
RR
RR
REM
RDI
RDI
R
R
RMX
RMX
RMX
RMX
RMX
RPM
SRL
SGR
SSL
SMI
SEA
SIR
SIR
SWC
SGF
SGF
Ex
TSX-V
TSX-V
TSX
TSX-V
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX
TSX-V
TSX
TSX
TSX-V
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX-V
TSX-V
TSX
TSX
TSX
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX-V
TSX-V
TSX-V
TSX
TSX
SSO
SST
SMZ
SYH
NFR
NRN
NG
REX
OZN
Ok
Ok
OK
OK
OGR
OLE
OLE
PMU
PML
PKL
PKL
GEM
PGD
PGD
QUC
RR
RR
REM
RDI
RDI
R
R
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX-V
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX
TSX-V
TSX
TSX
TSX-V
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX-V
TSX-V
Date
Jan/20/09
Jun/24/08
May/05/09
Apr/15/09
Nov/11/08
Apr/15/09
Apr/01/09
Feb/23/09
Jul/08/08
May/26/09
Apr/21/09
Jan/20/09
May/12/08
Aug/19/08
Feb/17/09
Nov/04/08
Jan/13/09
Dec/18/08
Sep/03/08
Sep/30/08
Oct/27/08
Sep/15/08
Jun/30/08
Oct/14/08
Sep/15/08
Feb/11/09
Feb/04/09
Dec/18/08
Sep/03/08
Jul/15/08
May/26/08
Apr/23/08
Dec/02/08
Apr/28/09
Feb/23/09
Mar/17/09
Jun/30/08
Dec/09/08
Dec/18/08
Apr/01/08
Sep/15/08
Jan/13/09
Oct/28/08
Mar/17&24/09
Oct/22/08
Dec/09/08
Oct/27/08
May/05/09
Mar/24/09
Jan/20/09
Jun/24/08
May/05/09
Apr/15/09
Nov/11/08
Apr/15/09
Apr/01/09
Feb/23/09
Jul/08/08
May/26/09
Apr/21/09
Jan/20/09
May/12/08
Aug/19/08
Feb/17/09
Nov/04/08
Jan/13/09
Dec/18/08
Sep/03/08
Sep/30/08
Oct/27/08
Sep/15/08
Jun/30/08
Oct/14/08
Sep/15/08
Feb/11/09
Feb/04/09
Company/Commodity
Rye Patch Gold Corp.
Salazar Resources Limited
San Gold Corp.
Sandstorm Resources Ltd.
Saturn Minerals Inc.
Seabridge Gold Inc.
Sherwood Copper Corp.
Shore Gold Inc.
Shore Gold Inc.
Silver In Situ
Silver In Situ
Silver Standard Resources Inc.
Silverstone Resources Corp.
Sinchao Metals Corp.
Skyharbour Resources Ltd.
Skygold Ventures Ltd.
Skygold Ventures Ltd.
Stornoway Diamond Corp.
Swift Resources Inc.
Terrane Metals Corp.
Thundermin Resources Inc.
Tournigan Gold Corp.
TTM Resources Inc.
TTM Resources Inc.
TTM Resources Inc.
UEX Corp.
UEX Corp.
UEX Corp.
UEX Corp.
Underworld Resources Inc.
Uracan Resources Ltd
Uracan Resources Ltd
Uranium Energy Corp.
Uranium In Situ
Uranium In Situ Update
Uranium Participation Corp.
Ur-Energy Inc.
Ur-Energy Inc.
Ur-Energy Inc.
Ur-Energy Inc.
Ventana Gold Corp.
Ventana Gold Corp.
Ventana Gold Corp.
Virginia Mines Inc.
VMS Ventures Inc.
VMS Ventures Inc.
VMS Ventures Inc.
VMS Ventures Inc.
West Timmins Mining Inc.
Westar Resources Corp.
WSR Gold Inc.
Sym
RMX
RMX
RMX
RMX
RMX
RPM
SRL
SGR
SSL
SMI
SEA
SIR
SIR
SWC
SGF
SGF
Ex
TSX
TSX
TSX
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX-V
TSX-V
TSX-V
TSX
TSX
SSO
SST
SMZ
SYH
SKV
SKV
SWY
SWY
SWY
SWY
SWY
SWR
TJS
TRX
THR
TVC
TVC
TVC
TTQ
TTQ
TTQ
UEX
UEX
UEX
UEX
UW
URC
URC
URC
URC
URC
UEC
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
AMEX
U
URE
URE
URE
URE
VEN
VEN
VEN
VGQ
VMS
VMS
VMS
VMS
WTM
WTM
WTM
WER
WSR
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
TSX
TSX
TSX-V
TSX-V
Date
Dec/18/08
Sep/03/08
Jul/15/08
May/26/08
Apr/23/08
Dec/02/08
Apr/28/09
Feb/23/09
Mar/17/09
Jun/30/08
Dec/09/08
Dec/18/08
Apr/01/08
Sep/15/08
Jan/13/09
Oct/28/08
Mar/17&24/09
Oct/22/08
Dec/09/08
Oct/27/08
May/05/09
Mar/24/09
Mar/24/09
Apr/01/08
Apr/08/09
Apr/01/09
Nov/04/08
Oct/14/08
Sep/08/08
Jun/30/08
May/21/08
Sep/22/08
Dec/02/08
Nov/11/08
Sep/30/08
Apr/01/08
Sep/08/08
Jul/22/08
Jun/10/08
Apr/01/09
Mar/04/09
Jan/13/09
Oct/07/08
Dec/18/08
May/19/09
Mar/04/09
Dec/18/08
Dec/02/08
Jul/15/08
May/26/08
in all editions
Feb/04/09
Nov/04/08
Aug/12/08
Apr/23/08
Nov/11/08
Oct/27/08
Sep/30/08
Sep/15/08
May/19/09
Apr/01/09
Mar/10/09
Apr/21/09
Nov/11/08
Oct/07/08
Sep/08/08
Apr/29/08
May/19/09
Apr/08/09
Dec/18/08
Jun/30/08
Jun/10/08
Company/Commodity
Xemplar Energy Corp.
Zazu Metals Corp.
Zinc In Situ Update
Zinc In Situ Update
Zinc In Situ Update
Zinc In Situ Update
Sym
XE
XE
XE
XE
XE
ZAZ
Ex
TSX-V
TSX-V
TSX-V
TSX-V
TSX-V
TSX
Date
Apr/08/09
Mar/10/09
Jan/13/09
Nov/19/08
Jun/30/08
Aug/26/08
May/12/09
Feb/11/09
Oct/28/08
Aug/06/08
2 June 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 1 May 2009)
Canaccord Adams
Ratings System:
Rating
Buy
Speculative Buy
Hold
Sell
Coverage Universe
#
%
305
53%
81
14%
157
28%
30
5%
573
100%
IB Clients
%
26%
36%
23%
20%
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.
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,
and information barriers or firewalls have been used where appropriate. Canaccord Adams’ policy is
available upon request.
2 June 2009
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.
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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
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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
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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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