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| How to Profit from Aurelian's Monster Deposit Without a Monster Bank Account |
| Monday, November 13, 2006 |
If any of you have been following the phenomenal story of Aurelian Resources (ARU-TSXv), an Ecuadorian Gold company, who recently hit the mother-load and watched its share price appreciate from $0.40 to a high of $43.00 in under a year, you are probably curled up in the fetal position, sucking your thumb and crying because you didn’t pull the trigger when you had the chance – tough luck!
Well, maybe it’s too late for you to make a quick double or triple on Aurelian stock, but there is a plethora of junior companies popping up like weeds in close proximity to Aurelian’s key properties trying to be the next company to bask in the limelight.
Aurelian has found a world-class deposit, which in all probability, will not be duplicated by anyone else. However, other juniors moving into the area may have a chance at some of the high-grades of gold that Aurelian has become famous for.
What I have found, is that after the rapid price appreciation of ARU stock this year, people have become almost manic about finding the next company to duplicate Aurelian’s results. What this has created is a multitude of volatile junior exploration companies, whose share prices swing wildly up and down, based upon drill results and property acquisitions in the area.
Although I wouldn’t recommend buying and holding these juniors in hopes of them metamorphosing into a $40 stock, I would recommend taking a closer look at the following stocks, getting to know them and their trading patterns, and trading the news, which can be very lucrative.
What you have to remember is that good news can send these stocks soaring and bad news can send these stocks plummeting. In my experience, one of the best times to pounce on these stocks is after the market has over-reacted and punished them too much for less than satisfactory news.
What freaking stocks am I talking about already? The following is a list of the most popular area plays around Aurelian’s properties:
Plexmar Resources (PLE-TSXv)
Skeena Resources (SKE-TSXv)
Goldmarca Limited (GML-TSXv)
Oremonte Resources (ORR-TSXv)
Lateegra Resources (LRG-TSXv)
At times, these companies can provide excellent trading vehicles if you’re quick and ready to pounce – but be forewarned, holding these stocks for too long can be a mixed blessing. Although at times very profitable, holding can lead to imminent losses in your portfolio.
Example: You wake up one morning and go to check how your new shares of Oremonte Resources (ORR-TSXv) are doing. You notice there is a trading halt on the stock. Then news comes out, touting drill results below that which the street was expecting. Oremonte then resumes trading after gapping down 20% and striking a devastating blow to your portfolio.
The following chart illustrates the frequent gaps on Oremonte's chart created by good and bad news:
Just remember that these are news driven stocks, so be diligent in your approach and don't get too comfortable holding them for the long haul.
I will be providing periodic up-dates and trading alerts related to these companies, who have acquired properties around the Peru/Ecuador border and more importantly – near Aurelian’s monster deposit. |
posted by MicroCapMayhem @ 10:42 PM   |
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| 4 Comments: |
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I think you should include NVT (Nortec Ventures) and now also CPP (Coastport Capital) to your list. NVT started a drill program on the Ecuador property on October 4 and have since added a second drill rig to the property. Drill Cores can be seen on their website located at http://www.nortecventures.com/ganarin.htm
These drill cores and are in the lab awaiting processing and the results will be released in due time.
Coastport Capital (CPP) is a very interesting story as they have just announced today that they have initiated an 8000 meter drill program.
see snippet of the news release:
2006-11-14 08:09 ET - News Release
COASTPORT COMMENCES 8000M DRILLING PROGRAM AT LA PLATA
An 8,000-metre phase II drilling program has commenced at Coastport Capital Inc. and Cornerstone Capital Resources Inc.'s La Plata gold-rich copper-zinc massive sulphide project in Ecuador. The program will follow up on the positive drilling results of the phase I drilling program, and test a number of high-priority geophysical targets. Phase II targets are described in detail below.
This is a very interesting play. I believe this is one of the most advanced exploration plays in Ecuador as Cambior was previously on the ground and have poked numerous holes and even had come up with a resources estimate. They dropped the property in the late 90's becuase of the price of gold was so low.
Here's a snippet from the release outlining previous results from a few of the drill holes:
The La Mina deposit (840,459 tons grading 4.8 grams per tonne (g/t) Au, 54.4 g/t Ag, 4.1 per cent Zn, 4.2 per cent Cu and 0.7 per cent Pb; historical grade and tonnage estimate, Cambior, 1998(i)) was tested down-plunge to the south during phase I drilling.
High-grade mineralization was encountered in two of three holes drilled at La Mina. Hole LP-06-01 yielded assays of 31.73 g/t Au, 289.39 g/t Ag, 18.16 per cent Zn, 5.86 per cent Cu and 1.61 per cent Pb over 8.9 m including 5.2 m averaging 51.11 g/t Au, 243.47 g/t Ag, 17.58 per cent Zn, 4.88 per cent Cu and 1.77 per cent Pb. Hole LP-06-02 returned 8.2 g/t Au, 62.5 g/t Ag, 16.99 per cent Zn, 1.65 per cent Cu and 2.32 per cent Pb over 9.5 m. These two holes are 65 m and 41 m step-outs to the south and west of the La Mina deposit, respectively.
The mineralization remains open to the south-southeast and west. The phase II drill program will test for further extensions of La Mina mineralization to the south-southeast, west and north.
As you can see from the above, the management team definately have a handle on where the mineralization occurs and therefore, have initiated this rather large 8000 meter drilling campaign.
For the above two companies, there will be lots of news coming out for you trade with.
Good luck to all and thanks for the great blog.
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excellent post.
not sure if I like nvt better or cpp. nvt gives you the best leverage @ 27 cents. cpp gives you the home run advantage.
anyone else know about these two?
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Lateegra must also think the CPP/CGP La Plata Property in Ecuador has potential. Lateegra should get some spinoff play with Coastport starting their 8000meter drill program next door.
Buy CPP, LRG, and NVT for drill result speculation.
2006-11-08 06:51 ET - News Release
Mr. Michael Townsend reports
LATEEGRA GOLD EXPANDS HOLDINGS IN ECUADOR WITH ACQUISITION OF TWO ADDITIONAL PROPERTIES
Lateegra Gold Corp. has acquired the M10, and the Auripamba East and West properties. The properties were purchased from Carlos Arias and Sergio Penaherrera though Lateegra's wholly owned subsidiary Lateegra Ecuador S.A.
The M10 property is located in the Pichincha province 50 kilometres west-southwest of Quito, Ecuador, immediately north of and adjoining Cornerstone Capital Resources and Coastport Capital's La Plata gold-rich VMS (volcanic massive sulphide) deposit, and covers an area of 4,915 hectares. The M10 property was identified by Ing Fredy Salazar, who spent several years as a senior geologist for Newmont Gold and provided consulting services for Aurelian Resources. Mr. Salazar was instrumental in the identification of the land package known as the Condor project held by Aurelian Resources and the El Condor project held by Lateegra located in the emerging gold belt in southern Ecuador.
The exploration target on the M10 concession is the continuation of the La Plata polymetallic volcanogenic massive sulphide (VMS) trend. Mineralization at La Plata and in the area occurs at or near the north-south-trending contact between intermediate and felsic volcanics. Recent results from the drilling on La Plata by Cornerstone and Coastport Capital returned significant massive sulphides returning in hole LP-06-02, 6.7 metres (true width of 4.4 metres) averaging 11.1 grams per tonne gold, 77.9 grams per tonne silver, 23.44 per cent zinc, 1.02 per cent copper and 3.19 per cent lead; and 8.9 metres averaging 31.61 grams per tonne gold, 289.39 grams per tonne silver, 18.16 per cent zinc, 5.86 per cent copper and 1.61 per cent lead in hole LP-06-01 (see Stockwatch news dated June 22, 2006, Cornerstone Capital Resources). The M10 concession covers 7.5 kilometres of potential strike length of favourable geology. Documented mineral showings are reported to exist on the property including the El Diablo showing located on the south limits of the property.
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Great mining development.
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I think you should include NVT (Nortec Ventures) and now also CPP (Coastport Capital) to your list. NVT started a drill program on the Ecuador property on October 4 and have since added a second drill rig to the property. Drill Cores can be seen on their website located at http://www.nortecventures.com/ganarin.htm
These drill cores and are in the lab awaiting processing and the results will be released in due time.
Coastport Capital (CPP) is a very interesting story as they have just announced today that they have initiated an 8000 meter drill program.
see snippet of the news release:
2006-11-14 08:09 ET - News Release
COASTPORT COMMENCES 8000M DRILLING PROGRAM AT LA PLATA
An 8,000-metre phase II drilling program has commenced at Coastport Capital Inc. and Cornerstone Capital Resources Inc.'s La Plata gold-rich copper-zinc massive sulphide project in Ecuador. The program will follow up on the positive drilling results of the phase I drilling program, and test a number of high-priority geophysical targets. Phase II targets are described in detail below.
This is a very interesting play. I believe this is one of the most advanced exploration plays in Ecuador as Cambior was previously on the ground and have poked numerous holes and even had come up with a resources estimate. They dropped the property in the late 90's becuase of the price of gold was so low.
Here's a snippet from the release outlining previous results from a few of the drill holes:
The La Mina deposit (840,459 tons grading 4.8 grams per tonne (g/t) Au, 54.4 g/t Ag, 4.1 per cent Zn, 4.2 per cent Cu and 0.7 per cent Pb; historical grade and tonnage estimate, Cambior, 1998(i)) was tested down-plunge to the south during phase I drilling.
High-grade mineralization was encountered in two of three holes drilled at La Mina. Hole LP-06-01 yielded assays of 31.73 g/t Au, 289.39 g/t Ag, 18.16 per cent Zn, 5.86 per cent Cu and 1.61 per cent Pb over 8.9 m including 5.2 m averaging 51.11 g/t Au, 243.47 g/t Ag, 17.58 per cent Zn, 4.88 per cent Cu and 1.77 per cent Pb. Hole LP-06-02 returned 8.2 g/t Au, 62.5 g/t Ag, 16.99 per cent Zn, 1.65 per cent Cu and 2.32 per cent Pb over 9.5 m. These two holes are 65 m and 41 m step-outs to the south and west of the La Mina deposit, respectively.
The mineralization remains open to the south-southeast and west. The phase II drill program will test for further extensions of La Mina mineralization to the south-southeast, west and north.
As you can see from the above, the management team definately have a handle on where the mineralization occurs and therefore, have initiated this rather large 8000 meter drilling campaign.
For the above two companies, there will be lots of news coming out for you trade with.
Good luck to all and thanks for the great blog.