A key for success in junior exploration stocks is to accumulate stocks when they are undervalued while they are selling at the lower end of their price range. With that in mind, you might want to see a previous article that we had written on this site. ( http://www.canadianmineanalysis.com/?p=138 ) Moreover, you will often find yourself totally alone when doing research on most junior mining stocks as there generally is little comprehensive research available for most juniors. In analyzing the junior stock universe, we must keep in mind that we are focusing on markets that are inefficient and late in recognizing undervaluation. 

It’s the same old story, there are numerous stocks that are incredibly undervalued and yet the market does not recognize their undervaluation. Too often, brokerage houses have overlooked stocks when they are literally “on sale.” The brokerage houses greatest talent seems to be in recommending stocks when they are popular not undervalued. And another point, many people doing their own research can run rings around the so called expert analysts.
 The following junior mining stocks are selling close to their yearly price lows. Of course, they are speculative as exploration carries high risk, but for risk oriented investors, they may merit attention. Each stock is near its price low for one reason or another; could be due to exploration disappointments, maybe still a lack of adequate reserves as yet or just a stock being overlooked or any of several reasons. At present, we see that there is a general weakness in the junior mining market itself. The key, as always, is to do your research and take advantage of a situation if it makes sense to you.

 But if things turn around or change, many junior mining stocks offer opportunities for significant capital gains. We plan to be following these small cap junior mining stocks as well as many others. Again, we recognize that we are in a very inefficient market that often fails to recognize exploration success for prolonged periods of time. Patience is required.

 CANADIAN ZINC CORPORATION, symbol CZN, .74 cents, is a Canadian junior exploration mining company based in British Columbia…major asset is their Prairie Creek Mine…43-101 reserves and resources are substantial and we see the strong likelihood of expansion of their resources and reserves. CZN has a  very high asset value per share. Sprott Asset management owns 12% of the shares, Chinese holding 8% including a recent placement. Off last year’s price of $1.35, weakness may be an opportunity. Stock is liquid. No debt and a solid cash position. Mine production could begin within 18 months.

 CANCOR Mines, symbol KCR on CNSX, .08 cents, is a Quebec based gold and base metals company, active exploration projects in Quebec and Algeria. Cancor already has resources in Quebec that are 43-101 compliant. The five year price range has seen a price of .40 cents to a low of .02 cents. Very few shares are available below .15 cents, it is quite illiquid. In autumn of 2011, a $3,000,000 private placement was done at .20 cents per share. It was taken totally by one large European investor.

 Most importantly, Cancor has four potential gold properties in southern Algeria which is Cancor’s primary focus. The historical data from previous exploration suggests excellent potential. In 2011, 2290 samples from extensive trenching and channel sampling returned excellent results. Officers and directors own 28% of the shares, insider buying has been exceptionally heavy over the last three years. Note well that Algeria is already a prolific oil and gas producer. Current delay on the drilling program is being addressed. Key point: Results suggest exceptional potential for their gold projects in Algeria based upon their recent trenching and channeling results. KCR has a large cash position and no debt.

 CARTIER RESOURCES, symbol ECR, .34 cents, recent price high of .58 cents, is a gold exploration company based in Val d’Or, Quebec, has ten exploration projects-three quite active. Cartier is “drill ready” on their resource based projects. We notice that very heavy officers and directors buying occurred even at above its present price. Moreover, officers buying last year was heavy at .40 cents. Drilling focus and officers buying indicate a strong effort for success. Not too liquid-we interpret as few shares are for sale-a good sign! ECR has a relatively small number of shares outstanding and large cash position.

 YORBEAU RESOURCES, symbol YRB.A, .27 cents, is a Quebec based gold exploration, has substantial resources and several high potential targets, company was victimized by collapsing gold prices as well as a joint venture partner’s failure several years ago, that has been turned around, presently there is ongoing drilling with a very experienced mining team in the prolific historical mining area of Rouyn, Quebec. In our opinion, YRB.A has the potential for proving exceptional reserves in 2012. Yorbeau has an enormous number of properties and a substantial cash position.

 URAGOLD, symbol “UBR” .04 cents, is a Quebec based gold exploration company focusing on a previously active mining area in the Appalachian region of Quebec. UBR focus is on being a low cost producer. About a century ago, it became the only successful placer deposit in Québec; a great deal of mining history exists in the area with new exploration companies now arriving in the area. Company has no debt and may be a good accumulation at 3 cents to 4 cents. At its low price, UBR may be a sensible and prudent method to have a “call” on gold. Relatively liquid market for the shares.

QUEST RARE MINERALS, symbol “QRM”, on TSX and NYSE-Amex, Quebec based exploration company, focused on the very much desired and vitally needed “heavy rare earth elements.” Their deposits are already very high grade. QRM has $39 million cash position. Excellent and experienced management team. We had followed this from when it was selling at .20 cents on our previous Canaminvestor site.