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Juniors That Merit Attention

The cyclical price action of the market brings many low cap junior mining stocks into a traditionally attractive buying range. From time to time, certain stocks can be found selling at prices that have proven over the years to be excellent buying opportunities. The most successful investors make their commitment after a severe decline in the prices of these stocks while pessimism is still running high. While the pessimism may have been running high-the companies’ officers and directors have been buying their companies’ shares very aggressively. Today’s companies include Nemaska Exploration, Rockland Minerals, Cancor Mines, Uragold, Niogold, Cartier Resources.


This site focuses on small cap junior mining stocks, particularly those that have experienced major declines in their prices, yet our analysis indicates that they could be undervalued! We look to invest in stocks during periods of weakness. It has given us many successes over the years. Think of it this way, someone is dumping a stock in utter frustration and saying “just sell it, get me out of this stock”. Or it could be “I have my flow-through write off so what the heck, let’s just sell it and get out.” Logic like that makes little sense. At the same time, another investor may have done some research, saw a stock (stocks) having sold off and recognized it as undervalued and perhaps noticed that the officers and directors (insiders) were buying that very stock (stocks) at the same time. That investor may be saying to his or herself “what a great opportunity this is to invest in this stock at such a low price.” It happens all the time.

 
We are looking at the following junior mining stocks which are selling close to their longer term price lows. Again, they are high risk as any junior mining company carries high risk, but they may merit attention. As always, each stock is near its price low for a reason. It could be due to exploration disappointments, a need for greater reserves and resources or any of several reasons. It could be the normal June through August malaise in the junior market itself.

 
But if things change for a company, a junior mining stock can offer an excellent opportunity for substantial capital gains. One must recognize that for the small cap junior market today, we are in an “inefficient market” that often fails to recognize exploration successes by juniors for prolonged periods. As well, there are over 1200 junior mining stocks. Which companies get the attention? And worse yet, exceptionally positive drill results and news is often overlooked for long periods.

 
There are several key ingredients in a mining company that an investor should be considering such as “projects’ potential”, “adequate cash” and “experienced management” among many factors. Throw in officers and directors owning the shares heavily as well.

 
OK, Some junior mining stocks that we are monitoring, moreover, we will be commenting on many more companies very soon.

 
Cartier Resources, symbol “ECR”, .42 cents, has 4 active gold projects in Quebec, very interesting copper project as well, heavy insider (officers and directors) ownership and insider buying as well. Management is of high quality, experienced and focused. Hit $1.20 as a new company-too fast, too soon and corrected, good accumulation. We have followed ECR for three years and are very satisfied by its progress.

 
Logan Copper, symbol “LC”, at .06 cents, highly speculative, has several excellent copper properties in British Columbia, heavy insider ownership/buying recently, excellent infrastructure such as mill and power supply, price range over the year is .05 cents to .28 cents; it seems to offer exceptional blue sky potential.

 
Niogold, symbol “NOX”, .42 cents, has what we think is a superb project in Quebec, as well as partnership with Aurizon Mines, controls a large area, has a large cash position and experienced management. In our opinion, NOX has substantial gold mining potential. Solid buying of the shares recently.

 

 
Uragold, symbol “UBR”, .03 cents, gold exploration company focusing on a previously active mining area in the Appalachian region of Quebec, drill results expected shortly, a century ago, it became the only successful placer deposit in Québec; a great deal of mining history exists in the area. Awaiting drill results now.

 

Cancor Mines, symbol “KCR” on CNSX, 14 cents, Quebec based gold and base metals company with active exploration and developmental projects in Quebec and Algeria. Key: Cancor has four potential gold properties in Algeria that encompass an enormous amount of land; Exploration done in the past suggests excellent mining potential. Over 2290 recent samples have been taken in the year 2011 with excellent results. Institutions own 9% of the shares with officers and directors owning 18%. Officers and directors’ buying has been incredibly heavy over the last three years. Could be a real surprise as with all the properties that Cancor controls in Algeria as well as its Quebec reserves, the value of Cancor based upon its present price of .15 cents times outstanding shares is a mere $11,176,498 market cap! In our humble opinion, in view of Cancor’s assets and enormous potential, it should be carrying a market cap of at least $35,000,000. In our opinion, KCR is exceptionally undervalued.

 
Nemaska Exploration, “NMX” .49 cents, is a Quebec based Lithium developmental company which we believe will be a major ingredient of the economy very soon; its’ key property located in the James Bay area of Quebec; has very high quality, high grade lithium reserves; insiders (officers and directors) have been buyers of the company’s stock, focused and solid management as well, we visited the project and were very impressed. Institutions own 38% of the shares.

 

Rockland Minerals, “RL”, .14cents, currently drilling in Schefferville and Retty Lake Québec areas, has gold, nickel, iron ore and platinum properties, consistently and very heavy insider buying which attracted our attention as well as huge insider ownership percentage, a very interesting point is that its management/officers take very low salaries. With their heavy insider ownership, we read that as their primary interest is in the performance of Rockland shares and not their salaries!