-- Posted 14 November, 2007 | | Discuss This Article - Comments:
Pennaluna Prospector: Northwest Mining Stock News -- Coeur d’ Alene, Idaho --
November 13, 2007
Silver rocketing to $15. Gold surging to 27-year highs. Foreign capital flooding into Northwest mining and more action in the Silver Valley than we’ve seen in a generation. To top it off, a plunging dollar, a credit crisis and wild market volatility.
Your editor looked up from the piles of bureaucratic paperwork on which he has labored for these many months and observed all this with the surprise of a man waking suddenly from a deep sleep in a strange city. He had no idea.
With apologies for tardiness, here is an update on a few of the new developments here in our neck of the woods.
* * U.S. Silver Corporation (TSXV:USA) last week released results for drilling at the Galena Mine up in the Coeur d'Alene Mining District. The Wallace firm, bankrolled by London money, reports hitting multiple silver and lead veins, with the best intercept grading over 14 ounces of silver a ton for more than 5 feet and over 21 % lead.
USA holds about 18,000 acres in the Silver Valley that it bought last year from Coeur d’Alene Mines (NYSE:CDE). It reports silver production from this complex since 1953 has been over 210 million ounces, with the Galena said to be the number two silver producer in US history. Besides the Galena, the firm also owns the Coeur and Caladay mines. Outfits with property around the Galena include American Silver (PinkSheets:ASLM)… Sterling Mining (TSX:SMQ / OTCBB:SRLM)… and Silver Buckle Mines (PinkSheets:SBUM). USA shares are trading this morning at about C$ .82.
* * Timberline Resources (OTCBB:TBLC) recently closed a $US 7 million-plus private placement. The Coeur d’Alene exploration and drilling outfit has applied for listing on AMEX and last week announced that its wholly owned Kettle Drilling subsidiary posted record quarterly revenues of over US$ 6 million.
When TBLC moved up to the Bulletin Board last year, shares were about 75 cents. Now they’re about US$ 3.20.
* * The Northwest Mining Association will hold its 113th annual convention in Spokane from December 3 through 7. Look for a good turnout. For details visit http://www.nwma.org
* * Atlas Mining (OTCBB:ALMI) of Osborn took it on the chin last month when new management announced it would restate three years of financial statements and several law firms declared they would sue. Shares that climbed as high as US$ 3.00 in the past year have tumbled to around US$ .65.
* * Hecla Mining (NYSE:HL) surprised Wall Street last week by chalking up quarterly earnings of a dime a share, more than double expectations. At its flagship Lucky Friday Mine in Mullan, the cash cost of production for an ounce of silver last quarter plunged to – sit down for this – negative US$ 2.38, thanks to higher prices, higher production and lower costs. Hecla says the Lucky Friday so far this year has given it over US$ 30 million in gross profit.
Shares of the 116-year old granddaddy of all our local miners dipped down to almost 6 bucks a year ago. Now they’ve climbed back up to US$ 10.72, toward the high end of its 52-week range.
* * SNS Silver Corp. (TSXV:SNS), the Vancouver firm that bought the Crescent Mine last year, says it is finishing up 32,000 feet of surface drilling there and is ready to start a 100,000 foot underground drill program. The Crescent -- once part of the storied Bunker Hill complex -- was a high-grade silver mine that reportedly produced over 25 million ounces at an average grade above 27 ounces a ton. It sits between the Sunshine Mine (300 million ounces of silver produced) and the Bunker Hill (100 million ounces).
SNS has a 52-week high and low of C$ .38 and $ 2.19. It’s trading today at around C$ 1.25.
* * Mines Management (AMEX:MGN / TSX:MGT) of Spokane last week closed a
US$ 10 million private placement of stock with Toronto-based Silver Wheaton (NYSE:SLW / TSX:SLW) at a price of US$ 4.00 a share. Silver Wheaton also got a 20-year right of first refusal on silver from MGN’s Montana properties.
MGN said it would use the cash for working capital and general corporate needs, including development of its Montanore silver and copper project near Libby, Montana… which is estimated to hold up to 260 million ounces of silver and 2 billion pounds of copper. MGN also bought out the 5% net profits royalty held by former investors in the project. Shares are changing hands at around US$ 4.15.
* * Little Squaw Gold (OTCBB:LITS) has reported a passel of promising results from drilling and trenching at its 14,000-acre gold property up in Alaska’s Chandalar Mining District, about 200 miles north of Fairbanks. The Spokane outfit -- honchoed by Yamana Gold founder Dick Walters -- also says a geochemical survey found four substantial gold-anomalous areas at its sprawling Pedra de Fogo property down in Brazil.
LITS shares have a 52-week range of US$ .72 to $ 1.53 and have traded recently
around US$ .90.
* * Canadian warrants -- Yes, we trade Canadian warrants for our customers. Quite often.
* * Idaho General Mines last month changed its name to General Moly Inc. and moved its main office from Spokane to Denver. The stock still trades on the AMEX under the same symbol, GMO. The firm owns the Mount Hope Molybdenum Project down near Eureka, Nevada, estimated to hold over 1.3 billion pounds of recoverable molybdenum.
GMO was trading around US$ 3.00 at this time last year. Today it’s about US$ 8.80.
* * Azteca Gold (TSXV: AZG), the young Spokane outfit headed by former Idaho General Mines COO Matt Russell, has been busy during its first year of life. It signed an option on the Bunker Hill Mine in Kellogg and a letter agreement with the EPA too, raising hopes old Uncle Bunker may come to life again; it launched drilling programs in Mexico, Nevada and the Silver Valley; and it raised millions of dollars through private placements.
Azteca started the year at about C$ .30. It’s now up around C$ .75.
* * Stillwater Mining (NYSE: SWC) posted a quarterly loss of US$ 11.1 million, or 12 cents a share. The Columbus, Montana outfit blamed the red ink mainly on a weeklong strike in July and the loss of seasoned miners caused by a work schedule change last spring. (Many Silver Valley miners signed on with Stillwater in past years when local work offered slim pickings.)
SWC is the only U.S. palladium and platinum producer and the largest primary producer outside Russia and South Africa. With a 52-week range of US$ 7.93 to 16.47, the shares currently trade around US$ 9.80.
* * New Jersey Mining (OTCBB:NJMC) says drilling on the Idaho Vein at its Golden Chest Mine outside Murray hit good gold values. The Kellogg outfit reports one hole intercepted a hanging wall vein that assayed 16.1 grams per tonne gold over a true width of 0.4 meters, while a second intercept in the same hole was 3.29 grams per tonne over 2.5 meters. The firm says it also found other mineralization with open pit potential.
Shares of NJMC, headed by the father and son mine engineer team of Fred and Grant Brackebusch, are trading this morning a hair above US$ .50.
* * Coeur d'Alene Mines (NYSE:CDE/TSX:CDM), our neighbor on the next block down Fifth Street, was upgraded last week from neutral to overweight by JPMorgan Chase & Co. CDE has a 52-week range of US$ 2.98 to $ 5.50. It’s trading lately at about US$ 4.17.
* * Be Careful Out There -- We remind you again that resource stocks are volatile and can go down as fast as they go up. They’re no place for your “safe” money. No matter how good things look, don’t invest more than you can afford to lose. It’ll be easier on your nerves.
* * Sterling Mining (TSX:SMQ / OTCBB:SRLM) of Wallace, which is working to reopen the Sunshine Mine, began trading last month on the Toronto Stock Exchange under the symbol SMQ. The firm says its Sunshine Mine milling and concentrating facility is operational and processing Sunshine Vein ore. It forecasts that the legendary mine will return to sustained production next month.
SRLM has been as high as US$ 4.70 in the past year, and as low US$ 2.66. It’s trading lately a shade under US$ 3.70.
“ Fear makes the wolf bigger than he is. ”
Editor: Tom Wobker
Disclosure: Pennaluna & Company is a NASD broker-dealer and market maker. As such, it frequently buys or sells stocks for its own account, or in order to make a market. Consequently, Pennaluna may at any time buy or sell or make a market in any stock mentioned herein, and associated persons may also buy, sell or hold such stock at any time. The firm and/or associated persons may also engage in private placements or other investment banking activities with any company mentioned. Some securities mentioned may be small-cap stocks and subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information; some may be foreign securities and subject in addition to currency, political and other risks. Mention of a security does not imply an endorsement. Comments and opinions are solely those of the writer. This publication is not investment advice, is not a research report, is intended solely to provide readers with information, is not a solicitation for the purchase or sale of any security, and is not intended to be nor to be used as tax advice, which should be sought from a professional familiar with your individual financial situation. Mention of a company or stock does not in any manner constitute a recommendation, unless specifically so stated. Information is believed accurate but accuracy is not guaranteed.
-- Posted 14 November, 2007 | | Discuss This Article - Comments: