News update from Western Wind Energy

"Western Wind Takes Delivery of US $12 Million of Solar Panels and Secures US Cash Grant"

WND.V signed a Module Supply Agreement ("MSA") for 42MW DC (30MW AC) for its Yabucoa Project located in Puerto Rico which will be repaid by US $12M project finance proceeds led by Rabobank. The Solor panels will be received prior to the Dec.31,2011. This transaction allows for the 30% US Federal Tax Free Cash Grant ~US $45M and qualifies for an addition US $64M of Puerto Rican investment tax credits.

Jeff Ciachurski, President of Western Wind Energy states, "this is a monumental accomplishment to secure the cash grant before the expiry date and together with the Puerto Rican ITC, add another $109 million of direct cash benefit to the Western Wind shareholders. Together with the previous $100 million received and/or about to be received from Kingman and Windstar respectively, this brings the aggregate amount of cash grants, tax credits, and tax shield benefits totaling over a half a billion dollars. It will only be a matter of time before Bay Street analysts realize the full value of Western Wind Energy. This is another gold medal performance by the Western Wind team, to close off 2011. Western Wind Energy wishes all of its stakeholders a happy, healthy and prosperous 2012."


New release

Source: http://finance.yahoo.com/news/Western-Wind-Takes-Delivery-cnw-1181518378.html?x=0

Source: http://ca.finance.yahoo.com/news/Western-Wind-line-receive-US-capress-3610689671.html?x=0

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

How are coarse gold veins formed? (BCG.V)

Nearly all coarse and fine placer gold originates from the erosion of primary hard rock gold deposits. Some placers are re-concentrated from older placers, but in the past, some time these came from primary deposits. A small amount of coarse gold has probably resulted from secondary enrichment processes, but the majority grew as a primary deposit from circulating hot water solutions under pressure – these are often called hard rock deposits

If water is hot enough, pressure high enough, and the chemistry is right (acids, and other elements like sulfur are present), then gold, quartz and other things can dissolve and go into solutions. The solutions move by natural convection (hot rises). As the solutions rise, the water cools as they move farther from the heat source in the ground and closer to the surface. The sulfides become less soluble and they come out of solution to follow natural fault zones to form veins (long and narrow plane). Veins are also commonly formed at the meeting of two different rock types. Sometimes a zone of broken or fractured rocks can develop a series of small parallel veins.

The small veins were difficult for old time miners to find and mine profitably. Therefore, with the new modern technology, geologists' jobs were made a lot simpler - larger areas can be covered and residual placers can be found quicker.


Some coarse gold veins districts that were found:

Goldfield, Nevada 1903 - the most productive gold vein district in Nevada - 5M oz of gold

Randsburg, South California - over 1M oz of gold

Kofa placers of Yuma county

North Star and King of Arizona

Source: http://www.nuggetshooter.com/articles/CRGeologyofcoarsegoldformation.html

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

BCGold Corp BCG.V

Ticker BCG.V

Current price is between $0.10

Market Cap $9.1M

Shares Out. 96.4M

Revenue (FYR) ---

EPS $-0.03

Shareholder Ownership

• 5% Management & Directors
• 21% Institutional
• 8% Kinross Gold Corp
• 66% Retail 

Why to buy?

BCGold corp was created by a proven "ore-finders" management team who have more than 30 years of exploration and mining industry experience. This team includes 3 founding board members and the VP of Exploration explored for Placer Dome Inc. (1982-2006).

Currently, the main focus is the near-term production potential on the Engineer Mine Property. The production drifts in place for Engineer Vein between 5-8 Levels and Double Decker Vein on 5 and 8 Levels. There are high-graded gold comfirmed 21 metres below deepest mine level (8 level) on Double Deck Vein. They have a permit to dewater lower most 3 levels in hand and is fully permitted with a 30tpd gravity separation mill on site.

The two recent news release:

Aug.16,2011 BCGold Corp announces trench assays up to 979 g/t gold (28.6 oz/ton) and prepares to commence milling at Engineer Gold Mine

Link to news release:
http://www.bcgoldcorp.com/index.php?id=127&news=137#pagetop

Dec.14,2011 BCGold Corp reports bulk sample concentrate grades up to 6,485.8 g/t gold (189.2 oz/ton) from engineer gold mine

Bulk Sample	Tonnes Milled	Concentrate Produced (dry kg)	Table Concentrate Grade
			Gold g/t	Gold oz/t	Silver g/t	Silver oz/t
DD Trench	9.4	15.5	379.3	11.1	244.6	7.1
505-2	40.7	167.5	204.8	6.0	231.4	6.7
505-3A	35.5	172.3	1,324.1	38.6	607.7	17.7
505-3B	68.9	173.5	6,485.8	189.2	934.8	27.3
505-5	69.7	228.1	1,382.2	40.3	826.7	24.1
505-6	21.9	58.7	621.2	18.1	414.4	12.1
Total	246.1	815.6*	-	-	-	-

Link to news release:
http://www.bcgoldcorp.com/index.php?id=127&news=145#pagetop

The 5 projects

1. Engineer Mine Property, B.C.
2. Minto/Carmacks Copper-Gold properties, Yukon
3. Sickle-Sofia Property, B.C.
4. Voigtberg Property, B.C.
5. South Quesnel Porphyry Copper-Gold Properties, B.C.

Link to properties desciptions
http://www.bcgoldcorp.com/all_files/BCGC-Hand%20Brochure-Dec-14-2011%20low.pdf

Video Footage at the Engineer mine mill in action (Oct.06,2011)

Website: http://www.bcgoldcorp.com/index.php?id=2

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

Important notes and date to mark down for this week

S&P to place all 17 Euro nations on rating downgrade watch

US ratings agency to place Euro nations on "credit-watch negative". They are suspecting that there is one-in-two chance of a downgrade within 90 days.

France, Germany, the Netherlands, Austria, Finland, and Luxembourg, all tripe-A members of the euro zone, may be stripped of their AAA credit ratings as a result of deepening economic an polictcal turmoil.
Friday Dec 9th 2011, European Union leaders will meet and announce what they planned to do about the current economic crisis. We currently see optimisim in the market in hope that the European leaders will be able to quickly move to an agreement on a fiscal pact.'
Depending on what the European Union will announce on Dec 9th, we may see the price of gold move to the upside and break resistance. Keep an eye on Gold.
You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

Is this a Santa Claus rally?

A Santa Claus rally is a surge in price of stocks that occurs in the month of December, closer to Christmas but before New Year's Day. The rally is an anticipation of a rise in stock price in January due to an injection of additional funds into the market which is known as the January effect. The rally can also be due to additional trades that must be completed before year end for accounting and tax purposes.

The rally was sparked by the news that the Fed and 5 other Central banks will rescue the system by making it cheaper for banks to borrow money. The holiday season shopping starts off strong with black friday and cyber monday leading with the sales due the deep discounts in products. The rally spreaded overseas causing the Asian markets to soar (Hang Seng +1012.91 - 19002.26; Nikkei 225 +162.77 - 8597.38)

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

Uranium One UUU.TO

We understand that this is not a Venture stock, however, we believe uranium stocks are bound to make a move up since negative news reports are fading, demand is rising, upcoming new nuclear power plants, and oil prices are starting to rise again.

Ticker UUU.TO

Current price is between $2.30 - support $2.20 - resistances $2.40-$2.50 and $2.80

Market Cap 2.1B

Shares Out. 957.2M

Revenue (FYR) $326.9M

EPS $-0.15

Uranium One is one of the world's largest uranium producer, second largest in Canada. The company is 51.4% owned by ARMZ. They have properties in the Kazakhstan, U.S., and Australia. Other than the currently producing projects, they have many other projects in the works. The Q3 profit beat estimates. The net profit was $45.8M ($0.05/share) compared to last years Q3 a net loss of -$44.8M (-$0.08/share), meaning revenue more than doubled. They expect production to be 11.6M lbs of uranium for the coming year 2012.

Company website http://www.uranium1.com/index.php/en/

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

Uranium will prevail!

Uranium prices had taken a hit from ~$72 to now ~$52 since the meltdown at the Fukushima nuclear plant earlier this year of 2011. The negative news reports on uranium has slowed down. We believe uranium prices is bound to rebound upwards due to higher demand for uranium, higher oil prices, and upcoming new nuclear power plants being powered up.


Here is a recent article supporting nuclear power: Sarkozy (President of France) vows no retreat from nuclear power

http://www.cbc.ca/news/business/story/2011/11/25/nuclear-power-france.html

'Do we have the means to destroy thousands of jobs in the middle of a crisis?... It's madness.'—French President Nicolas Sarkozy

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

Another financing by Metanor Resources Inc?!

"Metanor Resources Inc. announced that it has entered an agreement with a syndicated of agents co'ded by Industrial Alliance Securities Inc. and National Bank Financials Inc. for a private placement of up to 25,000,000 Units of MTO.V at a price of $0.34 per unit for aggregate gross proceeds of up to $8,500,000."

http://ca.finance.yahoo.com/news/Metanor-announces-8-500-000-cnw-2062885299.html?x=0

The financing is expected to close on  Dec.19,2011, half a month. The question is why are they financing and what are they going to do with the proceeds from this private placement. It was never specified on the news release.

Can these proceeds be used for immediate exploration or expansion of one of the two projects?

Aug.25,2011 Industrial Alliance Securites - Mining Analyst Killian Charles previous said "No barriers left to Metanor's success"

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

Rio Alto Mining Limited RIO.V

Ticker RIO.V (OTCQX - "RIOAF"; BVL - "RIO"; Frankfurt - "MS2")

Current price is between $3.30 - support $2.80 - previous high of $3.20

Market Cap 542.8M

Shares Out. 169.6M

Revenue (FYR) ---

EPS $-0.06

  

Analyst coverage target prices

• Scotia Capital $4.20
• Stonecap $3.90
• CIBC World Markets $4.60
• Clarus Securities Inc. $3.30

Why to buy?

Since May of 2011, Rio Alto Mining is a gold producer with its 100% owned La Arena gold/gold-copper project (21,000 ha) in north central Peru. La Arena contains 2.8M oz of gold and 1.7B lbs of copper indicated with additional 1.2M oz of gold and 1.2B lbs of copper inferred. The company is also investigating on increasing production rate by 50%, from 24k tpd to 36k tpd. The current production gold grade have been 25% higher than the estimate. Recently, the drill results been sucessful with results of 238m of 1.06g/t and 134m of 2.29g/t. With these new positive results, the company continues to explore and drill for possible expansion. Another potential upside lies in the development of the adjacent copper-gold sulphide project.

La Arena gold/gold-copper project

• 100% owned
• Production commenced in May of 2011
• Indicated 2.8M oz gold and 1.7B oz copper
• Inferred 1.2M oz gold and 1.2B oz copper
• Production rate 10k tpd -75k oz gold first year
• Production rate 24k tpd - 96k - 120oz gold per year for 5 years
• Tailing off 35k oz gold 7th year
• Approx.cost $508/oz gold
• QE3 (Aug.31.,2011) produced 9,385oz gold (poured) and 18,390oz placed on the pad.
• Recent production - average graded 0.55g/t (25%) above the reserve grade of 0.44g/t

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

Gold mining sector is UNDERVALUED

With spot gold price currently at ~$1700, Madison Avenue Research company has put together a analyst report stating that the stocks are "dramatically below fair market value". They listed numerous gold stocks that they have used in comparison to the spot gold price. This includes Metanor Resources that I have mentioned in the previous post under "high potential stocks." There are charts and general information posted that supports their view. They also mentioned that the recent pull back is a healthy natural profit taking pull back. Healthy pull backs tend to create new bases of support to sustain the moves up.

Here is the link to the analyst report: http://madisonaveresearch.com/marketsd2011.htm

We will probably see more and more analyst reports on gold and silver in the days ahead with the growing concerns about debt around the World.

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

Should we buy GOLD?

In the long run, we believe gold is going to go a lot higher than the current high of $1900/oz. There are a lot more analysts believing gold will go higher which means they will suggest that their clients and firms to buy gold. Some analysts believe gold will even go up to $5000/oz (sounds like an extreme case at the moment but does not mean it cannot happen).

Overview of the World

The Eurozone crisis is worsening, government fail to manage the U.S. debt responsibly, and markets are fearful of worsening conditions.
The U.S and the E.U are finding themselves in a battle to save the euro as the yields on their government bonds are moving up to unacceptable and unsustainable levels. The countries that are in trouble include France, Greece, Spain, Portugal, Italy, and Ireland. The only country that we see hanging on at the moment is Germany.

The global wealth is transferring from the west to the east due to lower paid intelligent people who can get the same job done at a lower cost which is the nature of capitalism. This is why the unemployment rate is high for U.S and the Europeans. It seems to be unavoidable that if China continues to grow its wealth and power, the Yuan will become a global reserve currency.
We are currently seeing greater uncertainty and instability in the world economies which leads to a more fearful and volatile market. It is not just one situation that is causing all of this fear, it is the failure to cut spending sufficiently, fear of collapse in the euro, bailouts of the banks, unemployment situations, and may even eventually see another minor or major financial accident. It is the weak monetary system that is causing an ongoing burst of one symptom after another.

Should we buy Gold?

Gold is known for a hedge for inflation and a safe haven currency. Currently we are seeing the gold price retracing to $1680/oz. Traders are driving prices down, breaking supports, hitting stop losses, and knowing some positions are leveraged or exposed to margin calls. It seems like potential buyers are still sitting on the side line. This seems like manipulation of the gold market.
Some traders are betting gold will fall to $1500/oz (which is 21% retracement) before making its big run up. However, we do hear a lot of countries and even people you know are starting to buy physical gold and silver. Right now, we are waiting to see if it can sustain the ~$1700 level. Some analyst are suggesting for their clients to buy when it hits $1650/oz. Futhermore, in the long run, we believe gold will go a lot higher, so we may see more small caps and venture companies move a lot higher along with it.

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

Keep an EYE on natural gas

Natural gas is extremely low and looks like it is stabilizing for the short term swing (as in take profit after a small gain). We are in the winter season and last thursday, the EIA natura gas report shows that it rose less than expectation. Oil prices has been rising, therefore, natural gas may start looking more and more attractive.

However, Horizons BetaPro NYMEX Natural Gas Bull Plus ETF (HNU.TO) consolidated the units of the ETF 1:4 ratio on Nov.22,2011. Back in history, whenever it consolidates it normally goes down when it is announced, then up a little the day before and the day after consolidation occurs, and then falls even more.

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

General trading information

For the technical trend and day traders, during any holiday, it is not a good day to trade since the volume is usually really low which can result in false trading signals. This is just a quick heads up for those who are just beginning to learn how to trade. You might as well take a day off, relax, and read a book!

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

Has the venture market possibly bottomed out?

The overall markets have been unstable and searching for a direction. There are a lot of cash on the sideline waiting for improvement in leadership to show us investors more clarity on the route of the economies.

The venture stocks have been on a downward trend since the beginning of the year 2011. The TSX Venture Composite Index (CDNX) had nearly retraced 50%, second to the larget correction ever. Below I posted a 1 year CDNX chart and a 5 year CDNX chart.



1 year CDNX daily chart

5 years CDNX weekly chart

In the beginning of October 2011, the CDNX hit the year low and bounced back up which created a V-shaped reversal. Back in history, a V-shaped reversal was a reliable charting signal for a market trend reversal. (Refer to the 1 year CDNX daily chart)

There are a lot of undervalued venture stocks that are overlooked. They can be going into the production stage, advance development stage, feasibility stage, etc. but whatever stage they are in, if they are undervalued, it can temp the larger cap companies who are looking to expand or running low on resources to swallow them whole or become joint partnerships.

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

Copper Fox Metals CUU.V

Ticker CUU.V
Current price is ~$1.20 - support $1.20 - 52-week high $2.75
Market Cap $424.2M
Shares Out. 375.4M
Revenue (FYR) ---
EPS ---

Why to buy?

Copper Fox owns 100% working interest in the Schaft Creek deposit subject to a 3.5% Net Profits Interest held by Royal Gold, Inc., a 30% carried interest held by Liard Copper and an earn back option held by Teck Resources. Copper Fox is currently earning a 78% interest in Liard Copper from Teck. Teck’s earn back option to acquire 20% to 75% of the Copper Fox interest in the Schaft Creek project if the completion of feasibility study is positive. If Teck elect to exercise its option for 75% they are required to fund subsequent property expenditures up to a total of 400% of those incurred by Copper Fox ($63.6 million as of July 31, 2011) and arrange for project financing, including the Copper Fox portion.

Refer to http://www.copperfoxmetals.com/i/pdf/CUU-PP-Nov-2011.pdf for presentation.

Analysis:

Refer to the chart above, we see the stock creating a base (support) at ~$1.20). Copper prices have gone down from its highs but still above its lows. A lot of insiders have been purchasing the stock throughout this year. Selling only occurred in the first quarter of the year when the price was going up. On Nov.17,2011 copper fox annoucnecs a $2M PP unit offering which is 100% insider participation in the offering at $1.22. If the insiders are purchasing their own stock, it shows confidence.

Refer to http://canadianinsider.com/node/7?menu_tickersearch=CUU+%7C+Copper+Fox+Metals

Website: http://www.copperfoxmetals.com/s/Home.asp

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

Western Wind energy poster

Heading - B.C. company chases the wind in India

The Vancouver based company is planning to expand its business which can give the company and the stock price a big growth spurt.

Check out the link:

http://www.westernwindenergy.com/i/pdf/SA_WestWindPoster.pdf

"It's an insult to the people who built this company and the shareholders who believe in its future... It was a low ball offer and we advised our shareholders to ignor it" by Jeffrey Ciachurski CEO

Also, recently Jeffrey Ciachurski CEO have made small acquisition in the public market around ~$2.00.

Refer to this link:

http://canadianinsider.com/node/7?menu_tickersearch=wnd

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

Metanor Resources MTO.V

Ticker MTO.V
Current price is between $0.32 - $0.42 (mid point base @ $0.36) resistance ~$0.45
Market Cap 76.6M
Shares Out. 201.7M
Revenue (FYR) ---
EPS $-0.10

Analyst coverage target prices

• Mining Market Watch $1.35
• Industrial Alliance Securities $0.95
• Market Equities Research Group $1.35
• Marketwatch.com medium targets $0.60-0.70
• Madison Avenue Research $0.95

Shareholder Ownership

• 5% Insider
• 50% Institutional (Sprott Asset Management taken position @ $0.50)
• Sandstorm invested $20M in return for 20% of the gold produced at $500/oz

Why to buy?

Metanor Resources is an advance stage near term producer that focus on gold operations in Quebec $150M-200M fully permitted and functional infrastructure and is aiming to be a mid-teir producer (150,000oz to 200,000oz). The intrinsic value of Metanor's resources is ~1.6M oz of gold in all properties and infrastructure $150M-200M. It is fully financed and has $15M in the bank.

This mining company have two significant projects

Bachelor Lake project (high grade underground)

• 100% owned
• Presently developing to access high grade ore
• Preparing 5,000t bulk sample Q-4 2011
• 95% recovery
• Estimated cost $464/oz
• Ramp up production in Q-1 and Q-2 2012
• Target to 60,0000oz annual production at 66% capacity Q-3 of 2012
• Targeting for 1M+ oz of gold expansion for mine life of 10+ years

Underground Mineral Resource

		Bachelor	Hewfran	Total
Measured	Tonnes	177,898	14,696	192,594
	Grade (g/t)	8.83	8.50	8.80
	Oz of gold	50,487	4,018	54,504
Indicated	Tonnes	465,928	183,069	648,997
	Grade (g/t)	7.63	7.14	7.49
	Oz of gold	114,329	42,024	156,352
Total Measured + Indicated	Tonnes	643,826	197,765	841,591
	Grade (g/t)	7.96	7.24	7.79
	Oz of gold	164,815	46,042	210,857
Inferred	Tonnes	207,517	218,630	426,148
	Grade (g/t)	6.76	6.30	6.52
	Oz of gold	45,083	44,283	89,366

 

Underground Mineral Reserves

		Bachelor	Hewfran	Total
Proven	Tonnes	178,359	14,734	193,093
	Grade (g/t)	8.36	8.05	8.33
	Oz of gold	47,930	3,814	51,743
Probable	Tonnes	467,135	183,543	650,679
	Grade (g/t)	7.23	6.76	7.10
	Oz of gold	108,538	39,895	148,433
Total Proven-Probable	Tonnes	645,494	198,278	843,772
	Grade (g/t)	7.54	6.86	7.38
	Oz of gold	156,467	43,710	200,177

Barry project (low grade open pit)

• 100% owned
• Expand & upgrade current gold resources (781,450oz. at avg. 1.3g/t)
• 89 new Induced Polarization (IP) survey

Interview with Jay Taylor (June 2011) - Overview
http://www.investmentpitch.com/media/949/Metanor_Resources_Inc._TSXV:_MTO_Face_the_Analyst_-_Interview/

Quebec tax credit incentives offers Metanor ~$0.46 in the form of tax credit for every $1 invested in underground development and exploration.


Website: http://www.metanor.ca/en/

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.

Western Wind Energy WND.V

Ticker WND.V (OTCQX - "WNDEF")
Current price is between $2.00 - $2.10 - high of $2.27 - resistance $2.20
Market Cap 125.7M
Shares Out. 60.1M
Revenue (FYR) $2.7M
EPS $0.03

Analyst coverage target prices

• Jacob Securities $3.50
• Cormark Securities $2.55
• Mackie Research Capital $2.80
• DAI Management Consultants (private valuation) $5.67
• Algonquin (AQN) $2.50 - failed unsolicited takeover bid

Shareholder Ownership

• 19% Goodman & Company, Investment Counsel Ltd
• 20% Insiders, families, and friends
• 56% of shares institutionally held
• 24% institutional retail
• 10,000+ retail share holders
• Dec. 23,24 announced "Substantial Issuer Bid (SIB)" Western Wind will offer to purchase for cancellation, up to 20M shares of its issued and outstanding common shares.

Why to buy?

Western Wind Energy is based in California and Arizona. The company currently have 3 producing renewable energy farms and 1 mega wind farm very near construction completion

Producing farms:

• Mesa 30MW (440acres) 430 out 460 turbines operational. Most turbine upgraded to 75kW. Submitted a 50MW repower and expansion plan.
• Wind Ridge 4.5MW (191acres) 24 out of 43 turbines operational. Will be upgraded congruently with the Mesa expansion
• Kingman I 10.5MW (810acres) wind and solar energy farm commercialized in September 2011.

End of the year completion:

• Windstar 120MW (1,850acres) split into 2 parts - 106MW energizes on Dec 11th 2011, testing completion Dec 31st 2011 - 14MW turbines erected by end of 2011 and operational a few weeks later (by Feb 2012)

California renewable energy policy - 20% by 2010 and 33% by 2020 while currenty the state is only at 15% and is importating 40% of its energy, meaning its behind schedule.

US Government renewable energy cash grant (paid within 60days after completion):

• ~9M for Kingman I 10.5MW project
• ~98M for Windstar 120MW project

Future Projects
Western Wind Energy have many other projects in line including:

• Yabucoa 30MW solar (late stage development)
• Kingman II 20MW
• Windswept 80MW
• Snowflake 196MW
• Reef City 40MW
• Howling Dog 15MW
• Red Lake 20MW
• Mesa Repower 50MW

The company's short term goal is to produce 717MW by 2015 (fiscal) which has a life of 30 years.


Website: http://www.westernwindenergy.com/s/Home.asp

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.