Our analysis suggests that many mining stocks are completing major price bottoms, so we continue to accumulate specific mining stocks based upon solid fundamentals. We view weakness and price declines in many stocks as investment opportunities. We are looking for bottoming formations; we are not projecting upside price targets. If we are correct, price appreciation will come later.

Worth noting, our analysis suggests that we may be facing a bear market for the large industrial stock market such as the Standard and Poor’s 500 Index and Dow Jones Industrials. A bear market for the large industrial stocks usually indicates a bull market for gold and mining stocks.

Please keep in mind the old “Gold Formula,” which suggests that a “weak industrial stock market + a weak US Dollar + low interest rates = Positive market for gold stocks.” Again, keep that in mind.

We do not chase or push stocks up, we use price weakness to our advantage. In essence, we look for a “sale.” When stocks are really undervalued and “on sale,” very few investors take advantage.

MINING STOCKS OF INTEREST

RICHMONT MINES, “RIC” on TSX and NYSE, a solid producer for many years, currently at $1.86 after rallying up to $2.00 last week. Technical indicators are positive, still very much under accumulation in our opinion. It is expected to have 80,000 ounces of Gold production in 2014 up from its average of 60,000 ounces. Richmont currently has $17 million in cash. We see a turnaround here. 2 year price high was $12.70, so the price decline was extremely sharp. The new “Island Gold Deep” resource offers extraordinary upside potential.

YORBEAU RESOURCES, “YRB” on TSX…. .17 cents, advanced exploration company, technical analysis indicates that the stock is being accumulated by buyer(s). While not in a moving up mode technically at least yet, charts indicate that solid buying on price weakness or on any selling is occurring. Insiders are buyers, large owners and are never selling. Fundamentally, the news is quite positive. Yorbeau has a multi-million dollar joint venture agreement with Gold Fields Limited, a major international mining corporation. This is a recognition of the potential of Yorbeau’s properties in one of the most productive mining areas in Canada. The recent successful placement and the partnership with Gold Fields attests to credibility and support for Yorbeau in today’s difficult market.

KINCORA COPPER, “KCC” on TSX.V .06 cents, exploration company, KCC seems to be under strong accumulation after having suffered through a brutal 90% decline caused primarily by a Mongolian governmental tax disagreement with mining companies that sent stocks into brutal sell-offs. That “disagreement” may be resolved soon. Insider buying of Kincora has been very heavy. Strong possibility that KCC is making a long term bottom. The two year price high was .34 cents a share. Kincora controls a large area in a major mining area in Mongolia. Their focus is the “Bronze Fox” copper-gold project located in the Oyu Tolgoi copper belt. The investing world is watching and waiting for a conclusion to the corporate-Mongolian situation. A positive change should have a dramatic impact on many Mongolian share prices.

NIOGOLD, “NOX” on TSX.V .18 cents, technical analysis is neutral and it indicates that someone or some institution is accumulating. NOX seems to be making a long term bottom. By the way, at three deposits it has over 2,130,000 ounces of gold (43-101). Insiders have been very heavy buyers, particularly in the last twelve months; in essence they are wisely accumulating on weakness. The two year price high was .51 cents; Niogold’s projects are located in the prolific Abitibi gold mining region of Quebec and its neighbors include some of the largest Canadian mining companies.

CLAUDE RESOURCES, CRJ on TSX, .19 cents, is a longtime gold producer, had 44,823 ounces of gold production in 2013. If we can see a turnaround here, the company offers significant upside. We have a mining history here in that Claude has been in operation for years and has produced over one million ounces of gold. Of note, Claude may be finalizing the sale of its Madsen Gold Project. We are watching Claude closely as Insiders have been recent buyers of Claude shares totaling 511,010 shares of purchases during February 2014!

CARTIER RESOURCES, ECR on TSX.V, .14 cents, is a junior Quebec mining exploration company with projects that we find to offer excellent potential; Insider activity? We have noted that the CEO has bought 100,000 ECR shares at the .40 cent price level and again at the .14 cents level. We are particularly interested in Cartier’s recent acquisition of the once producing Chimo mine (produced 379,012 ounces of gold) which Cartier purchased for a mere $270,000 due to financial problems. It is the “dark horse” of their projects that merits close attention due to its significant gold production in the past and the potential for further production.