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Coup d’oueil…quick look…out of the gate

Sirios Resources,… QMX Gold Corporation,   Cartier Resources and  Imperial Mining Group are four Canadian exploration companies that by our analyses, particularly while at low prices, merit our attention. One might consider that we have seen an early stage bull market in some mining stocks already. However, if our indications are correct, we are about to commence a major bull market in many gold and mineral stocks. Mineral exploration is challenging but each of the following companies has excellent potential as well as quality managements and directors with long histories of success.

Our emphasis has always been determining the value of the projects an exploration company has in resources and reserves. As well, we attempt to determine if a company’s exploration results may be sufficient to justify continued exploration and investment as exploration and mining are very expensive. Questions include among many issues: exploration potential, determining what a mining operation would cost and obtaining a joint venture partner-the list goes on and on. We prefer companies that already have reserves or at least resources as they often carry a lower risk than companies that only have undrilled claims or grassroots exploration. Yes, there are many things to consider.

Today our research indicates that the valuations given to the majority of exploration and producing mining companies’ shares based upon their resources and reserves are exceptionally low. The fact is that most are deeply undervalued. The majority sell at prices that generally reflect the cheapest valuation levels we have seen in thirty years. However, severe undervaluation offers  opportunities to accumulate shares while they are selling at prices that can be described as exceptionally cheap.

 

SIRIOS RESOURCES, “SOI” … TSXV .30 cents  a Quebec based mineral exploration company focusing on the discovery of large gold deposits in the James Bay area of Quebec. Its projects include Cheechoo, Pontax, and Aquilon with the focus on the Cheechoo project. Key points: World class major gold producer “Goldcorp” which is listed on the TSX and NYSE now owns 19% of Sirios shares, we believe this is a result of Sirios’s thus far exploration success. Other institutions own 8%, Sirios officers and directors hold approximately 3%, other “friendlies” hold approximately 7%;  Cash position is currently $3,200,000 with no debt, exploration results have been excellent to say the least. Sirios price range for the last five years has seen a high of $1.40  with the low of .05 cents, current price is .30 cents. Recently insider transactions show Sirios President Dominique Doucet again purchased Sirios shares.

 

QMX GOLD CORP, “QMX”… TSXV .23 CENTS, we expect QMX to be providing us with some very interesting results soon… QMX owns one of the largest land packages (200 sq. kilometers) in the Val D’or area in Quebec which historically has been one of the most productive mining areas in the world. QMX has a major drilling program ongoing and could be a “dark horse” that few are noticing. Institutions own approximately 40% of QMX shares including Osisko Gold Royalties holding 14% and Probe Metals holding 9%;  Currently the QMX cash position stands at $7 Million. The recent additions of Michael Timmins as Executive Chairman and Jules Riopel to QMX’s exploration team should not be overlooked-they are major positives to an already strong management and exploration team. Off its recent price high of .40 at .30 today, we are following it closely.

 

CARTIER RESOURCES “ECR”  on TSXV .26 cents  a Val D’or, Quebec based mineral exploration company founded in 2007, has four main projects located in the Abitibi Greenstone Belt. Cartier focuses their exploration in areas where gold has been already found or produced with the prerequisite infrastructure in place. Cartier been actively exploring during this bear market and has put together first class projects that demonstrate success and money well spent. Cartier’s management are large shareholders, Cartier’s  CEO has purchased almost a million shares during the last six years. Recognition of the value of Cartier projects has attracted Agnico Eagle which now owns 17% of Cartier, in addition, Osisko Gold Royalties is also a large shareholder; Cartier’s cash positon is over $16,000,000 with no debt; Cartier also has a low salary scale for its management team demonstrating a very conservative financial approach.

 

Imperial Mining Group “IPG” on TSXV  .15 cents is a new Québec‐based, multi‐metal exploration and deposit developer of base metal, gold and technology metal deposits formed from a consolidation of Peak Mining and NQ Exploration. Peak Mining was a private company that has rolled in its Québec technology metals project (scandium-niobium-tantalum-rare earths) into Imperial Mining in exchange for Imperial shares. At the same time, NQ Exploration spun out its base metal and gold projects into the new Imperial Metals Company.

Overall, Imperial Mining Group is focused on copper, zinc, gold and technology metals exploration. We should mention that two years ago we were alerted to the potential of  what was then Peak Mining’s scandium-niobium-tantalum-Rare Earth projects. We recognize that it is early but it is of interest to us and we will follow the company’s progress.

 

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