Sunday, February 6, 2011

The List of Three (Silver, Agriculture, Rare Earth)

As you all know you need to read my disclaimer at the bottom of the page please. Juniors are not for the weak as they could go to ZERO tomorrow so don't invest if you don't plan on losing everything.
Okay now that I got that out of the way, lets get to the goodies. In one of my videos I make a comment that if you are investing to make fiat, then its better to trade juniors as they are heavily leveraged, but if shit hits the fan and you cant get access to your fiat because your online broker just fucked you, then you suck, and good luck. On the other hand, if you have physical, at least you have it in your hands, and no one can take it from you. That being said, I like both, I keep my portfolio's diversified. Granted I am heavily weighted in physical, but I do have some leverage in the junior plays. The three juniors I am about to present to you, require a strong stomach and have some volatility. But after doing extensive DD (due diligence), which you should too, these three present the most upside in my humble opinion. I present to you my #1 silver play, #1 agriculture play, and my #1 rare earth play. They are in order of most importance. Some you will find on the pink sheets, others you will need access to the Venture Exchange. Some of you will look at these and call me a fuckin idiot. Fair enough.

TK.V Tinka Resources. .32 cents $CAN. My Exit will be $1.50-2 depending on the grades of the holes


This graph is explosive. All indicators point higher. I have included a summary from a friend of mine at The Fundamental View blog. Here's what we have found:

"Back on November 17, 2010 the company announced that it had filed applications for a 50 hole drill permit in order to drill the Colquipucro silver property in west-central Peru. The Peruvian Ministry of Energy and Mines had raised certain questions that it wanted answers to. It also and wanted certain conditions met before granting those permits. When I say that Tinka remains grossly undervalued at its current stock price I am not kidding. Remember…I don’t charge for my due diligence. What I find out for myself I like to share with my readers and hopefully garner their input as well.

The property in question has attached to it a completed independent NI43-101 report. That report determined an inferred silver resource of 20.3 million ounces with an immediate potential contiguous target for up to a further 2 million tonnes at similar silver grades. You can see why I remain so heavily bullish on this silver play and why I have named it my top junior silver exploration company.

The Company completed a 15-hole, 2,670m, Phase 1 diamond drill program in November 2007. All but one hole intercepted silver mineralization above cut-off grade and results included 60m grading 135 g/t silver, 44m grading 95 g/t silver from surface, 66m grading 83 g/t silver from surface, 10m grading 625 g/t silver, 8m grading 551 g/t silver, and 12m grading 4.4% zinc which is open at depth.

The reason for their need to obtain these drilling permits is so that the company can fully test the extent of mineralization at Colquipucro and undertake initial drilling at the newly discovered zone. Needless to say that everything has been held up because of the red tape associated with obtaining the necessary permits from the Peruvian Authorities.

I received word this morning from a number of my sources that perhaps the company may be on the verge of obtaining those permits. Perhaps sooner than we think. That is very bullish news. Expect the share price to climb when it happens. There are simply too many eyes on this silver play who have all been waiting for the permits to be approved.

All calls made to investor relations indicate that the hold ups had nothing to do with anything that the company did wrong but everything to do with the delays in Peru and administrative hurdles that companies must navigate in order to get those permits from the Peruvian officials. As you might probably guess....exploration in Peru is not like exploration in Canada. My investigation tells me that it appears all conditions are extremely close to being met at which time we will get news that the company has permits in hand and will commence the fully funded 50 hole drill program to expand upon the aforementioned zones.

I can’t tell you when we will get this news but I anticipate that the next piece of news out of Tinka will indeed be that they have secured the permits. If my sources are correct we won’t be waiting long for this news. It has been a long wait and one in which I thought might take us out of the silver bull run but rest assured that if my information is correct, we might be getting this news sooner than most think.

There is nothing like being invested in a 50 hole drill program on a property with as much as 20 million ounces of silver in the ground to attract excitement. Especially given that the company’s stock price is still not fully reflective of it’s inferred resource. With only 40 million shares outstanding and a current market capitalization of 14 million dollars, the current share price is a joke and has only one way to go. Especially with silver continuing its rise.

These are my own personal views. I am not a licensed broker or investment professional, just someone who likes to share information. Please do your own due diligence and never invest more than you can afford to lose. Contact your financial advisor or broker and please inform yourselves before making any investment decisions. With that disclaimer out of the way, lets hope the last hurdle regarding the drill permits will soon too be out of the way and we can start to see the stock price reflect the true value of the company."

EPO.V Encanto Potash .52 cents $CAN. My Exit is $2, or a buyout offer.


Encanto is weeks, if not days away from obtaining its 43-101 in which this resource estimate will be the major factor in share price movement. We have been consolidating nicely and looks as though we will make new highs, with or without the news, as long as the overall markets keep moving higher. Make no mistake, feeding the world moving forwarding will be the most important fundamental issue (Egypt-warning) and potash will be a major play. This is the last junior that I can point my finger at that is in the price range in this sector with such a vast land space and resource base. Its in friendly Canada too, which makes it suspect of a takeover. If the resource estimate comes in lower, I would suspect it to come under selling pressure, but looking at its peers, I suspect this to move higher in anticipation of the estimate.

GWG.V Great Western Minerals Group. $1.06, my exit (I have no idea, if it follows its peers could be a $10 stock like REE)


This is my favorite rare earth play. As you can see its run up a bit as of late. This property is again, in Canada, and what is touted as the only viable mine here in the rare earth sector. Sprott and many many other have already put a target of $2.25 on it for the short term. And judging by what China and its peers are doing, could get out of control. I've seen some other rare earths with very little credibility run into the $15 mark from pennies as of late, even just in the last quarter.

You can find more info if you want to do some DD, which I would suggest, at www.stockhouse.com, read a bit, check out the boards and let me know what else you find on these. I have exhausted my time on these. My time frame is to gain as much fiat as possible, and then convert 80% of it into physical silver. Again, I'm using leverage to obtain more worthless fiat, in hopes of converting it into real money. There you have it. Consult a licensed broker or investment advisor before making trades. I will be giving updates on these three stocks as the weeks go on. Always diversify. Blythe may not be done...lol

Have fun watching the game. I will be studying charts ;) and writing more info for you guys.

12 comments:

  1. You make me want to run out buy some stock! Great post on a Sunday. Can't wait for the new bears Part IV.

    BTW, speaking of rare Sunday Posts, Harvey Organ has issued an interesting update........

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  2. yes a fellow poster had posted it up...looks like Blythe has work to do....I will be keeping eye on Asia markets tonight...might be her only chance to hit it...

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  3. Thanks for your work here. I am curious why you say if the SHTF that your online broker will screw you on the stock holding of a miner. How do you see this happening? Are you suggesting the miner stock would plummet or your broker would somehow steal your stock? Or is there something else I am missing here? Thank you

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  4. this bull looks like blythe a little

    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/2/4_Silver_Shortages_Continue_According_to_Pan_American_CEO.html

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  5. Anon,

    During 2008 meltdown ETRADE stock was falling so fast, we were thinking it was the 'next one' to go broke. Thus, if we have another panic, and we make all this fiat in stock, SHTF, and then the broker goes bust within days, tuff shit, good luck retrieving your fiat when you need it the most. Hope that clears it up.

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  6. Mrsilvergoldsilver

    Would you happen to know if there is a list available of Jr's, that allow "Direct Book Entry" when purchasing their stocks?
    I would feel a lot better holding their stock certificates in my hand, then having my shares on a brokers books...
    As the saying goes...If you can't hold it in your hands you don't own it.
    Thank you for all your help, can't wait for Video #4.

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  7. SGS-

    Thanks for the picks, I'll have to check them out and maybe throw a few bills at them.

    Do you have any Gold and Silver picks that are not mainstream (SLW, EXK, SVM, HL) but a bit less risky for the more conservative among us? 'Conservative' is relatively speaking as my family/friends already think I'm whacked for owning any mining stocks. Tell them about physical and you can see they're tempted to call the white padded wagon for me. ;-)

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  8. List of four: silver, rare earths, agriculture, gold.

    List of five: silver, rare earths, agriculture, gold, uranium.

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  9. Im not to familiar with stocks so how would I go about buying on the TSX Venture Exchange and Toronto Stock Exchange. Since Im in the US what would be the best way, online brokers or a broker in my town?

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  10. TK just got the permits....news just in, get those shares while the market is still asleep at the wheel here!

    VANCOUVER, Feb. 7, 2011 (Canada NewsWire via COMTEX) -- Tinka Resources Limited (the "Company"), (TSXV - TK; Frankfurt - TLD; Pinksheets -TKRFF). Mr. Andrew Carter, President, reports that the Peruvian authorities have granted the Company a modification to the existing 50 hole drill permit for the Colquipucro silver project, west-central Peru. The modification is for a further 8 holes to test the Ayawilca zone located 1.5 km south of the NI43-101 compliant 20.3 million ounce silver resource (see press release dated April 24, 2008) known as Zone 1. The Company is seeking a drill contractor to undertake this drill program as soon as possible.

    The Ayawilca zone occurs in the same favorable sandstone unit that hosts the Zone 1 silver resource. The zone is located adjacent to a major transverse fault system, and the sandstone is intensely brecciated. An induced polarization (IP) geophysical survey, consisting of 14 line-kilometres, was completed at Ayawilca (see press release dated August 24, 2010) and was contiguous with the IP survey performed over Zone 1 in 2007 (see press release dated March 1, 2007). The inversion model of the IP data produced a target underlying the Ayawilca zone that trends east-southeast for 600 metres and plunges gently to the east.

    Mr. Carter said: "The Company's new management team in Peru, which has been put in place over the last four weeks, has worked diligently to resolve all observations from the relevant governmental authorities in what has been a complicated and protracted process. We are pleased that this important step of obtaining the modified drill permit to test the Ayawilca zone has now been achieved as it will allow the Company to advance the project to the next level."

    The Company's Qualified Person, John Nebocat (P.Eng.), has reviewed and approved the contents of this news release.

    On behalf of the Board,
    "Andrew Carter"
    Andrew Carter, President & CEO

    Forward Looking Statements This Company Press Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.Â

    Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), nor the Frankfurt Stock Exchange accepts responsibility for the adequacy or accuracy of this news release.

    To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/February2011/07/c8357.html

    SOURCE: Tinka Resources Limited

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  11. If you like Great Western, I would also have you look at Avalon.

    They are closest to production, and have a significant HRE base.

    I own both, and have since mid 2010.

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  12. Nice calls! You're a market mover today!

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