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Analyzing a Junior Mineral Company News June 17, 2009 1 Dr. John-Mark Staude President & CEO.

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Presentation on theme: "Analyzing a Junior Mineral Company News June 17, 2009 1 Dr. John-Mark Staude President & CEO."— Presentation transcript:

1 Analyzing a Junior Mineral Company News June 17, Dr. John-Mark Staude President & CEO

2 Canadian National Instrument This sets out standards and guidelines for reporting. It helps the investor. The Security Commission monitors for compliance. Professional Geologist- Engineer Certification required on technical portion of news releases. There are three main categories on resources (Measured, Indicated, Inferred). 2

3 Four types of companies in Resource Sector 0 2 Greenfields ~4 - 5 Years Pre-Discovery Years Discovery Years Feasibility & Permitting 2 Years Development 1 Year Start-Up Depletion Full Value Competitive High Risk Potentially High ValueFew Competitors and Lower Risk Institutional Investing Begins Speculative Stock Ahead Of Known Value Orphan Period Speculators Leave Value Opportunity Time Relative Value Value Chain

4 Low Probability, Long Time T No one knows Highland Valley

5 5 ? Context- make calls, ask questions, due diligence

6 Geologic Perspective 1.Company (size, business, track record) 2. Project location, stage 3. Context, past results, context, number of holes 4. Possible deposit type? 5. Length of intervals 6

7 Deposit types are key Assay results in news releases- need to be interpreted in the context of deposit types - (porphyry, epithermal, veins, placer, not disclosed) 7

8 Value vs Length of Intercepts 8 Source: Research Capital, 2009

9 Drill results 4 news factors 1.Grades vs. Lengths vs. Depths High grades are good but a) is there volume?, is it deep?, how long of intervals? Gross size of system – giants are very rare, trades are on results and grades 2. Grades that investors should look for when reviewing stocks: 1% Cu, 2% Ni, 1 g/t Gold, PGM, 300 g/t Ag, 0.1% Mo, 0.1% U308 Think about the $ value of the rock. Current metal prices times the concentration. 9

10 3. Drilling assays –Core has more data, earlier stages and deposit type 4. Spacing of drilling results – see if there is a map on the website, where are the new holes relative to earlier results 10 Drill results 4 news factors

11 District play – scale potential

12 Metallurgy The % metal is going to be extractable Not just the sexy assay number in the P.R. Minerals, elements = good and bad Analysts help at this stage and into the engineering stages 12

13 Examples- on the news the stock jumps Appleton (AEX), Ventana (VEN), Keegan (KGN), Serengeti (SIR), 13

14 Conclusions 1.Size potential, location, value-meters 2.Graphics – maps and sections on website to see where the numbers are coming from 3.Deposit types 4.Stage of project (leverage, risk) 5.Ask experts, due diligence 14

15 John-Marks Geotutorial Video YouTube Video - released July 1 st, field geology - covers sampling methods - better understand press releases to Alex Mason about questions youd like to see covered from the resource investor or geologic field 15

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