Colorado Resources (CXO.V)
The story of the TSX Venture exchange the last month has been Colorado Resources (CXO.V).
Colorado Resources has almost been a 10 bagger in the last month. The action all started with 1 great drill hole at Colorado’s North Rok property in Northern B.C.
Colorado Resources drills 242 m of 0.63% copper and 0.85 g/t gold in first drill hole on its North Rok Property.
This is an excellent hole into a Porphyry copper-gold system.
A few factors that have helped Colorado stock have a nice move are:
A) Low float – with only 39,245,494 shares outstanding
B) Cash position – CXO is well funded with over 8 million in the bank as of last financials (Dec 31,2012)
C) Management - Colorado is run by seasoned management who have skin in the game. Adam Travis the ceo is a geologist who owns over 2.6 million shares. Also Kudu partners owns a total of 4,295,000 common shares.
D) Area – As seen on the map below the ROK area is located close to Imperial Metals Red Chris project. Red Chris is a development project with production commissioning currently on schedule for May 2014.
Investors are eagerly awaiting the assays on 4 additional drill holes that have been completed. Colorado stock will be very volatile and will have a big move one way or the other depending on these results.
The discovery hole has given all area plays a little bit of a shot in the arm. Any other potential 10 baggers in the region?
As the saying goes the best place to look for gold is close to where gold has been found.
The junior market is a little different around this area play. Normally you would see a few of these companies be able to raise cash and therefore keep the properties with 100% ownership and drill. Due to the tough financing market a few of these companies were already getting low in cash so they opted to JV their properties to companies with cash.
The list of companies in the area are:
Teuton Resources (TUO) - Teuton has optioned its Yellow Chris South claims to Redhill Resources (RHR).
Dino Cremonese, PEng, president of Teuton Resources, said, “We are delighted to have optioned the Yellow Chris South claims to a well-funded company such as Redhill Resources, and look forward to the immediate onset of exploration work in this very promising area.”
Firesteel Resources (FTR) – Firesteel has optioned its ROK – Coyote project to OZ Minerals on May 8th.
Michael Hepworth, interim president and chief executive officer of Firesteel, stated: “The ROK Coyote property is right in the heart of the recent activity between Colorado Resources Ltd.’s North ROK property and the Red Chris property of Imperial Metals Corp. We have eight on trend targets on the property and believe the best opportunity to reward shareholders is by partnering with a major mining company such as OZ Minerals. OZ Minerals has the funding, experience and expertise to make ROK Coyote a viable project.”
Pistol Bay Mining (PST) – On Friday Pistol bay optioned its Summit B property to Revolver Resources (RZ), whereby Revolver may earn a 60-per-cent interest in the Summit B property. The Summit B property is located adjacent to the Colorado discovery to the north.
Serengeti (SIR) – Serengeti was first to the punch on the staking and claimed the nearest land that was unclaimed at the time. Serengeti Resources Inc. has acquired, through staking, a 100-per-cent interest in a 5,675-hectare property (Red Chris North property) comprising two claim blocks located eight to 10 kilometres north of Colorado Resources’ recent high-grade copper-gold discovery at North Rok in the Red Chris district of northwestern British Columbia.
Imperial (III) – Imperial is developing the Red Chris project funded from internal cash-flow from its producing mines. For more on the economics and the progress of the project please check here.
Sunrise (SHI) - Sunrise is a JV partner with Colorado which is just North East of the Red Chris deposit. Drilling at EL Dorado has been under way for about a month. Keep this one on your watchlist as assays come in.
Ashburton (ABR) – Ashburton is run by Michael England who is known to stake and acquire land near discoveries. This one also has a low float but can they raise the money needed?
Other companies to watch in Northern B.C.
Prosper Gold Corp (PGX.h) - This is a new shell led by Peter Bernier who successfully turned his last company Richfield Ventures into a $500 million takeover by New Gold. Richfield found the 5 million oz (now much larger) Blackwater deposit near Vanderhoof, B.C. Prosper Gold has been waiting and evaluating projects for the last year looking to make the right move. On May 7th they announced their qualifying transaction to acquire 80% of Firesteel’s copper creek project.
Doubleview Capital Corp (DBV) - Doubleview stock has more than doubled in the past week after closing a $250,000 financing. The buzz is all about the upcoming drill program on its Hat project. A low float could move this one if the drill turns up some results.
* As always this is not investment advice. Please do your own due diligence before making any investment decisions. As of writing the writer has no positions in any stock mentioned although he reserves the right to do so in the near future.