www.ResourceOpportunities.com March 6, 2009 1
T he world has just experienced the
greatest destruction of wealth ever.
Share prices around the world are
down 50% or more. General Motors, long
the backbone of American industry, has
lost 90% of its value from a year ago.
Some of the big American banks are gone
completely, with shareholders losing
everything.
Is the worst over? I don’t know.
The U.S. government is throwing a trillion
dollars, and counting, at bailouts and eco-
nomic stimulus. That huge handout seems
to have stabilized the situation in the U.S.
But, Europe is also facing some serious
problems.
Some people see more downside before a
recovery. Others see this as the bottom.
It’s hard to know what to expect; and
therefore it’s hard to know what to do as
an investor.
After an experience like last year, and with
so much uncertainty remaining, many
people will be tempted to give up on
investing. Or worse yet, they will wait
on the sidelines until the popular media
tells them how great things are in the
investing world. Normally, the popular
press being positive on any investment
topic signals the top of the market.
But, the top of the market is precisely
when many people come back into the
markets. It takes a great deal of courage
to invest contrary to popular wisdom.
But, that is exactly how you make money
in the investing world. You buy when
others are afraid, and you sell when
others are greedy.
Of course, there is no assurance that this is
the bottom of the market. However, it is
clear that there is a great deal less risk
today than there was a year ago.
In the face of the present uncertainty, I am
going to outline 3 investment ideas that I
believe will do well, regardless of the
direction of the broad markets.
First, let’s look at gold.
Many investors over the past few months
have taken refuge from the financial crisis
in the safe haven of gold.
Sure, gold took a hit at the height of the
crisis. But, it was nowhere near as bad as
nearly every other investment. Gold
recovered quickly. Gold equities were also
hit hard by the financial crisis. The share
prices of the larger companies have also
recovered strongly.
The meltdown in the financial markets
scared the hell out of people. This crisis
was particularly scary, because banks,
which are supposed to be solid and
reliable, were the most vulnerable, at least
in the U.S. and Europe.
Investors saw gold once again hold its
value in a time of crisis. As a result, there
has been a huge inflow of wealth into the
gold market. There has been such strong
demand for gold coins and bars, that there
is a shortage of physical product.
Exchange traded funds and similar invest-
ment vehicles have become extremely
popular. Gold ETFs now hold 45 million
ounces of gold, an all time record. Gold
has become the "most favored asset" of
investment advisers.
For the first time in nearly 3 decades, the
investing public is looking favorably on
gold as an investment. And yet, gold stub-
bornly refuses to break through $1,000 and
overtake the record price set a year ago.
Some people are puzzled as to why this
intense level of gold buying by investors
has not resulted in larger gains in the gold
price. The reason is that investor demand
is only part of the picture for the gold
market. Let’s have a quick look at some of
the other factors influencing gold.
Gold is unique in that nearly all the gold
ever mined is still available to the market.
The European Central Banks are among
the largest holders of gold. Their sales
over the past decade have been a major
factor in the gold market.
The European banks have agreed not to
sell more than 500 tonnes (or, about 16
million ounces) of gold a year.
Investing in an Uncertain World
(A presentation delivered March 1, 2009 at the Prospectors and
Developers Association of Canada annual conference in Toronto)
. . .Discovering value in natural resource stocks
I N S I D E
1– Company Updates
3– Brief Updates
6– Initiating Coverage
7-Most Favoured Companies
8– Conferences
————————————
The last Issue was February 2009-1
Volume 12, #4 March 2009-1
www.ResourceOpportunities.com March 6, 2009 2
Resource OpportunitiesResource Opportunities
For the past three years, they have sold
less than the quota. However, that might
change with the banking crisis.
Another large holder of gold, the Interna-
tional Monetary Fund, or IMF, has been
talking about selling some or all of its
gold for years, and again, the financial
crisis may result in more of their gold on
the market. Other Central Banks are buy-
ing, offsetting part of the European sell-
ing.
The Asian nations hold a very small por-
tion of their reserves in gold. China, with
$2 trillion, the largest foreign currency
reserves of any nation, holds less than
1% in gold. There is speculation that
China and other nations might increase
their gold holdings.
Physical demand for gold is dominated
by the jewelry market. Jewelry demand
in the developed world has fallen sharply
with the recession, offsetting growth in
jewelry demand in the emerging econo-
mies.
A very important factor in gold is the see
-saw between investor demand and jew-
elry demand. Investors tend to buy as the
price rises and sell as the price falls.
Jewelry makers do the opposite.
The big swing variable, and therefore the
most important determinant in the short-
term price, is investment demand. When
investor buying overwhelms the slow-
down in other sectors, the price rises.
Economists will tell you that when the
price of a commodity increases, demand
falls and production increases. Economic
theory doesn’t necessarily apply in the
mining world. The gold price has more
than tripled in the past 8 years, yet
demand continues to rise.
On the other hand, the supply of gold,
also contrary to economic theory, is
falling as the price rises.
Gold mine production has been falling
for several years now, even though min-
ing companies are producing all the gold
they can to sell into a strong market and
a rising price. Economic theory simply
does not stand up to geologic reality. It is
not easy to increase gold production. It’s
hard to see on the slide below, but gold
production peaked in 2002, and is pro-
jected to continue to fall.
For years, the large gold companies have
grown through acquisitions. While Bar-
rick and Newmont, for example, are each
bigger than they were a few years ago,
the industry is shrinking. Gold produc-
tion is falling. Equally importantly, the
overall reserves in the gold industry are
declining.
The larger gold companies have grown
through mergers, but those mergers have
been dilutive: the amount of gold
reserves per share has declined substan-
tially over the past few years.
Most of the gold production is now com-
ing from mines that are more than 15
years old. The pace of mine closures will
accelerate, putting further downward
pressure on the level of gold production.
In spite of a five-fold increase in spend-
ing on exploration by gold companies,
the industry cannot find enough new
deposits to even replace the gold being
mined each year.
Geologists have spent decades scouring
the earth. The big, high grade gold de-
posits that are sticking out of the ground
have been found, developed, and are
largely mined out. New discoveries will
be smaller, lower grade, more remote and
deeper.
The chart of gold grades over the past
several years also presents an interesting
picture. You can see the grade for the
gold industry has fallen sharply over the
past few years.
Gold Supply & Demand Estimates
Year from Oct 2007 – Sept 2008
www.ResourceOpportunities.com March 6, 2009 3
Resource OpportunitiesResource Opportunities
The average gold grade of producing
mines is now less than 1.3 grams per
tonne. When I started my career in the
mining industry, what is now the average
grade for the industry would have been
generally considered a geochemical
anomaly, not a mine.
With 8 years of rising gold prices,
production continues to fall.
What does all this mean to an investor?
Well, there are many reasons to believe
the gold price will go higher, perhaps a lot
higher. But, not necessarily right away. In
fact, gold has a nasty habit of dropping
back after it makes a big move. But,
regardless of what happens to the gold
price in the near term, the gold mining
industry desperately needs new deposits.
Shareholders of companies that find new
deposits will be richly rewarded. And,
since it is getting harder to find new
deposits, companies that have gold depos-
its hold extremely valuable assets. The
value of many deposits is not being recog-
nized now, but over time, investors and
the
major producers will attribute higher
values to the gold deposits now in the
hands of the juniors.
On top of that, the juniors are adding
value by expanding and upgrading their
deposits.
This slide shows the relative value of
junior gold companies versus the larger
companies. For several years, the smaller
companies outperformed the majors. But,
late last year, the juniors were clobbered
much worse than the larger companies.
The majors and the mid-tier companies
have rebounded, and some of the more
established development companies have
recovered some of the losses. The smaller
companies are only beginning to recover.
So, investment idea #1: emerging gold
producers and companies with
advanced stage deposits
Many gold companies have seen big price
gains, but there are some companies that
have not yet been discovered by investors.
Just remember: Not all small gold
companies are created equal. Be selective.
Global Gold Exploration Expenditures
Global Average Mine Grades
Junior vs. Senior Gold Stocks
www.ResourceOpportunities.com March 6, 2009 4
By investing in advanced exploration and
development companies, you gain
exposure to the gold market, and therefore
benefit from gains in gold. At the same
time, you own companies that are
growing and are adding value
independent of moves in the gold price.
Now, very briefly, let’s touch on
Investment idea # 2. Base metals are
totally out of favor right now. The same
goes for uranium. It seems that few
people in North America want anything to
do with base metal companies or uranium
companies. It’s as if investors think we
have stopped using metals and will never
need any new metal mines. People who
take a longer term view can find
exceptional values.
A little side comment: If you look at the
top 100 mining companies in the world,
18 of those companies are Chinese,
including the number 3 company on the
list. The Chinese take a longer term
perspective than Westerners. They are
going around the world now quietly
buying up base metals. Already this year,
they have invested $25 billion in energy
and base metals and they are advancing
on two other very large deals. Many
European investors are also taking a
longer term perspective and quietly
buying base metal companies.
Exploration companies with billion dollar
ore bodies are now trading for a few
pennies a share. Their shares may not pop
next week or next month, but in due
course, many of those companies will
have values several times higher than the
current share prices.
Investment idea # 2: Selected base metal
and uranium companies that have
established resources.
Now, investment idea # 3: This is really a
topic for a whole investment conference. I
just want to plant a seed in your minds at
this time.
Over the next decade, the movement
away from carbon fuels, that is: oil,
natural gas and coal, is going to gain huge
momentum. Look at the initiatives that
Obama has put forward. In Europe, they
are at least a couple of years ahead.
There will be literally hundreds of small
companies that arise in the green energy
business. It will be like the mining sector,
where a huge amount of innovation and
development is being done by small
public companies. We have some
information on our website that provides
an introduction to that sector.
So, Investment idea # 3: Start getting
familiar with Green Technology,
especially related to energy.
Company Updates
MAG Silver
(MAG-TSX)
Mag is conducting an aggressive explora-
tion program on several of its silver pro-
jects as it continues to resist the opportun-
istic takeover offer made by its joint ven-
ture partner. The company is intent on
demonstrating that it merits a higher
valuation than the US$4.54 per share of-
fer from Fresnillo plc.
That London-listed Mexican miner earned
a 56% interest on Mag’s Juanacipio silver
deposit and also holds 20% of Mag’s
shares. The major’s Fresnillo mine on the
adjacent property ranks as the largest sil-
ver mine in the world, with annual pro-
duction of 31 million ounces annually.
The Juanacipio deposit is clearly an ex-
tension of the rich silver system that sup-
ports the adjacent mine. Mag commis-
sioned an independent study that showed
somewhat higher resources than the fig-
ures published by Fresnillo. The Mag
figures (which had to be revised due to an
error by the independent engineers) shows
an indicated resource of 2.95 million ton-
nes of 879 grams per tonne silver, 2.22
grams per tonne gold, 2.39 per cent lead
and 4.15 percent zinc. An additional in-
ferred resource has 7.21 million tonnes of
458 grams per tonne silver, 1.54 grams
per tonne gold, 1.89 percent lead and 3.14
percent zinc. The total contained metals in
the indicated resource are 83 million
ounces of silver, 210,000 ounces of gold
and 155 million pounds of lead and 269
million pounds of zinc. The inferred re-
sources contain an additional 106 million
ounces of silver, 356,000 ounces of gold,
301 million pounds of lead and 498 mil-
lion pounds of zinc.
Juanacipio is one of the largest and richest
silver deposits in the world. It’s not sur-
prising that the partner would want the
whole thing.
The takeover offer was announced on
December 1, at a low point in the market.
Even then, the offer was below the cur-
rent trading price and only one third of
the high that the shares reached in the
previous year. Mag shares have since
traded consistently above the offer price,
leading pundits to describe the offer as a
“take-under” offer.
Canadian take-over procedures require
that Mag present shareholders with an
independent valuation. The junior claims
that its partner has refused to provide all
of the required information. As that drama
unfolds, Mag has 12 drill rigs operating
on its various properties, striving to iden-
tify enough ounces to justify a higher
price. The company has announced a $17
million program, involving 28,000 meters
of drilling at the Juanacipio project and
30,000 meters at its wholly owned pro-
jects.
Mag had over $50 million of cash at the
start of its spending spree. That treasury
provides lots of power for the highly suc-
cessful exploration team that made the
discovery at Juanacipio.
With a steady flow of good exploration
results, and a market price well above the
offer price, the Mexican company has so
far not blinked.
The best prospect for near term value
creation seems to be the 100%-owned
Cinco de Mayo property in northern Chi-
huahua State. Hole # 84 cut a 2.72-meter
zone grading 462 grams per tonne (13.5
ounces per ton) silver, 10% lead and
13.6% zinc in a zone called the Jose
manto. Results demonstrate that the Jose
manto is part of a large carbonate replace-
ment deposit system. Drilling is continu-
ing with three drills.
With Fresnillo holding 56% of the pri-
mary asset (and operating the adjacent
Resource OpportunitiesResource Opportunities
www.ResourceOpportunities.com March 6, 2009 5
mine), a competing bid has not come
forward. The share price has declined
from the recent high as time ticks by with
neither another offer nor a higher bid. It
is up to each shareholder to tender to the
offer or simply hold their shares.
Perhaps shareholders might expect the
parties to work out a split of the com-
pany, letting Fresnillo get what it wants
(Juanacipio), and leaving the other assets
under the control of a team that could add
more value for shareholders.
Price March 6, 2009: C$0.41
Shares Outstanding: 49 million
Shares Fully Diluted: 52 million
Market Cap: C$ 20 million
Contact: Investor Relations
604-630-1399
www.magsilver.com
Last updated December 2008-1
Brief Updates
Altius Minerals (ALS-TSX; C$6.26)
reported earnings from its third quarter
ended January 31, 2009 at $31.6 million
or $1.11 per share. These earnings came
from the forward equity settlement of 2.5
million shares of Aurora Energy for earn-
ings of $38 million less $6.7 million in
tax. Altius reported $689,000 in earnings
from its 0.3% net smelter royalty interest
from the Voiseys' Bay nickel-copper-
cobalt mine in Labrador, down from
$1.38 million in the same quarter of last
year due to depressed metal prices. The
company also reported interest income of
$1.38 million compared to $2.3 million in
the same quarter last year as a result of
lower interest rates.
Altius has fourteen mineral properties,
several with joint venture partners, and
holds various investments in junior ex-
ploration and development compa-
nies. The company has $160 million in
cash and liquid investments and is look-
ing to take advantage of opportunities in
the present market situation. There are
good prospects that the skilled manage-
ment team will make a deal in the next
few months that will add value for share-
holders. In the meantime, the company
trades at roughly cash value.
Last updated January 2009-2
Aurcana Corporation (AUN.V;
C$0.105) has nearly completed a prelimi-
nary economic assessment on its Shafter
silver mine, located in southwest Texas.
That study will be followed by a prefeasi-
bility study due in the summer. The pro-
ject has a measured and indicated re-
source of 24.6 million ounces of silver
and an inferred resource of 22.8 million
ounces silver. Plans call for silver pro-
duction at a rate of 3.2 million ounces per
year. The mine has extensive under-
ground development in place, allowing
the project to move quickly to produc-
tion. The studies at Shafter will be used
to help the company find financing to
develop the mine.
The La Negra silver-lead-zinc-copper
mine in Mexico continues to operate at
1,000 tonnes per day, but the low metal
prices have squeezed profits. The
Rosario mine was put on hold as metal
prices plummeted and the company chose
to focus on development of the Texas
mine.
Shafter is an attractive silver mine devel-
opment project. If the company can se-
cure financing on favorable terms, there
is considerable upside potential in the
share price from the current level.
Last updated December 2008-2
Exeter Resource Corp (XRC-TSXV;
C$2.72) encountered another very long
drill hole intercept from the ongoing pro-
gram at its Caspiche gold-copper por-
phyry project in Chile: The hole cut an
impressive 1,214 meters of 0.9 grams per
tonne gold and 0.33% copper. This hole
supports the notion that mineralization
extends well beyond the limits of the
previous drilling on the project.
Exeter is well on its way to outline a very
substantial deposit in Chile by this Sep-
tember. They also expect a resource esti-
mate on the Cerro Moro project in Ar-
gentina by this summer.
With nearly $40 million in cash, Exeter is
well positioned to continue its two ag-
gressive drill campaigns. The resource
estimates expected over the coming
months should help investors to better
valuate the exceptional exploration suc-
cess experienced by the company.
Last updated February 2009-1
Freewest Resources (FWR-TSXV;
C$0.26) has made another new chromite
discovery on its wholly-owned McFaulds
property in northern Ontario: 4 holes
drilled below the Black Thor chromite
discovery encountered a new zone, with
assays up to 37 meters of 32% chromite.
The new zone, called the Black Label
zone, is thought to be associated with
platinum, palladium and nickel minerali-
zation. The discovery will be followed up
by further drilling.
Recent drilling at the Black Thor deposit
has returned assays up to 30 meters of
40.3% chromite. Black Thor and Black
Label are located 4 kilometers northeast
of the Big Daddy chromite deposit, an-
other high grade deposit recently identi-
fied by Freewest and its partners. Spider
Resources (SPQ-TSXV) and KWG Re-
sources (KWG-TSXV) have each earned
a 25% interest in the Big Daddy project.
Freewest now has three chromite deposits
on which drilling continues to push out
the limits. The company has various
other projects, with joint venture partners
funding several of them. The most sig-
nificant is the Clarence Stream gold de-
posit in New Brunswick on which an
updated resource estimate is expected
soon.
Freewest is so far getting little credit for
the very significant discoveries in north-
ern Ontario. Those deposits, along with
discoveries in the area by other compa-
nies, are now capable of supporting infra-
structure development. The provincial
government is looking closely at road
access and at least a couple of major met-
als companies are already evaluating the
suite of deposits now being outlined by
Freewest and the other companies in the
area.
Last updated January 2009-1
Full Metal Minerals (FMM-TSXV;
C$0.175) announced a new discovery of
high grade zinc-lead-silver mineraliza-
tion. The discovery resulted from drilling
8 holes last year at its OG project, 40
kilometers north of Dawson city in the
Yukon. Highlights include 11.9 meters at
an average grade of 14% zinc, 5.7% lead
Resource OpportunitiesResource Opportunities
www.ResourceOpportunities.com March 6, 2009 6
and 26 grams per tonne silver. The drill
program was designed to test a 1.7 square
kilometer soil anomaly and geophysical
gravity high. The new area of mineraliza-
tion, called the Sundar zone, consists of
massive to semi-massive sphalerite, ga-
lena, pyrite and chalcopyrite and is open
for expansion in all directions.
Full Metal has a large portfolio of proper-
ties in Alaska and the Yukon Territory
with joint venture partners funding seven
projects. This is the third silver-base
metal discovery the company has made
over the last year, yet investors are giving
the company little value beyond the near-
term production potential of its Lucky
Shot Gold project.
Last updated February 2009-1
Hathor Exploration (HAT-
TSXV;C$2.12) reported assays from in-
fill and step-out drilling at its Midwest
Northeast uranium deposit in the Atha-
basca Basin. The drilling, which began in
January included 16 holes, of which 10
holes were designed for infill purposes
and 6 holes tested mineralization at dis-
tances 40 to 550 meters from the Rough-
rider zone. None of the step-out holes hit,
while nine of the ten infill holes hit ura-
nium. The standout was 15 meters of 12%
U3O8, but the other values were lower
grade or narrow. Investors were clearly
expecting more consistency, as the share
price took a big hit. The company still has
a significant uranium discovery, within
easy trucking distance of mills operated
by the three largest uranium producers.
The dip in the price represents a buying
opportunity.
Last updated January 2009-2
New Gold Inc (NGD-TSX; C$2.20) and
Western Goldfields Inc. have agreed that
New Gold will acquire all of the shares of
Western Goldfields on the basis of one
New Gold common share and 0.01 cent in
cash for each common share of Western
Goldfields. Existing New Gold and West-
ern Goldfields shareholders will own 58%
and 42% respectively, of the combined
company. The combined company will
have gold production from three gold
mines in mining-friendly jurisdictions,
forecast to produce 335,000 ounces of
gold in 2009, and expected to grow to
over 400,000 ounces in 2012. Minable
reserves will total 7.6 million gold ounces
within a measured and indicated resource
of 12.2 million gold ounces. Randall Ol-
iphant, former president of Barrick and
now chairman of Western Goldfields, will
be executive chairman. Cash flow from
the three mines is expected to fully fund
development at the New Afton gold-
copper project in British Columbia and
also put the company in a strong position
to undertake further acquisitions.
The company would have $171 million in
cash, $77 million in long-term asset
backed commercial paper and $275 mil-
lion of debt. Once the transaction is com-
pleted, New Gold will have 348 million
shares outstanding and 436 million shares
fully diluted. The transaction will create a
bigger and stronger mid-tier presence that
will be in a position to grow and make
further acquisitions.
Last updated January 2009-1
Virginia Mines (VGQ-TSX; C$3.88)
announced that Goldcorp updated the
resource estimate at the Eleanore gold
project to 2.3 million ounces of gold at
10.05 grams per tonne in the measured
and indicated categories and 3 million
ounces at 12.75 grams per tonne in the
inferred category. The increased resource
is important to Virginia, which retains a
royalty interest on the deposit that it dis-
covered and sold to Goldcorp. At the cur-
rent gold price, the royalty would be 3%
of revenue. Advance royalty payments in
the amount of $100,000 per month are
due to begin flowing to Virginia next
month.
Virginia is conducting an aggressive $7
million exploration program on its Que-
bec properties this year, with much of that
being reimbursed by joint venture part-
ners and provincial government grants.
Virginia has $38 million in cash, which
together with the value of the royalty in-
terest exceeds the current market value of
the company, giving no credit to the
highly successful exploration team and
the several discoveries already in hand.
Last updated January 2009-2
Initiating Coverage
Inter-Citic Minerals
(ICI-TSX)
Inter-Citic Minerals is a gold exploration
and development company with a multi-
million ounce gold deposit in China. Re-
sults of drilling over the past year are now
being worked into an updated resource
estimate. Those resource figures will then
be carried forward into a preliminary eco-
nomic assessment over the coming weeks.
The strong likelihood of favorable results
from those two studies provides a basis
for substantial gains in the value of the
company over the coming weeks.
Rapidly expanding gold production in
China has made that country the world’s
largest gold producer. Last year, Chinese
production exceeded the U.S. and the
long time leader, South Africa. Investors
have not kept up to the rapid emergence
of the gold industry in that country. Inter-
Citic is well positioned to benefit from a
growing awareness of the importance of
China in the gold industry as well as from
the pending developments on its project.
Inter-Citic president, James Moore, has
worked with the Chinese resource indus-
try for over a decade. His strong ties
within the industry led to the acquisition
of the project. Much of the initial funding
for the company came from investors in
Hong Kong with whom Mr. Moore had
contacts. Vice President of Exploration,
Garth Pierce, has over 30 years experi-
ence working in exploration and project
management, including a highly success-
ful career with one of the majors. The
directors and advisory team bring a
wealth of experience and contacts.
Included is a former Prime Minister of
Canada, John Turner.
In 2003, Inter-Citic entered into a joint
venture with the Qinghai Geological Sur-
vey to acquire the Dachang gold project,
which covers 279 square kilometers. The
local government agency recognized the
significance of the gold occurrence, but
lacked funding to carry out the work. In-
ter-Citic has now earned an 83% interest
in the property and has the option to in-
crease its interest to 90% by completing a
Resource OpportunitiesResource Opportunities
www.ResourceOpportunities.com March 6, 2009 7
pre-feasibility study. The agreement also
gives Inter-Citic the right of first refusal
on properties around the Dachang prop-
erty.
The Dachang gold project is located in
Qinghai province in western China, 170
kilometers southeast of the city of Gol-
mud where major infrastructure is avail-
able. The structurally controlled sulfide
deposit occurs near surface in a sediment
host rock. Geologists were led to the area
by gold placer workings.
After identifying numerous gold occur-
rences, Inter-Citic in 2007 focused on
what is now referred to as the Dachang
main zone. That year, 28,000 meters of
drilling helped to outline an inferred re-
source of 25 million tonnes grading 3.6
grams per tonne, for a total of 2.9 million
ounces of gold. The majority of those
ounces are within the Dachang main zone,
where drilling has so far been done to
depths of only 150 meters.
In 2008, 50,000 meters of drilling was
completed along with IP geophysical
work, metallurgy and preliminary engi-
neering. Of 317 holes drilled, 299 holes
returned significant gold values. The
results are now being compiled into an
updated resource estimate that is expected
in the next month. Results of the 2008
drilling make it clear that the deposit will
be significantly larger than the 2.9 million
ounces previously outlined. In addition, a
substantial portion of the resource will be
upgraded from inferred to an indicated
resource.
Those updated resource figures will then
be incorporated into a preliminary eco-
nomic assessment over the coming weeks.
The deposit has favorable grades in a near
surface deposit. In a setting that is suppor-
tive of low capital and operating costs, it
is almost certain that the assessment will
be very positive.
Over the coming weeks, the Inter-Citic
share price should respond first to the
updated resource estimate, outlining a
deposit that is both larger and better de-
fined than the previous figures. Secondly,
the economic assessment will provide
confidence to investors that the deposit is
viable. In addition, China will gain inves-
tor recognition as the most important gold
producing nation and in general as a fa-
vorable place to do business.
Inter-Citic intends to develop the Dachang
main zone and to continue to evaluate a
number of other promising gold occur-
rences on its extensive property. Dachang
is a large and well-located deposit that
will be of interest to any number of gold
producers.
Inter-Citic has $11 million in cash (as of
late last year) more than enough to carry it
through the next phase of work on the
project.
Adjusting for its cash and using last year’s
resource estimate, the company is pres-
ently being valued at only $8.50 per
ounce gold in the ground. The share
value should be adjusted upwards as the
deposit is both upgraded and expanded in
the coming weeks.
Price March 6, 2009: C$0.39
Shares Outstanding: 82 million
Shares Fully Diluted: 86.6 million
Market Cap: C$ 31.9 million
Contact: Investor Relations
(905) 479-5072 www.inter-citic.com
Most Favored Companies:
Capstone Mining (CS-TSX;C$1.25)
CGA Mining (CGA-TSX;C$1.59)
Endeavour Financial (EDV-
TSX;C$1.55)
Exeter Resource (XRC-
TSXV;C$2.72)
(see brief update)
Freewest Resources (FWR-
TSXV;C$0.29)
(see brief update)
Great Basin Gold (GBG-
TSX;C$1.29)
Keegan Resources (KGN-
TSXV;C$2.59)
Mag Silver (MAG-TSX;C$5.45)
(see update)
Silvercorp Metals (SVM-
TSX;C$2.79)
Virginia Mines (VGQ-
TSXV;C$3.88)
(see brief update)
New to the list:
Inter-Citic (ICI-TSX;$0.39)
(see Initiating Coverage)
Resource OpportunitiesResource Opportunities
www.ResourceOpportunities.com March 6, 2009 8
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solicitation for the purchase or sale of securities. The information contained herein is based on sources which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available data. Any opinions expressed are subject to change without notice. The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. They may from time to time have a position in the securities of the companies mentioned herein, and may change their positions without notice. (Any
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Conferences
The next conference where I will be
participating as a speaker will be in
Zurich. I encourage you to attend, as it
provides an excellent opportunity to
meet face to face with company
management.
Intelligent Resource Investing
Gold & Silver, Base Metals, Oil &
Gas, Renewable Energy, Uranium
Zurich March 17, Geneva March 19
“An exclusive event with quality insti-
tutional and private investors, world
class experts and a select group of
companies.”
http://academyfinance.ch/
Metal Prices - March 6, 2009
Gold 936.70 $/ounce
Silver 13.29 $/ounce
Platinum 1067 $/ounce
Palladium 203 $/ounce
Rhodium 1050 $/ounce
Copper 1.65 $/pound
Nickel 4.37 $/pound
Aluminum 0.57 $/pound
Zinc 0.54 $/pound
Lead 0.53 $/pound
Uranium 43.75 $/pound
Cobalt 11.70 $/pound
Molybdenum 9.80 $/pound
Tungsten 11.46 $/pound
Tin 4.95 $/pound
Indium 321 $/kilogram
Resource OpportunitiesResource Opportunities
Mines & Money Gulf 2009
Tuesday March 31, 2009
Park Hyatt Hotel Dubai
“The conference will tackle high
level topics including effective capi-
tal raising strategies in the region,
perspectives from sovereign funds,
fund managers and high net worth
individuals in the region, up to date
insight in the trading markets in the
Gulf for commodities.”
www.minesandmoney.com
Calgary Resource & Clean Energy
Investment Conference
Calgary Convention & Exhibition
Centre April 4-5, 2009
“Featuring a world class line-up of
speakers, covering all types of direct
investments in resource public com-
panies, speculative investing, re-
source exploration, oil & gas, world
outlook, investment strategies,
and more!”
www.goldshow.ca