Sunday, November 19, 2006

Monday, November 13, 2006

Off to Nawlin's

I'm heading out for the New Orleans Conference first thing tomorrow. I will be there through Sunday, will try to post some notes while I am there.

Friday, November 10, 2006


This is it. The day I've been awaiting for...three years. I can take some comfort in Peter Lynch's observation that some of his biggest winners didn't do anything for 2-3 years before they did their thing. Perhaps Amarillo will fit that mold. After taking an initial position in early 2004, I averaged down a few times, lowering my cost basis. And then I waited...

Amarillo Gold is a junior exploration company with properties in Brazil. They are part of the Ironbark group of companies, which includes Aquiline Resources and a few others. Their main property has a historical resources of 700K ounces of gold, but further work has demonstrated that there is more than that. Recently the company staked additional ground adjacent to Mara Rosa based on their current work. They are also in the process of acquiring another property, Lavras del Sul, from Rio Tinto. Rio was looking for a 5-10MM ounce deposit. When they determined that was not likely to pan out at Lavras, they decided to let it go. They left a string attached though, that will allow them a substantial back-in option if in fact, it turns out to be a multi-million ounce deposit. Initial work on the property indicates a potential for 3MM ounces.

As far as I know, there aren't any imminent major announcements, but something lit the fuse today and buyers piled on, driving the stock up 20% on over 1/2 million shares (which is a lot, for Amarillo). This took the stock up through the .50 level which was roughly the last point of resistance and the rim level of a cup and handle formation that is traced out over the preceding three years. Could be good for a move to .80, short term. Depending on whatever is behind the action today, could be even more juice. We will have to see...

Sunday, November 05, 2006

Uranium: from discovery to production

Click here to see the timeline to produce uranium, from discovery.

Thursday, November 02, 2006

Coming soon, to a browser near you...

This is one of the private companies I am backing. They are getting ready to launch their site...

Wednesday, November 01, 2006

Aurelian's visible gold

Article on Universal Uranium

This article was sent to me by investor relations at Universal Uranium. It was posted at Stockhouse, but they did not attribute it.

Uranium in Labrador...

Extreme opportunity

As most uranium investors know, Labrador is becoming a hotspot for uranium exploration and has already treated to a couple successes in Aurora Energy and Crosshair minerals. Both companies are working aggressively on their properties to prove up uranium lbs and have met to a 350% and 320%share price increase respectively. Now not all companies exploring in the Central Mineral Belt SP's have done quite as well. Their SP's increased significantly back in early winter of last year, but have fallen off considerably due to a combination of significant success' of Aurora and Crosshair and lack of activity by these other juniors which has seen speculative money flowing into those 2 companies from the other area plays.

This is actually quite significant to me that the there is only a fixed amount of speculative money in this area and that the spotlight and big institutional speculative dough has yet to participate in this area of exploraration. Most speculative bucks are still finding their way to regions like Athabasca because of its history. There is quite a disparity between the haves and have nots of the region as displayed with comparative market caps of the companies below...



Land Position


Share Price

Market Cap

% gain or loss






up 350% from lows






up 320% from lows






up 60% from recent lows






down 56% from highs


Monster Copper/Santoy(jv)




down 27% from highs


Universal Uranium 60%




down 58% from highs


Silver Spruce 40%




down 55% from highs

Here are some factors that make uranium exploration looks very rosy for Canadian companies...

* Cameco's taking a hit on their flooded Cigar lake mine... there are thoughts now that they may not be able to put it into production... 20MM lbs of uranium supply from 2008 - 2010 that now needs to be made up.

* Governments are less willing now than ever to sell enriched uranium from weapons for energy, meaning we are losing a supply of uranium which had helped fill the production vs demand gap.

* World demand for uranium and nuclear energy is ever increasing...

* China is building 30 reactors

* USA is now looking into biulding close to the same amount as well

* Other countries are aspiring to be nuclear proficient

* Global Warming - not only is it considered a green fuel that combats global warming. Global warming contributes to easier accessibilty to areas previously thought to harsh to mine and extends the seasons in areas such as the Yukon.

So lets look at Labrador a little more closely...

The area is obviously coming a hot play with success' of Crosshair and Aurora. The rest of the area plays after rising in speculation have tailed off to an acceptable re-entry point with most coming back between 50% and 60%. Indicators to me point that the big speculative money has yet to flood this area yet.

Newletter writers are starting to focus on the area as well as everyone knows how Grandich loves his Crosshair minerals. Now the other chiuauas in the area are making headlines as well as companies are mobilizing thier exploration programs.

Fishing for the undervalued potential winners...

UUL and SSE are at the beginning of their 1 year $2 million work program and have finished trenching with results pending; drilling is imminent if assays come back good. They have the second largest land position in CMB besides Bayswater Ventures and seem to be undervalued on land position alone. Their properties border Aurora's as well as Crosshair's and have one of the premiere land positions in the region. At a combined 20MM market cap between the 2 companies it is a fraction of Crosshair and a spec of dust compared to Aurora. With such a large land position contiguous with the proven winners in the area and Silver Spruce just getting its work program into full gear, I would expect great things from this uranium play in the future as they continue to work and develop their promising properties in Labrador. As the work program heats up at Silver Spruce, the share price should appreciate as investors see the company has moving forward with its projects and see a good chance at another Aurora or Crosshair. If 2 companies in the area have already been successful, it increases the odds that the others will be as well.

Heres to positive assays and an aggressive drill program...