News & Analysis » Canada

Nortec Minerals research and analysis

Nortec Minerals Corp. has signed a Memorandum of Understanding (MOU) with Akkerman Exploration B.V. to earn an undivided 80% interest in the Karhujupukka property in Finland. The property’s minerals include iron (Fe), titanium (Ti), vanadium (V), platinum and palladium (PGE, or Platinum Group Elements), and gold (Au). Nortec will fund and incur expenditures of €1,500,000 over an earn-in period of four years following the signing of an Option Agreement.

Purepoint Uranium Group research and analysis

Purepoint Uranium Group Inc.’s 2012 exploration plans include expenditures of $2,020,000 on six projects in the Athabasca Basin in northern Saskatchewan, Canada.  About half of that is to be spent on the Red Willow property, where crews have been mobilized to begin the Winter 2012 exploration program being undertaken by optionee Rio Tinto Exploration Canada Inc., which is earning a controlling interest.

Adex Mining research and analysis

Adex has announced results from the 2011 diamond drilling program (17 holes, 7,000 metres) at the Company’s Mount Pleasant property in southwestern New Brunswick. At both the North Zone and the Saddle Zone, the Company discovered new high-grade intercepts containing tungsten (WO3), molybdenum (MoS2) and bismuth (Bi). The North Zone results extend known WO3/MoS2/Bi mineralized bodies to the east and southeast.

Leader Energy Services research and analysis

Leader Energy Services Ltd. has published Q4/2011 (ended December 31, 2011) financial guidance along with its 2012 capital spending budget. The Company expects revenue for the quarter to exceed $11.0 million, an increase of about 25% over the corresponding period of 2010, and about 10% higher than in Q3/2011. The higher revenue is likely due to increased levels of horizontal drilling activity in the WCSB, where Leader is a niche service company almost exclusively focused on this area.

Queenston Mining research and analysis

Queenston Mining Inc. (¡°Queenston¡± or the ¡°Company¡±) is a Canadian mineral exploration and development company focused on the historic Kirkland Lake Gold Camp, Ontario and the Cadillac Gold Camp, Quebec. The Company¡¯s assets include six, 100%-owned gold deposits that are in various stages of exploration and development. Largest land holding, with 11 known gold deposits, in the Kirkland Lake Camp, a major gold camp with a 100 years of history.

Vatic Ventures, Cadillac Ventures, Leader Energy Services, Purepoint Uranium Group, Source Exploration news briefs

Vatic has located a 900-metre-long by 25- to 50-metre-wide multielement anomaly, as a result of the Company’s 2011 exploration program on its BM gold property near Merritt, B.C. Cadillac has published assay results from holes K-11-25 through K-11-32 drilled at the K1-1 open-pit project at the Company’s Thierry Mine property in northwestern Ontario. Leader expects revenue for Q4/2011, ending December 31, 2011, to exceed $11.0 million, an increase of about 25% over the corresponding period of 2010, and about 10% higher that Q3/2011. Purepoint reported that crews are mobilized to begin the Winter 2012 exploration program for Rio Tinto Exploration Canada Inc. at Purepoint’s Red Willow uranium project in the Athabasca Basin in Saskatchewan. Source Exploration’s Las Minas project in Mexico has intersected high-grade gold, silver and copper mineralization, and extended skarn by a further 125 metres on strike for a total known strike length of about 840 metres.

biOasis Technologies research and analysis

biOasis Technologies Inc. (“biOasis” or the “Company”) is a biotechnology company focused on developing and marketing diagnostic technologies and pharmaceutical products for central nervous system (“CNS") diseases. The Company is presently involved in the development of 2 programs: (1) CogniTEST: an in vitro diagnostic assay for Alzheimer’s disease; and (2) Transcend: a carrier for the transport of therapeutic medications for CNS disorders that address the limitations of the human blood-brain barrier.

Invenio Resources research and analysis

Invenio Resources Corp. (“Invenio” or the “Company”) has four gold properties in the mining-friendly states of Alaska (Ganes Creek and Candle Hills), Utah (Kings Canyon) and Nevada (Green Springs). This Vancouver-based exploration company is concentrating on its properties in Alaska. Invenio’s flagship Ganes Creek project is on the Tintina Gold Belt, host to the 42-million-ounce Donlin Creek gold deposit (Barrick and NovaGold) and the Nixon Fork copper/gold skarn deposit (Fire River Gold). The Company began compiling geophysical survey data from Ganes Creek in the fall of 2011, and a diamond drilling program is scheduled to begin at this project in the summer of 2012.

Virgin Metals research and analysis

Virgin Metals is a junior exploration and development company focused on copper, molybdenum, tungsten, and silver projects in Mexico and the USA. Mexico’s State of Sonora is home to the Company’s Los Verdes, Potreritos, El Cobre, Alamos and Cuatro Hermanos projects, while the Topper project is located in Nevada, USA. The Company recently released the results of a Preliminary Economic Assessment (PEA) of its 100%-owned Los Verdes project.

Source Exploration, Blue Note, Critical Elements, Cadillac Ventures, Automodular Corporation news briefs

Source Exploration announced that its wholly-owned Mexican subsidiary, Roca Verde Exploration de Mexico, has signed an option agreement with Empresa Minera Caprice, JC, S.A. de CV to acquire up to a 100% interest in its Capricho mineral exploration concessions (high-grade gold and silver mineralization) in Sinaloa, Mexico. Blue Note and Critical Elements have agreed to extend the term of the binding agreement providing for the acquisition by Blue Note of all of Critical Elements’ interests in the Croinor gold project near Val-d’Or, Quebec.

Virgin Metals research and analysis

Virgin Metals is a junior exploration and development company focused on copper, molybdenum, tungsten, and silver projects in Mexico and the USA. Mexico’s State of Sonora is home to the Company’s Los Verdes, Potreritos, El Cobre, Alamos and Cuatro Hermanos projects, while the Topper project is located in Nevada, USA. The Company recently released the results of a Preliminary Economic Assessment (PEA) of its 100%-owned Los Verdes project.

Shoal Point Energy research and analysis

Shoal Point Energy Ltd. and NWest Energy Corp. have entered into an agreement whereby Shoal Point will acquire a 100% working interest in all rights in the EL 1079R licence (about 500,000 acres) in the immediate offshore area of western Newfoundland. EL 1079R is contiguous with EL 1120 (100%-owned by Shoal Point) and EL 1070 (Shoal Point has the right to earn an 80% working interest). The agreement will allow Shoal Point to increase its gross acreage position in the “Green Point Shale” play from 217,000 acres to about 720,000.

Integrated Asset Management research and analysis

Integrated Asset Management Corp. (IAM) and its real estate asset management group, GPM Investment Management (GPM), announced that GPM has been given notice by a client to terminate a segregated account managed by GPM. The termination will be effective February 29, 2012. Unlike GPM’s core long-term funds, the segregated account had a high component of development properties, and could be terminated by either party on 30 days’ notice.

Virgin Metals research and analysis

Virgin Metals Inc. has released the results of a Preliminary Economic Assessment (PEA) of its 100%-owned Los Verdes project in the State of Sonora in Mexico. The PEA includes a financial analysis of the impact of the Company’s recent acquisition of the Potreritos property, which is close to Los Verdes and of the same mineralogy. According to the news release, Potreritos has added “tens of millions of dollars” to the value of the project. The results of the PEA show significant economic improvement and clarity compared with the 2008 Pre- Feasibility Study (PFS), along with opportunities for additional cost savings and significant project growth.

Black Iron research and analysis

Black Iron has retained WorleyParsons Services Canada Ltd. to prepare a Feasibility Study (FS) for the Company’s Shymanivske iron ore project in Kryviy Rih in central Ukraine. The study, which is expected to be ready in Q4/2012, will build on the Preliminary Economic Assessment (PEA) that was published in mid-December 2011. The main purpose of the study is to further refine the preferred mine-to-port flow sheet with accuracy on both operating and capital cost estimates of +/- 15%, in support of raising the capital required to bring the project into commercial operation.

Monarques Resources research and analysis

Monarques has published results from the 2011 exploration program on its 100%-owned Bourier property in the Lower James Bay region of Quebec. The program included geological mapping, prospecting, soil sampling and stripping on the northeastern part of the property, as well as drilling of targets generated by geological mapping and the helicopter-borne mag/EM survey on the southwestern part of the property.

Microbix Biosystems research and analysis

Microbix Biosystems Inc. and Zydus Cadila (“Zydus”), a global pharmaceutical company headquartered in India, have signed a Letter of Intent to market the thrombolytic drug Urokinase in North American markets. Urokinase, which was withdrawn from the market for three years (1999-2002), was acquired by Microbix in 2008, and the Company has been working since then to reintroduce the drug in North America with manufacturing infrastructure, raw materials, and technical expertise. The Company has acquired the approved NDAs (New Drug Approvals) for both Canada and the USA.

Microbix biosystems research and analysis

Microbix Biosystems Inc. has reported financial results for the fourth quarter and full year fiscal 2011 ended September 30, 2011. The Company’s core virology business remains profitable, but overall results were constrained by the following. Expenses for the development of LumiSort™, the Company’s livestock sex selection technology. Unplanned ongoing costs for the China vaccine venture.

NSGold research and analysis

NSGold Corporation has reported on the progress at its Dios Padres silver project in the State of Sonora, Mexico. The Company recently completed a comprehensive geological survey over the property, including a systematic rock geochemical sampling program, a ground-based 3D Induced Polarization geophysical survey (3D-IP), and a magnetic survey that was done simultaneously with the 3D-IP.

Century Iron Mines Corp. research and analysis

Century Iron Mines Corporation has published interim Phase II drill results from its 51%-owned Duncan Lake iron ore project in Quebec (see map on page 2). The results had been announced on December 14, 2011 by 49% partner Augyva Mining Resources. The drilling at the project is continuing. Century Iron plans to update the property’s NI 43-101 compliant resource estimate in 2012, and subsequently prepare a preliminary economic assessment (PEA).

Virgin Metals research and analysis

Virgin Metals Inc. has published an updated plan and development schedule for the Company’s Los Verdes copper/molybdenum project in the State of Sonora in Mexico, following the acquisition of Potreritos project. Potreritos is close to Los Verdes, and the mineralogy of the deposits is similar to that of Los Verdes. The Company plans to include the additional resources from Potreritos in the pre-feasibility study (PFS) that will be released on January 10, 2012.

Cadillac Ventures research and analysis

Cadillac Ventures Inc. has closed the second and final tranche of its private placement financing, for gross proceeds of about $804,400. The first and second tranches together totalled $3.3 million in gross proceeds. On the closing of the second tranche, Urion Mining International B.V., an existing shareholder of the Company and an indirect wholly-owned subsidiary of Trafigura Beheer, B.V., was issued 3,830,410 units of Cadillac at $0.21 per unit. Union’s subscription allowed it to maintain its approximate 25% equity interest in Cadillac, through the exercise of its pre-emptive right under a pre-existing agreement between Cadillac and Urion.

RBC Financial Group research and analysis

RBC Financial Group (RY) reported Q4/11 EPS cash net income of $1.09, up 20% Y/Y. This excludes the U.S. personal and commercial bank which is part of discontinued operations as RY recently reached an agreement to sell the U.S. bank to PNC Financial (see discussion below). Earnings were $0.08 below our estimate and about $0.11 above that of consensus. Overall, it was an acceptable quarter as trading revenues continued to be very volatile, declining over 60% Y/Y. Fixed income trading remained under pressure, down over 80% Y/Y.

National Bank research and analysis

National Bank (NA) reported cash operating EPS (fd) of $1.74. Excluding the negative $0.06 per share impact of the items of note discussed below, adjusted EPS was $1.80, an increase of 10% Y/Y. Adjusted EPS was $0.09 higher than our forecast and $0.13 higher than consensus. Cash adjusted ROE in the quarter was 17.7% versus 17.5% last quarter. The Tier 1 capital ratio (Basel II) declined to 13.6% from 13.9% as at the end of last quarter but NA remains one of the best capitalized banks in Canada.

Bank of Nova Scotia research and analysis

Bank of Nova Scotia (BNS) reported cash EPS (fd) of $1.10, up 15%Y/Y. Excluding a small general loan loss reversal and a negative goodwill adjustment, adjusted cash EPS was $1.06, up 6% Y/Y but  down 5% from the adjusted earnings last quarter. Adjusted EPS this quarter came in $0.08 below our estimate and were $0.02 below the general consensus. The adjusted cash ROE in the quarter was 16.4% compared to 18.0% last quarter. The Tier 1 capital ratio decreased in the quarter to 12.2% from 12.3% last quarter.

BMO Financial Group research and analysis

BMO Financial Group (BMO) reported cash EPS for Q4/11 of $1.34. Adjusted EPS, which excludes other items noted below, was $1.27, up 1% Y/Y. EPS was impacted by a 13% increase in the average number of common shares outstanding (issued in the Marshall & IIsley Corporation (M&I) acquisition). The quarter was about $0.04 per share lower than we expected and $0.03 per share below consensus. Adjusted ROE declined to 13.5% from 15.6% last quarter due largely to the equity issued for M&I. The Basel II Tier 1 capital increased to 12.0% from 11.5% last quarter.

Aldershot Resources research and analysis

Aldershot Resources Ltd. has published results from the second round of drilling in the Company’s Fall 2011 program at its Sage Plain exploration project in the Uravan Mineral Belt of the Colorado Plateau in Utah. The drilling, under Aldershot’s 100%-owned subsidiary Royal USA Inc. and its joint-venture partner Colorado Plateau Partners LLC, further confirmed the validity of historical records and extended the resources. The drilling (10 holes for a total of 1,971 metres) encompassed the historic Calliham mine, which was in operation until the late 1980s (shut down as a result of depressed uranium pricing).

Dynetek Industrial research and analysis

Dynetek has entered into an agreement and certain non-binding letters of intent with respect to a series of four proposed transactions. Among other things, the proposed transactions may result in the acquisition of all of the shares of Dynetek by S.V. Greentech Private Limited (“S.V. Greentech”) and collectively with its affiliates, financial investors and strategic partners (the “S.V. Group”), or an affiliate thereof, for a purchase price of $0.36 per share.

Critical Elements research and analysis

Critical Elements Corporation (“Critical Elements” or “the Company”) is a Canadian mining exploration company with a number of metal projects in Quebec and British Columbia. Critical Elements’ key Rose project boasts 26.5 million tonnes in NI 43-101 compliant Indicated resources at 1.3% Li2O equivalent and 10.7 million tonnes in Inferred resources at 1.1% Li2O equivalent. The project in November 2011 obtained a Preliminary Economic Assessment which estimated the project’s after-tax NPV (8%) at $279 million.

Canada Lithium research and analysis

Canada Lithium Corp. (“Canada Lithium” or “the Company”) is a Canadian-based resource exploration and development company focused on its wholly-owned Quebec Lithium Project. Canada Lithium has just issued an updated NI 43-101 resource estimate for the Quebec Lithium Project. According to the estimate, the project contains 33.2 million tonnes in M+I resource at 1.19% Li2O. The Company is transitioning into a developer and producer status - in Q3/2011 it started the site construction. Full production at 20,000 tonnes of Li2CO3 annually at the Quebec Lithium Project is expected by the end of 2013.

Esperanza Resources research and analysis

Esperanza Resources Corp. (“Esperanza” or “the Company”) is a mineral exploration and development company focused on metal projects in Mexico, Peru, and Slovakia. The Company’s key projects are: (1) Cerro Jumil (goldsilver), 100% ownership, in Mexico; and (2) Strieborná (silver-copper-antimony), a 32% indirect interest, in Slovakia. Esperanza sold its share in the San Luis project in Peru in 2011 and currently has up to $22 million in cash available for advancing its projects.

Century Iron Mines research and analysis

Century Iron Mines Corporation has announced initial assay results for the Company’s 2011 summer drilling program at the 100%-owned Sunny Lake project in northeastern Quebec. Over 5,000 metres of diamond drilling had been completed under the 2011 program at Sunny Lake by October 15, 2011. Drilling is ongoing, with the current phase expected to be completed by December 2011. The summer program was focused on a large potential taconite target (an approximate 13.5-kilometre strike length of potential taconite iron mineralization).

Integrated Asset Management research and analysis

Integrated Asset Management Corp. (IAM) has reported fourth-quarter and full-year fiscal 2011 results for the period ended September 30, 2011 as shown below. Total revenues for the fiscal year ended September 30, 2011 were $28.3 million compared with $21.6 million in fiscal 2010. Included in F2011 revenues were performance fees of $8.9 million compared with $4.8 million in the previous year. Of the $8.9 million in performance fees in F2011, $5.7 million was from Real Estate Asset Management and $3.2 million from Retail Alternative Investments.

Purepoint Uranium Group research and analysis

Purepoint Uranium Group Inc. has announced the winter 2012 exploration plan for the Company’s Red Willow project in the Athabasca Basin in Saskatchewan. The exploration will be carried out by RioTinto, which is earning a controlling interest in the property by spending up to $22.5 million in exploration and development expenses. Purepoint optioned the property to Rio Tinto in late 2010. Rio Tinto will be drilling at the Osprey and Geneva areas, both of which have returned anomalous intercepts of uranium, pathfinding elements and basement alteration.

Canstar Resources research and analysis

Canstar Resources Inc. (“Canstar Resources”, “Canstar” or “the Company”) is a mineral exploration and development company focused on gold and base metals projects in Canada. The Company’s key property is Mary March (zinc-leadcopper- silver-gold), with an option to own 50% and a right-of-first-refusal on the other 50%, and located in Newfoundland. Canstar Resources saw a successful closure of the decade-long court dispute about its key Mary March property in November 2011. The stock was up 50% in one day after the announcement.

Strike Minerals research and analysis

Strike Minerals Inc. has purchased the balance of ownership of key gold exploration claims at Hays Lake near Schreiber, Ontario, which the Company had not purchased under the original option agreements with the three vendors (see page 2). The claims are known as the Hemlo West properties, and are located 48 kilometres west of the Hemlo Gold Camp. Strike Minerals has a 100% interest in the Hemlo West properties, and has bought out all future exploration obligations.

Automodular Corporation research and analysis

Automodular Corporation (“Automodular” or the “Company”) supplies sub-assembly, sequencing, and transportation services to Ford's assembly plant in Oakville, Ontario. The Company’s two operating facilities in Oakville employ approximately 500 people. Automodular’s mission is “To be the world class assembler and sequencing operation to the automotive manufacturers “.

Source Exploration research and analysis

Source Exploration is actively exploring its Las Minas gold-silver-copper property in Mexico. The property hosts several historic gold mines. We estimate that the Company has drilled 7,500 m in diamond holes at Las Minas in 2011. Source Exploration now thinks that the mineralization at Las Minas has an on strike length of more than 2 km. The Capricho property has multiple showings of visible gold. The Company plans to start drilling the property soon. Source Exploration has $4.3 million in cash which should be enough to continue actively exploring the properties.

RIFCO research and analysis

RIFCO Inc. has published results for the second quarter and six months of the 2012 fiscal year ended September 30, 2011. With comprehensive income of $1.1 million and EPS of $0.06 for the first six months of the fiscal year, the Company reversed a $0.05 million comprehensive loss and EPS of $0.00 experienced in the first six months of the previous fiscal year.

MCAN Mortgage research and analysis

MCAN reported net income for Q3/11 of $7.6 million or $0.45 per share. On an adjusted basis, net income was $4.9 million or $0.29 per share versus an adjusted $6.2 million or $0.38 per share in the prior quarter and $8.6 million or $0.60 per share in the same period last year. Theseresults were about $0.08 per share below our expectations. The adjusted net income excludes income taxes of $2.2 million and a positive Fair Market Value (FMV) adjustment of $4.9 million. MCAN has declared its regular dividend of $0.27 per share payable January 3, 2012 with record date December 2, 2011.