|
Issue 15 April 14, 2011 Catalyst Copper (CCY, TSXV) Poised
for a Bounce The
420 point 2-day drop in the TSX composite index this week dragged down the
share price of hundreds of junior explorers. Companies
constructed on a foundation of surging spot prices, a proven NI 43-101
resource and aggressive drilling - are due for a solid bounce as market
fundamentals rebalance. A
prime example would be Catalyst Copper whose 2011 drill program kicked off
with confirmation of significant copper mineralization on the La Verde copper
porphyry project in Michoacán state, Mexico. You
don't have to be a seasoned day-trader to profit from these momentum swings.
Significant
CCY drilling results include 0.45% Cu over 158.7 meters; including 0.93% Cu
over 25.2 meters and 0.38% Cu over 59.7 meters. Catalyst
is planning to drill a minimum of 20,000 meters at La Verde in 2011,
culminating in an updated NI43-101 resource estimate. I anticipate the
further drill results from the latest 4 holes in the upcoming weeks. Currently
Catalyst is fully funded for phase one of the 2011 drilling program. Last
year, the CEO John Greenslade was instrumental in
raising $850 million for Baja Mining (BAJ-TSX) so it fair to say that the
company has the management pedigree to entertain a variety of fundraising
options. And
CCY is riding a massive demand wave that is expected to build for the next 20
years.
Metal
analysts are forecasting a global 2011 copper deficit of 500,000-600,000 tonnes. "We are having a supply issue with this
metal," confirms Bart Melek, an analyst at TD
Securities in Toronto. Most
of the copper demand will come from China which is in the early stages of a urbanization movement involving hundreds of millions of
Chinese citizens. Catalyst
also has rail lines, electricity and (unusual for Mexico) ample 4-season
water running directly through the property. The
bottom line is that Catalyst Copper appears to have a mineable deposit with
NI 43-101 compliant 2.1 billion pounds of Measured and Indicated copper, and
an additional Inferred Resource of 1.3 billion pounds of copper. That
makes the current stock price of .15 look like a good buy. ---------------------------------------------------------------------------------- Denby Greenslade, Corporate Communications Officer Vanguard
Shareholder Solutions |
