Silver Stock Report
by Jason Hommel, September 18, 2007
http://thesilversummit.com/ Sept. 20-23
Do you ever wonder why I occasionally preach a sermon related to silver, instead of just sending out stock picks all the time? There are many reasons, in addition to teaching, but consider these bits of advice:
Mark 6:11 And if any place will not welcome you or listen to you, shake the dust off your feet when you leave, as a testimony against them.”
In my case, I can’t just “leave”, or “shake dust”. People have to opt out. So certain topics help to give certain people a reason. Also:
Matthew 7:6 Give not that which is holy unto the dogs, neither cast ye your pearls before swine, lest they trample them under their feet, and turn again and rend you.
I cast my pearls to everyone who opts in to my email list. But I give the dogs and pigs every opportunity to unsubscribe. The point is, if I had a choice, I’d rather not help make money for people who would be so eager to use it to restrict other people’s freedoms with tariffs.
So, now that another round of people have removed themselves from my email lists, I can continue with my regularly scheduled stock picks.
For those of you attending the Silver Summit, you probably ought to make time to visit the following three to five companies. If not attending, you can research these companies online at their websites.
Azteca Gold Corp (AGZ.V, AZGFF.PK) (Symbols work at Yahoo! Finance)
http://www.azteca-au.com/
Shares: 70,824,141
Warrants & Options: 25,644,665
Stock Price: C0.69/share
Fully Diluted Market Cap (USD): $64,123,938
Azteca recently acquired an option on the Bunker Hill mine.
Last year, I learned that the Bunker Hill was one of the richest, and biggest silver mines in the entire Silver Valley, with over 200 miles of underground tunnels! I also learned that it was a privately held mine. Basically, I learned that if the mine should ever become public, that I ought to try my hardest to get in early! I was elated this year to find out that one of my largest stock holdings, Azteca, ended up getting an option on Bob Hopper’s Bunker Hill mine! Azteca has a lot to live up to, they need to raise $46 million to exercize the option, but it appears they have the financing already lined up once feasibility is completed. The Bunker Hill has more lead/zinc than silver, but with lead prices now higher than zinc, that’s a nice problem to have. Lead prices have historically been about half the price of zinc, but yesterday, lead was $1.45/lb. while zinc was $1.27!
I will need to do more research to what I have stumbled into.
David Bond wrote up Bob Hopper, the Bunker, and Azteca, a few months back, here:
http://www.silverminers.com/publications/showpub.aspx?id=5409
“No numbers and few specifics were given, but a major player (read Rio Tinto-sized) player is back in the bushes. There are conditions: a bankable feasibility study and resolution of a few matters with the U.S. EPA, which agency has hounded Mr. Hopper like a recurring rash . . .”
Canadian Zinc Corp (CZN.TO, CZICF.OB) (Symbols work at Yahoo! Finance)
http://www.canadianzinc.com/
Shares: 120,207,950
Warrants & Options: 21,745,255
Stock Price: C0.76/share
Fully Diluted Market Cap (USD): $105,458,882
Canadian Zinc is one of the lowest forward P/E ratios of any mining stock I know. It’s just under 1. I’ve followed this stock for 4 years now, and the company now looks like it’s on the fast track. This fall, they should be completing an updated 43-101 resource after several years of drilling, completing a feasibility study, and then making an application for a final mining permit. This stock should really move up this fall. The timing, and the price, seems like it could not be better. CZN also has $35 million CDN in cash.
Tumi Resources Limited (TM.V, TUMIF.OB) (Symbols work at Yahoo! Finance)
http://www.tumiresources.com/en/
Shares: 25,347,597
Warrants & Options: 5,989,998
Stock Price: C0.73/share
Fully Diluted Market Cap (USD): $22,362,116
In April, 2007, Tumi hit the longest & highest grade intercept I’ve ever seen:
Tumi Intersects 24.4m Grading 6.4 g/t Gold and 1,629 g/t Silver at La Trini, Mexico
http://www.tumiresources.com/en/Releases/tumiprApril1607.pdf
The stock moved up to about $1.10/share Cdn on the news. Tumi will be putting a reverse circulation drill into the loose ground to explore further.
At last year’s Silver Summit, several people thought Tumi had some of the best potential of any company there. Looks only better this year.
The three above are among my top silver picks, and among my top holdings.
While we are discussing the Silver Valley, there are two new companies in the Silver Valley this year that I should mention:
SNS Silver bought the Crescent mine, and USA Silver bought the Galena mine.
SNS Silver Corp (SNS.V, SNSFF.PK) (Symbols work at Yahoo! Finance)
http://www.snssilver.com/
Shares: 39,100,000
Warrants & Options: 10,900,000
Stock Price: C0.97/share
Fully Diluted Market Cap (USD): $47,409,580
SNS Silver this month has been releasing excellent drill results this month, and they feel they may have a mine in the making that could rival the Sunshine, owned by Sterling Mining.
SNS Silver Drills Over 10 Feet of 56 Opt (1,910 g/t) Silver at Crescent Mine
http://biz.yahoo.com/cnw/070910/sns_silver_crescent.html?.v=1
This seems similar to Tumi’s hit, but this may be in a large vein system (more drilling is needed to confirm).
U.S. Silver (USA.V, CYLPF.PK) (Symbols work at Yahoo! Finance)
http://www.us-silver.com/
Shares: 185,178,202
Warrants & Options: 27,165,888
Stock Price: C0.86/share
Fully Diluted Market Cap (USD): $178,510,183
USA Silver acquired the Galena mine from CDE, which is the second most prolific silver mine in US history. The mine is now operating profitably, which is shocking to see, since silver prices have languished this past year. The mine is currently anticipated to produce 2.5 million ounces of silver in 2007.
I own stock in all five companies listed, and none of them has paid me to produce this report. Furthermore, I have not received stock as a gift from any of them.
If you get a chance, drop by these company’s booths, or visit them online.
See you at the Silver Summit!
Sincerely,
Jason Hommel