7:15 am Pacific
White Tiger Mining Corp. (WTC, TSX-V) and Rainy Mountain Royalty Corp. (ROM, TSX-V) were both halted late in the trading session Thursday with news released shortly after the opening bell this morning. Trading resumes in both companies at 7:30 am Pacific.
White Tiger, which can earn up to a 75% interest in the project, has announced that a second drill hole (RMZ-11-23), collared 25 metres south of RMZ-11-21 reported last Tuesday which kicked off a frenzy of activity in the stock, has confirmed the chalcopyrite zones encountered in RMZ-11-21 based on visual analysis.
RMZ-11-23 was drilled at the same azimuth and dip angle as RMZ-11-21 and 25 metres to the south in order to test the true width of the zones encountered in the first hole. White Tiger now says hole #23 is the longest and most continuous drill intersection it has produced so far at Marshall Lake, exceeding that of hole #21.
The original RM Zone discovery hole is located 300 metres northeast of RMZ-11-21.
White Tiger last traded at 80 cents Thursday. It has 15.3 million shares outstanding. Investor interest in this play will remain high, especially with speculation regarding pending assay results, but one should expect volatile trading activity.
vgd won’t go far as long as mineral fields has done the financing. Mr. dwek will sell all his shares at any chance he gets
Comment by david — April 11, 2011 @ 7:21 am
Hello David, I would normally stay away from a stock that has JDM as an insider. However, this organization’s holdings in VGD were acquired at .80 (as far as I can tell) so that gives the stock lots of room to grow before it hits the JDM sell off. Also, Inwentash Sheldon has acquired shares from .15 – .41 and Pinetree (who can be as much trouble as JDM) are not a significant insider. This is just what I have determined from looking through VGD’s insiders/shareholders.
Comment by Andrew — April 11, 2011 @ 7:42 am
Hi guys, great weekend review as usual. Quick question though. Is Greencastle still looking to acquire an advanced stage gold project like they hinted back in Novemeber 2010, or was that just talk to create a buzz?? There was no mention of it in their latest MD&A. And why do you think they have done NOTHING with these SUPPOSED promising Nevada properties? Also, with all the excitement surrounding RVC and the take over, and TYE’s recent results, 1 would think that money would be flowing into VGN from happy investors from RVC. Also of note, VGN hired the SAME Investor Relation firm ( Douglas McKay and Associates) as RVC, yet have been fairly silent, do you know if any of their BIG WIG clients that were in RVC are now getting into VGN? Seems that VGN management is happy to sit around and collect the royalties from the oil wells, rather than get out there and do something substantial with their Gold assets.
Thanks,
John
Comment by john — April 11, 2011 @ 7:45 am
David, as Andrew mentioned, the Mineralfields’ flow through financing last year was at 80 cents (they were not involved in the earlier 32 cent financing). Smart move I think on Dallaire’s part on the 80 cent financing as he raised $5 million without much dilution. Also, Dallaire is sharp – it’s my personal opinion he’ll have Mineralfields’ position taken out on a large cross at the appropriate time, which the market will like. Mark my words, VGD is going to be a huge winner for us.
Comment by Jon - BMR — April 11, 2011 @ 5:01 pm
I like that Jon, with conviction, mark my words, VGD is going to be a huge winner for us. I am marking them right now.lol thanks again for all you guys do here.
greg
Comment by GREG — April 11, 2011 @ 5:39 pm
Hi Jon,
What are you thoughts on WTC, the results from this hole will have to be absolutely amazing to match the hype surrounding this stock…anything less I can see a huge plunge…I was just curious what you though as far as if it’s worth getting involved at this price point or would you like it’s more prudent to stay on the sidelines…just curious…
Thanks
Rob
Comment by Rob — April 11, 2011 @ 8:12 pm
Hi Rob, with yesterday’s 83 cent close the current market cap for WTC is $12.7 million. It’s earning 50% of Marshall Lake and has an opportunity to increase that to 75% with a feasibility study. The market is already pricing in some decent results from holes 21 and 23. If the results are outstanding and surprise the market in a positive way, there’s no doubt WTC will really motor. Right now traders will be keeping an eye on a couple of support levels – 80-81 cents, and 67-70 cents, and of course resistance at 98 cents. Could this go higher from here on speculation? That’s possible. There is going to be volatility. I remember back to Noront in August/September, 2007. On the first visuals NOT ran up to about 80 cents. When the first assays came out (they were incredible) you could still buy NOT at $1.20 after it gapped up. I’m not saying WTC is another Noront as this is a different type of deposit, but I’m making a comparison based on trading behavior. The easy money has been made on WTC to this point. Now the risks are a little higher. The potential excites me and this is going to be incredibly interesting to watch. Hole 23 was important as it confirms they are indeed onto something. If the assays are great, there will still be an opportunity in this, however. When investing in these speculative situations, you need to carefully weigh the risk and probability factors. I can’t advise you on specifically what to do but those are some of my personal thoughts on this.
Comment by Jon - BMR — April 12, 2011 @ 4:12 am