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Are
There Any Great, New Mining Stocks Left? (Page 1 of 4) |
Where are the hot and cold spots around the
world for resource investors? The stampeding bull market in
commodities has investors reaching for new ideas. Highly respected
newsletter writer Lawrence Roulston of ?Resource Opportunities
favors Canada, Alaska and China for investing in mining and energy
companies.
StockInterview Let's get the cold spots
out of the way so investors are forewarned about which countries to
avoid.
Lawrence Roulston: A lot of the (mining) companies
that went overseas in decades back are recognizing the political
difficulties with dealing in some jurisdictions. These include
places like Indonesia, Columbia, and several of the African
countries, such as Congo, Sudan and Eritrea. All of those places
where there are great geological prospects, but are more and more
risky to deal in. I think some of that mining is coming back closer
to home, which is right here in Canada.
StockInterview So
Canada is on your favorite countries list
Lawrence Roulston:
At the very top of the list would be Canada. As of right now, taking
into account the geological potential, political situation,
infrastructure and all the other issues, I would (highly) rate
Canada and British Columbia. They have had decades of work. But for
the last decade, there hasn't been very much going on. The companies
are just coming back and picking up with what's been going on.
Similarly, Ontario, Quebec tremendous geological potential and it's
been kind of ignored for a long time. Canada is now the most
important place in the world for diamonds, representing 50 percent
on exploration spending for diamonds.
StockInterview: Is
there a specific mineral or metal that makes Canada especially
appealing?
Lawrence Roulston: It's the whole gambit. Canada
has always been one of the top metal producers, and it's coming back
to life. Of course, gold is at the top of the list, but also base
metals and uranium. The Athabasca Basin in northern Saskatchewan is
far and away the most important area to be looking at, geologically.
It's currently the biggest source of uranium and contains the
highest grade deposit. There are other uranium prospective areas in
Canada that are just emerging. The Thelon Basin in the Northwest
Territories, north of the Athabasca Basin, is very similar,
geologically, to the Athabasca Basin. It had some work done in the
1970s, and it's been pretty much ignored until very recently. Going
a little further north to Hornby Basin, it is a similar kind of
situation. In Labrador, the central mineral belt is just emerging as
a very important place to be looking for uranium.
StockInterview: Do you have any favorite companies, which you are
following and which have good prospects?
Lawrence Roulston:
NovaGold Resources (TSX: NG; Amex: NG), for example, with the Galore
Creek. It's a billion ton deposit with enormous metal content.
(Editors Note: Galore Creek has been called one of the largest and
highest grade undeveloped porphyry-related gold-silver-copper
deposits in North America.)
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