Ivory Energy Inc.
Company Contact Info: http://www.goldmau.com/ivory_energy.php

For Albertan oil explorers, winter oil drilling was killed by uncertainty over royalty fees. Despite oil being at $90, oil juniors were hit with the perfect storm of:  the disbandment of the income trusts; the rising cost of the loonie; and the uncertainty over royalties. Gas plays like acn.to were absolutely creamed, trading at $2 from high of $6.7 in 2006. http://quote.yahoo.com/q/bc?s=ACN.TO&t=2y

Favorite momentum/growth play PXX.v is trading at about half of its 2006 high http://finance.yahoo.com/q/bc?s=PXX.V&t=5y

Well, I like to buy low and sell high. At $90/barrel, Ivory’s projected monthly cash flow in 2008 exceeds $2 million/month, which is extraordinary for a company valued at less than $60 million (market capitalization plus debt). Ivory is operating in Saskatchewan and is not affected by the Alberta royalty situation. Ivory is fundamentally sound with proven reserves operating in a safe country. Technically the stock is trading at strong support of 70 cents. This is a great entry point for both for a quick trade or a long term position. We are buying at these prices.

Coastport Capital Inc.
Company Contact Info: http://www.goldmau.com/cpp.php

The Western press loves to sensationalize news. They made a huge deal over Bolivia’s Morales election and how Morales was going to confiscate foreign mining rights. Two years later and India, Newmont Mining, Apex Silver and China have all increased their investments in the country and no mining properties were taken away.

The focus switched from Morales to Correa of Ecuador in 2007. Again the press takes things out of context and paints an evil brush on Correa. In the last few months, Correa’s stance on mining and foreign investment has become increasingly clear: don’t pollute, pay taxes, and we welcome you.

Just last month after Correa’s party won the majority of legislative election, Correa commented on the petroleum and mining industries. With regard to the recent issue of an operating license on an oilfield in the vicinity of the ecologically-sensitive Yasuní Reserve, he refuted accusations that the activities would be harmful and challenged opponents to suggest alternative revenue sources – a highly pragmatic position.

With regard to mining, the President referred to the National Constituent Assembly’s mandate to review concessions and draft a new Mining Act. He welcomed mining activities as long as certain conditions are met.

“Ecuador's international mining forum was held in September and the tone was one of encouragement for mining production in this South American country, according to two EMN sources present at the gathering.

About 350 conference participants cheered the Chilean and Peruvian guest speakers as they recounted their own countries' success stories including the economic growth, royalties, and social development created by industrial mining operations

The one-day event was the second such mining conference of the Correa administration but the first to include large-scale mining firms, as the earlier national mining debate presided over by former MEM Minister Alberto Acosta excluded all but small artisan miners.

Mines and Petroleum (MMP) Minister Galo Chiriboga, who recently stated his support for large-scale mining that is environmentally and socially sustainable, invited mining companies to discuss reforms that would be mutually beneficial to Ecuador and industry.

At the conference opening, Chiriboga said new mining policies would be established with the input of private companies, the government and communities affected by mining operations”

Coastport’s Shyri’s project borders IAMGOLD’s high grade 3.5million oz Au Quimsacocha project. There are several anomalies that carry the same signature as Quimsacocha.

I am not saying there is no risk in Ecuador, but I just don’t think the risk is any higher than exploring or operating in Canada, citing Northgate’s inability to get a new mining permit in BC and the sudden proposal to hike Alberta oil royalties.

CPP has completed a first round of diffusion where they survey and educate locals on the impact and benefits of drilling for local communities. A second round of diffusion is to take place this month, and then CPP can file the drill permit application, which they expect to do so by year’s end. In a perfect world, the permit grant can take place this year as well. This is one lottery ticket where a good drill hole could propel the stock multifold like VMS ventures. With the company selling for $12 million and enough cash to carry through 2008, Coastport is a dark horse that deserves a stake in a diversified portfolio.

New Company Coverage:

Northern Lion Gold Corp.
Company Contact Info:  http://www.goldmau.com/nl.php

Northern Lion (TSX - V: NL) – A True VMS Story Reborn

The name of Northern Lion probably isn’t new to you. I have owned the stock since 2005 and that is when I first met company President John Lando. I like face to face meetings, and John has always been patient enough to explain the full deal details in often long meetings with me.
In early 2007 the company transformed itself from a Finnish gold explorer to Portuguese Zinc hunter and deserves a serious fresh new look. I met with John again two weeks ago and came away calling my brokers to buy. In the past few days I bought 200,000 shares at 44 cents.

From 2004 up until early 2007, NL’s focus had been on its Haveri project in Finland. Haveri is a complex gold system with limited past open pit gold production. NL had some success in drilling Haveri (27g/Au over 9 meters), but were never able to pin down the mother lode.  In April, NL sold Haveri to Lappland Goldminers AB ("Lappland Goldminers"), a publicly--traded Swedish exploration company, for $10.46 million CDN, consisting of $5 million cash and 1,771,726 shares (the "Lappland Shares") of Lappland Goldminers, at a deemed price of approximately $3.08 CDN per share. Click here.

The purchase price was equal to the amount NL’s total investment in Finland. NL’s Lappland shares are liquid, and today are worth about $5 million CAD. Click here.
(Exchange rate Swedish Krona is 6.68 to 1 CAD)

To understand why I like Portugal and why NL switched focus, we have to talk about Eurozinc (which is now part of the famous Lundin Mining Amex: LMC). Eurozinc bought the Neves-Corvo zinc development in the prolific Iberian Pyrite Belt in March 2004 for 128 million Euros in Portugal. Click here.

Through systematic exploration and rapid expansion, in August 2006 Eurozinc combined with Lundin mining to form a $4 billion metal producing giant. The merger valued Eurozinc at over $1.5 billion. Click here.

Neves Corvo sat on the Portugese side of the Iberian Pyrite Belt ("IPB"), which stretches between Portugal and Spain and is comprised of Late Devonian to Middle Carboniferous sedimentary and volcanic rocks. The IPB is 250 km long by 25 to 70 km wide, and has been actively mined for over 2,000 years. Over 85 VMS deposits have been identified in the belt with a bulk tonnage in excess of 1.7 billion tonnes. Seven of the deposits are in excess of 100 million tonnes, which include some of the world's richest (e.g. Neves Corvo) and largest (e.g. Rio Tinto - 335 million tones and Aljustrel - more than 270 million tonnes) VMS deposits.

The IPB dwarfs the world's other large volcanic massive sulphide ("VMS") provinces, such as Canada's Abitibi Belt 478 Mt) and the Bathurst Camp (252 Mt), and Sweden's Skellefte District (161 Mt).

While numerous deposits such as Rio Tinto have been discovered and put into production on the Spanish side of the pyrite belt, the Portuguese side of the belt remains vastly under explored due to lack of capital investment and previous bureaucracies. However, geology knows no boundaries and the border between Spain and Portugal reminded me of the border between Ontario and Manitoba. Great mines such as Red Lake were discovered in Ontario but few paid attention to Manitoba-side opportunities until recent activity by the likes of San Gold, HudBay and VMS Ventures.

In a short period of time, Northern Lion has assembled an impressive package of land, (some 600 square kilometers) within two license blocks in highly-prospective areas of Portugal: Cercal, located in the Iberian Pyrite Belt, and Moura, located in central Portugal.

Combined, it took NL two years to finalize these exclusive license contracts with the Portuguese government (which concluded in August). It’s quite remarkable for a Canadian junior to secure such large land package with plenty of high grade (5%+ zinc) surface anomalies and old workings.

Meet with John and you will understand why the Portuguese government chose to partner with NL. His patience and attention to detail is unparalleled, and the director list at NL is long and extensive: See management here.

Featuring Mark Bailey, the CEO of MineFinders (TSX: MFL, market cap $600 million) and director of Dynasty Metals (TSX: DMM, market cap $250 million), and Dr. Max Baker (Previous Chief Geologist for Newcrest Mining), NL spends money prudently on marketing and exploration, with shareholder’s interest in mind, which is something I can’t say for at least half of the junior management teams I meet.

With $10 million in cash and securities, a $13 million market cap, and a chance to strike big in an elephant, prolific, proven zinc belt with active participation by the majors, NL fits perfectly into my exploration portfolio. Technically, the stock tested strong support at 200 DMA of 39 cents late October on very heavy volume, once 50 cent resistance level is over come, the stock could reach 75 cents in a hurry, then ultimately test the $1 target. Selling for merely THREE MILLION DOLLARS net of cash, NL is as low risk as one can get in the exploration league.