“Canada’s Massive Mine” owned by “One Tiny Explorer”

Nick Hodge's tease for "1.4 billion ton mother lode" for his Early Advantage newsletter

By Travis Johnson, Stock Gumshoe, March 12, 2012

This teaser ad has been around for a few months in various forms, but it continues to be among the most-queried pitches here at Stock Gumshoe, and there’s a big new push for this ad just today that’s generating even more questions — so I thought I’d toss you a quick reminder of the details here as I while away the time in a generic waiting room.

The pitch is for the newsletter that’s now called Early Advantage, edited by Nick Hodge — it used to be called Alternative Energy Speculator, but newsletter publishers are nothing if not sensitive trend-followers, and they’ve noticed that “alternative energy” tends to make people grumpy now following the flameout of all those solar energy and geothermal investments … so the letter is now called Early Advantage and it seems — if this latest ad is an indicator — to focus more on resources and breakthrough technologies, the same kinds of stuff we’ve seen pitched over the years as “building blocks” for new energy technologies like graphene, rare earth elements, and lithium. (A bit of a shame, actually — they did have some interesting picks in alt energy, including a very early tease of Westport Innovations four years ago that would have made patient investors a lot of money).

This latest ad continues their push or the “massive mine” in Canada that has 100 years of valuable metals ready for production — not only base metals like copper but also many of the key rare earth metals. It’s all about harvesting the black shale of Alberta using bleaching, which is basically using bacteria to eat and help “compost” huge heaps of ore and produce a smorgasbord of valuable minerals.

And yes, they’re still teasing the tiny company DNI Metals (DNI in Canada, DMNKF on the pink sheets), which has just about tripled since their “secret” teaser campaign started for this stock back in November (and yes, I told you about it then, too). And though it’s never easy to tell what might happen to a sub-$50 million company, I remain quite cautious about the stock but it’s an interesting story that might turn into something over the long term.

You have to draw a line somewhere when you’re talking about a $50 million company with hundreds of billions of dollars of potential metal that might be extractable — really, when you think about something this big but this early on and relatively untested (only one bioleaching project has ever been done at scale, and it’s pretty young still), a little sneeze on your spreadsheet could easily make you change your valuation of the company from $10 million to $200 million or back again. Every speculator has to make that call on their own based on your guess about how long it will take to test their metallurgy and bioleaching recipes and how the economics of the whole project might eventually work out (which itself probably depends quite a bit on where prices for molybdenum and copper and other base metals are in five or ten years).

If you’d like an update, the stock has been continuing to climb based both on continuing attention from Angel Publishing and, more recently, thanks to their presentations at the PDAC Conference that always gets the attention of natural resources investors — you can see the story summarizing their PDAC news here — the CEO is basically saying that they’d like to partner with or sell the project to a big steel or mining company, and that “in the right hands” they could be producing in four or five years. So judge that how you will.

The other picks being teased, just to toss out a couple other ideas for you, are for graphite and lithium and beryllium. The graphite pick, teased as a play on the high-potential new nano material graphene, looks like it’s probably Northern Graphite (NGC in Canada, NGPHF on the pink sheets), which is trying to restart an Ontario large flake graphite mine. Haven’t looked at this one in a while, I seem to recall that they launched as a spinoff or a reverse merger or something a little bit unusual like that, but the project is fairly far along with permitting expected in the coming months, you can see their investor presentation here if you’re curious.

He doesn’t tease the specifics of lithium particularly, but says he’s found “three ways” you can take advantage of big new lithium demand — so I’ll just throw out the big names for you, the global low-cost lithium brine producers SQM (SQM) and Rockwood Holdings (ROC) and FMC Corp (FMC), with ROC and SQM both having been teased many times in the past, are easy picks to make in the lithium space. All have other businesses and all are profitable and large, so they’re not just lithium plays and won’t be leveraged to huge new discoveries or anything like that, but there are plenty of junior lithium companies around as well if you’re interested in sniffing out some riskier potential — the two that I hear about most, for whatever that’s worth, are Western Lithium (WLC in Canada, WLCDF on the pink sheets) in Nevada and Talison Lithium (TLH in Canada, TLTHF on the pinks) in Australia and Chile.

And finally, he teases beryllium as a way to prevent future nuclear meltdowns — and I’d guess, though there aren’t any company specific clues for that one, that he’s pitching IBC Advanced Alloys (IB in Toronto, IAALF on the pink sheets), another gee-whiz new materials company that has been teased many times before by several different publishers. That one has mostly traded in the 15-cent range over the past few years, except for a few times when it has been teased by newsletters and driven up to the 25-30 cent range, starting in early 2010 with a tease from this same newsletter and continuing with Byron King’s pitch for this as a play on the “fourth element” last Fall. Seems like a great story that hasn’t been able to turn into a real business (yet, at least), with revenues growing much more slowly than the share count in recent years.

Related Gumshoe Articles

Nick Hodge’s “The one and ONLY move to turn $10,000 into $1 million on the lithium energy boom.”

Which lithium stock is being teased in the ads for Energy Advantage?

33 Comments Read More

“The Biggest Medical Breakthrough Since the Polio Vaccine”

What's Nick Hodge pitching now?

41 Comments Read More

Leave a Reply

22 Comments on "“Canada’s Massive Mine” owned by “One Tiny Explorer”"

avatar

General Chan
Guest
0
General Chan
March 12, 2012 11:01 pm

I remember telling a few members on here about it when it was still in the high 40 or 50 cent range. But I don’t know if any of them took me seriously. Its going to continue to go up so there you have it. I’d wish I got it back in November though. LOL

Donna Miller
Guest
0
Donna Miller
March 13, 2012 12:47 am

Do you have any information on “True Income” advisory…..recommends corporate bonds.

Joe Severa
Guest
0
March 13, 2012 3:27 pm

Donna, this is an exchange-traded fund, maturing in 2015, yielding 5.6%. You DON’T hold this ETF until 12/31/15, Steve warns that the ETF w/b full of cash by then, not bonds, but his SELL date is 02/20/15, & I’ll have to ask him why give up that yield so soon. If he says, “once that many bonds are sold, the 5.6% won’t be the yield unless cash indeed yields 5.6%,” as if that will happen, right Travis .

SageNot

Mark Bowin
Guest
0
Mark Bowin
March 13, 2012 2:08 am

Advanced Exploration (AXI-V) really does have a project/prospect that has a multi-generational life. It is a massive iron ore discovery in Nunavet, Canada. They also have a nickle property, also huge. Chinese company Xing Xing (I kid you not) is already affiliated with AXI. The share price is about 33 cents. Please do your due diligence before committing any funds; but it is really interesting.

Leo
Guest
0
Leo
March 13, 2012 3:00 am
I read with great amusement the article on Canadas masive Mine …. Why was I amused you may ask! Well the article was so shallow in substance. It was targetting an audience who may be atracted to its substance based on light hearted humor with little connection to objectiveism and any substance that may be useful to a serious investor. Such articles are a waste of time to enyone. By the way have you thought of defining what is a ” pink Sheet stock”? I advise with a degree of seriousness that you take some professional help in the art… Read more »
alainbm
Member
1
alainbm
March 13, 2012 9:15 am

It trades on the TSX Venture so it has to abide by the exchanges rules and regulations. Which includes the need for audited FS and other disclosure requirements. So its not a scam but yes in its in very early stage and might be an interesting speculation although I suspect the price will drift downwards once the touting has stopped.

arafel
Member
0
arafel
March 13, 2012 1:55 pm

How rude. Did you miss the parts of the messages indicating Travis’s family was having medical issues? I’m surprised to receive any updates.

Incidentally, I think you may want to take your own advice regarding effective communication. You could start with tone and spelling, and move on from there.

blackjack
Guest
0
blackjack
March 13, 2012 4:36 am

anyone thinking of investing in rare earths now has to focus on companies that produce or have found heavy rare earths as they are worth more
I would invest in a co that is still exploring and has no JORC to verify the breakdowns of the rare earths
No heavies dont go near it as all your paying for is someones lunch.
Graphite = get on the big bus before it leaves as if you miss it you will miss the greatest show on earth

alainbm
Member
1
alainbm
March 13, 2012 9:17 am

For Canadian listed stocks the equivalent to a JORC is NI 43-101.

Judy
Guest
0
Judy
March 13, 2012 5:14 pm

I have been plotting rare earth minerals and, also, uranium (since 2013 Russia might not renew our contract to buy uranium from their old missiles). Most of them are penny stocks ,(some are higher) but they aren’t moving up rapidly yet. China is hoarding rare earth and everything it can. Maybe uranium–not sure. I’m waiting for them to really start moving up and doing stock options on them.

blackjack
Guest
0
blackjack
March 13, 2012 4:38 am

that should read wouldnt invest with no JORC

Erich Zlanabitnig
Guest
0
Erich Zlanabitnig
March 13, 2012 11:38 am

If you are interested in rare earth metals, check out
http://www.techmetalsresearch.com/2012/03/rare-earth-bull/
Gareth Hatch and Jack Lifton seemed to know a lot about this metals!

Gary Penon
Guest
0
Gary Penon
March 17, 2012 11:40 am
The thing about Northern Graphite is the real deal. This is going to be a very important company. It is all about the total reserves, strip ratio, scalability and structure of the stock itself. It is not enough just to have a bit of graphite, lots of folks will have some. It is about having the most expensive stuff and Northern Graphite has the mine that is just about all large flake with high purity. This is the stuff needed for high tech type applications. The mine mechanics is also very nice, shallow ore body that can be mined like… Read more »
aoibhneas
Guest
0
aoibhneas
March 21, 2012 2:39 pm

NGC soaring today and new 52-week highs on no news that I can find. Perhaps it is being touted in a newsletter. FDR also moving up some but not much volume.

Gary Penon
Guest
0
Gary Penon
March 17, 2012 12:27 pm
One other heads up too. Nick Hodge is soon going to be pushing a small solar company called Natcore. (NXT … NTCXF) Be interesting to see what type of spin he will be giving it. Again this might be a company that can be important contributor with some very interesting technology down the road. Already they have developed some marketable technology for use in silicon based solar cells and probably can have major break thru’s very high efficiency thin carbon based solar cells (roll-to-roll) if they can get the development money. Also something called quantum dots where a solar cell… Read more »
dmssln
Guest
0
dmssln
March 18, 2012 3:28 pm
I’ve been in Natcore for a while now and it seems that 2012 is the year they might finally get some exposure (and more importantly some sales!). Nick Hodge might provide a useful exposure due to the trading volume we can expect when he fnally release its newsletter about the stock. Their LPD process (packed in their ARBox) combined with black silicon is a killer combo and once they finish their optimization (which should happen this year), I expect the solar cell manufacturers to quickly jump onboard. NGC looks very interesting.. I might diversify a little and get some if… Read more »
Gary Penon
Guest
0
Gary Penon
March 21, 2012 12:26 am
The entire solar industry has a bit of a problem. They claim to want to reduce the cost of PV solar to parity with other fossil fuels. But if any really disruptive technology comes along that is a radical approach and could actually work there is a problem. There is a problem in you can’t really figure out the working life of a solar panel for sure by any manner so the warranty situation can give the business types a bit of worry if you make radical changes to the methods to make the panels. The only sort of disruptive… Read more »
flyfisher
Irregular
0
July 22, 2012 12:38 am

Gary, I’m impressed. I’ve been in Natcore for almost 2 years. How did you know that Hodge was going to tease Natcore in his publication?

Craig T
Guest
0
Craig T
August 14, 2012 2:25 pm
Just for information, DNI’s largest shareholder is a corporation by the name of 49 North Resources. This corp. invests in start up companies and has told DNI that they will finance going forward to continue to move this project along. 49 North is a publicly traded company and has a very good track record of picking winners. Having talked to the president of DNI myself I invested and have tucked my shares into my back pocket, will hold on for them to prove everything out. Since the last update offered on Stock Gum Shoe, the company has found out that… Read more »
Myron Martin
Guest
0
March 14, 2013 6:40 pm
Now there is a guy that does his homework, (Craig T.) which is admirable and sensible. It is at least interesting to see the many “teaser ads” that mention how wealthy you would be if you got in on the ground floor of the next McDonald’s, Wal-Mart, Microsoft, Apple, Amazon, Google etc. Nice pitch, but I suspect most retail investors do not take the time and make the effort to fully check out penny stocks to see whether they actually have that potential and end up being “if only” investors, “wish I had” wannabe’s who look back in regret when… Read more »
hanspohle
Irregular
0
May 26, 2013 4:46 am

Hi Craig,
should I then buy “49 North Resources” ?
hans from Germany

bmack66
Member
0
bmack66
May 26, 2013 11:25 am

Does anyone know if there is reason to be looking at this now? It was WAY down. Is the technology potential gone?
Thanks, Brian

wpDiscuz