“Lake Superior’s $2.6 Trillion Secret “

By Travis Johnson, Stock Gumshoe, March 15, 2007

This one comes from the Mining Speculator, a newsletter by Greg McCoach that mostly focuses on OTC and Canadian Junior mining stocks. I’ve never subscribed, and I must say I’ve never heard of most of the companies he cites as his huge successes — I just don’t know all that much about the mining sector.

But I wonder if we can’t figure out what he’s talking about when he cites two companies poised to make you rich from “Lake Superior’s $2.6 Trillion Secret.”

This has been plugged in a few different emails I’ve received in recent weeks from Energy and Capital.

The basic premise is that one company has already tapped into this “secret” and gone up by “11,066%“, but that this company is still primed to at least triple from here.

And the stronger sell relates to the next company he has found, which is “already up 122% since December.”

The idea is, the first mining company went into this area on the shores of Lake Superior with a “superior” mining technology, and took over an old plant that they can use for processing ore. The plant is on a rail line and has the power they need, and was purchased cheap, according to our friendly investment advisor.

I’ve figured out what that first company is — but I must admit I’m a bit stumped about the second company at this point.

So here’s what we know about the first company:

  • Has a “new technique” for extracting metals from the ground that makes it profitable where others have failed.
  • “The company controls 2,648 acres in the region, or about 4.14 square miles.”
  • Lake Superior, in this area, is “now the largest known copper, gold, nickel, platinum, and palladium deposit in the world.”
  • “After more than 50 years of companies going broke and a decade of hard work by this company, it finally paid off when this company proved the metals could be mined.”
  • Their breakthrough is a “hydrometallurgical procedure to separate metal from ores and ore concentrates.” And it “extracts all the metals … at the same time.”
  • “The final piece to this billion-dollar puzzle sat collecting rust just eight miles to the south – a shut-down iron mill.” The mill can handle “100,000 tons per day.” And …
  • This “11,066% winner [is] only one signature away from tripling again.” (that signature would be on the environmental permit).

So I’ve figured out what company this is — but I’ll have to ask your patience to see if I can track down the smaller company that’s following in its footsteps. If you just want the “triple” that McCoach says he can provide, you might just get it from:

PolyMet Mining Corporation (PLM).

They’re the ones that bought a shuttered mill from Cleveland Cliffs (the “Erie Plant”) on the shores of Lake Superior. They’re, in the company’s words, the leaseholders of the “NorthMet copper-nickel-precious metals project located in the established mining district of the Mesabi Range in northeastern Minnesota.” — which is exactly where the map in our teaser email puts this project.

So I’m pretty sure PolyMet is the company that might triple if they get that “one signature”, in McCoach’s words. But I have no idea whether or not he’s right … I did poke around a little bit, and I’m not sure I’m crazy about what they’re aiming to do, or convinced that the government will let them do it. A quick look at the website for the local Sierra Club group will tell you that there may be some local opposition to the environmental permit and to the technique PolyMet is going to use.

PolyMet is moving forward with feasibility studies and permit-seeking, and has hired URS, so there’s some confidence on their part, I guess. They also want to hire local folks, so perhaps that’s good enough if the local economy is bad.

The reality is: I have no idea whether this company is any good. I don’t understand their technology, or the end markets for all these metals, or the history of mining in the Mesabi range (this has been an active mining area for a long time, and major companies have dropped some of these leases … why?)

But I do know, PolyMet mining is part 1 of the tease we’re getting from Greg McCoach and the Mining Speculator. The second, smaller company that sounds like it’s just a local leaseholder trying to ride on PolyMet’s coattails and use their plant … assuming PolyMet is successful? Your Stock Gumshoe will have to work a little more on that.

UPDATE: It only took a bit over a week, but several readers pointed me in the right direction to identify the second company teased in this ad — I just wrote it up here in the second part of the $2.6 trillion secret, so enjoy.


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8 Comments on "“Lake Superior’s $2.6 Trillion Secret “"

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Anonymous
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Anonymous
March 16, 2007 8:27 pm

Again you did some great investigating here, especially uncovering the Sierra Club complication. However, can you recommend someone like yourself who specializes in information about mining stocks?

One Guy
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One Guy
March 16, 2007 8:44 pm

Sorry, I don’t know of anyone else who tries to decipher these things — there are lots of mining stock bloggers out there, but I don’t follow them or know which are any better than others. I’d review the folks who blog on mining and metals at Seeking Alpha to see who some of the more respected ones are.

Anonymous
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Anonymous
March 24, 2007 4:36 am

I love it.
I often try to figure out stocks from email teasers. I was working on Greg’s Lake Superior teaser and had figured out Polymet, when I found this blog.
Keep up the good work. The only problem I can see is if too many people start doing this, the Newsletter writers will stop giving any details in their teasers, and this game will end.

Bill
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Bill
March 27, 2007 6:16 am
The 3 large deposits in the area are the Northmet, the Birch Lake, and the Mesaba. I thought at first that Franconia Minerals, which has a right to work into an 82% interest in the Birch Lake deposit, was the company (and I still think it might be) but the chart in Mr. McCoach’s promo doesn’t match the chart for FRA.V, like it does for his teaser (the China Gold Stock that has doubled subscriber’s money JIN.TO) Polymet, Tech-Cominco, and Franconia appear to control the three major deposits. Tech-Cominco and Franconia are working in concert.WMCP.S. I don’t subscribe to any… Read more »
Anonymous
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Anonymous
April 4, 2007 2:01 pm
Great stuff! I get those newsletters all the time and often wonder a) what they are and b) how they work out over time fare. I’ve been working out some of Motley Fools recommendations (10 baggers as they say) and then using a demo portfolio tracker (Investopedia, Forbes) to follow them. MF aren’t bad, but the company I figured out from a newsletter affiliated with Energy and Capital , Foothills Resources, has gone south to the tune of 40% since Feb. Keep up the great work – if you or readers figure out the recommendations, I’ll add to them to… Read more »
Anonymous
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Anonymous
April 23, 2007 3:47 am

This is to answer one guy :

PolyMet is an up and coming mining

company and well respected for their

resources in the precious metals.

Appears to have a bright future.

Henry Chakoian
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February 3, 2009 3:38 pm

When I read your description of the “company”, I thought you were referring to Duluth Mining. They are in the north shores of Lake Superior. They too have taken over a processing plant and other euipment left from the original mining cos. They claim huge amounts of confirmed metals of a varied type. Tested the waters at $2.20. Now at .24. Good PR and frequent announcements. I’ll let you know if there is anything here.

Dave
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Dave
May 24, 2009 1:04 pm
I think Duluth Metals will rise if PolyMet gets all the approvals. They are now about $.50/share, doubled since a month or two ago. PolyMet has more than doubled in that time. I held PolyMet but sold it after a long time sitting at $.80 and below. Within 2 weeks after I sold, it started rising at spiked at about $2 on the Pt runup. It is now about 1.30. Duluth spiked at the same time at .60, but did not fall as much and is now at .50. Both are probably good plays on PGM’s.
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