“Lake Superior Secret, Canadian Style”

By Travis Johnson, Stock Gumshoe, August 1, 2007

Well, after a week’s hiatus the Gumshoe needs a little kick start to get going … so here we have a teaser that was not only solved by a reader, but confirmed by the company itself with a posting of the recommendation on their website. Handy.

This one is from the Mining Speculator by Greg McCoach, who we’ve not seen many teasers from since his (admittedly excellent, so far) recommendations of Polymet and Duluth, the two companies that were teased as holders of Lake Superior’s $2.6 Trillion Secret. And actually, I think that teaser may still be making the rounds, so maybe some of you haven’t seen it yet.

In his words, “I just returned a few days ago from a site visit to a junior mining company I think has the potential to gain 200% over the next twelve months … As you’ll recall, for the past five months I’ve been telling you about Lake Superior’s $500 billion secret [Gumshoe’s note: hey! This used to be $2.6 trillion! Where’d the money go?], and the company that is right there setting up shop to produce the region’s massive metals complex.

So, like the previous teasers, this talks in generalities about the huge potential of the Lake Superior region for metals.

While some good gains have been sussed out from the US side of Lake Superior as PolyMet and Duluth, among others, try to capitalize on high metals prices by reinvigorating moribund mining projects (and probably finding some new stuff on their own), our like-minded friends on the colder side of the border have yet to participate, apparently, in the stock runup. Perhaps they’re too busy enjoying the Canadian dollar’s race to parity with the Greenback, though that’s a topic for another day.

And what better way to help them than a nice solid newsletter recommendation from McCoach?

“And there’s a tiny company there now working on the property. They’ve started drilling and have confirmed significant metal deposits. That’s the company I just visited . . . and that’s the company I’ll be recommending next week.”

That’s this week, now, the email came out on July 27 and the recommendation was posted, according to the details I’ll share in a moment, yesterday.

“The stock currently trades for $1.15 a share … once the story gets out to the market, I think this company will quickly rise above $2 to $3 a share.”

So … it’s a company trading at about $1.15 a share, that’s in some kind of early exploration and investigation phase for a mining project that’s geologically similar to the Polymet and Duluth projects but on the other side of the lake/border (reading between the lines a bit here — he didn’t provide many details in the teaser).

Man, it’s a good thing a reader sleuthed this one out for me.

This wee Canadian miner, destined to plunder the secrets of Lake Superior’s metal deposits, is …

MetalCORP (MTC up in Toronto, MTCLF on the Pinks)

Boring, huh? It’s like no one even bothers to come up with a good name for their company anymore.

The shares did get a little boost from McCoach, one assumes, because what was $1..15 late last week (that’s US dollars, though the difference isn’t so great as it used to be) closed today at $1.36 on the pink sheets. Don’t despair, though, ye performance chasers — that’s less than a 20% gain, and McCoach is looking for 200% with this one. So you never know.

Now I’m far from an expert on mining, but I did note with some interest that this teaser solution was essentially confirmed by the company itself — they posted an announcement on their website with a link to (this one’s a pdf file) McCoach’s actual Mining Speculator writeup, which I imagine his subscribers had expected was restricted for only their eyes. Odd.

So there you have it — a Canadian miner with a few interesting irons in the fire … dunno if its any good or not, but McCoach appears to have a pretty good track record, at least with his two teased picks from earlier this year (should we be worried that he has been stingy with the teasers of late … maybe no other good ideas in there? Just wondering).

As always, if you’ve got any info on MetalCORP or an opinion on McCoach’s service, feel free to opine with a comment here or at the forum — sharing knowledge makes us all smarter.

Or at least, more knowledgeable. Happy investing, and keep those teasers coming!

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