Wildcat Silver Looks Like a Winner

By James West
MidasLetter.com
Monday, March 15, 2010

When a company like Wildcat Silver Corp. (TSX.V:WS) comesalong, I don’t need to spend a lot of time running around researchingthe pasts of the directors or developing a sense of future prospects.That’s because with one look a the management team, I can rest easyknowing that I’m looking at a winner.

What makes me so sure?

Power People
Chris Jones, the president, is not exactly a household word – even inmining circles. But he has a 25 year track record in underground coal,precious metals and oil sands mining that suggests the depth and breadthof experience required to profitably operate such mines.

But the people who surround him in terms of major investors,board members, and fellow management are where the writing on the wallfor the future of Wildcat is found.

Richard Warcke, the chairman, is possibly the junior investmentworld’s Most Valuable Player of the last year, since shepherding theshares of Ventana Gold (TSX:VEN) from
.80 a year and a half ago to anall time high of CA$12.91 in November last year. The stock has sincetaken a hit since the vendors have tried to renege on the original deal,resulting in what is widely viewed as a minor hiccup in the company’spath to production at its super high grade La Bodega gold project inColombia.

John Brodie, a former partner at KPMG, is also a director ofSilver Standard Resources, (TSX:SSO, NASDAQ:SSRI) another top silverproducer.

And most recently, the company hired Paul Ireland, Ventana’s CFO,who will now do double duty as Wildcat’s CFO. Ireland has also donestints for the Diavik Diamond mine in northern Canada and Western ForestProducts Inc.

So there’s a team here that doesn’t just create successfulcompanies – they consistently launch investment superstars. The presenceof these guys alone justifies a substantial valuation, in my book.

Property Power
That brings us to the actual propert in the portfolio of Wildcat.

The flagship is the company’s 100% owned Hardshell Property 80kilometres southeast of Tuscon, Arizona.

Wildcat published an updated mineral resource estimate in early2010 which increased the size of the resource and upgraded a significantportion to the indicated category. Hardshell is now estimated tocontain an indicated resource of 42.7 million ounces of silver and 1.3billion pounds of manganese, plus an inferred resource of 37.7 millionounces of silver and 2.5 billion pounds of manganese, as detailed below:

Considering the current market cap of about CA$30 Million, itsnot a stretch to say this is a company flying very much underneath theradar of the investing public.

The 2007 preliminary assessment envisioned a 1,800 tonne per dayopen pit mining operation with an initial mine life of 13½ years. Annualproduction would total 4 million ounces of silver and 54,000 tonnes ofmanganese, and would establish Wildcat as a world-class silver producerand the only domestic manganese producer in the US. Production wouldalso include 550 tonnes of copper and 9,000 tonnes of zinc per year.Using a conservative silver price assumption of $8.50 per ounce, the2007 study estimated a 5% NPV totalling $295 million. All before thelatest published resource estimate in January.

This is a project that is very much in the planning stages formining, and the people behind this project should not beunder-estimated. At
.29, this company, in my humble opinion, is asteal.

DISCLOSURE: James West owns no shares in and received nocompensation for this article. I just think its a hell of a deal!!

SOURCE: http://www.midasletter.com/news/110031901_Wildcat-Silver-looks-like-a-winner.php