At the moment all you have to do is pick 10 stocks that have "resource", "gold", "silver" or any other resource related synonym in their name and within a couple of months half of them will double, at least. So it seems...Maybe the first signs of a fatigue of the rally and/or an end to the resource hype.

But it still is always fun to search for those stocks that stick out because of their seeming inherent quality of people and/or projects and that have not performed, yet.

We came across one company that is a very rare combination of interesting and promising facts. It has a superb team of management, board and advisers, it has some very promising projects in prime locations with historic resources, it has a low float and market cap, it is hardly discussed at all on SH but it is on the other hand one of the most widely stock-letter covered junior exploration companies in the whole resource sector.

As a first disclaimer you have to admit that all the big names in the stock-letter scene can collectively and fatally err completely. ATW Gold barely avoided bankruptcy and Animas Resources is well off its previous highs and both stocks were for months and years hyped as the coming big stars.


So let's take a look at

Western Pacific Resources TSX-V:WRP


http://www.westernpacificresources.com/s/Home.asp




1. Quick facts

IPO'ed early 2010

Shares Issued     22,197,823

Fully Diluted         34,372,025

Cash (approx) $3 million (undiluted)

Fully diluted market cap around 17,5million CAD as of 21 January 2011


All facts are taken from the brand new January 2011 presentation at
http://www.westernpacificresources.com/i/pdf/Presentation.pdf


2. Assetts

WRP has overall three projects in Nevada and one in Idaho, low risk mining locations. Two of those the company is currently focused on:

South Lida, Nevada

Located 35kmSW of Goldfield, Nevada, along the southern extension of the Walker Lane Trend
•Potential for Carlin style gold mineralization
•Historic silver, base metals and copper production and local gold mineralization
•Exploration efforts in the past have concentrated on silver with little focus on gold
•Strong iron-oxide gossans, quartz veins. Newly sampled jasperoidsyield up to 11 g/t Au and elevated arsenic. At least three pulses of mineralization:
1.base-metal-rich silver/copper mineralization;
2.strong arsenic-rich gold-bearing gossans; and
3.latest gold-bearing jasperoidsand breccias.

WRP has been drilling South Lida since 2 December 2010 for a total of 3,000m.

Mineral Gulch, Idaho

A former producing gold mine located in the southeastern corner of Cassia County, Idaho, 50 miles southeast of Burley
•Mineral Gulch is acarbonate-hosted disseminated gold deposit. The trace element geochemistry and tenor of mineralization is similar to Carlin-style gold occurrences
•Acquired by Western through staking in 2009
•In early 2010 Western acquired the historic geological data through Newmont
•Data has been compiled & Western is now permitting a ca. 33 holes drill program
•Numerous gold-in-soil anomalies were left untested by previous operators
•Significant historic resources (>500koz Au) still in place & unmined, non NI 43-101 compliant)

WRP has applied for the necessary drill permits and once received, plans to drill 10,000m in 2011.

WRP is looking for JV partners to develop the balance of projects.


3. People

Management, board and advisers are among the top of the top, with a long and strong discovery record:

Warwick Smith, CEO (Co-founder Riverside Resources, Media Specialist and CorporateDevelopment)
Eric Saderholm, President (Formerly with US Gold and Newmont)
Curt Everson, Exploration Manager (Formerly with US Gold and NevadaPacific Gold)
Kevin Bales, CFO (Gold Group)
Ralph Rushton, Director (Gold Group)
Peter Thiersch, Director (Currently VP Corp. Dev. Central Resources, formerly Hecla, Fortuna Silver)
Michael Williams, Director (Currently President of Full Metal Minerals, formerly Chairman of Underworld)
Simon Ridgway-Advisor (Currently President of Radius Gold, Chairman Fortuna Silver and Focus Ventures)
Brent Cook-Advisor-(Exploration Insights Newsletter and Mining Consultant)
Dr. James Beesley-Advisor-(President of Transformative Ventures, Founder of Sequoia Partners)



4. Coverage

Some of them we like, some of them are (in our opinion) hypsters, but a good thing of wide coverage paired with a low float is that a lot of the material is in tight and long-term oriented hands. Additionally we have inquired with the company on insider and institutional holdings, no public data, that we could have found on that and we will update accordingly, if and when we get feedback.

Newsletter and Third Party Coverage

Lawrence Roulston Resource Opportunities
•Louis James Casey Research
Greg McCoach Mining Speculator
Brien Lundin Gold Newsletter
Bob Moriarity 321 Gold website
Sean Brodrick Uncommon Wisdom Daily-Weiss Research
James West Midas Report
KeirReynolds/Kirk Gamley Contact Financial
Ian Bickis Northern Miner
Jay Taylor Voice America Network
Peter Vermeulen The Gold Capitalist


5. Summary

Even a set of distinguished industry experts like those at WRP can easily miss on the first three or more passes when drilling. WRP will have to go to the trough and refinance eventually in 2011, the 3 million are unlikely to cover all of what is planned in 2011. There you have the downsides. But the quality of people, their slow and thorough planning and execution, the quality of the projects and their location and the fact that it is trading near its lows make WRP all the right mix for us to look like a relatively low risk, high yield play for 2011.




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