Sometimes it pays to procrastinate. I had Canamex Resources Corp (CSQ-V: #0.13) queued as a bottom-fish buy in December based on the longer term potential of Bruner. But there was a batch of pending assays for holes around a hot hole last year that were suffering dreadful turnaround. They arrived Wednesday January 30 and they pounded a stake into the expectation heart of the East Penelas discovery. Denver based RCF has been bailing since the start of the year, which, given how it blew out more than $1 billion worth of Molycorp paper without putting sufficient capital to fund Mountain Pass into the treasury first, can be interpreted as a sign of no confidence. But it seems that a people based investment decision has been over-ruled by one of RCF's junkyard dogs, which is an opportunity for bottom-fishers keen on discovery exploration. Just as well to get rid of RCF which will likely end up in the SEC/class action Molycorp meatgrinder.
So today I have recommended Canamex as a medium priority bottom-fish buy in the $0.10-$0.19 range because I like the combo of a Nevada gold story with a Guyana backup plan run by strong people. The stock is liquid, and has an overhang at $0.20 in the form of another 6 million shares held by RCF plus 22 million warrants at $0.20. Bottom-fishers should accumulate Canamex at their leisure, and wait for Ken Snyder style vein intersections for the stock to blow through the lid.
For those of you wondering about other Nevada favorites, you might be interested to know that a key focus in 2013 is to follow up a recommendation NGE's Wade Hodges made in 1998 when he already understood the implications of the Ken Snyder/Midas story for derelict vein plays in the Walker Lane. Needless to say he was ignored. But time and a better gold price have made these "pissy" Walker Lane vein plays a lot more interesting today.