Customer Service 1 (888) 261-2693
Advanced Search

Your Best Shot at Making 10 Times Your Money in 2010

By Matt Badiali, editor, S&A Resource Report
Wednesday, January 13, 2010

Back in November 2008, a tiny precious-metals explorer announced the discovery of a potentially huge silver deposit in Argentina.
 
By the time I told you about it in September 2009, shares had already risen 1,000% from their November 2008 low. Here's what the chart looked like then:
 
 
 
Here's what it looks like now:
 
 
Shares of Mirasol Resources (MRZ on the Toronto Venture Exchange) are up around $2.40... another 250% higher than they were in September.
 
You can track the explosive gains against the drilling results. Those upward spikes confirm my suspicion this is a huge discovery...
 
The release from November 24, 2009 was a doozy: "Mirasol Reports Highest Grade Silver Yet from the La Negra Zone at Joaquin with 25.4 Meters of 1,164 g/t Silver."
 
That means the company cored through about 75 feet of rock that held over 36 ounces of silver per ton. At $10 per ounce silver prices, that rock is worth $360 per ton. At the current price of $18 per ounce, that rock is worth over $650 per ton. That's extremely rich rock.
 
Three million shares traded the day of the announcement, and the price doubled almost immediately.
 
The company announced a new high-grade vein on January 6, 2010. And shares jumped 31% overnight.
 
Even though shares of Mirasol are up 2,130% from their 12-month low, the company's market cap is still just $64 million. This discovery is still underway, and a takeout offer could see this company sold at a 50% premium to its current price.
 
It won't be the only one...
 
Prospect generators are junior mining companies, like Mirasol, that explore for minerals using other people's money.
 
Back in September, I told you, "You buy prospect generators for the possibility of a big score. Buy a basket, take a lot of small losses on the way, and wait for that 1,000% winner."
 
I think you'll see a few more of those 1,000% winners this summer. Demand for gold and platinum discoveries is huge, so good news will be rewarded. In addition, you have major gold companies like Goldcorp buying junior miners with discoveries. (In November, for example, Goldcorp scooped up tiny Canplats Resources and its Mexican gold deposit. Shareholders pocketed 370% in less than a year.)
 
These trends put a tailwind behind prospect generators.
 
If you could pinpoint only the junior miners that will strike it big, you'd soon be taking your ease in a grand villa on some tropic island. But, of course, that's nearly impossible. So what you do is buy a basket, take a lot of small losses on the way, and wait for that 1,000% winner.
 
Here's a short list of interesting junior mining companies with emerging discoveries:
 
Company
Symbol
Project
Location
Mirasol Resources
TSX V: MRZ
Joaquin Project
Santa Cruz, Argentina
Underworld Resources
TSX V: UW
White Gold Project
Yukon Territory
Hathor Exploration
TSX V: HAT
Rough Rider Project
Saskatchewan
Esperanza Silver
TSX V: EPZ
San Luis Project
Ankash, Peru
 
 
Remember, these stocks are still risky, so only invest money you can afford to lose. Use 50% trailing stops to protect yourself.
 
If you follow these simple rules, you could find a 1,000% winner this year.
 
Good investing,
 
Matt Badiali




In The Daily Crux
Market Notes
Japan rallies... Sony, Toyota, Mitsui, Honda, and country fund EWJ reach new highs.
 
10-year Treasury reverses... investors seeking safety drive yield to 3.71%, down from recent 3.90% peak.
 
Everybody wins in health care reform... including insurance: fund IAK makes new high with AFLAC, Lincoln National.
 
Earnings today... Posco, Sealy.
Market Watch
Symbol Price
Change
52-Wk
S&P 500 1221.53 +1.3% +10.1%
Oil 38.31 +1.4% -0.6%
Gold 138.07 +2.1% +16.3%
Silver 28.60 +2.4% +53.6%
US-Dollar 80.67 -0.8% +8.1%
Euro 1.32 +0.6% -12.1%
Volatility 18.01 -7.1% -19.8%
Gold Stocks 581.56 +3.0% +17.0%
10-Year Yield 3.02 +0.7% -10.7%

World ETFs
Symbol Price
Change
52-Wk
USA 122.89 +0.3% +11.3%
Canada 30.50 +0.2% +16.2%
Russia 21.94 +1.4% +18.1%
India 37.85 +0.3% +22.3%
Israel 16.69 +1.3% +10.8%
Japan 10.64 +0.6% +6.5%
Singapore 13.73 -1.1% +18.8%
Taiwan 14.78 +0.4% +19.2%
S. Korea 57.31 +1.3% +23.4%
S. Africa 71.87 +1.4% +28.2%
China 44.42 -1.4% -0.6%
Lat.America 53.17 +0.7% +8.4%

Sector ETFs
Symbol Price
Change
52-Wk
Oil Service 137.59 +1.0% +18.9%
Big Pharma 64.14 +0.0% -3.2%
Internet 72.07 -0.1% +23.4%
Semis 16.22 +1.2% +29.4%
Utilities 31.28 +0.2% +1.5%
Defense 18.52 +0.1% +10.6%
Nanotech 10.03 +0.4% +1.6%
Alt. Energy 10.08 +1.3% -3.3%
Water 18.49 +1.0% +14.5%
Insurance 16.14 +0.4% +21.1%
Biotech 20.54 -0.2% +28.1%
Retail 19.70 +0.3% +30.2%
Software 24.79 +0.8% +25.9%
Big Tech 53.87 +0.3% +22.7%
Construction 13.10 +0.9% +15.7%
Media 13.64 +0.5% +26.0%
Consumer Svcs 67.39 +0.2% +24.5%
Financials 55.04 +0.3% +7.4%
Health Care 64.30 +0.1% +2.0%
Industrials 63.54 +0.5% +21.0%
Basic Mat 74.35 +1.1% +25.3%
Real Estate 55.32 +0.1% +25.0%
Transportation 91.77 +0.7% +26.9%
Telecom 22.59 +0.5% +17.8%

Recent Articles