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The Yukon Gold Rush Is On Again

By Matt Badiali, editor, S&A Resource Report
Wednesday, April 13, 2011

Last week, I got an email from a geologist friend heading up to the Yukon Territory. It said, "The drills should start turning in a couple weeks."
I love hearing this news. To a junior mining investor, it's the big test. If we did our homework and get a little lucky, we'll see our investments double, triple, or more as the drill results come in.
The Yukon is best known for the Klondike gold rush of the 1890s. But as I told you last fall, it's now the site of a brand-new gold frenzy. Dozens of tiny junior explorers are in the region looking for the next big gold strike...
Here's the thing: In Canada's Yukon Territory, drilling season is short. The crews will get into camp in April and get frozen out in September. During the winter, with no news coming out, share prices tend to sag. But once the drills start turning, things change...
Over the summer and fall, we'll hear whether they've actually found any gold. And these stocks will really get moving. Take a look...
This is Pacific Ridge Exploration, one of the stocks I told you about last fall. Its chart shows the classic "stair step" of good news. In this case, last summer's drilling results sent shares up from $0.13 to $0.40. That's a 207% gain in just six weeks.
Then, as you can see, shares came off the high through the dull weeks of the winter. But as we near field season again, they've come roaring back.
That's exactly what we're looking for when we invest in junior mining companies.
Last year, I told you, "There will be eight or 10 losers for every winner here. Speculators in these stocks must do the homework, use trailing stops, and never invest more than they can afford to lose."
But so far, we've seen a remarkable string of winners. The frenzy is building. You can see it when you look at how the rest of the companies I told you about have done since my last essay:
Symbol on the Toronto Venture Exchange
Market Cap Today (millions)
Gain from September
C$694 million
Golden Predator
C$119 million
Valley High Ventures
Northern Tiger
C$43 million
Taku Gold Corp
C$23 million
Arcus Development
C$13 million
Pacific Ridge
C$24 million
Hinterland Metals
C$15 million
Central Resources
C$3 million
As you can see from the table, seven of the nine companies grew in value from September 2010 as the drilling and exploration results came in. (The other two held their value.)
Don't forget, this is still a risky area to invest. But it's easily one of the top five emerging gold districts in the world... so careful speculators could make another 500% or more in the Yukon. And these companies are a great place to start if you want to cash in on the next big gold rush.
Good investing,
Matt Badiali

Further Reading:

Matt recently spoke with Eric Sprott, one of the most respected names in natural resource investment. Sprott is convinced the price of gold is being manipulated...
"Here's the thing," he says... "even with day-to-day manipulation, the gold price rose 425% over the last decade." And as more people wake up to the fact that something has gone wrong with our paper money, it's going to trade a lot higher.
See who Sprott blames for this manipulation – and the future of gold compared to other commodities – here: The Government Is Lying to You About Gold.

In The Daily Crux
Market Notes
U.S. oil giants Exxon, Chevron, and Conoco are all up more than 25% in six months.
Consumer staples giants Unilever, Colgate-Palmolive, and Kimberly Clark quietly hit three-month highs.
Bailout recipients are flopping... General Motors and AIG sink to six-month lows.
Biotech large-cap Biogen jumps to three-year high.
Market Watch
Symbol Price
S&P 500 1314.16 -0.8% +9.8%
Oil (USO) 42.30 -3.1% +3.4%
Gold (GLD) 141.61 -0.7% +25.3%
Silver (SLV) 39.09 -0.3% +119.6%
U.S. Dollar 75.05 +0.3% -6.8%
Euro 1.45 +0.3% +6.6%
Volatility (^VIX) 17.09 +3.0% +9.7%
Gold Stocks (^HUI) 580.87 -1.6% +31.0%
10-Year Yield 3.50 -2.0% -9.1%

World ETFs
Symbol Price
S. Korea (EWY) 63.24 -1.8% +23.4%
S. Africa (EZA) 73.10 -1.6% +21.2%
Singapore (EWS) 13.80 -0.5% +19.0%
Taiwan (EWT) 15.00 -2.0% +18.1%
Canada (EWC) 33.12 -1.9% +17.2%
USA (SPY) 131.47 -0.8% +12.0%
Lat.America (ILF) 53.09 -2.0% +10.0%
Russia (TRF) 23.03 -3.2% +8.9%
India (IFN) 31.98 -1.2% +8.2%
Israel (ISL) 17.53 -0.4% +5.3%
China (FXI) 45.04 -1.2% +4.0%
Japan (EWJ) 9.93 +0.2% -5.9%

Sector ETFs
Symbol Price
Oil Service (OIH) 154.81 -2.8% +24.7%
Basic Mat (IYM) 79.58 -2.0% +22.4%
Telecom (IYZ) 23.82 -0.8% +19.7%
Industrials (IYJ) 69.95 -0.9% +19.3%
Software (PSJ) 26.74 -0.9% +19.1%
Transportation (IYT) 94.90 +0.4% +17.9%
Semis (PSI) 16.90 -2.0% +17.8%
Real Estate (IYR) 58.27 -0.2% +17.5%
Retail (PMR) 21.32 +0.5% +16.3%
Big Tech (QQQQ) 56.37 -0.7% +15.8%
Internet (HHH) 72.35 -1.4% +15.4%
Consumer Svcs (IYC) 70.91 -0.1% +14.2%
Construction (PKB) 13.92 -1.3% +12.9%
Insurance (PIC) 17.10 +0.0% +12.4%
Biotech (PBE) 21.91 -0.5% +11.4%
Water (PHO) 19.63 -1.0% +10.8%
Media (PBS) 14.91 -0.7% +10.3%
Utilities (XLU) 31.48 -0.3% +8.3%
Health Care (IYH) 69.94 -0.1% +7.4%
Defense (PPA) 20.01 -1.0% +7.0%
Big Pharma (PPH) 67.39 -0.3% +6.8%
Financials (IYF) 59.15 -0.4% +0.8%
Alt. Energy (PBW) 10.06 -1.9% -0.5%
Nanotech (PXN) 9.10 -2.3% -12.3%

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