resource opportunities march 2009 1

www.ResourceOpportunities.com March 6, 2009 1

T he world has just experienced the

greatest destruction of wealth ever.

Share prices around the world are

down 50% or more. General Motors, long

the backbone of American industry, has

lost 90% of its value from a year ago.

Some of the big American banks are gone

completely, with shareholders losing

everything.

Is the worst over? I don’t know.

The U.S. government is throwing a trillion

dollars, and counting, at bailouts and eco-

nomic stimulus. That huge handout seems

to have stabilized the situation in the U.S.

But, Europe is also facing some serious

problems.

Some people see more downside before a

recovery. Others see this as the bottom.

It’s hard to know what to expect; and

therefore it’s hard to know what to do as

an investor.

After an experience like last year, and with

so much uncertainty remaining, many

people will be tempted to give up on

investing. Or worse yet, they will wait

on the sidelines until the popular media

tells them how great things are in the

investing world. Normally, the popular

press being positive on any investment

topic signals the top of the market.

But, the top of the market is precisely

when many people come back into the

markets. It takes a great deal of courage

to invest contrary to popular wisdom.

But, that is exactly how you make money

in the investing world. You buy when

others are afraid, and you sell when

others are greedy.

Of course, there is no assurance that this is

the bottom of the market. However, it is

clear that there is a great deal less risk

today than there was a year ago.

In the face of the present uncertainty, I am

going to outline 3 investment ideas that I

believe will do well, regardless of the

direction of the broad markets.

First, let’s look at gold.

Many investors over the past few months

have taken refuge from the financial crisis

in the safe haven of gold.

Sure, gold took a hit at the height of the

crisis. But, it was nowhere near as bad as

nearly every other investment. Gold

recovered quickly. Gold equities were also

hit hard by the financial crisis. The share

prices of the larger companies have also

recovered strongly.

The meltdown in the financial markets

scared the hell out of people. This crisis

was particularly scary, because banks,

which are supposed to be solid and

reliable, were the most vulnerable, at least

in the U.S. and Europe.

Investors saw gold once again hold its

value in a time of crisis. As a result, there

has been a huge inflow of wealth into the

gold market. There has been such strong

demand for gold coins and bars, that there

is a shortage of physical product.

Exchange traded funds and similar invest-

ment vehicles have become extremely

popular. Gold ETFs now hold 45 million

ounces of gold, an all time record. Gold

has become the "most favored asset" of

investment advisers.

For the first time in nearly 3 decades, the

investing public is looking favorably on

gold as an investment. And yet, gold stub-

bornly refuses to break through $1,000 and

overtake the record price set a year ago.

Some people are puzzled as to why this

intense level of gold buying by investors

has not resulted in larger gains in the gold

price. The reason is that investor demand

is only part of the picture for the gold

market. Let’s have a quick look at some of

the other factors influencing gold.

Gold is unique in that nearly all the gold

ever mined is still available to the market.

The European Central Banks are among

the largest holders of gold. Their sales

over the past decade have been a major

factor in the gold market.

The European banks have agreed not to

sell more than 500 tonnes (or, about 16

million ounces) of gold a year.

Investing in an Uncertain World

(A presentation delivered March 1, 2009 at the Prospectors and

Developers Association of Canada annual conference in Toronto)

. . .Discovering value in natural resource stocks

I N S I D E

1– Company Updates

3– Brief Updates

6– Initiating Coverage

7-Most Favoured Companies

8– Conferences

————————————

The last Issue was February 2009-1

Volume 12, #4 March 2009-1


Resource OpportunitiesResource Opportunities

For the past three years, they have sold

less than the quota. However, that might

change with the banking crisis.

Another large holder of gold, the Interna-

tional Monetary Fund, or IMF, has been

talking about selling some or all of its

gold for years, and again, the financial

crisis may result in more of their gold on

the market. Other Central Banks are buy-

ing, offsetting part of the European sell-

ing.

The Asian nations hold a very small por-

tion of their reserves in gold. China, with

$2 trillion, the largest foreign currency

reserves of any nation, holds less than

1% in gold. There is speculation that

China and other nations might increase

their gold holdings.

Physical demand for gold is dominated

by the jewelry market. Jewelry demand

in the developed world has fallen sharply

with the recession, offsetting growth in

jewelry demand in the emerging econo-

mies.

A very important factor in gold is the see

-saw between investor demand and jew-

elry demand. Investors tend to buy as the

price rises and sell as the price falls.

Jewelry makers do the opposite.

The big swing variable, and therefore the

most important determinant in the short-

term price, is investment demand. When

investor buying overwhelms the slow-

down in other sectors, the price rises.

Economists will tell you that when the

price of a commodity increases, demand

falls and production increases. Economic

theory doesn’t necessarily apply in the

mining world. The gold price has more

than tripled in the past 8 years, yet

demand continues to rise.

On the other hand, the supply of gold,

also contrary to economic theory, is

falling as the price rises.

Gold mine production has been falling

for several years now, even though min-

ing companies are producing all the gold

they can to sell into a strong market and

a rising price. Economic theory simply

does not stand up to geologic reality. It is

not easy to increase gold production. It’s

hard to see on the slide below, but gold

production peaked in 2002, and is pro-

jected to continue to fall.

For years, the large gold companies have

grown through acquisitions. While Bar-

rick and Newmont, for example, are each

bigger than they were a few years ago,

the industry is shrinking. Gold produc-

tion is falling. Equally importantly, the

overall reserves in the gold industry are

declining.

The larger gold companies have grown

through mergers, but those mergers have

been dilutive: the amount of gold

reserves per share has declined substan-

tially over the past few years.

Most of the gold production is now com-

ing from mines that are more than 15

years old. The pace of mine closures will

accelerate, putting further downward

pressure on the level of gold production.

In spite of a five-fold increase in spend-

ing on exploration by gold companies,

the industry cannot find enough new

deposits to even replace the gold being

mined each year.

Geologists have spent decades scouring

the earth. The big, high grade gold de-

posits that are sticking out of the ground

have been found, developed, and are

largely mined out. New discoveries will

be smaller, lower grade, more remote and

deeper.

The chart of gold grades over the past

several years also presents an interesting

picture. You can see the grade for the

gold industry has fallen sharply over the

past few years.

Gold Supply & Demand Estimates

Year from Oct 2007 – Sept 2008



The average gold grade of producing

mines is now less than 1.3 grams per

tonne. When I started my career in the

mining industry, what is now the average

grade for the industry would have been

generally considered a geochemical

anomaly, not a mine.

With 8 years of rising gold prices,

production continues to fall.

What does all this mean to an investor?

Well, there are many reasons to believe

the gold price will go higher, perhaps a lot

higher. But, not necessarily right away. In

fact, gold has a nasty habit of dropping

back after it makes a big move. But,

regardless of what happens to the gold

price in the near term, the gold mining

industry desperately needs new deposits.

Shareholders of companies that find new

deposits will be richly rewarded. And,

since it is getting harder to find new

deposits, companies that have gold depos-

its hold extremely valuable assets. The

value of many deposits is not being recog-

nized now, but over time, investors and

the

major producers will attribute higher

values to the gold deposits now in the

hands of the juniors.

On top of that, the juniors are adding

value by expanding and upgrading their

deposits.

This slide shows the relative value of

junior gold companies versus the larger

companies. For several years, the smaller

companies outperformed the majors. But,

late last year, the juniors were clobbered

much worse than the larger companies.

The majors and the mid-tier companies

have rebounded, and some of the more

established development companies have

recovered some of the losses. The smaller

companies are only beginning to recover.

So, investment idea #1: emerging gold

producers and companies with

advanced stage deposits

Many gold companies have seen big price

gains, but there are some companies that

have not yet been discovered by investors.

Just remember: Not all small gold

companies are created equal. Be selective.

Global Gold Exploration Expenditures

Global Average Mine Grades

Junior vs. Senior Gold Stocks


By investing in advanced exploration and

development companies, you gain

exposure to the gold market, and therefore

benefit from gains in gold. At the same

time, you own companies that are

growing and are adding value

independent of moves in the gold price.

Now, very briefly, let’s touch on

Investment idea # 2. Base metals are

totally out of favor right now. The same

goes for uranium. It seems that few

people in North America want anything to

do with base metal companies or uranium

companies. It’s as if investors think we

have stopped using metals and will never

need any new metal mines. People who

take a longer term view can find

exceptional values.

A little side comment: If you look at the

top 100 mining companies in the world,

18 of those companies are Chinese,

including the number 3 company on the

list. The Chinese take a longer term

perspective than Westerners. They are

going around the world now quietly

buying up base metals. Already this year,

they have invested $25 billion in energy

and base metals and they are advancing

on two other very large deals. Many

European investors are also taking a

longer term perspective and quietly

buying base metal companies.

Exploration companies with billion dollar

ore bodies are now trading for a few

pennies a share. Their shares may not pop

next week or next month, but in due

course, many of those companies will

have values several times higher than the

current share prices.

Investment idea # 2: Selected base metal

and uranium companies that have

established resources.

Now, investment idea # 3: This is really a

topic for a whole investment conference. I

just want to plant a seed in your minds at

this time.

Over the next decade, the movement

away from carbon fuels, that is: oil,

natural gas and coal, is going to gain huge

momentum. Look at the initiatives that

Obama has put forward. In Europe, they

are at least a couple of years ahead.

There will be literally hundreds of small

companies that arise in the green energy

business. It will be like the mining sector,

where a huge amount of innovation and

development is being done by small

public companies. We have some

information on our website that provides

an introduction to that sector.

So, Investment idea # 3: Start getting

familiar with Green Technology,

especially related to energy.

Company Updates

MAG Silver

(MAG-TSX)

Mag is conducting an aggressive explora-

tion program on several of its silver pro-

jects as it continues to resist the opportun-

istic takeover offer made by its joint ven-

ture partner. The company is intent on

demonstrating that it merits a higher

valuation than the US$4.54 per share of-

fer from Fresnillo plc.

That London-listed Mexican miner earned

a 56% interest on Mag’s Juanacipio silver

deposit and also holds 20% of Mag’s

shares. The major’s Fresnillo mine on the

adjacent property ranks as the largest sil-

ver mine in the world, with annual pro-

duction of 31 million ounces annually.

The Juanacipio deposit is clearly an ex-

tension of the rich silver system that sup-

ports the adjacent mine. Mag commis-

sioned an independent study that showed

somewhat higher resources than the fig-

ures published by Fresnillo. The Mag

figures (which had to be revised due to an

error by the independent engineers) shows

an indicated resource of 2.95 million ton-

nes of 879 grams per tonne silver, 2.22

grams per tonne gold, 2.39 per cent lead

and 4.15 percent zinc. An additional in-

ferred resource has 7.21 million tonnes of

458 grams per tonne silver, 1.54 grams

per tonne gold, 1.89 percent lead and 3.14

percent zinc. The total contained metals in

the indicated resource are 83 million

ounces of silver, 210,000 ounces of gold

and 155 million pounds of lead and 269

million pounds of zinc. The inferred re-

sources contain an additional 106 million

ounces of silver, 356,000 ounces of gold,

301 million pounds of lead and 498 mil-

lion pounds of zinc.

Juanacipio is one of the largest and richest

silver deposits in the world. It’s not sur-

prising that the partner would want the

whole thing.

The takeover offer was announced on

December 1, at a low point in the market.

Even then, the offer was below the cur-

rent trading price and only one third of

the high that the shares reached in the

previous year. Mag shares have since

traded consistently above the offer price,

leading pundits to describe the offer as a

“take-under” offer.

Canadian take-over procedures require

that Mag present shareholders with an

independent valuation. The junior claims

that its partner has refused to provide all

of the required information. As that drama

unfolds, Mag has 12 drill rigs operating

on its various properties, striving to iden-

tify enough ounces to justify a higher

price. The company has announced a $17

million program, involving 28,000 meters

of drilling at the Juanacipio project and

30,000 meters at its wholly owned pro-

jects.

Mag had over $50 million of cash at the

start of its spending spree. That treasury

provides lots of power for the highly suc-

cessful exploration team that made the

discovery at Juanacipio.

With a steady flow of good exploration

results, and a market price well above the

offer price, the Mexican company has so

far not blinked.

The best prospect for near term value

creation seems to be the 100%-owned

Cinco de Mayo property in northern Chi-

huahua State. Hole # 84 cut a 2.72-meter

zone grading 462 grams per tonne (13.5

ounces per ton) silver, 10% lead and

13.6% zinc in a zone called the Jose

manto. Results demonstrate that the Jose

manto is part of a large carbonate replace-

ment deposit system. Drilling is continu-

ing with three drills.

With Fresnillo holding 56% of the pri-

mary asset (and operating the adjacent



mine), a competing bid has not come

forward. The share price has declined

from the recent high as time ticks by with

neither another offer nor a higher bid. It

is up to each shareholder to tender to the

offer or simply hold their shares.

Perhaps shareholders might expect the

parties to work out a split of the com-

pany, letting Fresnillo get what it wants

(Juanacipio), and leaving the other assets

under the control of a team that could add

more value for shareholders.

Price March 6, 2009: C$0.41

Shares Outstanding: 49 million

Shares Fully Diluted: 52 million

Market Cap: C$ 20 million

Contact: Investor Relations

604-630-1399

www.magsilver.com

Last updated December 2008-1

Brief Updates

Altius Minerals (ALS-TSX; C$6.26)

reported earnings from its third quarter

ended January 31, 2009 at $31.6 million

or $1.11 per share. These earnings came

from the forward equity settlement of 2.5

million shares of Aurora Energy for earn-

ings of $38 million less $6.7 million in

tax. Altius reported $689,000 in earnings

from its 0.3% net smelter royalty interest

from the Voiseys' Bay nickel-copper-

cobalt mine in Labrador, down from

$1.38 million in the same quarter of last

year due to depressed metal prices. The

company also reported interest income of

$1.38 million compared to $2.3 million in

the same quarter last year as a result of

lower interest rates.

Altius has fourteen mineral properties,

several with joint venture partners, and

holds various investments in junior ex-

ploration and development compa-

nies. The company has $160 million in

cash and liquid investments and is look-

ing to take advantage of opportunities in

the present market situation. There are

good prospects that the skilled manage-

ment team will make a deal in the next

few months that will add value for share-

holders. In the meantime, the company

trades at roughly cash value.

Last updated January 2009-2

Aurcana Corporation (AUN.V;

C$0.105) has nearly completed a prelimi-

nary economic assessment on its Shafter

silver mine, located in southwest Texas.

That study will be followed by a prefeasi-

bility study due in the summer. The pro-

ject has a measured and indicated re-

source of 24.6 million ounces of silver

and an inferred resource of 22.8 million

ounces silver. Plans call for silver pro-

duction at a rate of 3.2 million ounces per

year. The mine has extensive under-

ground development in place, allowing

the project to move quickly to produc-

tion. The studies at Shafter will be used

to help the company find financing to

develop the mine.

The La Negra silver-lead-zinc-copper

mine in Mexico continues to operate at

1,000 tonnes per day, but the low metal

prices have squeezed profits. The

Rosario mine was put on hold as metal

prices plummeted and the company chose

to focus on development of the Texas

mine.

Shafter is an attractive silver mine devel-

opment project. If the company can se-

cure financing on favorable terms, there

is considerable upside potential in the

share price from the current level.

Last updated December 2008-2

Exeter Resource Corp (XRC-TSXV;

C$2.72) encountered another very long

drill hole intercept from the ongoing pro-

gram at its Caspiche gold-copper por-

phyry project in Chile: The hole cut an

impressive 1,214 meters of 0.9 grams per

tonne gold and 0.33% copper. This hole

supports the notion that mineralization

extends well beyond the limits of the

previous drilling on the project.

Exeter is well on its way to outline a very

substantial deposit in Chile by this Sep-

tember. They also expect a resource esti-

mate on the Cerro Moro project in Ar-

gentina by this summer.

With nearly $40 million in cash, Exeter is

well positioned to continue its two ag-

gressive drill campaigns. The resource

estimates expected over the coming

months should help investors to better

valuate the exceptional exploration suc-

cess experienced by the company.

Last updated February 2009-1

Freewest Resources (FWR-TSXV;

C$0.26) has made another new chromite

discovery on its wholly-owned McFaulds

property in northern Ontario: 4 holes

drilled below the Black Thor chromite

discovery encountered a new zone, with

assays up to 37 meters of 32% chromite.

The new zone, called the Black Label

zone, is thought to be associated with

platinum, palladium and nickel minerali-

zation. The discovery will be followed up

by further drilling.

Recent drilling at the Black Thor deposit

has returned assays up to 30 meters of

40.3% chromite. Black Thor and Black

Label are located 4 kilometers northeast

of the Big Daddy chromite deposit, an-

other high grade deposit recently identi-

fied by Freewest and its partners. Spider

Resources (SPQ-TSXV) and KWG Re-

sources (KWG-TSXV) have each earned

a 25% interest in the Big Daddy project.

Freewest now has three chromite deposits

on which drilling continues to push out

the limits. The company has various

other projects, with joint venture partners

funding several of them. The most sig-

nificant is the Clarence Stream gold de-

posit in New Brunswick on which an

updated resource estimate is expected

soon.

Freewest is so far getting little credit for

the very significant discoveries in north-

ern Ontario. Those deposits, along with

discoveries in the area by other compa-

nies, are now capable of supporting infra-

structure development. The provincial

government is looking closely at road

access and at least a couple of major met-

als companies are already evaluating the

suite of deposits now being outlined by

Freewest and the other companies in the

area.


Full Metal Minerals (FMM-TSXV;

C$0.175) announced a new discovery of

high grade zinc-lead-silver mineraliza-

tion. The discovery resulted from drilling

8 holes last year at its OG project, 40

kilometers north of Dawson city in the

Yukon. Highlights include 11.9 meters at

an average grade of 14% zinc, 5.7% lead



and 26 grams per tonne silver. The drill

program was designed to test a 1.7 square

kilometer soil anomaly and geophysical

gravity high. The new area of mineraliza-

tion, called the Sundar zone, consists of

massive to semi-massive sphalerite, ga-

lena, pyrite and chalcopyrite and is open

for expansion in all directions.

Full Metal has a large portfolio of proper-

ties in Alaska and the Yukon Territory

with joint venture partners funding seven

projects. This is the third silver-base

metal discovery the company has made

over the last year, yet investors are giving

the company little value beyond the near-

term production potential of its Lucky

Shot Gold project.

Last updated February 2009-1

Hathor Exploration (HAT-

TSXV;C$2.12) reported assays from in-

fill and step-out drilling at its Midwest

Northeast uranium deposit in the Atha-

basca Basin. The drilling, which began in

January included 16 holes, of which 10

holes were designed for infill purposes

and 6 holes tested mineralization at dis-

tances 40 to 550 meters from the Rough-

rider zone. None of the step-out holes hit,

while nine of the ten infill holes hit ura-

nium. The standout was 15 meters of 12%

U3O8, but the other values were lower

grade or narrow. Investors were clearly

expecting more consistency, as the share

price took a big hit. The company still has

a significant uranium discovery, within

easy trucking distance of mills operated

by the three largest uranium producers.

The dip in the price represents a buying

opportunity.


New Gold Inc (NGD-TSX; C$2.20) and

Western Goldfields Inc. have agreed that

New Gold will acquire all of the shares of

Western Goldfields on the basis of one

New Gold common share and 0.01 cent in

cash for each common share of Western

Goldfields. Existing New Gold and West-

ern Goldfields shareholders will own 58%

and 42% respectively, of the combined

company. The combined company will

have gold production from three gold

mines in mining-friendly jurisdictions,

forecast to produce 335,000 ounces of

gold in 2009, and expected to grow to

over 400,000 ounces in 2012. Minable

reserves will total 7.6 million gold ounces

within a measured and indicated resource

of 12.2 million gold ounces. Randall Ol-

iphant, former president of Barrick and

now chairman of Western Goldfields, will

be executive chairman. Cash flow from

the three mines is expected to fully fund

development at the New Afton gold-

copper project in British Columbia and

also put the company in a strong position

to undertake further acquisitions.

The company would have $171 million in

cash, $77 million in long-term asset

backed commercial paper and $275 mil-

lion of debt. Once the transaction is com-

pleted, New Gold will have 348 million

shares outstanding and 436 million shares

fully diluted. The transaction will create a

bigger and stronger mid-tier presence that

will be in a position to grow and make

further acquisitions.


Virginia Mines (VGQ-TSX; C$3.88)

announced that Goldcorp updated the

resource estimate at the Eleanore gold

project to 2.3 million ounces of gold at

10.05 grams per tonne in the measured

and indicated categories and 3 million

ounces at 12.75 grams per tonne in the

inferred category. The increased resource

is important to Virginia, which retains a

royalty interest on the deposit that it dis-

covered and sold to Goldcorp. At the cur-

rent gold price, the royalty would be 3%

of revenue. Advance royalty payments in

the amount of $100,000 per month are

due to begin flowing to Virginia next

month.

Virginia is conducting an aggressive $7

million exploration program on its Que-

bec properties this year, with much of that

being reimbursed by joint venture part-

ners and provincial government grants.

Virginia has $38 million in cash, which

together with the value of the royalty in-

terest exceeds the current market value of

the company, giving no credit to the

highly successful exploration team and

the several discoveries already in hand.


Initiating Coverage

Inter-Citic Minerals

(ICI-TSX)

Inter-Citic Minerals is a gold exploration

and development company with a multi-

million ounce gold deposit in China. Re-

sults of drilling over the past year are now

being worked into an updated resource

estimate. Those resource figures will then

be carried forward into a preliminary eco-

nomic assessment over the coming weeks.

The strong likelihood of favorable results

from those two studies provides a basis

for substantial gains in the value of the

company over the coming weeks.

Rapidly expanding gold production in

China has made that country the world’s

largest gold producer. Last year, Chinese

production exceeded the U.S. and the

long time leader, South Africa. Investors

have not kept up to the rapid emergence

of the gold industry in that country. Inter-

Citic is well positioned to benefit from a

growing awareness of the importance of

China in the gold industry as well as from

the pending developments on its project.

Inter-Citic president, James Moore, has

worked with the Chinese resource indus-

try for over a decade. His strong ties

within the industry led to the acquisition

of the project. Much of the initial funding

for the company came from investors in

Hong Kong with whom Mr. Moore had

contacts. Vice President of Exploration,

Garth Pierce, has over 30 years experi-

ence working in exploration and project

management, including a highly success-

ful career with one of the majors. The

directors and advisory team bring a

wealth of experience and contacts.

Included is a former Prime Minister of

Canada, John Turner.

In 2003, Inter-Citic entered into a joint

venture with the Qinghai Geological Sur-

vey to acquire the Dachang gold project,

which covers 279 square kilometers. The

local government agency recognized the

significance of the gold occurrence, but

lacked funding to carry out the work. In-

ter-Citic has now earned an 83% interest

in the property and has the option to in-

crease its interest to 90% by completing a



pre-feasibility study. The agreement also

gives Inter-Citic the right of first refusal

on properties around the Dachang prop-

erty.

The Dachang gold project is located in

Qinghai province in western China, 170

kilometers southeast of the city of Gol-

mud where major infrastructure is avail-

able. The structurally controlled sulfide

deposit occurs near surface in a sediment

host rock. Geologists were led to the area

by gold placer workings.

After identifying numerous gold occur-

rences, Inter-Citic in 2007 focused on

what is now referred to as the Dachang

main zone. That year, 28,000 meters of

drilling helped to outline an inferred re-

source of 25 million tonnes grading 3.6

grams per tonne, for a total of 2.9 million

ounces of gold. The majority of those

ounces are within the Dachang main zone,

where drilling has so far been done to

depths of only 150 meters.

In 2008, 50,000 meters of drilling was

completed along with IP geophysical

work, metallurgy and preliminary engi-

neering. Of 317 holes drilled, 299 holes

returned significant gold values. The

results are now being compiled into an

updated resource estimate that is expected

in the next month. Results of the 2008

drilling make it clear that the deposit will

be significantly larger than the 2.9 million

ounces previously outlined. In addition, a

substantial portion of the resource will be

upgraded from inferred to an indicated

resource.

Those updated resource figures will then

be incorporated into a preliminary eco-

nomic assessment over the coming weeks.

The deposit has favorable grades in a near

surface deposit. In a setting that is suppor-

tive of low capital and operating costs, it

is almost certain that the assessment will

be very positive.

Over the coming weeks, the Inter-Citic

share price should respond first to the

updated resource estimate, outlining a

deposit that is both larger and better de-

fined than the previous figures. Secondly,

the economic assessment will provide

confidence to investors that the deposit is

viable. In addition, China will gain inves-

tor recognition as the most important gold

producing nation and in general as a fa-

vorable place to do business.

Inter-Citic intends to develop the Dachang

main zone and to continue to evaluate a

number of other promising gold occur-

rences on its extensive property. Dachang

is a large and well-located deposit that

will be of interest to any number of gold

producers.

Inter-Citic has $11 million in cash (as of

late last year) more than enough to carry it

through the next phase of work on the

project.

Adjusting for its cash and using last year’s

resource estimate, the company is pres-

ently being valued at only $8.50 per

ounce gold in the ground. The share

value should be adjusted upwards as the

deposit is both upgraded and expanded in

the coming weeks.

Price March 6, 2009: C$0.39

Shares Outstanding: 82 million

Shares Fully Diluted: 86.6 million

Market Cap: C$ 31.9 million

Contact: Investor Relations

(905) 479-5072 www.inter-citic.com

Most Favored Companies:

Capstone Mining (CS-TSX;C$1.25)

CGA Mining (CGA-TSX;C$1.59)

Endeavour Financial (EDV-

TSX;C$1.55)

Exeter Resource (XRC-

TSXV;C$2.72)

(see brief update)

Freewest Resources (FWR-

TSXV;C$0.29)

(see brief update)

Great Basin Gold (GBG-

TSX;C$1.29)

Keegan Resources (KGN-

TSXV;C$2.59)

Mag Silver (MAG-TSX;C$5.45)

(see update)

Silvercorp Metals (SVM-

TSX;C$2.79)

Virginia Mines (VGQ-

TSXV;C$3.88)

(see brief update)

New to the list:

Inter-Citic (ICI-TSX;$0.39)

(see Initiating Coverage)



Editorial Policy, Disclaimer and Disclosure Resource Opportunities is written, edited and published by Lawrence Roulston 1510-800 West Pender St.Vancouver, BC, V6C 2V6, Canada,

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Editorial Policy: Companies are selected for presentation in this publication strictly on the merits of the company. No fee is charged to the company for inclusion. Currencies: Dollar and $ refer to US dollars, unless stated otherwise or obvious from the context (for example, a share price on a Canadian exchange). Disclaimer: Readers are advised that the material contained herein is solely for information purposes. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities. The information contained herein is based on sources which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available data. Any opinions expressed

are subject to change without notice. The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. They may from time to time have a position in the securities of the companies mentioned herein, and may change their positions without notice. (Any

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Toll Free 877-773-7677 Tel: (604) 697-0026, Fax (604) 697-0029, e-mail [email protected] www.ResourceOpportunities.com

Editorial Policy: Companies are selected for presentation in this publication strictly on the merits of the company. No fee is charged to the company for inclusion. Currencies: Dollar and $ refer to US dollars, unless stated otherwise or obvious from the context (for example, a share price on a Canadian exchange). Disclaimer: Readers are advised that the material contained herein is solely for information purposes. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice. Nothing contained herein constitutes a representation by the publisher, nor a

solicitation for the purchase or sale of securities. The information contained herein is based on sources which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available data. Any opinions expressed are subject to change without notice. The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. They may from time to time have a position in the securities of the companies mentioned herein, and may change their positions without notice. (Any

significant positions will be disclosed explicitly.)

Copyright: This publication may not be reproduced in whole or in part, in any form, without the express permission of the publisher. Permission is given to extract parts of the report for inclusion or review in other publications only if credit is given, including the name and address of the

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Conferences

The next conference where I will be

participating as a speaker will be in

Zurich. I encourage you to attend, as it

provides an excellent opportunity to

meet face to face with company

management.

Intelligent Resource Investing

Gold & Silver, Base Metals, Oil &

Gas, Renewable Energy, Uranium

Zurich March 17, Geneva March 19

“An exclusive event with quality insti-

tutional and private investors, world

class experts and a select group of

companies.”

http://academyfinance.ch/

Metal Prices - March 6, 2009

Gold 936.70 $/ounce

Silver 13.29 $/ounce

Platinum 1067 $/ounce

Palladium 203 $/ounce

Rhodium 1050 $/ounce

Copper 1.65 $/pound

Nickel 4.37 $/pound

Aluminum 0.57 $/pound

Zinc 0.54 $/pound

Lead 0.53 $/pound

Uranium 43.75 $/pound

Cobalt 11.70 $/pound

Molybdenum 9.80 $/pound

Tungsten 11.46 $/pound

Tin 4.95 $/pound

Indium 321 $/kilogram


Mines & Money Gulf 2009

Tuesday March 31, 2009

Park Hyatt Hotel Dubai

“The conference will tackle high

level topics including effective capi-

tal raising strategies in the region,

perspectives from sovereign funds,

fund managers and high net worth

individuals in the region, up to date

insight in the trading markets in the

Gulf for commodities.”

www.minesandmoney.com

Calgary Resource & Clean Energy

Investment Conference

Calgary Convention & Exhibition

Centre April 4-5, 2009

“Featuring a world class line-up of

speakers, covering all types of direct

investments in resource public com-

panies, speculative investing, re-

source exploration, oil & gas, world

outlook, investment strategies,

and more!”

www.goldshow.ca

resource opportunities march 2009 1

Business

gold market

gold price

gold investing

supply of gold

ounces of gold

gold coins

gold equities

gold economists