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I just finished reading a tiny little 100 page book by the title of "The Story Behind Canadian Mining Speculation". It was written about 50 years ago by T.H. Mitchell and it should be a must read for any current mining speculator. If you can get your hands on it that is. Try searching for it at your university library because that is where I found this copy. Anyways, here are some great bits of information that I got from the book:

It should be clearly understood by the Canadian investor that the majority of the "penny" stock companies are worthless and always will be worthless. This has been proven time and time again. Yet their stocks have a definite value as a speculative trading medium; in other words, the stocks themselves are not worthless so long as somebody is willing to buy them. Thus, one has to be pessimistic about the possibilities of the companies, yet optimistic about the profit opportunities which their stocks present. And these are the sentiments which guide the professional traders.

I found an old piece of paper on my desk today that had a list of several mining companies at the feasibility stage. In other words, they are looking at developing their exploration property into a mine. I think I compiled it a couple months ago so things may or may not have changed.

I have not done any research on any of them except for the fact that they are at the feasibility stage:

Gold     

GBG.TO http://www.greatbasingold.com/gbg/Home.asp
MGD.V http://www.mandorin.ca/
AXM.V http://www.axmininc.com/DesktopDefault.aspx
VVI.V http://www.valenciaventures.com/
MGM.V http://www.morgainminerals.com/s/Home.asp
BAJ.V http://www.bajamining.com/

DSR is a stock I own and follow closely. Now I think something very important is about to happen that has gone completely unnoticed.

This "trigger" that I am talking about is that DSR sold to Northgate a copperproperty called Sustut. This would give DSR more than 11 million in royalties (2 millions cad each year over five years + more than 1 million as the project proceeds, if Northgate decides to put it into production. (Important, Northgate only has the option until december 2006, after that they loose the 0,5 million cad they paid for the option. This deal was done when copper was less than half of the current price...) Current DSR marketcap is about 9 million cad and the stock is extremely quiet.

Northgate paid alot of money for this option and decided that they would put Sustut into production, but then came problems with its main production unit, Kemess north, which had its expansion to Kemess south challenged by the indian community.

For some time until a few days ago it looked like the entire Kemess production unit would be closed down when it ran out of ore at the northern part. A few days ago an agreement that cleared all hurdles was reached! This is the trigger I have been watching carefully for.

By Jack Chan at www.traderscorporation.com

6/11/2006

Thank you for your feedback and comments in regards to my previous commentary, “A golden opportunity?” In reaction, many readers have asked me why is it that after having been a consistent buyer of the gold market for the past five years, now am a seller of gold?

I have a simple answer: opportunity.

History often repeats itself to those who fail to learn from the past.

And history is unfolding, six years after the last lesson. But judging from the opinions of the general consensus, not many are seeing what is unfolding.

I read the following article today and trying to be a contrarian, I think that copper is going much higher very soon. The media always overdoes things to try to scare people. I think articles like this could be a sign of a bottom just like overpositive stories that fuel greed are usually signs of a top.

The fact that a fund manager is admitting he's short the metal could entice other fund managers to go short too.

Then we have a beautiful scenario where copper goes down for a little while then shoots up like never before because of a short squeeze.

So let them short all they want for now because even though the copper price is at historically high prices, the warehouse stocks continue to dwindle. Why? Because there is a real demand for copper and the buyers would rather pay lower prices but they need to buy it now to build pipes, wiring etc.

The price is being driven by hightened demand and static supply. 

June 5 (Bloomberg) -- BHP Billiton, the world's biggest mining company, spends 61 cents to produce a pound of copper and sells it for $3.15.