Philip Ker, analyst with Union Securities talks Kootenay Silver, sees 12 month target of $2.50

Philip Ker, an analyst with Toronto-based Union Securities, expects the junior mining sector to witness an increase in M&A activity throughout the remainder of 2012, which could funnel more capital into the space. Philip’s coverage universe includes several gold juniors with near-term growth catalysts and lofty 12-month target prices. He sat down with SmallCapPower.com to discuss some of the companies Union Securities is covering.


SmallCapPower.com: So you’re saying that virtually everything in the junior resource sector is underperforming, especially those companies working in high-risk jurisdictions. Nonetheless, you have some companies that you believe will eventually perform. What are some of those names?

Philip Ker: Kootenay Silver Inc. (TSX.V: KTN). It’s a unique brecciaed epithermal silver deposit in Sonora State, Mexico. Kootenay is currently wrapping up a 25,000-metre drill program on its Promontorio deposit and plans to publish an initial resource estimate later this quarter. There’s a historical resource estimate of about 25 Moz silver-equivalents, which takes into account some substantial lead and zinc credits. I toured the property in February, and was impressed with the location, as well as the drill core. My target for the resource estimate going forward is 100 Mozsilver-equivalent, which would be a substantial uplift from the previous estimate. Kootenay recently hit some great intersections at Promontorio, particularly in the Northeastern zone where some grades exceeded 800 grams per tonne silver-equivalent.

SmallCapPower.com: Kootenay is trading at about C$0.95. Is there a
warrant outstanding?

Philip Ker: There is and some of those expire this year. It should bring in some capital for the company for future exploration, which is expected to start later this year. The property has numerous untested targets and some may be followed up on in conjunction with delineation drilling at Promontorio.

SmallCapPower.com: What’s your 12-month target on Kootenay?

Philip Ker: My 12-month target is $2.50 based on a conservative in-situ valuation of only $1.25/oz silver.


SmallCapPower.com: That’s great.



Read the full discussion here: 

Northern Vertex builds precious metals portfolio, with 3 projects advancing in 2012

In the last nine months alone, Northern Vertex (CVE:NEE) has managed to acquire two advanced mineral projects with historic reserves and initiate drill campaigns, setting the company on path for a productive year.

The Canadian exploration and mining company’s strategy is to acquire, develop and advance precious metal projects in Canada and the US, targeting the conversion of historical resource estimates to NI 43-101 compliant standards.

In March of last year, Northern Vertex acquired the rights to 70 percent of the Moss gold-silver project in Mohave County, northwestern Arizona, where the company has since completed a 27,000 foot drill program, resulting in the delineation of a substantial NI 43-101 compliant gold-silver resource.

CEO Ken Berry says the company drilled off a current resource of 590,000 ounces of gold equivalent, 90 percent of which is in the measured and indicated category.

Eric Sprott: The [Recovery] Has No Clothes

" I believe that there have been repeated attempts to influence prices in the silver markets. There have been fraudulent efforts to persuade and deviously control that price. Based on what I have been told by members of the public, and reviewed in publicly available documents, I believe violations to the Commodity Exchange Act (CEA) have taken place in silver markets and that any such violation of the law in this regard should be prosecuted."

- Bart Chilton, Commissioner, U.S. Commodity Futures Trading Commission (CFTC), October26th, 2010

What a difference a month makes. Now that Greece has been papered over, the bulls are back in full force, pumping up the equity markets and celebrating every passing data point with positive exuberance. Let's not get ahead of ourselves just yet, however. Very little has actually changed for the better, and it's certainly too early to start cheerleading a new bull market.

Take the latest US unemployment numbers, for example. There was much excitement about the latest Bureau of Labor Statistics (BLS) report which announced that US unemployment remained unchanged at 8.3% during the month of February.² The market was particularly enamored by the BLS's insistence that non-farm payrolls increased by 227,000 during the month, as well as its upward revision of the December 2011 and January 2012 jobs numbers. Lost in all the excitement was the Gallup unemployment report released the day before, which had February unemployment increasing to 9.1% in February from 8.6% in January and 8.5% in December.³ Granted, the Gallup methodology is slightly different than that used by the BLS, but even if Gallup had applied the BLS's seasonal adjustment, they would have still come out with an unemployment rate of 8.6%, which is considerably higher than that produced by the BLS.⁴ We all know which number the pundits chose to champion, but the Gallup data may have been closer to the truth.

Read Full Article Here:

David Morgan - Silver, Gold, Mining, and How to be a Wise Investor

Eric Sprott: Silver is Investment of the Next Decade

Phase II Drill Program at Moss Project Intercepts 24.38 Metres Grading 1.45 gpt Gold Eqv (1.13 g/t Au, 12.8 g/t Ag); 1.52 Metre High-Grade Intercept of 19.39 Gold Eqv (17.71 g/t Au, 67 gpt Ag) outside Main Target Area gpt

Vancouver, B.C. - Northern Vertex Mining Corp. (TSX.V:NEE)(OTCQX: NHVCF) (“Northern
Vertex”) is pleased to announce results from the first 18 holes of its 20,000 foot (6500 meter) in-fill drill
and resource expansion program on the Moss Gold-Silver Project situated in the historic Oatman Mining
district in Mohave County, Northwestern Arizona.

States Northern Vertex Chief Geologist, Dr. Bob Thompson. “We are pleased to report all five of the
Phase II infill holes, AR-124, 125, 127, 128 and 133, designed to convert resources from the inferred to
the indicated category, were successful, with each hole intersecting at least 24 metre widths of
mineralized material.

The significant intersections returned from Phase II drilling are consistent with results from our Phase 1
drill program. Importantly, they demonstrate the consistent internal distribution of gold we’ve come to
expect from the Moss gold-silver system. Holes AR-121, 122 and 123 returned a series of promising
intercepts, despite being stopped in mineralization grading 1 gpt gold equivalent. These holes were
collared approximately 160 meters south from the outcropping Moss stockwork system, where
intersections suggest a broader zone of mineralization at depth.”

You can view the complete release here

Kootenay Silver firmly focused on Promontorio project, updated resource expected

Vancouver-based junior explorer Kootenay Silver (CVE:KTN) is firmly pinning its hopes on the Promontorio silver project in Mexico.

Kootenay Silver’s flagship property is the former-producing Promontorio silver mine in Sonora State, Mexico. The company is also actively developing other mineral projects in Mexico and British Columbia, Canada.

But the company's focus on Promontorio was a driver in the recent change of its name from Kootenay Gold.

Speaking to Proactive Investors, Kootenay Silver’s chairman, Ken Berry, said: "Our focus is on the Promontorio property and building that silver resource. We feel that we're at a real stage in development where that resource is a significant asset.

"Our core asset has grown to such a stature it warranted a name change."