Stock Hideout - View Single Post

Elderbank · Wed, 07-04-2007, 09:29 PM

The Analytical Investor,Inc.
IEditor: Philip W. Speller
Darnley Bay Resources [DBL, Tsv: $0.69] is an intriguing mining exploration junior with roughly one million acres of permits in the south central section of the Inuvialuit Settlement Region of the western NWT, surrounding the hamlet of Paulatuk and Darnley Bay on the southern coast of the Beaufort Sea..

The region is dominated by the presence of the strongest known isolated gravity anomaly on the planet, in co-incidence with a magnetic anomaly, that is :
: twice as strong as the Bushveld Complex,[South Africa], estimated to contain 70% of the world’s platinum group metals;
: 4x stronger than the Sudbury Basin gravity anomaly, host to the world’s largest Ni & Cu deposits;
: 5x the strength of the Norilsk deposits, where the mined grade of Ni & Cu are the highest in the world.

Not surprisingly, the Geological Society of Canada [GSC] has assigned a moderate to high rating for the Anomaly, thought to have been caused roughly 2 billion years ago by a buried, igneous intrusive [meteorite] containing associated massive Ni, Cu, & PGE deposits.

The Company also has a diamond Joint Venture in the same general area that has completed 52,000 line-kms of an airborne survey that added 11 highly-rated kimberlite targets to the drilling inventory, now standing @ 23. The Joint Venture optionee is currently endeavoring to attract a senior industry partner to drill the remaining kimberlite targets.

We understand that potentially non-dilutive financing of $5 million is expected to be closed shortly, following which a major drilling program will get underway, with initial results expected prior to year-end.

With 46 mill. shares o/s & a current market cap of only $32 mill., DBL has already been a virtual 10-bagger in the last 6-months.While that sort of action can be expected to attract significant profit-taking in a reactionary market, the risk around current levels is de minimus, relative to the potential down the road.

Accordingly, we would suggest establishing the 1st half of a full position around current levels, with the balance added in line with news & one’s comfort level. We suspect announcement of a firm financing deal may well result in a possible doubling of the stock.

Wed, 07-04-2007, 09:29 PM	#7 (permalink)
Elderbank Join Date: Jul 2006 Posts: 7	The Analytical Investor,Inc. IEditor: Philip W. Speller Darnley Bay Resources [DBL, Tsv: $0.69] is an intriguing mining exploration junior with roughly one million acres of permits in the south central section of the Inuvialuit Settlement Region of the western NWT, surrounding the hamlet of Paulatuk and Darnley Bay on the southern coast of the Beaufort Sea.. The region is dominated by the presence of the strongest known isolated gravity anomaly on the planet, in co-incidence with a magnetic anomaly, that is : : twice as strong as the Bushveld Complex,[South Africa], estimated to contain 70% of the world’s platinum group metals; : 4x stronger than the Sudbury Basin gravity anomaly, host to the world’s largest Ni & Cu deposits; : 5x the strength of the Norilsk deposits, where the mined grade of Ni & Cu are the highest in the world. Not surprisingly, the Geological Society of Canada [GSC] has assigned a moderate to high rating for the Anomaly, thought to have been caused roughly 2 billion years ago by a buried, igneous intrusive [meteorite] containing associated massive Ni, Cu, & PGE deposits. The Company also has a diamond Joint Venture in the same general area that has completed 52,000 line-kms of an airborne survey that added 11 highly-rated kimberlite targets to the drilling inventory, now standing @ 23. The Joint Venture optionee is currently endeavoring to attract a senior industry partner to drill the remaining kimberlite targets. We understand that potentially non-dilutive financing of $5 million is expected to be closed shortly, following which a major drilling program will get underway, with initial results expected prior to year-end. With 46 mill. shares o/s & a current market cap of only $32 mill., DBL has already been a virtual 10-bagger in the last 6-months.While that sort of action can be expected to attract significant profit-taking in a reactionary market, the risk around current levels is de minimus, relative to the potential down the road. Accordingly, we would suggest establishing the 1st half of a full position around current levels, with the balance added in line with news & one’s comfort level. We suspect announcement of a firm financing deal may well result in a possible doubling of the stock.