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Analyzing a Junior Mineral Company News

Analyzing a Junior Mineral Company News. Dr. John-Mark Staude. President & CEO. June 17, 2009. Canadian National Instrument 43-101. This sets out standards and guidelines for reporting. It helps the investor. The Security Commission monitors for compliance.

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Analyzing a Junior Mineral Company News

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  1. Analyzing a Junior Mineral Company News Dr. John-Mark Staude President & CEO June 17, 2009

  2. Canadian National Instrument 43-101 This sets out standards and guidelines for reporting. It helps the investor. The Security Commission monitors for compliance. Professional Geologist- Engineer Certification required on technical portion of news releases. There are three main categories on resources (Measured, Indicated, Inferred). www.Sedar.com 2

  3. Value Chain Full Value Competitive High Risk Value Opportunity Potentially High Value Few Competitors and Lower Risk 10 Speculators Leave Institutional 8 Investing Begins 6 Speculative Stock Relative Value Orphan Ahead Of Known Value Period 4 2 Depletion 1 - 2 Years 2 - 3 Years 2 Years 1 Year ~4 - 5 Years Discovery Feasibility & Development Start-Up Greenfields Pre-Discovery Permitting 0 Time Four types of companies in Resource Sector 4. 1. 2. 3.

  4. Low Probability, Long Time “No one knows” T Highland Valley

  5. ? Context- “make calls, ask questions, due diligence” 5

  6. Geologic Perspective Company (size, business, track record) 2. Project location, stage 3. Context, past results, context, number of holes 4. Possible deposit type? 5. Length of intervals

  7. Deposit types are key Assay results in news releases- need to be interpreted in the context of deposit types - (porphyry, epithermal, veins, placer, not disclosed) 7

  8. Value vs Length of Intercepts Source: Research Capital, 2009 8

  9. Drill results 4 news factors Grades vs. Lengths vs. Depths High grades are good but a) is there volume?, is it deep?, how long of intervals? Gross size of system – giants are very rare, trades are on results and grades 2. Grades that investors should look for when reviewing stocks: 1% Cu, 2% Ni, 1 g/t Gold, PGM, 300 g/t Ag, 0.1% Mo, 0.1% U308 Think about the $ value of the rock. Current metal prices times the concentration. 9

  10. 3. Drilling assays –Core has more data, earlier stages and deposit type 4. Spacing of drilling results – see if there is a map on the website, where are the new holes relative to earlier results Drill results 4 news factors 10

  11. District play – scale potential

  12. Metallurgy The % metal is going to be extractable Not just the sexy assay number in the P.R. Minerals, elements = good and bad Analysts help at this stage and into the engineering stages 12

  13. Examples- on the news the stock jumps Appleton (AEX), Ventana (VEN), Keegan (KGN), Serengeti (SIR), 13

  14. Conclusions Size potential, location, value-meters Graphics – maps and sections on website to see where the numbers are coming from Deposit types Stage of project (leverage, risk) Ask experts, due diligence 14

  15. “John-Mark’s Geotutorial Video” YouTube Video - released July 1st, 2009 - field geology - covers sampling methods - better understand press releases Email info@rivres.com to Alex Mason about questions you’d like to see covered from the resource investor or geologic field perspective? 15

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