In mining exploration, an “anomaly” is a geological formation that might attract a prospector’s interest. However, one rule of thumb is that you have to look at 1,000 anomalies to find one prospect. And fewer than one prospect in a thousand turns into a mine. In other words, finding a mine is a million-to-one shot.

That’s one reason why junior …read more »

Today, many investors worry about a “W” shaped recession. That is, they worry that we are on the brink of a second recession that follows shortly after the first.

Others are concerned that inflation will rise as the economy recovers. This explains the recent run-up in gold prices, for example, and the popularity of certain resource stocks (including crude oil stocks), …read more »

NEWMONT MINING CORP. $55 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 490.2 million; Market cap: $27.0 billion; Price-to-sales ratio: 4.0; WSSF Rating: Average) is one of the world’s largest gold-mining companies. Newmont has major mines in the U.S., Canada, Australia, New Zealand, Peru and Ghana. It gets about 80% of its revenue from gold. The remaining …read more »

Iraq’s instability has weighed heavily on its oil exports. That’s caused many oil companies, including some Canadian oil stocks, to hold off on investing in the country.

However, the situation has presented some real bargains for foreign firms willing to take larger interests in Iraq. For example, China’s Sinopec recently paid $8 billion U.S. for Addax Petroleum, which was developing …read more »

HECLA MINING COMPANY $6.28 (New York symbol HL; SI Rating: Extra Risk) (208-769-4100; www.hecla-mining.com; Shares outstanding: 236.5 million; Market cap: $1.5 billion) explores for, mines and processes silver and gold in the U.S. and Mexico.

In 2008, the company paid Rio Tinto plc $750 million for the 70.3% stake in the Greens Creek mine in Alaska that it didn’t already own. …read more »

CAMECO CORP. $31.89 (Toronto symbol CCO; SI Rating: Extra Risk) (306-956-6200; www.cameco.com; Shares outstanding: 392.7 million; Market cap: $12.5 billion) has resumed removing water from the flooded 50%-owned Cigar Lake project. The project first flooded in 2006. The company expects that it will take six to 12 months to remove the water.

Cameco is the world’s largest uranium producer. The company …read more »

TECK RESOURCES LTD. $34 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 588.7 million; Market cap: $20.0 billion; Price-to-sales ratio: 2.3; SI Rating: Extra Risk) is a leading producer of metallurgical coal, a key ingredient in steelmaking. It also mines copper, zinc, lead, gold, silver, molybdenum and other metals.

The company continues to lower its debt following its $13.6-billion …read more »

BAFFINLAND IRON MINES $0.66 (Toronto symbol BIM; SI Rating: Start-up) (416-364-8820; www.baffinland.com; Shares outstanding: 255.3 million; Market cap: $168.5 million) continues to add to reserves through exploration at its Mary River iron-ore project on Baffin Island.

Baffinland aims to build an open-pit mine at Mary River over a four-year period. It then plans to produce 18 million tonnes of ore a …read more »

CANALASKA URANIUM $0.18 (Toronto symbol CVV; SI Rating: Start-up) (1-800-667-1870; www.canalaska.com; Shares outstanding: 137.8 million; Market cap: $24.8 million) continues to sign joint-venture partnerships to fund exploration drilling on its seventeen 100%-owned uranium properties in Saskatchewan’s Athabasca Basin region.

The company’s partners include Japan’s giant Mitsubishi Corp., Chinese mining firm East Resources Inc. and a consortium of Korean companies that …read more »

AMERIGO RESOURCES $0.79 (Toronto symbol ARG; SI Rating: Speculative) (604-681-2802; www.amerigoresources.com; Shares outstanding: 132.6 million; Market cap: $104.8 million) has jumped 173.3% since May on higher copper prices. Copper is up 49.0% during that period, to $2.98 U.S. a pound.

Amerigo processes copper and molybdenum from the waste rock, or “tailings,” from Chile’s El Teniente, the world’s largest copper mine.

In the …read more »

Higher commodity prices and an improving global economy have caused many junior-resource stocks to rebound. Here are three penny stocks that have cash to sustain themselves, whichever way commodity prices go. We think they have a better-than-average chance of long-term success.

MIRANDA GOLD $0.44 (Toronto symbol MAD; SI Rating: Start-up) (604-689-1659; www.mirandagold.com; Shares outstanding: 44.9 million; Market cap: $19.5 million) explores …read more »

TECK RESOURCES LTD. $30 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 487.1 million; Market cap: $14.6 billion; Price-to-sales ratio: 1.9; SI Rating: Extra Risk) has agreed to sell two of its gold mines in Turkey to Alamos Gold Inc. (Toronto symbol AGI). Teck owns 60% of these mines; Fronteer Development Group Inc. (Toronto symbol FRG) owns the …read more »

The price of uranium rose steadily from $7.10 U.S. a pound in December 2000 to as high as $138 U.S. a pound in June 2007.

Prices have since moved down from that speculative high, to today’s price of about $42.50 a pound. But conditions look favourable for higher long-term demand. This would push up the value of a number of …read more »

TECK RESOURCES LTD. $28 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 588.5 million; Market cap: $16.5 billion; Price-to-sales ratio: 1.6; SI Rating: Extra Risk) now gets about half of its revenue from metallurgical coal, which is used for making steel. That’s because Teck bought Fording Canadian Coal Trust for $13.6 billion last October. Fording owns six open-pit …read more »

As the market has rebounded, more investors have been asking me whether they should invest in junior mines.
My answer is that you should always first ensure that your portfolio is spread out across the five main economic sectors (Manufacturing & Industry, Resources & Commodities, the Consumer sector, Finance and Utilities). However, junior mines can play a role in the smaller …read more »

RUSSEL METALS $23.07 (Toronto symbol RUS; SI Rating: Speculative) (905-819-7777; www.russelmetals.com; Shares outstanding: 59.7 million; Market cap: $871.6 million) is one of North America’s largest metal distributors. Russel serves its roughly 18,000 customers through a network of 58 Canadian and 12 U.S. locations.

In the three months ended March 31, 2009, Russel reported a loss of $55 million, or $0.92 a …read more »

Uranium prices peaked at 1979 to $43 U.S. a pound, on fears of production shortages. Many nuclear power plants then began hoarding uranium. However, supply disruptions never materialized. As operators used up their uranium inventories in subsequent years, the price of uranium fell to as low as $7.10 U.S. a pound in December 2000. Prices moved up steadily after that, …read more »

NEW GOLD $2.18 (Toronto symbol NGD; SI Rating: Speculative) (888-315-9715; www.newgold.com; Shares outstanding: 212.8 million; Market cap: $463.9 million) has agreed to buy Western Goldfields (symbol WGI on Toronto) in a $292-million friendly takeover offer. New Gold is offering one of its shares and $0.0001 in cash for each share of Western Goldfields. New Gold will issue a total of …read more »

CAMECO CORP. $21.22 (Toronto symbol CCO; SI Rating: Extra Risk) (306-956-6200; www.cameco.com; Shares outstanding: 392.4 million; Market cap: $8.3 billion) is the world’s largest uranium producer. Its large, high-grade reserves and low-cost operations, significant market position and access to other supplies of uranium give it a strong competitive position. Cameco is also one of three commercial converters of enriched uranium …read more »

IVERNIA INC. $0.14 (Toronto symbol IVW; SI Rating: Speculative)(416-867-9298; www.ivernia.com; Shares outstanding: 180.2 million; Market cap: $25.2 million) now has government approval to resume shipments of lead ore from its Magellan mine in western Australia. Ivernia stopped shipping ore in March 2007 after it appeared that loading the ore onto its ships in the port of Esperance caused local birds …read more »

BHP BILLITON LTD. ADRs $37 (New York symbol BHP; Conservative Growth Portfolio, Resources sector; ADRs outstanding: 2.8 billion; Market cap: $103.6 billion; Price-to-sales ratio: 1.7; WSSF Rating: Average) is the world’s largest mining company. It has major operations in Australia, Chile, South Africa and the U.K. The company took its current form through the 2001 merger of Australia’s BHP Ltd. …read more »

EUROPEAN GOLDFIELDS $3.53 (Toronto symbol EGU; SI Rating: Speculative) (44 (20) 7408 9534; www.egoldfields.com; Shares outstanding: 179.4 million; Market cap: $633.2 million) holds a 95% interest in Hellas Gold.

Hellas owns three gold and base-metal deposits in northern Greece: the Stratoni zinc/ lead/silver property, the Olympias gold/zinc/lead/silver project and the Skouries copper/gold property.

Production at Stratoni started in September 2005. Permits to …read more »

CENTERRA GOLD $5.30 (Toronto symbol CG; SI Rating: Speculative) (416-204-1953; www.centerragold.com; Shares outstanding: 216.3 million; Market cap: $1.1 billion) owns 100% of the large Kumtor gold mine in Kyrgyzstan and 100% of the Boroo gold mine in Mongolia.

Centerra also holds joint-venture exploration prospects in Nevada, Turkey and Russia, and 100% of the Gatsuurt property in Mongolia. Cameco Corp. owns 53% …read more »

Gold is now at $978 U.S. an ounce, up 36% since November 2008. That’s mainly because investors fear that low interest rates and government stimulus spending will spur inflation. Gold should also continue to gain as the credit crisis makes it harder for gold companies to fund new projects and increase production.

We still think the best way to participate in …read more »

HECLA MINING COMPANY $1.77 (New York symbol HL; SI Rating: Extra Risk) (208- 769-4100; www.hecla-mining.com; Shares outstanding: 206.3 million; Market cap: $365.2 million) has sold 36.6 million shares at $2.05 each to raise $75 million. Hecla has also rescheduled all 2009 debt payments to 2010 and 2011.

Hecla’s debt (net of cash) of $117.3 million before the share issue was somewhat …read more »

NEWMONT MINING $39.99 (New York symbol NEM; Shares outstanding: 477.6 million; Market cap: $19.1 billion; SI Rating: Average) has agreed to buy the 33.3% of the new Boddington gold mine, in western Australia, that it does not already own from AngloGold Ashanti Ltd. Newmont will pay $1.1 billion.

Boddington will begin operating later this year, and will increase Newmont’s annual production …read more »

NEWMONT MINING CORP. $39 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 454.3 million; Market cap: $17.7 billion; Price to- sales ratio: 3.4; WSSF Rating: Average) is one of the world’s largest gold mining companies, with major operating gold mines in the United States, Canada, Australia, Peru, Bolivia and Ghana. Gold accounts for about 85% of Newmont’s …read more »

NORTHGATE MINERALS CORP. $1.24 (Toronto symbol NGX; SI Rating: Speculative) (604-681-4004; www.northgateminerals.ca; Shares outstanding: 255.7 million; Market cap: $317.0 million) owns and operates the Kemess South open-pit mine in north-central B.C. However, Northgate expects to exhaust the ore at Kemess South in late 2010.

To replace production from Kemess South, Northgate bought Australian gold miner Perseverance Corp. last year for $257 …read more »

HECLA MINING COMPANY $2.23 (New York symbol HL; SI Rating: Extra risk) (208-769-4100; www.hecla-mining.com; Shares outstanding: 169.5 million; Market cap: $378.0 million) explores for, mines and processes silver and gold in the U.S. and Mexico.

Earlier this year, the company paid Rio Tinto plc $750 million for the 70.3% interest in the Greens Creek mine in Alaska that it didn’t already …read more »

CANALASKA VENTURES $0.08 (Toronto symbol CVV; SI Rating: Start-up) (1-800-667-1870; www.canalaska.com; Shares outstanding: 137.7 million; Market cap: $10.3 million) holds nineteen 100%-owned uranium projects in the Athabasca Basin region of Saskatchewan. The company has added partners to help pay for exploration drilling. These partners include Japan’s giant Mitsubishi Corp. plus a consortium of Korean partners including Hanwha Corporation, Korea Electric …read more »

AMERIGO RESOURCES $0.36 (Toronto symbol ARG; SI Rating: Speculative) (604-681-2802; www.amerigoresources.com; Shares outstanding: 93.4 million; Market cap: $33.1 million) processes copper from the tailings (waste rock) from Chile’s El Teniente, the world’s largest underground copper mine.

In the three months ended September 30, 2008, Amerigo’s revenues rose 4.8%, to $29.9 million from $28.5 million a year earlier on record production. (All …read more »

BAFFINLAND IRON MINES $0.15 (Toronto symbol BIM; SI Rating: Start-up) (416-364-8820; www.baffinland.com; Shares outstanding: 233.1 million; Market cap: $35.0 million) is now looking for a major partner for its Mary River iron ore project on Baffin Island.

Baffinland still hopes to start building an open-pit mine in 2010, with completion scheduled for 2014. It then aims to produce 18 million tonnes …read more »

MIRANDA GOLD $0.23 (Toronto symbol MAD; SI Rating: Start up) (604-689-1659; www.mirandagold.com; Shares outstanding: 44.9 million; Market cap: $10.1 million) is a gold exploration company focused mostly in Nevada.

Miranda holds $12 million in cash. That’s enough for four to five years of exploration. The company also has joint ventures with Barrick Gold, Teck Corp, Piedmont Mining, White Bear Resources and …read more »

Junior resources stocks have been particularly hard hit lately, not just by falling commodity prices, but also by investor fears that they won’t be able to continue to raise financing for exploration and development.

Here are four penny stocks that all have promising prospects, as well as cash to sustain their operations. We think they have a better-than-average chance of long-term …read more »

IVERNIA INC. $0.12 (Toronto symbol IVW; SI Rating: Speculative)(416-867-9298; www.ivernia.com; Shares outstanding: 180.2 million; Market cap: $19.8 million) is still not able to sell ore from its Magellan lead mine in Western Australia. Ivernia was ordered to suspend production at the mine in April 2007, after the Port of Esperance blocked shipments due to bird fatalities from lead poisoning.

Ivernia believes …read more »

COMPTON PETROLEUM $1.25 (Toronto symbol CMT; SI Rating: Speculative) (403-237-9400; www.comptonpetroleum.com; Shares outstanding: 130 million; Market cap: $162.5 million) has dropped its plan to sell the company. In February, 2008, Compton initiated a strategic review in response to repeated requests from its largest shareholder, New York-based private equity firm Centennial Energy Partners. Centennial holds a 19.8% interest in Compton. In …read more »

TECK COMINCO LTD. $6.65 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 449.4 million; Market cap: $3.0 billion; SI Rating: Extra risk) has completed its purchase of Fording Canadian Coal Trust. Teck is now one of the world’s largest producers of metallurgical coal, a key ingredient in steelmaking.

Teck paid roughly $15 billion U.S. in cash and class B …read more »

AMERIGO RESOURCES $0.60 (Toronto symbol ARG; SI Rating: Speculative) (604-681 -2802; www.amerigoresources.com; Shares outstanding: 93.4 million; Market cap: $56.0 million) processes copper from the tailings (waste rock) from Chile’s El Teniente, the world’s largest underground copper mine.

In the three months ended June 30, 2008, Amerigo’s revenues fell 2.6%, to $31.2 million from $32 million a year earlier. (All figures except …read more »

BAFFINLAND IRON MINES $1.04 (Toronto symbol BIM; SI Rating: Start-up) (416-364- 8820; www.baffinland.com; Shares outstanding: 148.0 million; Market cap: $153.9 million) has made its first trial shipment of iron ore from its Mary River iron ore deposits on Baffin Island to Europe. The cargo will also undergo final testing of iron grades to firm up contracts already signed with European …read more »

CELTIC MINERALS $0.31 (Toronto symbol CME; SI Rating: Start-up) (403-261-2890; www.celticminerals.com; Shares outstanding: 73.8 million; Market cap: $22.9 million) has as its main asset a 100% interest in the Kingurutik property, 85 kilometers northeast of Vale Inco’s Voisey’s Bay nickel mine and property in Labrador. In addition, Celtic holds other interests in the area plus other nickel prospects in Quebec …read more »

CENTERRA GOLD $4.02 (Toronto symbol CG; SI Rating: Speculative) (416-204-1953; www.centerragold.com; Shares outstanding: 216.3 million; Market cap: $869.6 million), continues to negotiate with the government of Kyrgyzstan over the size of the government’s proposed stake in Centerra’s Kumtor mine, as well as the mine’s tax regime.

Centerra and Cameco (which owns 53% of Centerra) and the Kyrgyz government were scheduled to …read more »

EUROPEAN GOLDFIELDS $3.06 (Toronto symbol EGU; SI Rating: Speculative) (44 (20) 7408 9534; www.egoldfields.com; Shares outstanding: 179.4 million; Market cap: $548.9 million) holds a 95% interest in Hellas Gold. Hellas owns three gold and base metal deposits in Northern Greece. The deposits are the Stratoni zinc/ lead/silver property, the Olympias gold/zinc/lead/silver project and the Skouries copper/gold property.

Production started at Stratoni …read more »

NEW GOLD $4.20 (Toronto symbol NGD; SI Rating: Speculative) (888-315-9715; www.newgold.com; Shares outstanding: 212.1 million; Market cap: $891.0 million) is the result of the merger completed on June 30, 2008 of three companies: Peak Gold, symbol PIK on Toronto, Metallica Resources, symbol MR on Toronto, and New Gold, symbol NGD on Toronto.

New Gold operates three mines: the Peak gold/ copper …read more »

IAMGOLD $5.94 (Toronto symbol IMG; SI Rating: Speculative) (1-888-464-9999; www.iamgold.com; Shares outstanding: 295.6 million; Market cap: $1.8 billion) has interests in eight operating gold mines: 100% of the Mupane gold mine in Botswana, 38% of the Sadiola gold mine and 40% of the Yatela gold mine, both located in Mali, 18.9% interests in both the Tarkwa and Damang gold mines …read more »

YAMANA GOLD $9.99 (Toronto symbol YRI; SI Rating: Speculative) (416-815-0220; www.yamana.com; Shares outstanding: 699.5 million; Market cap: $7.0 billion) owns and operates seven operating mines in five countries in North and South America, along with interests in two others plus five development stage properties. It also holds extensive exploration properties.

Yamana’s revenues in the three months ended June 30, 2008 rose …read more »

Gold hit a high of $850 an ounce in 1980, then worked its way downward for 25 years. It began rising again in 2002, and rose to a record high of $1,011 in March 2008.

Gold moved down after that March high, to a recent low of $750. That, in turn, pushed gold mining stocks down. However, gold recently jumped $66 …read more »

DIAMONDS NORTH RESOURCES $0.60 (Toronto symbol DDN; SI Rating: Start-up) (1-866-802-2010; www.diamondsnorthresources.com; Shares outstanding: 74.4 million; Market cap: $44.7 million) has interests in 10 projects covering over eight million exploration acres in Nunavut and the Northwest Territories. Its prospects range from early to advanced-stage exploration.

Diamonds North’s leading prospect is its 100%- held Amuruk project in Nunavut. To date, the company …read more »

STORNOWAY DIAMOND CORP. $0.22 (Toronto symbol SWY; SI Rating: Start-up) (1-888-338-2200; www.sornowaydiamonds.com; Shares outstanding: 227.2 million; Market cap: $50.0 million) holds interests in over 14 diamond exploration properties in Canada and one in Botswana. TSE-listed Agnico-Eagle holds a 17.7% interest in the combined company. Global mining giant Rio Tinto Limited holds an 11.2% interest.

Stornoway’s projects include a 50% interest in …read more »

Here are two of the most promising early stage diamond stocks. Both have speculative appeal, but they are buys only for highly aggressive investors.

STORNOWAY DIAMOND CORP. $0.22 (Toronto symbol SWY; SI Rating: Start-up) (1-888-338-2200; www.sornowaydiamonds.com; Shares outstanding: 227.2 million; Market cap: $50.0 million) holds interests in over 14 diamond exploration properties in Canada and one in Botswana. TSE-listed Agnico-Eagle holds …read more »

“Penny” mining stocks are some of the riskiest stocks you can buy. These companies are trying to find mineral deposits that can be mined at a profit, and such finds are exceedingly rare. Because of this, it’s even more important to look for investment quality in Canadian penny stocks.

It may seem contradictory to use the terms “investment quality” and “Canadian …read more »