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NOTE:Excerpt is word for word as issued in INVESTOR's DIGEST of CANADA,p.734-735,,a national paper like that of BARRON's in the US
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Editor John Kaiser introduces "a very tiny junior" called Western Troy Capital Resources Inc (WRY-TSX/Ven, $0.28), which discovered a copper-molybdenum deposit during the late '80s at Macleod Lake in central Quebec. Considering how CHEAP this stock is, the market obviously thinks Macleod lake continues to be worthless, says Mr. Kaiser. "I beg to differ, which is why I'm recommending Western Troy as a top-priority, bottom fish BUY in the $0.30 to $0.49 per share range. That is a little above the 0.20 to $0.29 a share the stock has drifted around during the past couple of months. But in BIG-picture terms, the stock is CHEAP all the way to $0.75." Western Troy is positioned to benefit from the long awaited "MOLYMANIA." At current prices for molybdenum, only a few world-class deposits remain economic- the rest die on the grapevine as molybdenum byproduct production from from copper mines flood the market. These concerns cautioned speculators from getting caught up in MolyMania. The tide changed on Sept 1, 2006, when Blue Pearl Mining Ltd. announced a deal to purchase Thompson Creek Metals Co. for US$575 million. The Blue Pearl transaction represents a major bet in favour of molybdenum. So far, the implicationsof this aquisition have not yet washed into the other molybdenum juniors. "The possibility that Blue Pearl will emerge as an aggregator of molybdenum deposits that do not face hopeless permitting obstacles could give the market the will to bankroll the advancement of molybdenum deposits owned by jumiors. Blue Pearl will be the IMPETUS that kicks MOLYMANIA into gear." Western Troy is an overlooked junior, which controls 100 per cent of the Macleod Lake project. This site hosts a copper-molybdenum deposit and minor gold and silver credits. The deposit was discovered by Western Troy's predecessor between 1988 and 1992, but since then has received only intermittent exploration until 2005, when HIGH molybdenum prices encouraged management to revisit the project. Western Troy has about $1 million in working capital left, and expects to receive about $500,000 in exploration rebates from the Quebec government over the next 12 months. As such, the company is in decent financial shape. But liquidity is poor at current prices, which is why Mr. Kaiser has recommended the $0.30-$0.49 as the bottom -fish accumulation range. "My interpretation is that Western Troy is currently suffering from investor indigestion," Mr. Kaiser cites a number of reasons why MacLeod Lake has legitimate development potential. If you take today's METAL prices seriously, the ultimate project value of MacLeod Lake would come in at the $100 to $200 million range, or roughly five to 10 per cent of its IN-SITU metal value. So, even at $0.75 a share, Western Troy has potential to increase 10 or 20 times in price, subject to adjustment for dilution related to advancing the project through the exploration cycle.
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