Winston’s Growth Stock Report

Your Source for High Potential Resource Stocks

Issue 6, February 11, 2011

Encanto Potash (EPO, TSXV) Have you taken profits?

Earlier this week the Financial Post’s Peter Koven described the junior potash market as being in a “frenzy.”

Koven says the big uptick we’ve seen with some of the junior explorers has to do with the rising crop and fertilizer prices. He is partially correct.

The real reason prices are flying high with the juniors is because speculators want to cash in on the next junior potash buyout sweepstakes. The winners will be those shareholders who own the junior exploration company whose property is deemed by the blue chip mining giants as having the most profitable resources.

With potash mine construction costs in the billion dollar range the list of prospective blue chip buyers will be short and they will be very picky one what property they decide to develop.

Based on the market frenzy this week, speculators are betting heavily that Allan Potash Corp (AAA, TSXV) could be on the short list of the most prospective potash properties to select from.

Allana Potash is focusing on the exploration and development of a previously explored Dallol potash property in the Danakil Depression, Ethiopia. The Danakil depression had small-scale potash production in the 1920's and was extensively explored in the 1960's with nearly 300 potash drill holes. The Company is claiming to have 105,200,000 tonnes of resources representing a composite grade of 20.08% KCL.

Allana has a very healthy $250 million market cap though the chart says the stock is about to take a correction which has already started.

Right now Encanto has a market cap of just over $130 million and is correcting after hitting 65 briefly earlier this week.

With our position more than doubling this week, I’m hoping all of you sold enough shares to at least cover your costs. We should all be holding FREE shares now.

My point of bringing Allana Potash to your attention is to point out that Encanto isn’t the only junior hoping for a sugar daddy to buy them out. Since many of you are sitting on some fat profits, don’t hesitate in taking more than your investment dollars off the table.

I had a high degree of confidence that Potash One would be the number one buyout pick back in 2008 and that came true last fall.

With Encanto, all I can say is that they have a good chance, not an excellent chance. We’ll know more when they give us a resource update.

Orsu Metals (OSU, TSXV) 2010 infill Drilling Results

As part of an ongoing Definitive Feasibility Study, Orsu conducted an infill drilling program on a section of the Karchiga Deposit called the North East lode. The purpose was to upgrade the inferred resources to the indicated category.

Earlier work had suggested that mineralization in the North East lode was located within three shallow dipping zones. Now there is evidence that these lenses are in fact a single lode with a strike length of about 1 km.

This new data will be incorporated in an updated NI 43-101 resource estimate which will be completed in Q1 2011. Also in Q1 Orsu plans to deliver the results of comprehensive metallurgical study. In turn the results of these studies will be included in the finalized Definitive Feasibility Study which is expected to be completed by Q4 of 2011.

Orsu is continuing to make positive headway and with each positive news release the stock price is slowly building and consolidating. Last summer this stock was a steal at 17 cents but it’s still a fair price for new investors at 32 cents.

Early in 2012 the decision to build a mine will be made. Financing and off take options will be reviewed. If all goes as we hope, production will start in 2013. That’s when will see the big pay off. Possibly a 10 bagger.

Donner Metals (DON, TSXV) PD1 Deposit Moves to Feasibility

Donner also had some news this week. The PD1 deposit which I mentioned in my recent Donner update as being a potential open pit deposit, is going to be given a feasibility study by Xstrata. They say in the news release that PD1 could supplement production from the Bracemac-McLeod deposit between 2013 and 2016. The feasibility study is expected to be completed by yearend.

Regardless, we all know the deposits are good. The question remains, how is Donner going to come up with the $15 million needed for their earn in with Xstrata by May 31? And what about the $1 million per month payments needed until construction starts?

We should find out soon enough.

Stock List

AQM Copper (Apoquindo) (AQM) April 24, 2009 54 cents; holding Dec 9/10 sell $1.02 hold Free shares.

Catalyst Copper (CCY) Entered Jan 6/10 25 cents; accumulating

Donner (DON, TSXV) Dec 4/09 heads up alert 0.15 cents, Jan 17/10 doubles holding free shares

Edgewater Exploration (EDW, TSXV) Entered June 28/10 90 cents accumulating

Encanto Potash (EPO, TSXV) Entered July 31, 2009 .027 holding; Feb 11 2011 doubles Take Profits, holding free shares.

Endeavour Mining (EDV, TSX) Entered Feb 4/10 $1.73; Profits taken Ap 9@ $2.42 Holding Free Shares

Grand Colombia Gold Corp (GCM, TSX) accumulating Dec 3/10 $2.24

Hathor (HAT, TSXV) Top Uranium Pick Entered March 28, 2006 $1.32; Ap 21/08 sold $2.64, Oct 21/10 sold $2.33 holding free shares

Nevsun (NSU, TSX) Feb 4/10 Buy Alert 2.19, profits Oct 20/10 $5.39 holding free shares

New Gold (NGD, TSXV) Dec 29/08 Best Speculative Pick $1.76; June 11/10 doubles holding free shares

Orsu Metals (OSU, TSXV) Bottom Fishing Pick July 23/10 @16 cents, Sell Oct 3 @32 cents and holding

Petroamerica (PTA, TSXV) Nov 6, 2009 Speculative at 70 cents, Jan 8 new pick accumulate slowly 71 cents; Oct 16/10 buy @0. 405 cents; accumulating

Petromanas (PMI, TSXV) Feb 24/10 30 cents. Profits taken Apr 9/10 @ 72 cents; holding free shares; May 2/10 re-accumulating at 33 cents

Potash One (KCL, TSX) Top Potash Pick Entered May 14, 2008@ $3.19 holding Nov 22/10 buyout announced at $4.50 per share

Uracan (URC, TSXV) Speculative Uranium Pick Apr 30, 2010 Alert 18 cents; holding

Ventana Gold (VEN, TSXV) Entered Mar 18/09 $1.33, holding free shares. Buyout bid Nov 17/10 @ $12.63

Wildcat Silver (WS, TSXV) Entered July 10th, 2009 0.485 holding