Winston’s Growth Stock Report

Your Source for High Potential Stocks

Issue 15 April 14, 2011

Catalyst Copper (CCY, TSXV) Poised for a Bounce

The 420 point 2-day drop in the TSX composite index this week dragged down the share price of hundreds of junior explorers.

Companies constructed on a foundation of surging spot prices, a proven NI 43-101 resource and aggressive drilling – are due for a solid bounce as market fundamentals rebalance.

A prime example would be Catalyst Copper whose 2011 drill program kicked off with confirmation of significant copper mineralization on the La Verde copper porphyry project in Michoacán state, Mexico.

You don’t have to be a seasoned day-trader to profit from these momentum swings.

Significant CCY drilling results include 0.45% Cu over 158.7 meters; including 0.93% Cu over 25.2 meters and 0.38% Cu over 59.7 meters.

Catalyst is planning to drill a minimum of 20,000 meters at La Verde in 2011, culminating in an updated NI43-101 resource estimate. I anticipate the further drill results from the latest 4 holes in the upcoming weeks.

Currently Catalyst is fully funded for phase one of the 2011 drilling program. Last year, the CEO John Greenslade was instrumental in raising $850 million for Baja Mining (BAJ-TSX) so it fair to say that the company has the management pedigree to entertain a variety of fundraising options.

And CCY is riding a massive demand wave that is expected to build for the next 20 years.

Metal analysts are forecasting a global 2011 copper deficit of 500,000-600,000 tonnes. “We are having a supply issue with this metal,” confirms Bart Melek, an analyst at TD Securities in Toronto.

Most of the copper demand will come from China which is in the early stages of a urbanization movement involving hundreds of millions of Chinese citizens.

Catalyst also has rail lines, electricity and (unusual for Mexico) ample 4-season water running directly through the property.

The bottom line is that Catalyst Copper appears to have a mineable deposit with NI 43-101 compliant 2.1 billion pounds of Measured and Indicated copper, and an additional Inferred Resource of 1.3 billion pounds of copper.

That makes the current stock price of .15 look like a good buy.

Hathor Exploration (HAT, TSX) New Third Zone Confirmed

Hathor Exploration has now announced the completion of their 2011 winter drill program where they have now confirmed a third mineralized zone in the Roughrider discovery area, just east of the East Zone.

Dubbed the Roughrider Far East zone, Hathor plans aggressive follow-up drill program this summer. The management is hopeful this new discovery will add significant resource potential to the already excellent Roughrider uranium deposit.

Orsu Metals (OSU, TSXV) Acquires last 26.1% of Karchiga

New record breaking gold prices aren’t helping junior gold exploration companies lately. However when good prospects are finally brought into production triple digit returns are what we expect to see.

Orsu has increased its share in the Karchiga Project by picking up the remaining 26.1% of Eildon Enterprises Ltd, the company which owns 94.75 the exploration and production rights to Karchiga through GRK MLD LLC. The all cash deal was completed for US $6,187,500. Once gold production starts up as we are speculating it will, this added controlling interest will improve the bottom line.

Here’s how Orsu breaks it down in their newsrelease: The base case scenario showed a discounted cash flow, over a mine life greater than 10 years, with a Net Present Value of approximately $138 million, after applying a discount rate of 10% per annum and assuming an initial capital cost of approximately US$100 million, and an Internal Rate of Return of 40.5% based on a flat copper price of $3.00/lb.

The decision to build a producing mine will be made once the Definitive Feasibility Study is completed in Q3. Obviously, OSU management is feeling confident of a positive decision.

On another positive note, Orsu has received permission from the Ministry of Industry and New Technologies of the Republic of Kazakhstan to commence mineral extraction for copper at the Karchiga Project.

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.

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. Bottom Fishing March 17/11 @ $1.70

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 free shares

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

Prima Colombia Hardwood (PCT, TSXV) Introduced March 7 @ 0.285 accumulating

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 @ $12.6; Revised buyout price February 14/11 @ 13.06

Wildcat Silver (WS, TSXV) Entered July 10th, 2009 0.485 holding; Sell Alert February 14/11, Feb 15 close 88 cents. Holding Free shares