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April 2009 I would like to thank everyone that is taking the time to give my newsletter a read. If you have comments on what you would like to see for content and or other suggestions to make this newsletter more interesting let me know. I personally think this is a very unique way to ensure that we are keeping our shareholders informed. I will continue to report on the progress of the Lucky Ship project, company activities on other projects and possible things to look for in the future. I will discuss the benefits of share ownership in the junior resource mining sector. I will also try and provide articles on the pricing of commodities and global trends that affect the industry and mining in general. I will cover some of the processes used in the discovery and mining of an economic deposit. Opinions expressed in this newsletter are expressly those of the writer and should not be construed as financial advice.
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"Most Frequently Asked Question"
When do you expect to sign your Joint- Venture agreement with your Korean partners ???
“Nanika Announces Signing of Joint Venture Agreement”
Nanika Resources Inc. is pleased to announce that it has signed a Joint Venture Agreement with Palm Clean Energy Inc. and Daewon Chemical Co. Ltd. of South Korea.
The new joint venture company formed by these partners will hold the continued exploration, development and mining right to the "Lucky Ship" molybdenum project located at the "Nanika Ridge" site approximately 85 kilometres southwest of the town of Houston, British Columbia.
This was the news we have all been waiting for. It has been a long road for our shareholders in the reaching of the agreement and I think it says a lot about the quality of the Lucky Ship project in these commodity depressed times.
To read the entire news release Click here
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Watch for the Upcoming Issue of the Northern Miner Special Edition of Mining in Canada! The Lucky Ship Project is Featured!
Also Read the Northern Miner Electronic Article Recently Published
Jim Jacuta president of Nanika Resources provides an interview to the Northern Miner. This will give you an overview as to what to expect in the upcoming months!! Some of my shareholders have said that I should explain about adding value to the Lucky Ship project. The Lucky Deposit has already been defined and the only question that needs to be addressed is whether or not it is viable to mine. Going forward as a shareholder you can expect to see the finishing of the various environmental and scoping studies and the commencement of a prefeasibility study. If the prefeasibility study is favourable the company will move forward with a bankable feasibility study. This allows our partners to approach various financial institutions to raise the senior financing needed to put the Lucky Ship deposit into production. Other issues such as first nations and permitting will also be addressed during this period. The thing to remember here is that if the Lucky Ship project does move forward to production the company will have a cash flow source to explore other projects without having to issue equity to fund these programs.
To view the interview click here
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The 2nd Most Frequently Asked Question
What other plans does Nanika Resources have for 2009 ???
As you are probably aware the Company has several other promising projects in the property portfolio. One project that is being given consideration is the Indi gold claims located 24 kilometres north of Stewart, British Columbia in the Skeena Mining Division. The project covers approximately 1,500 hectares and has a NI43-101 compliant indicated and inferred mineral resource of 45,620 ounces of gold using a..25 g/t cutoff. Due to recent encouraging results on the adjacent Silver Coin property being operated by Pinnacle Mines that included an intersection of 54.87 metres grading 4.45 g/t gold the Company feels that a summer work program should be considered.
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Craig Nelsen, President and CEO of Vancouver-based Avanti Mining Comments on Molybdenum Price Recovery
Concerning the outlook for a molybdenum recovery, Nelson had this to say: “We’re not looking at much price appreciation [of molybdenum] until the third quarter of this year as the stimulus programs being put into place worldwide, including China, kick in. When these [economic stimulus initiatives] kick in I think we’ll see a bit of a whiplash in the moly market because most moly is being consumed out of stocks. Curtailing of new projects and cutbacks of existing production – it takes a while to wind that stuff back up.” He added, “. It took the big drop for this to happen – a number of traders got off side and had to put it through the processing stream. These traders knew the molybdenum price was getting soft and they had to get out of their positions at any price in November-December. That has all cleared through the trading system now and we’re in a period of de-stocking with the steel producers as their demand is down and they are consuming stocks in their yard right now.
I personally found this article very interesting as Mr. Nelson talks about how the Molybdenum traders got caught off side and had to flatten their positions causing such a quick and drastic price drop in Molybdenum. As I talked about in my previous news letter Molybdenum is being considered for trading on the LME exchange which would limit this kind of short term volatility.
To read the entire article click here
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Douglas Horn Commodity Analyst for CPM also Comments on the Molybdenum Price Recovery.
There is a large amount of government infrastructure spending coming online," he said at a conference organized by the London Metal Exchange (LME) and Metal-Pages.
"Our estimates indicate that over $700 billion will be poured into the market on the infrastructure side."
That is a lot of steel which bodes well for the longer term price of Molybdenum !!!!
To read the entire article click here
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Are Commodities Prices Improving?
In my previous news letter I discussed how the commodities market is based on supply and demand. When there is an economic slowdown there is a buildup of warehouse stocks of base metals. As Molybdenum does not trade as on London Metals Exchange yet we will compare the LME warehouse stocks of copper.
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| As you can see in this graph warehouse stocks have recently found equilibrium in supply and demand. When the credit and housing crisis was at its peak at the end of December the warehouse stocks were increasing dramatically and the price of copper was in literal freefall Copper is a bell weather commodity as it is used in the building of new homes and commercial projects making it a good economic indicator. Now that the large producers of base metals have either reduced or suspended production of their less profitable mining operations and demand has started to increase we are starting to see the price of copper appreciate. The price for spot copper has now moved from a low at the end of December of $ 1.30/b to a price today of 2.10/lb. It is often a good time to be looking at making an investment in a base metal producer or developer when the LME warehouse stocks are remaining stable or declining. |
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We have a Fan!
Victor Goncalves publisher of the Equities and Economic Report has written a recommendation on Nanika Resources Inc. Mr. Goncalves will be speaking at the upcoming SaskRocks Cambridge conference being held in Saskatoon on May 9th. In this piece I have only taken the excerpts for Nanika Resources. There were 10 different companies covered in this report that was just recently brought to my attention.
To read the recommendation click here |
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I hope that you have found this news letter informative.
Any comments would be appreciated and will we ensure that we continue to try and
keep you abreast of any changes that will affect your investment in Nanika Resources Inc.
Contact: Doug Kerr Toll Free: 1-866-580-0699
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| Head Office: |
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Nanika Resources Inc.
Suite 670
789 West Pender St
Vancouver, BC,
Canada, V6C 1H2
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Chairman, President & CEO: |
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James Jacuta |
| Phone: |
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(604) 638-0699
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Secretary & CFO: |
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Chantelle Vriend |
| Fax: |
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(604) 638-0698 |
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Board Members: |
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James Jacuta
Ross Blusson
Conrad Swanson
Howard Bird
John Busswood
William Meyer
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| Email: |
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info@nanikaresources.com |
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Investor Relations: |
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Doug Kerr
(604) 638-0699
1(866) 580-0699 |
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