 Investor Info
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 |   Tue Dec 5, 2006
Gold Mining Stock Report
Publisher: Robert Bishop
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| | Bitterroot Resources (BTT.TSXV/$0.68) - While we have long been expecting The Root to gain a larger audience as drilling of uranium targets in Michigan approaches in early December, and is now finally underway, the stock has exceeded our expectations. BTT has chewed through large amounts of stock owing to a flow-through financing earlier this year, and on November 8 the company announced what looks like a well-timed $2.53 million private placement financing (which it promptly closed on November 22). Given that it was uranium uber-bull Eric Sprott of Sprott Asset Management that took down the financing, it's a pretty safe bet that he went into it with expectations of at least a double on his money.
On November 21 Bitterroot announced that 26 holes remain outstanding on its Mineral Creek gold project, and that drilling was suspended at the North Brenda copper/molybdenum target, also in British Columbia. As that program won't resume until the spring and as results have come very slowly from Mineral Creek, it would appear that no news is likely in the near-term. For some time our view has been that Bitterroot has been trading almost exclusively as a uranium stock, and the absence of news from other programs would suggest that the market is focused solely on the drilling of uranium targets in Michigan, and funded by partner Cameco (CCO/$44.19).
As no results can be expected from this program until late January/earlyl February, there is a significant window within which no bad news can enter the picture, which is another way of saying that recent speculation in BTT is also likely to continue. The chart looks good, the recent financing provides a floor-and assures that this paper is off the market until March 17-and with liquidity being good of late, early buyers should avail themselves of periods of strength and take some money off the table. I know that a number of you own BTT below $.10 (as do I), and while there appears to be no urgency to the observation, early buyers with outlandish gains and others with gains in the 200% range should put themselves beyond the point of concern. As noted, drilling in Michigan is supposed to be underway, and last Friday's pullback on light volume should set the stage for new highs in BTT before year-end. www.bitterrootresources.com. |
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