Are There Any Great, New Mining Stocks Left?

StockInterview: Let's get the algid spots out of the way so investors are forewarned about which countries to avoid. Lawrence Roulston: A lot of the (mining) companies that went across in decades aback are acquainted the political difficulties with ambidextrous in some jurisdictions. These cover places like Indonesia, Columbia, and several of the African countries, such as Congo, Sudan and Eritrea. All of those places breadth there are abundant geological prospects, but are added and added chancy to accord in. I anticipate some of that mining is advancing aback afterpiece to home, which is appropriate actuality in Canada. StockInterview: So Canada is on your "favorite countries" list? Lawrence Roulston: At the actual top of the annual would be Canada. As of appropriate now, demography into annual the geological potential, political situation, basement and all the added issues, I would (highly) bulk Canada and British Columbia. They accept had decades of work. But for the endure decade, there hasn't been actual abundant traveling on. The companies are just advancing aback and acrimonious up with what's been traveling on. Similarly, Ontario, Quebec - amazing geological abeyant - and it's been affectionate of abandoned for a continued time. Canada is now the a lot of important abode in the apple for diamonds, apery 50 percent on analysis spending for diamonds. StockInterview: Is there a specific mineral or metal that makes Canada abnormally appealing? Lawrence Roulston: It's the accomplished gambit. Canada has consistently been one of the top metal producers, and it's advancing aback to life. Of course, gold is at the top of the list, but aswell abject metals and uranium. The Athabasca Basin in arctic Saskatchewan is far and abroad the a lot of important breadth to be searching at, geologically. It's currently the bigger antecedent of uranium and contains the accomplished brand deposit. There are added uranium -to-be areas in Canada that are just emerging. The Thelon Basin in the Northwest Territories, arctic of the Athabasca Basin, is actual similar, geologically, to the Athabasca Basin. It had some plan done in the 1970s, and it's been appealing abundant abandoned until actual recently. Traveling a little added arctic to Hornby Basin, it is a agnate affectionate of situation. In Labrador, the axial mineral belt is just arising as a actual important abode to be searching for uranium. StockInterview: Do you accept any admired companies, which you are afterward and which accept acceptable prospects? Lawrence Roulston: NovaGold Resources (TSX: NG; Amex: NG), for example, with the Galore Creek. It's a billion ton drop with astronomic metal content. (Editor's Note: Galore Creek has been alleged one of the bigger and accomplished brand abortive porphyry-related gold-silver-copper deposits in Arctic America.) StockInterview: What is addition of your admired areas, which has gone abundantly undetected during this balderdash market? Lawrence Roulston: Nevada would be at the top of the annual of anywhere in the apple to be alive and Alaska appropriate abaft it. There is huge abeyant in Alaska. Mining companies accept alone aching the apparent of analysis up there. Two of the bigger metal deposits in the apple are in Alaska. These are both discoveries traveling aback decades, but plan over the endure brace of years has brought them to the point breadth they're now accustomed as a allotment of the bigger metal deposits in the world: Donlin Creek, a 25-plus actor ounce gold deposit, and the Pebble deposit, captivated by Arctic Dynasty (TSX: NDM). The Pebble drop is decidedly beyond than, and of commensurable brand to, Ivanhoe's (NYSE: IVN) Oyu Tolgoi (copper-gold) drop in Mongolia. (Editor's Note: The Donlin Creek activity is a collective adventure amid NovaGold and Barrick Gold.) StockInterview: Anywhere abroad in the apple breadth you can acquisition a great, but still "new" ability investment opportunity, in ablaze of how harder the bolt balderdash has been stampeding the accomplished few years? Lawrence Roulston: Often the bigger bulk to be had, or the bigger opportunity, is in accepting a little bit out of footfall with the crowd. One of the areas alms some outstanding opportunities is China. China has done a amazing bulk of geological work, over the endure few decades, but all from the angle of finding, and again bound developing, baby deposits. There has been actual little accomplishment adherent to demography a bigger annual blazon attending at China. The companies that accept been able to yield a affectionate of bigger annual attending at China accept amorphous to advance what I anticipate are traveling to be some appealing amazing after-effects over time. StockInterview: Isn't it tough, though, accomplishing business in China? Lawrence Roulston: There is still a acumen out there that China is a difficult abode to do business. A lot of humans from the west airing into China algid and try to do a deal. It would be absurd for them. But, for western companies that are able to aggregation up with groups that are able-bodied accustomed aural China - so that they're able to acquisition their way through the arrangement over there - again there are outstanding opportunities. There are mountains of geological advice - all in Chinese, of course. You've got to be able to plan aural that arrangement and get the information, apperceive how to put the deals together.LED Head Mounted Lights StockInterview: What do you beggarly by "knowing how to put the deals together?" Lawrence Roulston: If I was to go over to China and try to do a accord to get admission to a coalbed methane property, I wouldn't accept a clue about how to begin. On the added hand, I could airing into the Petroleum Club in Calgary, and accommodated a bisected dozen guys and allocution to them. I could body on my leads, and apparently in a day be talking about a deal. When you go into China, unless you accept somebody on your aggregation that can get into the arrangement and accord with the people, because of accent issues, cultural issues and just accepting admission to the advice and alive what array of agreement that they ability be searching for... It's a altered ability from every perspective, and not the atomic of which is a altered way of accomplishing business. StockInterview: In your April issue, you recommended one company, which overcame those hurdles, meets your belief and already has a coalbed methane accord in China. Lawrence Roulston: Pacific Asia China Energy (TSX: PCE) accustomed admission in China. They can draw on their contacts and their network. They can get into see the appropriate people, breadth they can in fact allocution actively about accomplishing deals, and accept an astronomic leg up over somebody that absolved in algid and approved to authorize and body contacts and put a accord together. I anticipate it is an actually outstanding befalling that they've bedeviled on. StockInterview: There are abounding coalbed methane opportunities in Alberta. Why attending to China? Lawrence Roulston: One of the things that makes China absorbing is the admission bulk to get into a coalbed methane (CBM) play in China is adequately modest. For example, to go to Alberta, or anywhere in the United States, and get admission to the analysis rights, or corruption rights, is awfully expensive. In China, they absolved in and, for a adequately bashful up-front commitment, acquired a ascendancy position in a CBM prospect. StockInterview: How does Pacific Asia China Energy's coalbed methane acreage in Guizhou, China bulk adjoin added coalbed methane plays? Lawrence Roulston: I anticipate it's an outstanding opportunity. Chinese government agencies accept done an astronomic bulk of plan at delineating the coal. To be able to footfall into that bulk of abstracts as a starting point to body up their CBM resource? The basal band is that they're not out there searching for coal. They apperceive absolutely breadth the actual is, and they're able to bound alpha defining the issues like recoverability. They're conduct in adjustment to authorize the basal concrete ambit of the breeze ante and the agreeable aural the coal. I anticipate the companies which are able to finer accomplishment the CBM technology in China are traveling to be the antecedents in that area. StockInterview: To Americans, any business in China ability arise to be "pioneering," back a lot of of still anticipate of China as a third apple country. Lawrence Roulston: I've been to China abounding times and I've been to locations of China breadth a lot of people, as tourists, would never get anywhere near, because I go there to attending at mineral analysis projects and mining projects. I've been to every bend of the country as able-bodied as the above cities. What I see accident everywhere I go is a clip of development that I've never apparent anywhere abroad in my life, anywhere in the world. That is, 1.3 billion humans are traveling from a basically rural farm-based abridgement to a avant-garde automated abridgement at a clip that has just never afore been conceived. StockInterview: How do you quantify that? Lawrence Roulston: This is a amount that a lot of humans will not get, and you will not get until you've been over there and accept apparent it. There are 300 actor humans in China that are already able-bodied into the average class. By average class, I am comparing (the Chinese average class) to the aforementioned complete standards as we would administer in Canada or the United States in agreement of dollars in your coffer account, bulk of your abode and your car, and aggregate else. There are 300 actor humans that accept already accomplished that status, which is added than the humans at that cachet in Arctic America. There are addition 1 billion humans who are busting their butts to get to that level. StockInterview: But isn't the blow of the world's rural citizenry just as active and ambitious? Lawrence Roulston: I've been in Africa, the Average East, Asia and Latin America. If you go into any of those areas and you airing into the baby towns, a lot of humans are sitting about bubbler coffee, arrant the dejection and accusatory about how abhorrent activity is. Go into a agnate breadth in China, and the humans are out alive in the fields. In the average of winter, they're acclimation up their fences, the dams and terraces, and allowance rocks, removing copse and being like that. It's a top akin of industry I've never apparent in any added allotment of the world. So it goes from that arena akin appropriate up to the entrepreneurs, and the guys who are architecture the top acceleration abode complexes in Shanghai. StockInterview: How continued will it yield afore American investors apprehend the appulse China has on the all-around economy? Lawrence Roulston: It's traveling to appear in a bit-by-bit way. I anticipate those that accumulate their active active in the beach are traveling to get larboard abaft as the apple pulls ahead. I would advance any broker in any aggregation ask the catechism of the company: "Is that aggregation complex in some way in China?" There are a lot of Arctic American companies that accept a actual cogent attendance in China in agreement of accomplishing business over there, of accepting established, of affairs articles or accomplishment articles in China. StockInterview: Why is China so important with commendations to this bolt balderdash market, and are there still opportunities for investors? Lawrence Roulston: There is a lot of geological potential, and there is the acumen that it's difficult. Therefore, there isn't yet a big army of humans over there block afterwards deals. The cast ancillary of it is that China and its neighbors in southeast Asia, apery 3 billion people, are traveling through the avant-garde industrialization process. That is traveling to abide to actualize a massive appeal for metals for, I believe, a decade or apparently even a brace of decades into the future.Hunting Lights Sale StockInterview: And a lot of likely, the U.S. broker is traveling to be larboard abaft or the endure one into the pond? Lawrence Roulston: The basal band is that Americans tend to be added entering focused. The added black I was accepting banquet with an oil man from Texas who had spent a lot of time in China. He had apparent China aboriginal duke and was actual bullish. I asked him, "How abounding of your countrymen do you anticipate absolutely get it about China?" And he responded, "Oh, about five." Again he said, "Congress doesn't get it, investors don't get it and the man in the artery doesn't get it." Americans just don't accept what's accident over there yet.