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By Steven Halpern, TheStockAdvisors.com |
Jan 04, 2010 |
 "Continental Minerals (Other OTC: KMKCF), my top pick for 2010, holds high-grade copper and gold deposits located in Tibet/China," says Tom Bishop in BI Research.
"The company has proven up 220 million tons of measured and indicated reserves in its high grade-porphyry copper-gold Xietongmen deposit grading 0.43% copper and 3.9 grams of gold per ton. This translates into 2 billion pounds of copper and 4.3 million ounces of gold. "A feasibility study has been completed and the project has received all 16 sub-approvals and is now in for final approval. "In addition the company’s Newtongmen deposit, a couple thousand feet away and drilled off more recently, sports another 2.8 billion tons of copper and 2.3 million ounces of gold and 11 million ounces of silver. "I think signs are abundant that Continental is a takeover target, hopefully in the $3 range: "For one, the Hunter Dickinson Group, under whose wing the company was formed and nurtured has a long history of buying up unseasoned prospects, financing them, proving them up and then selling them to a major mining company. "Second, no project makes more sense to go this route given it’s far away in China than this project. "As an example, we note that a few months ago, the same day Pepsi Bottling company rejected PepsiCo’s takeover offer and concurrently announced a shareholder rights plan to protect itself in the event of a takeover. "That takeover has since happened at a better price. Continental coincidentally announced a similar plan. That’s what first made the light bulb come on here. "Then a new party suddenly entered the picture when a Chinese mining company, Zinjin, suddenly purchased 21 million shares and was given a seat on the board. Then I even read that this company had stated that it intended to acquire Continental. "Also China’s shopping trip for resources all around the globe is well documented and none makes more sense than one owned by a Canadian company right within China’s borders. "Finally the CEO of Continental was redeployed to be the CEO of the latest company birthed by the Hunter Dickinson Group (Heatherdale Resources, also worth a look)… hmmm, odd timing. They say they don’t ring a bell, but I sure hear something."
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