JMP Daily Drill Bits for November 4, 2016: $CLZ $OPW $ION

Canasil Resources (CLZ, $0.275 +14.6% Vol: 1,104,000)
Shares Outstanding: 101,897,372
One can easily consider Canasil as the “senior of juniors” in the silver exploration space.  With a robust portfolio of silver projects in richly endowed areas of Mexico, CLZ has over the years managed to attract joint venture partners such as MAG Silver (MAG, $1.6 billion market cap) and Orex (REX, $50 million market cap).  Shareholders have enjoyed an incredible ride this year, up from 0.035 in January to a high of 0.72 in September.  CLZ has since dropped sharply, hitting 0.225 before resuming it’s bounce today.  Orex released a maiden inferred resource summary on the Sandra-Escobar project, with 33.3 million oz silver at a base case cutoff of 45g/t (9.8 million tonnes @ 110 g/t Ag).  While investors shrugged off the initial estimate, it’s important to note this is one target of one project in a portfolio of seven.

Opawica Exploration (OPW, $0.09 +20% Vol: 1,197,000)
Shares Outstanding: 22,035,498
Opawica is back in action after years of inactivity.  In February 2016 the company optioned 100% of the Bazooka claims located near Rouyn-Noranda, Northern Quebec.  This was followed up with a 4:1 share consolidation (March 2016), a $600,000 financing of 12M shares @ 0.05 (July 2016), and an additional acquisition of land adjacent to Bazooka (Aug 2016).  On October 27th Opawica announced the preparation of a drill program on Bazooka, “where past drilling has intersected world-class gold intercepts.”  The project is located in the vicinity of Yorbeau Resources (YRB) Rouyn project, which Kinross just optioned in a $12 million exploration deal.

Alset Energy (ION, $0.15 +25% Vol: 2,261,300)
Shares Outstanding: 41,164,831
We first mentioned Alset on our JMP Radar (October 20th @ 0.09).  Shares in ION have been recovering lost ground since the company’s shakeup following news on October 3rd.  At the time it was discovered that Alset’s promising lithium claims in Zacatecas, Mexico had maintenance costs that were prohibitive to the company.  On the news, the company’s acclaimed president Mr. Timothy Oliver resigned, after having stated “Stephen and his team have done a tremendous job acquiring very attractive assets in Alset thus far, and I look forward to strategically advancing these prospects towards development in the future.”  Turns out he jumped ship too soon, as Stephen Stares, upon resuming presidential role, managed to chop the claims into smaller parts, reducing annual costs from  $1.8 million to a much more manageable $400,000.  Investors are finding their way back into the emerging opportunity, with the stock regaining some ground from the 0.25 perch it fell off of before the October 3rd news.